Selling Real Estate in Puerto Vallarta
Boardwalk Realty offers a superb and effective marketing program that will get your property sold for the most money in the least amount of time. From state-of-the-art websites, to catchy print advertising and our database of several thousand clients, the experts at Boardwalk Realty have the resources, knowledge and experience to get your property sold. There are differences in the real estate tax laws in Mexico that are important to understand when selling your property in Puerto Vallarta. The intricate calculations surrounding capital gains taxes, depreciation and closing costs can get complicated if you don’t have a knowledgeable real estate expert to guide you through.
One of the nuances to be aware of is the concept of capital gains. This tax does is not determined in the same way it is in the United States. In Mexico the sale of property is treated as normal income at a tax rate of 35%. In order to determine the gain you will deduct these expenses from the amount of the sale.
- The original land cost and the depreciated construction cost, based on the number of years the property was held and adjusted for inflation according to the official consumer price indexes;
- Any physical improvements or additions made to the property, not including maintenance.
- All commissions paid to real estate brokers by the seller;
- All seller’s closing costs.
- The Notary will retain the calculated gain after deductions, forwarding it to the Mexican tax authorities. The seller will then deduct this amount against his annual tax return, which becomes an adjustable tax credit in the U.S.A.
- You will have no capital gains tax if you prove conclusively that the property was the seller’s primary residence.
The length of time needed to close a real estate transaction is approximately 30-45 days. Closing costs are typically paid for by the buyer. These costs include notary fees, trustee fees, National Foreign investments registration, appraisal and property acquisition taxes. Let the agents at Boardwalk Realty Puerto Vallarta be a resource for all your real estate selling needs. Please reach us by phone at 322-224-0014 or email us today.