SELLING YOUR PROPERTY IN MEXICO?

When it comes to selling property in Mexico, you should be prepared for various expenses, taxes, and legal obligations, such as real estate agent commissions, notary public fees, and capital gains tax.

Key Costs Involved

• Real Estate Agent Fees: If you opt to work with a real estate agent, be ready to pay a commission based on the sale price.
• Notary Public Fees: A notary public plays a crucial role in property transactions in Mexico. Their fees usually range from 1.5% to 2% of the property’s sale price. The notary ensures that all necessary documents are accurately completed and filed.
• Capital Gains Tax (Impuesto Sobre la Renta): This tax applies to the profit gained from selling the property. The rate can vary from 0% to 35%, depending on your residency status and whether the property served as your primary residence.

Legal Considerations

• Documentation: Make sure all essential documents are prepared, including the title deed, proof of ownership, and relevant tax paperwork. If the property is held in a bank trust (Fideicomiso), be ready for additional fees related to the trust’s cancellation.
• Tax Residency: Your tax residency status can greatly influence your capital gains tax obligation. Foreigners without a Mexican tax ID (RFC) might face higher tax rates. Securing residency can offer advantages, including potential exemptions from capital gains tax.

Tips for a Successful Sale

• Hire Professionals: It is advisable to engage a reputable real estate agent, such as a Century 21 Horizon agent, along with a knowledgeable notary public to navigate the complexities of your sale. Their expertise will help ensure a smooth transaction and compliance with local regulations.
• Understand the Market: Investigate the local real estate market to establish a competitive price for your property. Familiarity with market trends can help you attract potential buyers more effectively.
• Prepare for Negotiations: Be prepared to negotiate with potential buyers. Having a clear understanding of your minimum acceptable price and being open to flexibility can facilitate a successful sale.

Selling property in Mexico may involve navigating various costs and legal requirements, but with proper preparation and professional guidance, you can achieve a successful transaction.

Utilizing Century 21 Horizon for the sale of your property—be it a home, raw land, business, or extensive portfolio—offers significant advantages:

• Superior Worldwide Marketing Power: Benefit from a range of platforms including MLS, and the Century 21 Global marketing system.
• Unmatched Marketing Channels and Techniques: Utilize cutting-edge marketing technologies.
• Experienced Sales Staff: Our skilled team has many years of experience, including expertise in business development, large-scale projects, and construction.
• Advanced 3D Scanning Technology: Showcase your property with the first 3D scanning technology of its kind in the San Felipe region.
• Third-party Escrow Services: Ensure the protection of everyone involved in the transaction.
• Dedicated Staff: Our team works every day of the year, promptly addressing inquiries without delays.
• Bilingual staff: English, and Spanish languages supported.

Contact our Sales team today and Discover Your Next Horizon when we sell your home.