Tips for avoiding the ISAI Tax when inheriting a house in Mexico


If your property is Not in a fideicomiso you may have to pay a ISAI Tax

Did you know that the heir of a real estate must pay a tax called Real Estate Acquisition Tax or Domain Transfer Tax to receive the property he inherited? This is generated because the person who died (the owner of the house or apartment) ‘transmits’ the property of that property to someone else (the heir). In other words, having a real estate transfer, that tax is caused.

According to the National College of Mexican Notaries, when a property is received by inheritance it is necessary to distinguish aspects such as location, as there are entities such as Mexico City, Nuevo Leon and Coahuila where no taxes are caused by receiving real estate by inheritance, while in other states it is taxed.

For example, when someone inherits a property in the State of Mexico, they must pay the tax paid to buy a house in that area, that is, the ISAI.

 Also, you have to see the value of the property, if what is going to be awarded is within a certain amount, you can be exempt from ISAI by death, but if that amount is exceeded, it must be taxed.

 “In the CDMX, until 2018 there was a very beneficial zero rate with very easy assumptions to comply regardless of the value of the property, the age of the death of the person or the destination of the property. As of this year, the zero rate is recognized as long as several requirements are met, “explains José Antonio Manzanero, former president and dean of the National College of Mexican Notaries.

Before this panorama Vivanuncios, the real estate portal of eBay, highlights the 3 requirements that a person must meet when inheriting a property to exceed said tax.

  1. That the value of the property has a maximum value of 2 million 191 thousand 111 pesos.
  2. That the owner of the house or department has died, at most, within 5 years before the heir makes his award.
  3. That the adjudication be in favor of the spouse, concubine or concubine and descendants in the first degree. “That is, if I left my grandchildren in my will as heirs, they will always pay taxes; if I left my children as heirs, the property has some value and I died less than 5 years ago that they make the award and present in the public register the testimony for registration, then enjoy the zero rate “, explains Manzanero.

“When a property is inherited, it is very recurrent that many doubts arise about how the allocation of said property should be carried out, therefore, it is important to be well informed in this scenario. The ideal thing is to resort to a certified notary since there are some exceptions depending on the case and the location of the property, “said Cecilia Furfaro, general director of Vivanuncios.

Source: vivaanuncios, grupoenconcreto

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