"Maximize Savings on Puerto Vallarta Property Taxes: A Guide to Discounts and Online Payments in 2024"
Save on your Mexican Property Taxes!
If you pay your Puerto Vallarta property taxes prior to the end of January 2024, you will automatically qualify for a 15% early payment discount. In February, you will save 10%, and payments made in March will save 5%. For older people, there can be additional savings.
What is the Property tax rate in Puerto Vallarta?
Property taxes have been low and remain low in Puerto Vallarta. Known as 'Predial' – yearly property tax – the mil rate is . 08% of the assessed value of the property, determined at the time of sale. This tax is paid yearly in January or February.
Tip for paying Property Taxes if you don’t speak Spanish?
Use Google Crome for the website. It will ask if you want it translated into English. So simple! Use this for all your online shopping too.
How to Pay Predial or Property Taxes online?
If this is your first time paying property taxes in Puerto Vallarta, here’s what you need to know:
• Property taxes may be paid at either City Hall or at UNIRSE in Fluvial.
• You will need a copy of the account number from your previous year’s property taxes. If you are a new owner, the tax form from the previous year should be included in the documents you were provided by your notary at the closing of your sale. If not, bring the deed to your home with you to City Hall or UNIRSE.
• Taxes can be paid via cash, debit or credit card.
• File your receipt safely away, both as proof of payment and to easily access your account number for the following year.
You may also pay your Puerto Vallarta property taxes using the municipal government’s online payment system, which is available at pagos.puertovallarta.gob.mx.
Before you log onto the online tax payment center, be sure to have your Predial account number in hand. This is usually a 4 digit number (could be more) found on the top right hand side of your property tax bill in the box that says “Cuenta.”
When you visit the website, type in your property tax id number where it says ‘Cuenta’ and click ‘Buscar.’ The amount you owe will show up and payment can be made with your Visa or Master Card. Make sure to keep the payment receipt in your records as you may be asked for it at some point. Any unpaid balances will become delinquent and subject to interest and penalties.
Whichever way you pay, your property taxes in Mexico aren’t going to make nearly the dent in your wallet that they would in other parts of North America, so you can enjoy 2024 without the worry of a large tax bill looming. It’s just another great benefit of living in Puerto Vallarta.
How to pay my Mexican Property Tax if you’re out of country?
If you live outside Mexico, streamline the process by delegating payment responsibilities to your property manager, lawyer, or accountant. Always secure proof of payment and store it alongside your title deed for reference.
Understanding SAT and Federal Taxes:
SAT, or Servicio de Administración Tributaria, also known as The Hacienda, oversees the collection of Federal taxes in Mexico. As a foreign buyer, it’s essential to be aware of the unique tax landscape.
Your Responsibility for Property Tax:
Unlike some countries where property tax is handled by mortgage companies or banks, in Mexico, foreigners are directly responsible for property tax at the beginning of each year. There’s no mailed bill, so mark your calendar to remember this obligation.
Reviewing Your Invoice:
When dealing with property tax, review the invoice at the municipality or online. Confirm that the property location and title deed name align. Additionally, ensure the Cuenta Catastral (property tax account number) matches the number on your deed for a smooth yearly Property Tax Assessment process.
Avoiding Pitfalls:
Attempting to undervalue your property to save on taxes may have consequences. Honest reporting is crucial, as it can impact your capital gains when you decide to sell.
Understanding Property Tax Rates:
Property taxes in Mexico are notably lower than in most foreign countries. They are calculated based on the cadastral value, typically lower than the resale value of the property
How Do Mexican Tax Laws Affect Your Income Taxes Back Home?
You must report all income and taxes paid in Mexico to your home country, but there is an agreement in place to protect you from being double taxed. Mexico has a treaty with the U.S. and Canada regarding taxation of residents living in both countries.
These NAFTA countries exchange information, so it is imperative to file your taxes in both countries. The treaties state that the Americans and Canadians who are residents in Mexico will be subject to Mexican tax laws.
As in any other country, failure to pay taxes may lead to criminal charges, high-interest charges and put your property and your ability to visit or live in Mexico at risk.
The Mexican tax system is constantly changing we highly recommend consulting a tax attorney if you have any questions.
