Are you about ready to retire? Or maybe you are looking for a winter escape from the snowy cold winters in the United States and Canada. If so, Mexico is surely a place you are considering. Besides the great weather, Mexico is still just a few hours away from loved ones left behind.
Making any change requires a great deal of thought and planning. When it comes to purchasing a retirement or vacation home one of the first things to think about is what the costs of maintaining the residence are. In general, the cost of living in Mexico is much more economical than north of the border. And this especially pertains to property taxes.
The property tax on Mexican real estate is called predial . Compared with the U.S. the cost of the predial is quite reasonable. It is a local tax and payable yearly. The average is approximately 0.1% of the assessed value of the property at the time of sale.
If you are used to the average rates in the U.S. this is a huge difference. If you live in Hawaii(the lowest rate in the nation) you are paying .28%, in Iowa 1.7% and in Illinois a whopping 2.25%.
January in Mexico is more than pleasant weather. It is the time to pay property taxes to receive a discount. Mexican property taxes are like in most places used to operate local governmenta. As north of the U.S.-Mexican border there is a discount for paying the entire tax early. In Los Cabos, if we pay in January it is a
20% discount. Pay by the end of February and the discount is 10%. By the endo of
March the discount is only 5%.
If you are a senior citizen(over 60) and a permanent resident, you qualify for an Inapam card. This is a senior discount card and with that in hand you pay only 50% of the predial tax bill.
This said it is sometimes easier to say than to do to. In Mexico property tax statements are not sent out in the mail. However, they are available online and with just the previous tax bill in hand you are able to pay at the proper office in person.