The Acquisition of real estate.
If you want to acquire a real estate, you must consider that by this action you will be obliged to pay taxes for the acquisition of real estate, either the buyer or the seller, in this case if you buy the property you will have to pay NOTARIAL FEES, EXPENSES OF FORMALITIES AND THE TAX ON THE ACQUISITION OF REAL ESTATE, on the other hand, if you are the seller you will have to pay the TAX ON THE INCOME OF THE ALIENATION OF GOODS, then we mention the taxes that must be covered:
Income Tax (ISR): This obligation belongs to the seller, as he is receiving a revenue from the disposal of goods in accordance with Art. 119 of the Income Tax Act (LISR).
Property Acquisition Tax (ISAI): This tax must be paid by the buyer when the deed is done, Such tax is collected by the notary and the rate to be paid varies depending on the state where the purchase is made since it is a State Tax ranges between 1 and 4.5% of the tax value of the property.
Fees for registration with the Public Property Registry: This procedure must be paid by the buyer, as he will have to register his deeds in the Public Property and Commerce Registry, the cost of the process varies depending on the area where the property is sold.
Guarantee: This process must be paid by the buyer, it is worth mentioning that when the sale of a property is made, this data is necessary, where they are acquired and the value of the asset exceeds by more than 10% against the agreed value at the time the public deed is notarized, a provisional payment corresponding to 20% shall be made on the excess portion borne by the purchaser in accordance with Article 132 of the LISR.
Value Added Tax (VAT): If the property is used for commercial use, generates a payment of 16% on the value of the property, this tax must be paid by the buyer.
If you have acquired a property or are planning to do an acquisition of real estate operation and you don’t know how much tax you will have to pay, we invite you to come to Bandala | Díaz | García to advise you on the process you must carry out. We also invite you to get to know our social networks where you can stay informed with relevant news that can be of your help.
The main purpose of this information is to provide guidance to the general public. It does not replace the provisions of applicable law. Nor does it replace the specialized legal advice or consultancy that can be offered by any of the lawyers and/or accountants of Bandala | Díaz | García