Authored by the expert who managed and guided the team behind the Mexico Property Pack
Yes, the analysis of Cancún's property market is included in our pack
Property ownership in Cancún comes with several taxes and fees that every investor needs to understand before making a purchase decision.
As of September 2025, property owners in Cancún face an annual predial tax of 0.19% of cadastral value, plus various municipal service fees, and potential rental taxes depending on how the property is used.
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 owners in Cancún pay an annual predial tax of 0.19% of cadastral value, with payment due between January and March 2025.
Early payment discounts range from 5% to 15%, while late payments incur monthly surcharges of 1.5-2% per month.
| Tax/Fee Type | Rate/Amount | Due Date 2025 |
|---|---|---|
| Predial Property Tax | 0.19% of cadastral value | January 6 - March 15 |
| Municipal Service Fees | MXN 2,000-5,000/year | Monthly billing |
| ISAI Transfer Tax | 2-5% of purchase price | At closing |
| Rental ISR (Non-residents) | 25% of gross income | Monthly returns |
| Fideicomiso Annual Fee | US$550-1,000 | Annually |
| Early Payment Discount | 5-15% off predial | January 6 - March 15 |
What taxes and mandatory municipal fees apply to owning a property in Cancún in 2025?
Property owners in Cancún face eight main taxes and fees charged by different government levels and private entities.
The Municipality of Benito Juárez charges the annual Impuesto Predial (property tax) and municipal service fees covering water, garbage collection, street lighting, and sewage services. In tourist areas near the beach, you may also pay an Environmental Sanitation Tax for coastal cleanup.
The State of Quintana Roo collects the ISAI (Acquisition/Transfer Tax) when you purchase property, typically ranging from 2-5% of the purchase price. The Federal Government through SAT (tax authority) charges ISR (Income Tax) on capital gains when you sell property, with rates varying from 1.92-35% for residents and 25% flat rate for non-residents on gross income.
Private notaries charge fees ranging from 0.75-1.5% of property value to legalize transactions, typically MXN 15,000-30,000 for a MXN 2,000,000 property. Foreign owners using a fideicomiso trust pay annual trustee fees to their fiduciary bank, ranging from US$550-1,000 per year.
If you rent your property, additional taxes apply including ISR on rental income, IVA (Value Added Tax) at 16% for short-term rentals under 28 days, and ISH (Lodging Tax) at 5% for short-term tourist rentals in Quintana Roo.
How is each tax calculated in 2025?
The predial property tax uses a straightforward formula: Cadastral Value × 0.0019, which equals 0.19% of your property's cadastral value.
Municipal service fees are calculated as fixed amounts ranging from MXN 2,000-5,000 annually, billed separately by the utilities office. The Environmental Sanitation Tax applies a small percentage to properties in designated tourist zones but varies by specific location.
ISAI transfer tax is calculated as 2-5% of the actual purchase price paid for the property, not the cadastral value. ISR capital gains tax for residents is progressive at rates from 1.92-35% applied to net gain after allowable deductions, while non-residents pay a flat 25% on gross proceeds or 35% on net gain if they elect to file a Mexican tax return.
Rental income taxes vary significantly: residents pay progressive ISR rates from 1.92-35% on net rental income after expenses if they have an RFC tax registration, while non-residents pay 25% on gross rental income with no deductions allowed. IVA at 16% applies only to short-term rentals under 28 days, and ISH lodging tax at 5% is collected from guests but remitted by property owners.
Fideicomiso trustee fees are calculated as fixed annual amounts set by each bank, typically US$550-1,000 regardless of property value, plus initial setup costs of US$2,000-3,000.
Which value do they use to compute predial in 2025?
Cancún's predial tax is calculated using the cadastral value, which combines both land value and construction value as determined by municipal appraisers.
The cadastral value is typically set at 10-30% of actual market value and is based on physical characteristics including location, lot size, built area, construction quality, and property improvements. Official appraisers from the municipal cadastral office (Catastro) assign these values after reviewing property records and conducting inspections when necessary.
Values are updated when properties undergo improvements or modifications, requiring owners to report changes to the municipal Catastro office. Updates also occur automatically upon property transfers when new appraisals may be conducted as part of the sale process.
The municipality uses standardized valuation tables that consider neighborhood characteristics, proximity to amenities, and construction costs per square meter. Property owners can request reviews of their cadastral value if they believe it's incorrectly assessed, though increases in market value don't automatically trigger cadastral value updates unless improvements are made or the property is sold.
It's something we develop in our Mexico property pack.
What are the exact due dates in 2025 for each tax or fee?
The predial property tax payment window opens on January 6, 2025, and runs through March 15, 2025, with the main billing cycle concentrated in this three-month period.
Municipal service fees follow separate billing cycles, typically monthly or quarterly depending on the specific service, with water and sewage billed monthly and garbage collection often billed quarterly. These bills arrive separately from predial tax notices.
ISAI transfer tax is due at closing when purchasing property, paid through the notary as part of the transaction costs. ISR capital gains tax is also due at closing when selling property, calculated and paid through the notary's office.
Rental income taxes require monthly filing and payment through SAT's online portal, with returns due by the 17th of the following month. For example, January rental income taxes are due by February 17th. IVA and ISH on short-term rentals follow the same monthly schedule.
Fideicomiso trustee fees are billed annually by the bank holding the trust, typically on the anniversary date of the trust establishment, with 30-day payment terms from the billing date.
What early-payment or online-payment discounts are offered in 2025?
Don't lose money on your property in Cancún
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Cancún offers substantial early payment discounts for predial tax with three discount periods during the 2025 payment window.
The highest discount of 15% applies to payments made between January 6-24, 2025. A 10% discount is available for payments between January 25 - February 15, 2025. The smallest early payment discount of 5% applies to payments made between February 16 - March 15, 2025.
After March 15, 2025, no discounts are available and late payment surcharges begin accumulating. There are no additional online-exclusive discounts beyond the early payment schedule, meaning online and in-person payments receive the same discount rates during these periods.
Special discount groups receive a massive 50% reduction on predial tax year-round from January 6 through December 31, 2025. This applies to seniors with INAPAM credentials, pensioners, and disabled individuals with INE proof, but is limited to one property that must serve as their primary residence.
Municipal service fees, transfer taxes, and rental taxes do not offer early payment discounts, as these follow different billing and collection schedules managed by separate agencies.
What late-payment surcharges, monthly interest, and fines apply in 2025?
Late payment surcharges for predial tax begin accumulating immediately after March 15, 2025, with monthly interest charges of 1.5-2.0% applied to the overdue amount.
These surcharges compound monthly, meaning the interest is calculated on both the original tax amount plus any previously accumulated surcharges. The exact rate varies yearly based on local municipal ordinances, but typically falls within the 1.5-2.0% monthly range.
Additional fines may apply for continued non-payment beyond six months, though specific fine amounts depend on current local ordinances and should be confirmed directly with the Catastro office for the most recent rates. These penalties can significantly increase the total amount owed over time.
Municipal service fees carry their own penalty structures when overdue, often resulting in service suspension for water and sewage after 60-90 days of non-payment. Reconnection fees typically range from MXN 500-2,000 depending on the service type.
Rental tax penalties follow federal SAT guidelines with surcharges of 1.25-1.5% monthly plus potential fines ranging from 50-100% of the unpaid tax amount for severe non-compliance. IVA penalties can reach 100% of the unpaid amount plus interest for willful non-payment of tourist rental taxes.
What exemptions or reductions can I claim in 2025?
The most significant exemption is a 50% reduction in predial tax available to seniors, pensioners, and disabled individuals throughout 2025.
This reduction requires INAPAM credentials for seniors, pension documentation for retirees, or INE disability credentials for disabled individuals. The exemption is limited to one property per person and must be the individual's primary residence, not an investment property.
Regularization discounts apply to overdue predial payments based on how long the debt has been outstanding: 100% off surcharges for 1-year old debt, 75% off surcharges for 2-year old debt, and 50% off surcharges for debt over 3 years old. These discounts apply only to penalty amounts, not the original tax due.
Required documentation includes original INAPAM or INE credentials, proof of property ownership through escrituras or previous tax bills, and utility bills proving primary residence for the exemption property. All documents must be current and match the property address on the predial tax bill.
No exemptions exist for municipal service fees, transfer taxes, or rental income taxes, as these are administered by different agencies with separate regulations. Foreign ownership through fideicomiso does not qualify for any special tax exemptions or reductions.
Where and how do I pay in 2025?
Cancún offers both online and in-person payment options for predial tax, with the online portal providing the most convenient method.
For online payments, visit www.cancun.gob.mx and locate the "Pago de Predial" portal. Enter your property's clave catastral (cadastral key) and account number, confirm the amount and any applicable discounts, then pay via credit card, debit card, or bank transfer. Download the official receipt immediately after payment for your records.
In-person payments can be made at 16 official payment modules throughout Cancún, including the primary Palacio Municipal office at Av. Tulum No. 5 SM. 5, Mz. 5, Lt. 5, Cancún, Q. Roo. Other locations include CANACO, Desarrollo Urbano, Registro Civil Sm. 94, Zona Hotelera office, Catastro office, and Plaza Las Américas.
Bring your prior year payment receipt or property identification documents, along with valid ID. Cash, credit cards, debit cards, and bank checks are accepted at in-person locations. Always request and retain your printed receipt as proof of payment.
Municipal service fees are paid at separate utilities offices or through their respective online portals, while rental taxes must be filed and paid through SAT's online portal using your RFC tax identification number.
How much would a homeowner actually pay in 2025 on properties valued at different amounts?
| Cadastral Value | Regular Predial | 15% Early Discount | 10% Early Discount | 5% Early Discount | 50% Senior Discount |
|---|---|---|---|---|---|
| MXN 1,000,000 | MXN 1,900 | MXN 1,615 | MXN 1,710 | MXN 1,805 | MXN 950 |
| MXN 3,000,000 | MXN 5,700 | MXN 4,845 | MXN 5,130 | MXN 5,415 | MXN 2,850 |
| MXN 10,000,000 | MXN 19,000 | MXN 16,150 | MXN 17,100 | MXN 18,050 | MXN 9,500 |
| Additional Service Fees | MXN 2,000-5,000 | No discount | No discount | No discount | No discount |
| Fideicomiso Fee (Foreign) | MXN 9,350-17,000 | No discount | No discount | No discount | No discount |
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Mexico versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
If I rent the property, what 2025 taxes apply?
Rental income in Cancún triggers three main taxes: ISR (Income Tax), IVA (Value Added Tax), and ISH (Lodging Tax), with rates varying significantly between residents and non-residents.
Mexican residents pay progressive ISR rates from 1.92-35% on net rental income after allowable expenses, provided they have RFC tax registration. Non-residents face a flat 25% ISR rate on gross rental income with no deductions permitted, making the tax burden considerably higher for foreign owners.
IVA at 16% applies specifically to short-term rentals under 28 days, typically tourist accommodations through platforms like Airbnb. Long-term residential leases of 6+ months are exempt from IVA, providing significant tax savings for traditional rental arrangements.
ISH (Lodging Tax) at 5% applies to short-term tourist rentals in Quintana Roo, collected from guests but remitted by property owners through monthly tax returns. This tax doesn't apply to long-term residential rentals over 30 days.
Monthly tax returns are required for all rental income, filed through SAT's online portal by the 17th of the following month. Failure to file and pay on time results in penalties of 1.25-1.5% monthly plus potential fines up to 100% of unpaid amounts for severe non-compliance.
If I buy or sell in 2025, what one-time taxes and costs apply in Cancún?
Property transactions in Cancún involve several one-time taxes and costs that buyers and sellers must budget for during the closing process.
ISAI transfer tax ranges from 2-5% of the purchase price and is paid by the buyer at closing. For a MXN 2,000,000 property, this equals MXN 40,000-100,000, while a MXN 6,000,000 property would incur MXN 120,000-300,000 in transfer taxes.
Notary fees typically range from 0.75-1.5% of the property value, averaging MXN 15,000-30,000 for a MXN 2,000,000 property and MXN 45,000-90,000 for a MXN 6,000,000 property. These fees cover document preparation, legal verification, and official registration of the transaction.
Capital gains tax (ISR) applies when selling property, with Mexican residents paying 1.92-35% on net gain after deductions while non-residents pay either 25% on gross proceeds or 35% on net gain if they elect to file a Mexican tax return. Property held over 5 years may qualify for exemptions in some cases.
Foreign buyers using fideicomiso trusts pay additional setup costs of US$2,000-3,000 (approximately MXN 34,000-51,000 at current exchange rates) for initial trust establishment and SRE permit processing.
It's something we develop in our Mexico property pack.
For foreign owners using a fideicomiso, what are the 2025 annual fees and extra taxes?
Foreign property owners using fideicomiso trusts in Cancún pay annual trustee fees ranging from US$550-1,000 (approximately MXN 9,350-17,000 at September 2025 exchange rates), with costs varying by bank.
Initial fideicomiso setup requires US$2,000-3,000 in fees covering bank charges and SRE (Foreign Relations Ministry) permit processing. These one-time costs include trust creation, legal documentation, and government approval for foreign ownership in the restricted zone within 50 kilometers of the coast.
No additional taxes apply specifically to fideicomiso ownership beyond standard property taxes paid by all owners. Foreign owners pay the same predial tax rates, municipal service fees, and transaction taxes as Mexican citizens, with the fideicomiso structure providing legal ownership rights without tax penalties.
Annual trustee fees are paid directly to the bank holding the trust, typically billed on the anniversary date of trust establishment. Banks like BBVA, Santander, and Banorte offer fideicomiso services with fees at the lower end of the range, while boutique trust companies may charge premium rates.
The property owner (trust beneficiary) is responsible for all fees and taxes, including predial, service fees, and any rental income taxes if the property generates income. Banks provide annual statements and assist with tax documentation but don't handle tax payments directly.
It's something we develop in our Mexico property pack.
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.
Property ownership in Cancún involves manageable annual costs with predial tax at just 0.19% of cadastral value, making it attractive for international investors.
The key to minimizing costs is understanding payment timing, discount opportunities, and the specific requirements for foreign ownership through fideicomiso trusts.
Sources
- The LatinVestor - Complete Property Tax Guide Mexico
- Plalla - How to Calculate Property Tax Mexico
- Cancún Municipal Government - 2025 Tax Schedule
- Cancún Municipal Government - Payment Information
- Renanza - Mexico Income Tax Rules
- PWC Tax Summaries - Mexico Personal Income
- Riviera Maya Cozy - Mexico Closing Costs
- Plalla - Fideicomiso Guide for Foreigners