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Puerto Vallarta property taxes in 2025 are surprisingly affordable compared to many international destinations.
The main property tax (predial) is only 0.08% of your property's cadastral value, making annual taxes on a MXN 5 million property approximately MXN 7,500 including municipal fees. Foreign owners face the same tax rates as Mexican citizens, though coastal properties require additional trust fees and potential federal maritime zone charges.
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Puerto Vallarta property owners pay an annual predial tax of 0.08% of cadastral value, with early payment discounts up to 15% in January.
Additional costs include municipal service fees (MXN 2,000-5,000), and for foreigners on coastal properties, trust fees of approximately $500-$1,500 USD annually.
| Tax/Fee Type | Rate/Amount | Due Date | Applies To |
|---|---|---|---|
| Predial (Property Tax) | 0.08% of cadastral value | March 31 (discounts Jan-Mar) | All properties |
| Municipal Service Fees | MXN 2,000-5,000 annually | With predial payment | All properties |
| Trust Fees (Foreigners) | $500-$1,500 USD annually | Varies by bank | Coastal properties only |
| Lodging Tax (Rentals) | 2-3% of rental income | Monthly | Rental properties |
| VAT on Rentals | 16% of rental income | Monthly | Short-term rentals |
| ZOFEMAT Concession | MXN 10,000-100,000+ | Annually | Beachfront properties |
| Early Payment Discount | 15% (Jan), 10% (Feb), 5% (Mar) | January-March | Predial tax only |
What taxes and government charges apply to property owners in Puerto Vallarta in 2025?
Property owners in Puerto Vallarta face several taxes and government charges in 2025, administered by different levels of government.
The primary tax is the Impuesto Predial (predial property tax), administered by the municipal government of Puerto Vallarta. This annual tax applies to all property types including houses, condominiums, land, commercial properties, and coastal properties at a rate of 0.08% of the cadastral value.
At the state level, Jalisco imposes the Impuesto Sobre Hospedaje (ISH) at 2-3% on properties used for rental or lodging purposes. The federal government administers capital gains tax (Impuesto Sobre la Renta) at rates ranging from 0-35% for residents and a flat 25% withholding for non-residents upon property sale.
Foreign owners face identical tax rates as Mexican citizens, with one crucial exception: properties within 50 kilometers of the coast require a fideicomiso (bank trust), which incurs annual trust fees of approximately $500-$1,500 USD. Properties touching the Federal Maritime Terrestrial Zone face additional ZOFEMAT concession fees ranging from MXN 10,000 to over MXN 100,000 annually depending on coastal frontage.
Municipal service fees for trash collection, street lighting, and urban improvements typically range from MXN 2,000-5,000 annually for residential properties.
Which property types are covered by each tax, and do foreigners pay different rates?
Each tax covers different property types with specific applications for foreign ownership.
The predial tax applies universally to all property types: single-family homes, condominiums, vacant land, commercial buildings, and coastal properties. Foreign owners pay identical rates but must establish a fideicomiso for coastal properties, adding annual trust management fees.
The Impuesto Sobre Adquisición de Inmuebles (ISAI) acquisition tax applies to all property types at purchase, with no rate differences for foreigners. Capital gains tax affects all property types upon sale, with non-residents facing a 25% withholding rate compared to the graduated 0-35% scale for Mexican residents.
Registry and notary fees apply to all property transactions regardless of owner nationality. The lodging tax exclusively targets properties generating rental income, particularly short-term vacation rentals popular in Puerto Vallarta's tourism market.
ZOFEMAT concession fees only apply to properties with direct beachfront access within the Federal Maritime Terrestrial Zone. Trust fees exclusively affect foreign owners of coastal properties, representing the most significant additional cost for international buyers.
Commercial properties may face higher municipal service fees based on their size and usage intensity, but the tax structure remains consistent regardless of owner nationality.
What is Puerto Vallarta's 2025 predial tax rate and calculation formula?
Puerto Vallarta applies a predial tax rate of 0.08% (0.0008) of the property's cadastral value in 2025.
The exact calculation formula is: Predial Tax (MXN) = Cadastral Value (MXN) × 0.0008. This rate positions Puerto Vallarta among Mexico's lowest property tax jurisdictions, compared to rates of 0.1-0.3% in other Mexican cities.
For example, a property with a cadastral value of MXN 3,000,000 generates an annual predial tax of MXN 2,400 (3,000,000 × 0.0008). The cadastral value typically represents 60-80% of market value, making effective tax rates even lower than the nominal 0.08%.
Some municipal bills may show slight variations in the exact decimal rate due to additional municipal charges bundled with the predial tax. Property owners should verify their specific rate on their annual tax bill, as micro-variations can occur based on property classification or recent municipal ordinance updates.
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How is cadastral value determined and updated in Puerto Vallarta?
The municipal government determines cadastral value through official appraisals considering location, land characteristics, property improvements, size, use, and construction type.
| Valuation Factor | Weight in Assessment | Typical Impact |
|---|---|---|
| Location/Neighborhood | High | Zona Romántica commands higher values than outlying areas |
| Property Size | High | Larger lots and homes increase proportional value |
| Construction Quality | Medium | Luxury finishes vs. basic construction materials |
| Age and Condition | Medium | Newer or renovated properties valued higher |
| Property Use | Medium | Commercial properties typically valued higher than residential |
| Proximity to Amenities | Low-Medium | Beach access, shopping, transportation links |
| Infrastructure Access | Low | Utilities, paved roads, drainage systems |
Cadastral values can be updated annually, particularly when significant improvements are made to the property. Property owners should ensure municipal records accurately reflect their property's current condition to avoid overpayment.
Owners may request a revaluation through the municipal cadastral office if they believe their assessed value is inaccurate. This process typically requires submitting documentation of property condition, recent improvements, or comparable sales data. The municipal office conducts a new inspection and issues an updated valuation within 30-60 days.
Recent infrastructure improvements in Puerto Vallarta, including road upgrades and utility expansions, may trigger area-wide cadastral updates affecting multiple properties simultaneously.
What are the 2025 payment windows and due dates for property taxes?
Puerto Vallarta offers a generous early payment discount structure for predial taxes throughout the first quarter of 2025.
January payments receive a 15% discount off the full predial tax amount. February payments qualify for a 10% discount, while March payments receive a 5% discount. The final due date without penalties is March 31, 2025.
Starting April 1, 2025, late payment interest and penalties begin accumulating on unpaid predial taxes. The early payment discount only applies to the predial tax portion, not to municipal service fees or other charges that may appear on the same bill.
Property owners should pay by the last business day of their chosen discount month to ensure processing before the deadline. Banks and municipal offices may have reduced hours during holiday periods in December and January, so early submission is recommended.
Municipal service fees typically follow the same payment schedule as predial taxes, though they do not qualify for early payment discounts. Other taxes like lodging tax (for rental properties) follow monthly due dates throughout the year.
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What early payment discounts and senior discounts are available in 2025?
Puerto Vallarta offers substantial early payment discounts and senior citizen reductions that can significantly lower annual property tax bills.
Early payment discounts apply to predial taxes: 15% discount for January payments, 10% for February payments, and 5% for March payments. These discounts only apply to the predial tax portion, not municipal service fees or other charges.
Senior citizen discounts are more generous and stack with early payment discounts. Citizens aged 60-75 years receive a 50% reduction on predial taxes. Those aged 75-79 years qualify for a 60% reduction, while property owners aged 80 and above receive an 80% discount.
To claim senior discounts, property owners must present valid passport or identification proving their age to the municipal tax office. The discount applies annually but requires renewal verification each year.
For example, an 82-year-old property owner paying in January would receive both the 80% senior discount and 15% early payment discount, reducing their predial tax by approximately 92% of the base amount. These combined discounts make Puerto Vallarta property ownership extremely affordable for senior citizens.
Disability discounts may also be available but require specific documentation and approval from municipal authorities. Property owners should inquire directly with the cadastral office about eligibility requirements.
What penalties and interest apply to late property tax payments?
Late payment penalties in Puerto Vallarta begin accruing on April 1, 2025, the day after the final payment deadline.
Monthly interest typically ranges from 1.5-2% per month on unpaid predial taxes, though exact rates should be confirmed with the municipal office as they can vary based on local ordinances. Additional fixed penalties and administrative surcharges may also apply beyond the monthly interest rate.
Interest compounds monthly, meaning delays of several months can result in substantial additional costs. For example, a MXN 5,000 predial tax bill paid six months late could accumulate an additional MXN 600-900 in interest and penalties.
The municipal government may offer payment plans for property owners facing financial hardship, allowing them to spread payments over several months while minimizing additional penalties. These arrangements typically require a formal application and approval process.
Property owners traveling abroad should arrange for timely payment through Mexican bank accounts, authorized representatives, or online payment systems to avoid penalties. Some banks offer automatic payment services for annual property taxes.
Are there special municipal fees beyond the basic property tax?
Puerto Vallarta property owners pay several municipal service fees in addition to the basic predial tax.
Standard municipal fees include trash collection (aseo urbano), street lighting (alumbrado público), and urban improvement charges. These fees typically total MXN 2,000-5,000 annually for residential properties, calculated as fixed peso amounts rather than percentage-based charges.
Larger properties, commercial buildings, and tourist-zone locations may face higher municipal fees based on their size, usage intensity, or infrastructure demands. Luxury developments in areas like Marina Vallarta or Zona Romántica often pay premium rates for enhanced municipal services.
Special assessments occasionally apply when the municipality undertakes major infrastructure projects like road improvements, drainage systems, or public facility construction. These one-time charges typically range from MXN 1,000-10,000 depending on the project scope and property benefit.
Commercial properties generating higher traffic volumes or requiring specialized municipal services may face additional fees calculated on a per-square-meter basis or percentage of property value. Restaurant and retail properties in high-traffic areas typically pay the highest municipal service fees.
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What additional charges apply to coastal and beachfront properties?
Properties touching the Federal Maritime Terrestrial Zone (ZOFEMAT) face additional federal charges beyond standard municipal taxes.
ZOFEMAT concession fees apply to properties with direct access to the first 20 meters from the high tide line. These fees are calculated based on linear meters of coastal frontage or total surface area within the federal zone, determined by federal appraisal rather than municipal cadastral value.
Annual ZOFEMAT concession fees typically range from MXN 10,000 for small residential properties to over MXN 100,000 for large commercial beachfront developments. The exact fee depends on location desirability, property usage, and federal zone surface area.
Foreign owners of coastal properties within 50 kilometers of the beach must establish a fideicomiso (bank trust) to hold property title. Annual trust fees range from approximately $500-$1,500 USD, paid to the trust bank rather than government authorities.
Beachfront properties may also face environmental fees or restrictions related to turtle nesting seasons, coastal conservation requirements, or marine protection regulations. These costs are typically minimal but should be factored into total ownership expenses.
Properties with beach clubs, restaurants, or commercial activities on federal zone land require additional permits and may face higher concession fees based on their commercial revenue potential.
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How is predial tax calculated for condominium units?
Condominium predial taxes are split between individual unit assessments and proportional common area charges.
Each condo owner pays predial tax on their private unit based on the unit's specific cadastral value or size allocation. The property management company or homeowners association typically handles common area tax payments, then bills individual owners for their proportional share.
For a typical 80-square-meter unit in a 2,000-square-meter total development, the owner would be responsible for 4% (80/2,000) of common area taxes. If total common area predial taxes amount to MXN 10,000, this unit owner would pay MXN 400 as their proportional share.
Individual unit predial taxes depend on the unit's assigned cadastral value. An 80-square-meter unit valued at MXN 2,500,000 would generate annual predial tax of MXN 2,000 (2,500,000 × 0.0008) plus the proportional common area share.
Luxury condominiums often have higher per-square-meter cadastral values due to premium finishes, amenities, and locations. Units in buildings with pools, gyms, concierge services, or prime beachfront locations typically face higher assessments than basic residential condos.
Property management companies usually include both individual and common area predial taxes in monthly maintenance fees, then make the annual payment to municipal authorities on behalf of all owners.
What additional taxes apply to rental properties in Puerto Vallarta?
Rental properties in Puerto Vallarta face multiple additional taxes beyond basic property taxes.
The Impuesto Sobre Hospedaje (ISH) state lodging tax applies at 2-3% of gross rental income for properties used as short-term rentals or vacation accommodations. Property owners must collect this tax from guests and remit it monthly to Jalisco state authorities.
Value Added Tax (IVA) at 16% applies to gross rental income for short-term vacation rentals, particularly those rented for periods under one month. Long-term residential rentals (over one month) may be exempt from IVA requirements.
Federal income tax (ISR) applies to net rental income at graduated rates of 0-35% for Mexican residents. Non-resident foreign owners face a flat 25% withholding rate on gross rental income, though this may be reduced through tax treaty provisions.
Rental property owners must register with Mexican tax authorities (SAT) and obtain an RFC number for tax reporting purposes. Monthly tax filings are typically required for properties generating regular rental income.
Professional property management companies often handle tax compliance for rental properties, charging 8-12% of rental income for complete tax and regulatory management services.
What would total annual taxes be for properties valued at MXN 2, 5, and 10 million?
Total annual tax obligations vary significantly based on property value, location, and usage.
| Cadastral Value | Predial Tax (0.08%) | Municipal Fees | Total (Standard Residential) | Total with Trust Fee (Coastal/Foreign) |
|---|---|---|---|---|
| MXN 2,000,000 | MXN 1,600 | MXN 3,000 | MXN 4,600 | MXN 4,600 + $500-1,500 USD |
| MXN 5,000,000 | MXN 4,000 | MXN 3,500 | MXN 7,500 | MXN 7,500 + $500-1,500 USD |
| MXN 10,000,000 | MXN 8,000 | MXN 5,000 | MXN 13,000 | MXN 13,000 + $500-1,500 USD |
| MXN 2,000,000 (with rental income) | MXN 1,600 + ISH + IVA + ISR | MXN 3,000 | Varies by rental income | Significantly higher |
| MXN 5,000,000 (beachfront) | MXN 4,000 + ZOFEMAT fees | MXN 3,500 | MXN 17,500-107,500+ | Plus trust fees |
| MXN 10,000,000 (luxury beachfront rental) | MXN 8,000 + all additional taxes | MXN 5,000+ | MXN 23,000-113,000+ base | Plus rental taxes and trust fees |
These calculations assume standard residential properties not used for rental purposes and exclude potential early payment or senior citizen discounts. Beachfront properties add ZOFEMAT concession fees of MXN 10,000-100,000+ annually, while rental properties face additional ISH, IVA, and income tax obligations that can substantially increase total tax liability.
Foreign-owned coastal properties incur additional trust fees of $500-1,500 USD annually, representing a significant ongoing cost for international buyers. Property owners should budget approximately 0.2-0.5% of property value annually for total tax obligations, excluding rental-related taxes.
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.
Puerto Vallarta property taxes remain among Mexico's most affordable, with the 0.08% predial rate significantly lower than most international destinations.
Foreign investors face minimal additional costs beyond trust fees for coastal properties, making Puerto Vallarta an attractive option for international real estate investment.
It's something we develop in our Mexico property pack.
Sources
- The LatinVestor - Full List Property Taxes Mexico
- MLS Vallarta - Mexican Maritime Zone Explained
- Plalla - How to Calculate Property Tax in Mexico
- Banderas News - Paying Puerto Vallarta Property Taxes
- Cadena Advisors - Property Tax Payment 2025
- Beach Please Mexico - Predial Tax Guide
- GGI - Tax Evasion in Mexico
- Shoreline Realty PV - How to Pay Property Tax in Jalisco