If you own property in the United States, you're probably used to writing a check for thousands of dollars every year in property taxes. In Mexico, property tax — called predial — is dramatically lower. Most American property owners in Mexico pay between $100 and $400 USD per year in predial. On a $250,000 beachfront condo, you might pay less in annual property tax than you'd spend on a nice dinner in the States.
This guide explains how predial works, how much you'll pay, and how to handle it from the U.S.
What Is Predial?
Predial is Mexico's annual property tax, equivalent to property taxes in the U.S. It's levied by the municipal government where the property is located — not by the state or federal government. The tax is based on the cadastral (assessed) value of the property, which is typically lower than the market value.
Predial applies to all property owners in Mexico — Mexican and foreign alike. Owning through a fideicomiso doesn't change anything; you still pay predial as the beneficial owner.
How Much Will You Pay?
Predial rates vary by municipality, but they're universally low by American standards. Typical ranges:
| Property Value (USD) | Typical Annual Predial |
|---|---|
| $100,000 – $150,000 | $50 – $150 |
| $150,000 – $300,000 | $100 – $300 |
| $300,000 – $500,000 | $200 – $500 |
| $500,000+ | $400 – $800+ |
For comparison: annual property tax on a $250,000 home in Scottsdale, AZ is approximately $2,000–$3,500. In Puerto Peñasco (Rocky Point), the same value property might cost $150–$250 in predial. That's roughly 10% of the U.S. tax bill.
When and How to Pay
Due date: Predial is due annually, typically in January or February. Most municipalities offer an early payment discount of 10%–20% if you pay in January.
How to pay: You can pay at the local municipal tax office (tesorería), at authorized banks, or in some municipalities online. If you're in the U.S., your property manager, real estate advisor, or attorney can pay on your behalf.
Keep your receipts. The predial receipt is required documentation when selling the property. The notario will ask for proof that property taxes are current before closing any transaction.
What Happens If You Don't Pay?
Mexico doesn't seize properties for unpaid predial the way some U.S. jurisdictions do — but there are consequences:
- Interest and penalties accumulate on unpaid balances
- You cannot sell or transfer the property until back taxes are cleared
- The notario will require a certificate of no tax debt (constancia de no adeudo) before closing any sale
- Some municipalities may eventually place a lien on the property
Stay current. It's one of the cheapest bills you'll ever pay.
Predial vs. Your Fideicomiso Annual Fee
These are two separate payments to two different entities:
| Payment | To Whom | Amount | What It Covers |
|---|---|---|---|
| Predial (property tax) | Municipal government | $100–$400/year | Local government services, infrastructure |
| Fideicomiso annual fee | Trustee bank | $450–$800/year | Trust administration, compliance, SRE reporting |
Combined: $550–$1,200/year. That's your total annual ownership cost beyond HOA and maintenance. → Fideicomiso Costs Explained