Everything you need to know about buying and selling real estate in Mexico, Puerto Vallarta, and the Banderas Bay region

Value Added Tax & Fiscal Residency

IVA Tax Savings for Non-Resident

IVA Tax as it applies to Fiscal Residency of the Seller of Mexican Residential Real Estate. DEFINING FISCAL RESIDENCY – How exactly is tax residence defined? Most countries include a legal definition in their tax code, or authorities use a variety of criteria for handling it on a case-by-case basis. Commonly fiscal residency is determined to be in: the country where a “center of vital interests” lies or the place that is the “habitual abode” or Nationality. Foreigners shall be deemed to be fiscal residents in Mexico when more than 50% of their total revenue within a calendar year is from sources within the country or their main center of professional activities are located in Mexico.