We explain the taxes that must be paid when buying or selling property and what they are for
Income Tax (ISR)
The seller of a real property must pay 10% of the profits obtained after the sale. This profit is estimated based on the difference between the recorded value of the property and the selling price. Payment must be made to the Superintendence of Tax Administration (SAT) during the first 10 days of the month following the sale.
For example, let’s say that after selling a house in February, we estimate a profit of Q10,000.00; in that case, we have until early March to pay approximately Q1,000.00.
Value Added Tax (IVA)
The first time a property is sold, the buyer is required to pay the VAT, which corresponds to 12% of the higher of the following values: the selling price of the property, the selling price recorded in the deed, or the value stipulated in the fiscal registration. Not all properties are subject to this tax. Depending on the value of your house or apartment and its area, it may not be necessary.
If it is required, the payment of the VAT must be made within 15 business days after the authorization of the deed.
Stamp Duties
Stamp Duties are the “paperwork tax.” It is charged for transfer transactions on the second, third, and subsequent transfers of a property. This means that if you are the second or later owner of a house or apartment, you must pay 3% of the sale value.
Deeds
The costs of drafting and registering a property are borne by the buyer. These are not considered taxes but are part of the legal procedures necessary to acquire real estate.
To ensure that you don’t miss any steps, we recommend seeking guidance from a real estate expert who can support you at every stage of finding your new home.
