Besides the sunshine, the beaches and the culture, there is another advantage of owning property in Puerto Vallarta that is often a pleasant surprise to new homeowners – affordable property taxes!
In the United States, for example, property taxes are a significant ongoing expense for homeowners. These taxes are usually based on the assessed value of your property and can vary widely depending on the state, county, and even the city where your home is located. On average, U.S. property tax rates range from about 0.5% to 2.5% of the property's assessed value annually, which can easily run in the thousands of dollars every year.
In contrast, property taxes in Mexico tend to be much lower. Mexican property tax, known as "predial," is a municipal tax calculated based on the city's assessed value of the property, which is often lower than market value. Annual rates can vary depending on the municipality but are quite affordable compared to the U.S. with most homeowners paying property taxes that are a few hundred dollars versus a few thousand every year.
Even better? If you pay your property taxes in January each year, you will automatically qualify for a 15% discount, making payments even more economical. We have more information on how and where to pay your annual Puerto Vallarta property taxes here.
If you're looking at expanding your real estate portfolio with a property in Puerto Vallarta, our expert team is here to help. Contact us today to start the conversation.
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