Hello, so here we are at the beginning of January and the new year welcomes us with the famous property taxes to pay. But how are they calculated? Why does my neighbor pay less than me for the same apartment? I asked myself the question and here is what I found.
First of all, property taxes depend on the municipality where your property is located, so I'm taking the example of the municipality of Solidaridad, Quintana Roo (Playa del Carmen and Puerto Aventuras are part of it).
There is a law called “LEY DE HACIENDA DEL MUNICIPIO DE SOLIDARIDAD, DEL ESTADO DE QUINTANA ROO” where the tax rate of your real estate is established. The latest reform to date dates from December 27, 2019 and can be found here.
The tax base
It is defined in article 12 that the tax base in urban and rustic properties will be chosen between the cadastral value, the bank value, that declared by the taxpayer or the income that the property produces or is capable of producing, in taking into account the highest value. That is to say, if your cadastral value is 1 million pesos and the declared value is 2 million pesos, the tax base will unfortunately be 2 million pesos.
So if you recently bought your property and your neighbor bought it 10 years ago, surely its cadastral or declared value is much lower than the current declared value, and then he pays much less tax!
The tax rate
Article 14 defines the tax rate.
TYPE OF REAL ESTATE | TAX RATE |
Urban property with construction | 0.0019 |
Urban property without construction | 0.0045 |
Urban property without construction in Puerto Aventuras | 0.0050 |
EXAMPLES:
For a plot of land worth 1 million pesos, without construction, the price to pay is 4,500 pesos per year.
For an apartment worth 1 million pesos, the price to pay is 1,900 pesos per year.
For a 10 million pesos house, the price of taxes is 19,000 pesos per year.
Discounts
Please note, you can benefit from a 25% discount if you pay within the first 15 days of the year.
Concrete example
You have a $200,000 apartment on Playa del Carmen. Your property taxes will be calculated with the rate of 0.0019. Which gives 380 dollars in taxes. And if you pay before January 15, you get the 25% discount so your taxes will be $285.
We can do the same calculation for different property values:
Property of 100,000 dollars….. taxes of 142.50 dollars if paid the first days of January
…………….200,000 dollars….. taxes of 285 dollars
…………….300,000 dollars….. taxes of 427.50 dollars
………….....400,000 dollars….. taxes of 570 dollars
Etc….
Conclusion
Hopefully now you know how to calculate your property taxes. And I hope this article also helped you understand why your property taxes are higher than expected if you're just buying; the previous owner paid less because the cadastral and/or declared value were obviously lower than the new sale price. And unfortunately we cannot go back once the declared value has been updated in the municipality's land register.
If you liked this article, then share it!
Also read my next article “Where and how are property taxes paid in Playa del Carmen?”
Please do not hesitate to contact me if you need any further information on this subject.
email: playadelcarmenproperties@hotmail.com
Comentários