A question that many expats who own real estate in Mexico will be wondering about is the exemption from capital gains taxes when selling a property and how the new immigration laws affect this exemption.
The capital gains tax and its exemption
Very briefly, if an expat sells a property in Mexico and the government deems that they are selling this property at a significant profit, they will pay approximately a 28% percent tax on the profit.
Under the old immigration laws, foreigners would be exempt from this status if they held the FM2 document, which was the second stage, following the FM3.
Under the new immigration laws this exemption still can be granted if the seller holds a Temporary or Permanent Resident document.
However, you should know that the Mexican tax law is updated every year, usually in January, so changes can be expected. Please make sure to ask your lawyer or notary public for clarification about this topic.
Learn more about the Capital Gains Tax in my next article..