Capital gains in Mexico are a federal tax, withheld and remitted by the notario at closing. The notario is also the one who determines how much is owed on each property.

The calculation is always done in Mexican pesos (MXN), and the tax generally falls between 20% and 35% of the gain. By law, it can never exceed 25% of the total transaction value.

Here's the calculation in simplified form:

-Your cost basis is the peso price you paid for the property on your purchase date.

-The notario adjusts that basis for inflation using software tied to the official government inflation rate over your ownership period.

-The adjusted basis is then subtracted from the sale amount, expressed in pesos.

-If you (or others on the deed) qualify for the capital gains exemption, that amount comes off next.

-Real estate commissions paid to your agent (excluding IVA) are also deductible.

-Whatever remains is your gain — the figure you'll be taxed on.

Keep in mind: even if you bought in dollars and are selling in dollars, running the numbers in pesos will very likely yield a different result, because the tax basis is always computed in pesos.

Every one of our agents is trained to help sellers grasp and minimize the tax side of a sale. Reach out to an agent if you need guidance — understanding the tax impact of selling your property should come before you ever put it on the market.