Real Estate Accounting in Puerto Vallarta

Capital gains (ISR on property sale) is calculated on the difference between your adjusted cost basis and the sale price. The rate depends on your residency status and how the sale is structured — it can range from around 1.9% to 35% of the gain. Proper cost basis documentation (notary fees, improvements with CFDI) significantly reduces the taxable amount.

The notary (notario público) in Mexico is not just a witness — they are a licensed attorney responsible for calculating and withholding ISR and IVA on the sale, registering the transaction with the public registry, and issuing the escritura (deed). We work alongside the notary to ensure the cost basis and deductions are calculated correctly before closing.

Yes. If the property was your primary residence (casa habitación), you may exclude up to 700,000 UDIs (approximately $4-5M MXN) of capital gains from ISR — once every 3 years. You must have had the property in your name for at least 2 years and prove residence. We document this exemption and coordinate with the notary.

Yes. Real estate commissions are professional fee income subject to ISR. Agents must issue a CFDI for each commission, pay monthly ISR, and file an annual return. IVA (16%) applies to the commission amount. We handle all of this for agents and brokers in Puerto Vallarta.

Rental income is taxed monthly as ordinary income under ISR, with deductible operating expenses. Capital gains on sale are a separate ISR calculation at closing, based on the appreciation in value. Both are reportable to SAT, but they use different tax schedules, rates, and timing rules.