Property tax laws an advantage to Mexico

2.4.2011

With the new year well underway, the issue of property taxes always seems to arise. But as International Living reports, those who own Mexican villas generally fret about property tax season much less than those who buy vacation property in other parts of the world.

The source says that in Mexico, even large houses generally don't have property taxes of more than $300 per year, which is far less than the taxes on even a small condo in many parts of the United States.

Many parts of the country also give property tax discounts for those who pay their bill early - something rarely available in other countries. According to the site, those who buy villas in the Yucatan can get a 20 percent discount if taxes are paid in January.

In addition, future gains in property value also aren't likely to be accounted for very quickly. The source says that property values are listed in the city registry, which isn't updated very often.

However, buying beach villa in Mexico does require some maneuvering. Because foreigners aren't allows to purchase land in "restricted areas," property must generally be purchased through a trust.