Property tax in Puerto Vallarta
If you are planning on owning or selling a property in the beautiful city of Puerto Vallarta it's important to know the tax laws that apply.
If you sell your property in Puerto Vallarta, your gain will be taxable as a normal income, but the deductions that are being used to calculate the net value of your taxes are generous. Owners who have their primary residence in Puerto Vallarta and derive their income here, will probably be exempt from tax paying on their gains.
An exemption will be denied if you are a property owner in the restricted zone, which means you are utilizing a fideicomiso or a bank trust, because a bank trust is not a person.
The bright side is that you no longer need to be a two year resident. Make sure you state your price in US dollars, and don't be fooled by agents telling you that you will save on the acquisition fee by dealing in the official currency.
A property tax is an ad valorem tax that an owner will pay on a real estate or other property. The predial in Puerto Vallarta is imposed by the municipality. Your Property Tax Account number is called your Cuenta Catastral.
The property tax or impuesto predial in Puerto Vallarta has to be paid every bimester and is a rate of .08 percent, which is very low, of the assessed value. The reason why the property tax is so low, is caused by the fact that the government doesn't think of the property taxes as a source of revenue. The assessed value will be determined when the sale is closed. The low property taxes are a great compensation for the fee you will have to pay to your bank annually for handling your trust agreement.
Your property tax bill will get to you by mail and you will be able to pay it at your local bank. You could also ask your bank to automatically deduct the tax bill from your account at the time it's due. If you don't receive it in the mail, go to your municipality and ask for it. It is your responsibility to go and pay the tax.
Keep close track of the bills, because they will need to be shown if your property is sold again. If you have failed to pay your property taxes, you will have to pay them with interests at the time you sell again.
Some useful addresses and phone numbers if you have a property in Puerto Vallarta are listed below.
When your property is in Puerto Vallarta, that is in the state of Jalisco your payment has to bee made to:
H. Ayuntamiento de Puerto Vallarta
Independencia 123 (City Hall)
(322) 223-2500
Your Federal beach zone fee has to be paid out to the same address, when you have an oceanfront property.
To apply for a residency permit you need to go to:
Instituto Nacional de Migracion
Heroica Escuela Naval Militar 2755
(322) 224-7653