Mexico: Pay Less For Property Taxes
Posted on January 14, 2011 by Glynna Prentice
In Mexico, January means that the clock starts ticking for paying annual expenses like predial—property taxes. Fortunately, most of these expenses are a fraction of what you would pay in the U.S., Canada, or many European countries.
Property taxes in Mexico are rarely more than $300 a year, even for large homes. In addition, many states offer discounts if you pay your property taxes early. In some states you must pay before the end of the previous year to get the discount. Other states, like Yucatán and Campeche in the Yucatán Peninsula, give discounts if you pay in the first quarter of the year.
In Campeche the discount is usually 10% for those paying in January. Yucatán offers a 20% discount in January, 10% in February, and 5% in March. Those who are up-to-date on previous years’ property taxes receive additional discounts of up to 5% during the first quarter.
There are several reasons for Mexico’s low property taxes. One is that the official property values listed in the city registry (a property’s valor catastral) may not be updated regularly to match them with market values. In addition, a property’s value may not be automatically updated when it is renovated or modernized. A colonial building that is renovated, for instance, may remain on the city books for years at its unrenovated value.