Property tax (predial) in Mexico for investors
What predial is, typical rates in Quintana Roo and BCS, payment deadlines, and how property tax affects vacation-rental cash flow.
QR predial
0.1–0.15% value
Due
Annual · January
ROI impact
Low but fixed
Predial is small compared to purchase price — but it is mandatory, annual and easy to forget in ROI models.
Foreign owners in Tulum, Playa del Carmen and Los Cabos pay predial like any owner. Late payment generates penalties and can complicate a future sale.
Key takeaways
- ✓Based on cadastral value — update after purchase if needed.
- ✓Quintana Roo: often ~0.1–0.15% per year.
- ✓Due annually; discounts sometimes in January.
- ✓Include in net yield — not optional.
Basics
Predial vs other taxes
Predial
Annual property tax to municipality — fixed cost of ownership.
Acquisition tax
One-time at purchase — part of closing costs, not predial.
ISR on rental
Income tax on STR revenue — separate from predial; see ISR calculator.
Rates
Approximate rates by state
Quintana Roo
~0.1–0.15% of cadastral value / year (Tulum, PDC, Cancún).
Baja California Sur
~0.1–0.2% — confirm with Los Cabos municipality.
Example
$400k cadastral → ~$400–$600 USD/year in QR.
Beach premium
Higher cadastral tiers on oceanfront — not always = purchase price.
Admin
When and how to pay
Predial is usually billed in the first quarter; many municipalities offer a discount if paid in January. Your condo administrator may collect it with HOA — verify receipts are official.
Before resale
Modeling
Impact on vacation-rental ROI
Predial alone rarely kills a deal — but combined with HOA, management and cleaning it shaves 1–2 points off gross yield. Model it in the ROI calculator under operating expenses.
For acquisition taxes at purchase, see closing costs for foreign buyers.
Related
Tools and guides
Related glossary terms
Deep dives on metrics and costs that affect the same investment decision.
ClosingClosing costs for foreign buyers in Mexico
Itemized closing costs: notary, appraisal, bank trust setup, SRE permit, acquisition taxes, and pre-sale vs ready-delivery differences.
MetricsCap rate, yield and cash-on-cash for vacation rentals
Plain-language definitions, when to use each metric in Tulum or Los Cabos, and how to avoid mixing gross yield with true investor return.
Tools & guides
Validate numbers with an advisor
Glossary content is educational — get a personalized scenario with verified inventory in Tulum, Los Cabos and Riviera Maya.
Preguntas frecuentes
What is property tax (predial) in Mexico?+
Annual real estate tax paid to the municipality based on cadastral value — not always equal to your purchase price.
Do foreigners pay the same predial?+
Yes. A bank trust does not exempt you. It is due even if the unit is empty or on short-term rental.
How much predial on a Tulum condo?+
Roughly 0.1–0.15% of cadastral value per year in Quintana Roo. On $300k–$500k USD properties that is often a few hundred USD annually — confirm with municipality or administrator.
Is predial deductible against rental income tax?+
In many vacation-rental tax setups property expenses can offset income, depending on regime and invoicing. Ask a CPA — the ISR calculator is illustrative only.
Más información en https://capitalturistico.com/recursos/glosario/property-tax-mexico-real-estate