Property Taxes in Mexico for Foreigners

What Are the Property Taxes in Mexico for Foreigners?

At Karla & Erick | Cabo Realty from Century 21, we work daily with foreign buyers and sellers in Los Cabos — and one of the most common questions we get is:

“How much are property taxes in Mexico, and are they different for foreigners?”

Here’s what you need to know if you own (or plan to buy) real estate in Mexico as a non-citizen.

Yes, Foreigners Pay Property Taxes in Mexico

Whether you’re a Mexican national or a foreigner holding property through a fideicomiso (bank trust) or a Mexican corporation, you are legally required to pay property tax (Predial).

The good news? Predial in Mexico is significantly lower than in countries like the U.S. or Canada.

How Much Is Property Tax in Mexico?

Predial is calculated based on the assessed cadastral value, not the market value. This value is usually far below the selling price of the home.

• In Los Cabos, typical rates range from 0.1% to 0.3% of the assessed value per year.
• A $500,000 USD home might pay as little as $300–$800 USD annually in property tax.

You’ll receive a Predial bill each January, and discounts apply for early payment.

Are There Penalties for Late Payment?

Yes. Failing to pay your Predial tax on time can result in:

• Monthly penalties and surcharges
• Difficulty selling your property later
• Legal complications with utilities or permits

We always recommend paying in the first quarter of the year to get a discount and stay current.

Do Foreigners Pay Higher Property Taxes Than Mexicans?

No. There is no special tax rate for foreigners. As long as the property is legally held under a fideicomiso or corporation, the property tax rate is the same for everyone.

However, if you’re using the property for commercial purposes (like vacation rentals), different local taxes and permits may apply.

Can You Pay Property Taxes Online in Los Cabos?

Yes. Many municipalities in Baja California Sur now allow online payment of Predial, especially for foreign owners who aren’t living in Mexico full-time.

Some owners prefer to appoint a property manager or accountant to help with annual payments.

 Want to know how much your property tax should be this year?

We’ll tell you how much your property is worth — for free and show you exactly what to expect in property taxes and annual costs.

Visit our website to access free guides for foreigners owning or buying real estate in Mexico.

📞 Contact Karla & Erick | Cabo Realty from Century 21 to schedule your private consultation with trusted local experts.

Karla and Erick Cabo Realty

Thinking of moving to Los Cabos? Karla Andreu, a trusted Century 21 agent, and Erick Flores guide expats, retirees, and families through every step—specializing in Los Cabos’ top beach and golf communities. We offer expert advice, personalized relocation support, and educational content that covers the risks of buying property in Mexico, the pros and cons of living in Cabo, and everything you need to make confident, informed decisions—so you can enjoy a better lifestyle at a lower cost than in the U.S.