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Yes, the analysis of Cancún's property market is included in our pack
Condo ownership in Cancún comes with various annual costs that foreign investors need to understand before purchasing. Property taxes in Cancún are relatively low compared to North American standards, typically ranging from 0.1% to 0.3% of the assessed value, with the average rate around 0.19% for most residential condos.
Beyond the basic property tax, condo owners face HOA fees, municipal service charges, and potential rental income taxes that can significantly impact the total cost of ownership. Understanding these expenses is crucial for calculating your investment returns and annual budget for property ownership in this popular Caribbean destination.
If you want to go deeper, you can check our pack of documents related to the real estate market in Mexico, based on reliable facts and data, not opinions or rumors.
Property taxes for Cancún condos average 0.19% of assessed value annually, with early payment discounts up to 20% available in January.
Total yearly ownership costs range from MXN57,900 for a 50m² condo to MXN168,900 for a 150m² unit, including taxes, HOA fees, and municipal services.
| Condo Size | Annual Property Tax | HOA Fees | Municipal Services | Total Annual Cost |
|---|---|---|---|---|
| 50m² | MXN5,900 | MXN47,000 | MXN5,000 | MXN57,900 |
| 100m² | MXN11,800 | MXN94,200 | MXN7,000 | MXN113,000 |
| 150m² | MXN17,700 | MXN141,200 | MXN10,000 | MXN168,900 |
| Purchase Price/m² | MXN62,138 (September 2025 average) | |||
| Non-resident Rental Tax | 25% withholding + 5% lodging tax | |||
| Payment Schedule | Annual (January), 20% early discount available | |||
What's the average annual property tax rate for condos in Cancún?
The average annual property tax rate for condos in Cancún ranges from 0.1% to 0.3% of the cadastral (assessed) value.
Most residential condos in Cancún fall into the 0.19% category, which is the standard rate applied to typical residential properties. Luxury condos may qualify for rates closer to 0.1%, depending on their classification and location within the municipality.
This rate is significantly lower than property tax rates in the United States and Canada, where rates often exceed 1% of assessed value. Quintana Roo state, where Cancún is located, maintains some of Mexico's most competitive property tax rates to attract foreign investment.
The exact rate depends on the property's classification, size, and location within Cancún's municipal boundaries. Beachfront properties and those in premium zones may have slightly different rate structures.
As of September 2025, these rates have remained stable, making Cancún an attractive destination for international property investors seeking lower ongoing tax obligations.
What's the current average purchase price per square meter for condos in Cancún?
The median purchase price for condos in Cancún is MXN62,138 per square meter as of September 2025.
This figure represents data from June 2025 market analysis and reflects the current pricing across various neighborhoods and building types. New developments in premium areas command prices between MXN60,839 and MXN64,812 per square meter.
Pricing varies significantly based on location, with beachfront properties commanding premium rates while inland condos offer more affordable entry points. The Hotel Zone typically sees higher per-square-meter costs compared to downtown Cancún residential areas.
Building amenities, floor level, ocean views, and construction quality all influence the final price per square meter. Luxury developments with extensive amenities may exceed these averages considerably.
It's something we develop in our Mexico property pack.
How much annual property tax do you pay for a 50m² condo in Cancún?
A 50m² condo in Cancún with an average market value of MXN3,106,900 pays approximately MXN5,902 in annual property tax.
This calculation assumes the standard 0.19% tax rate applied to the property's assessed value. The assessed value is typically close to the market purchase price, though it may be slightly lower in some cases.
If your condo qualifies for the lower 0.1% luxury rate, the annual tax would be approximately MXN3,107. This lower rate typically applies to high-end properties in exclusive developments.
Property owners can reduce this amount by paying early, with discounts up to 20% available for January payments. This means the effective annual cost could be as low as MXN4,722 for early payers using the standard rate.
The tax is calculated on the cadastral value, which municipal assessors determine based on location, size, construction quality, and current market conditions in your specific area of Cancún.
How much annual property tax do you pay for a 100m² condo in Cancún?
A 100m² condo in Cancún with an average market value of MXN6,213,800 pays approximately MXN11,806 in annual property tax.
Using the standard 0.19% rate on assessed value, this represents the typical annual obligation for a mid-size condo in Cancún. Luxury properties eligible for the 0.1% rate would pay approximately MXN6,214 annually.
Early payment discounts can significantly reduce this cost, with January payments receiving up to 20% off the annual bill. This brings the effective cost down to approximately MXN9,445 for prompt payers.
The exact amount depends on the specific assessed value assigned to your property, which may differ from the purchase price. Municipal assessors consider factors like building age, amenities, and precise location within Cancún.
These tax levels remain competitive compared to similar beach destinations in North America, making Cancún an attractive option for foreign condo investors seeking lower ongoing costs.
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Is property tax calculated on purchase price or assessed value in Cancún?
Property tax in Cancún is calculated on the cadastral value (assessed value), not the market purchase price.
The cadastral value is determined by municipal assessors and typically ranges from 80% to 90% of the actual market value, though this percentage varies by property type and location. This system often results in lower tax obligations compared to purchase price-based calculations.
Municipal assessors consider factors including property size, construction quality, location desirability, building age, and local market conditions when determining cadastral values. They reassess properties periodically to reflect changing market conditions.
For estimation purposes, many buyers use the market purchase price in tax calculations, understanding that the actual assessed value will likely be somewhat lower. This provides a conservative estimate for budgeting purposes.
The assessment process is standardized across Quintana Roo state, ensuring consistent application of valuation methods throughout the Cancún metropolitan area and surrounding municipalities.
How often do you pay property tax in Cancún and what discounts are available?
Property tax in Cancún is paid annually, with bills typically due at the beginning of each calendar year.
Early payment discounts offer significant savings, starting at 20% off for January payments. The discount percentage decreases progressively throughout the first quarter, dropping to 15% in February, 10% in March, and 5% by April.
After April, most municipalities eliminate early payment discounts, requiring full payment of the annual tax bill. Some areas may offer small discounts (2-3%) through mid-year, but these are not guaranteed.
Payment can be made online through municipal websites, at authorized banks, or in person at municipal offices. Online payments typically incur small processing fees of less than MXN300.
Property owners who miss the annual deadline may face penalties and interest charges, making early payment both financially advantageous and administratively simpler for ongoing compliance.
Are there fixed administrative fees beyond the percentage-based property tax?
There are no standard fixed administrative fees specifically for property tax itself in Cancún.
However, property owners should expect municipal service fees that are separate from the percentage-based property tax calculation. These services include water, sewage, garbage collection, and street lighting, typically bundled together.
Payment processing fees apply for online or electronic transactions, usually under MXN300 per payment. In-person payments at municipal offices typically avoid these processing charges.
Foreign property owners purchasing in the restricted coastal zone must pay annual trust fees (fideicomiso) of MXN5,000 to MXN10,000 to the bank holding their property trust. This is separate from municipal property taxes.
It's something we develop in our Mexico property pack.
What are the average annual HOA fees for condos in Cancún by size?
HOA fees in Cancún average approximately MXN78.46 per square meter per month for boutique developments, with larger complexes often charging less per square meter.
| Condo Size | Monthly HOA Fee | Annual HOA Fee | Fee Range |
|---|---|---|---|
| 50m² | MXN3,923 | MXN47,076 | MXN1,000-5,000/month |
| 100m² | MXN7,846 | MXN94,152 | MXN2,000-10,000/month |
| 150m² | MXN11,769 | MXN141,228 | MXN3,000-15,000/month |
| Basic Development | MXN1,000-4,000/month regardless of size | ||
| Luxury Complex | MXN8,000-15,000/month + amenities | ||
| Beachfront Premium | MXN10,000-25,000/month | ||
Standard downtown condos typically range from MXN4,000 to MXN8,000 monthly for maintenance fees. Luxury complexes with extensive amenities like pools, gyms, concierge services, and beach access command significantly higher fees.
HOA fees cover building maintenance, security, common area utilities, amenities operation, insurance, and reserve funds for major repairs. Beachfront properties often include additional costs for beach maintenance and environmental compliance.
These fees can vary dramatically based on building age, amenity level, and management efficiency. Always verify exact HOA costs before purchasing, as they represent the largest ongoing expense for most condo owners.
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How much is the yearly garbage collection fee for condo owners in Cancún?
Garbage collection fees for condo owners in Cancún are included in the municipal services fee rather than charged separately.
The bundled municipal services fee, which includes garbage collection, water, sewage, and street lighting, typically costs MXN2,000 to MXN5,000 annually for most residential condos. Properties in tourist areas may pay up to MXN10,000 annually.
Many condo developments include municipal service fees in their HOA charges, meaning individual unit owners don't pay these fees directly. The building management handles municipal service payments as part of the overall maintenance fee structure.
For condos where owners pay municipal services directly, the fee covers twice-weekly garbage pickup, recycling services, and street cleaning in the immediate area. Beachfront properties may have additional environmental fees included.
Individual unit owners should verify whether municipal services are included in HOA fees or paid separately, as this varies by building management structure and can significantly impact total annual costs.
Are there additional municipal or state levies on Cancún property owners?
Cancún property owners face several additional municipal and state levies beyond basic property tax.
Municipal services fees range from MXN2,000 to MXN5,000 annually, covering water, sewage, garbage collection, and street lighting. Tourist area properties may pay up to MXN10,000 for enhanced services.
Beach access and environmental fees apply to coastal properties, typically MXN100 to MXN500 annually. These support beach maintenance and environmental protection programs in the Hotel Zone and coastal residential areas.
Foreign property owners in the restricted coastal zone must pay annual fideicomiso (trust) fees of MXN5,000 to MXN10,000 to the bank holding their property trust. This is mandatory for all foreign ownership within 50 kilometers of the coast.
Occasional infrastructure assessments may apply for major municipal projects like road improvements or utility upgrades. These are not regular annual fees but can occur when significant infrastructure work benefits specific neighborhoods.
What's the income tax rate on rental income for non-residents in Cancún?
Non-resident property owners in Cancún pay a 25% withholding tax on gross rental income from their condos.
This flat 25% rate applies to all rental income before expenses, making it significantly higher than the progressive tax rates (3% to 30%) that Mexican residents pay on net rental income after deductions.
Short-term rental properties face an additional 5% to 6% lodging tax in Quintana Roo state. This tax is typically collected by rental platforms like Airbnb or charged directly to guests.
Furnished rentals or those providing additional services may be subject to 16% IVA (VAT), though this is usually passed through to tenants rather than absorbed by property owners.
It's something we develop in our Mexico property pack.
What's the total estimated yearly cost for owning a condo in Cancún?
Total annual ownership costs for Cancún condos range from MXN57,900 for a 50m² unit to MXN168,900 for a 150m² condo.
| Expense Category | 50m² Condo | 100m² Condo | 150m² Condo |
|---|---|---|---|
| Property Tax (0.19% rate) | MXN5,900 | MXN11,800 | MXN17,700 |
| HOA Fees | MXN47,000 | MXN94,200 | MXN141,200 |
| Municipal Services | MXN5,000 | MXN7,000 | MXN10,000 |
| Trust Fee (Foreign Owners) | MXN7,500 | MXN7,500 | MXN7,500 |
| Insurance (Optional) | MXN3,000 | MXN4,500 | MXN6,000 |
| Total Annual Cost | MXN68,400 | MXN125,000 | MXN182,400 |
HOA fees represent the largest ongoing expense, typically 70% to 80% of total annual costs. These fees vary significantly based on building amenities, with luxury developments commanding much higher monthly charges.
Property tax remains relatively low at under 10% of total ownership costs for most properties. Early payment discounts can reduce these costs by up to 20% annually.
Foreign owners should budget for fideicomiso fees if purchasing in the restricted coastal zone. Municipal services may be included in HOA fees depending on building management structure.
These estimates assume standard residential condos with typical amenities. Luxury beachfront properties or those with extensive amenities will have significantly higher HOA fees and total annual costs.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Cancún condo ownership offers relatively low property taxes combined with moderate to high HOA fees that represent the primary ongoing expense.
Foreign investors should budget carefully for trust fees, municipal services, and potential rental income taxes when calculating total investment returns.
Sources
- Plalla - How to Calculate Property Tax in Mexico
- The Latin Investor - Full List Property Taxes Mexico
- Properstar - Cancun House Prices
- The Latin Investor - Property Investment Mexico Worth It
- Paradise Listings - Property Taxes in Mexico
- MexTax - Annual Property Taxes Pay Early and Save
- Beach Please Mexico - HOA Costs Fees Mexico
- Selva Escondida - HOA Fees Condos Mexico