Property Taxes Now Due July 31, 2020

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Due to COVID-19 the deadline for paying your Mexican property taxes, called Predial, has been extended to July 31, 2020.  So, you have until the end of this week to get them paid.

  Don’t worry, I will explain below how you can get that done online.  Many property owners need to use this online payment method this year.

Here in Mexico, no one sends you a bill or even a reminder that it is time to pay your yearly taxes. Therefore, it is very important that you set yourself a reminder to pay them each year. It is best to pay them in January or February as you will get a discount for paying early.

How can I pay my Property Taxes in Mexico?

SAT is the taxation department in Mexico, it stands for Servicio de Administracion Tributaria, and they are responsible to collect all Federal Taxes in Mexico. The office to pay Property Taxes is in the Ayuntamiento, which is on Avenida Mexico where it intersects with Calle Politecnico Nacional, and it is a big red brick building.  This is also where you will go to pick up the tax receipt if you pay online.

Unlike many other companies in Mexico, that state you can pay online, but their system never works, the online payment for Property Taxes is very good and it has always worked for us. We make payments for many of our clients, and it has always been an easy process to pay our client’s Property Taxes online. If you do pay them online, you do still need to go to City Hall (Ayuntamiento) to pick up the original tax receipt.  This receipt is very important, as it is the only legally acceptable document for proof of tax payment, if and when you go to sell your property. So, make a point of going to City Hall to pick it up, or have your property manager, accountant, or attorney take care of that for you.

Always make sure before paying that the Property Tax Number (Cuenta Predial) and the Cadastral Number match the one on your Title (Escritura), and that the address is correct.

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The link to pay your Property Taxes online is:

https://enlinea.puertovallarta.gob.mx/PredialEnLinea/Default.aspx

What Happens if I don’t pay, or have not paid my Property Taxes?

You do not need to worry if you have not paid your Property Taxes, as in any country in the world, all the government wants is what is owed to them. Interest and penalties will be applied, but they are generally low, and they get applied to the amount owed. We of course advise that you bring your account up to date as soon as possible in order to pay the least amount possible, as interest will continue to accrue. If and when you go sell your property, you will need to have your Property Taxes up to date in order to be able to sell.

In the case that you owe for many years, it is a good idea to hire a representative to try to reduce the penalties and interest that has accrued over the years. We at Exclusive Realtors have helped several clients with properties that for one reason or another had not paid property taxes for years. You can also use an accountant or an attorney to help you mediate with the taxation office to reduce the interest and penalties.

How high are property taxes in Mexico?

If you own a property in Mexico, or you are in the process of purchasing a property in Mexico, remember that you have to pay property taxes, just as you would in any other country in the World.  The great benefit if you come from the United States, Canada or Europe, is that property taxes are a lot lower in Mexico than “back home.”  For example, our personal property taxes are about 10% of what they were in Florida.

One of the big considerations when buying a home, a second home, or vacation property in one of the aforementioned countries, is that you need to also consider how much you will be paying in property taxes every year, and if that makes sense for you. In Mexico, the property taxes are so low in comparison to other countries, that it is really not a consideration when it comes to your decision making.

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This Article Written By:

Hector Merino RE Broker AMPI; NAR