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http://www.internationalpropertyjour...gains-tax.html
The article summarizes recent changes in capital gains taxation of foreigners who sell their property in Mexico. Good to know, whether or not we have plans to sell.

I believe the five year rule has been law for a couple of years now but it is good information to have if you are thinking to sell. Consult with a good contador in your area and they can help you figure it out whether you qualify for an exemption. Thanks for sharing...

Yes, I believe you're right. But I've run into folks who didn't know about the two-year rule and even some who don't know they're liable for a gains tax if they sell. Also, on another forum this week, there was someone who thought it was OK to undervalue the property on the escritura.

Originally Posted by kate

Yes, I believe you're right. But I've run into folks who didn't know about the two-year rule and even some who don't know they're liable for a gains tax if they sell. Also, on another forum this week, there was someone who thought it was OK to undervalue the property on the escritura.

On one of our first properties "before we knew better", our notary undervalued the lot in a big way. He set the value at $3000. We didn't even realize it until we sold. Fortunately, we had built some structures (which were never manifested). We were able to manifest the construction to a higher value before we closed, which saved us some big capital gains fees.