Doing Business 2020
6
Mexico
The notary formalizes the sale purchase agreement
Agency : Notary
The notary public will request from the seller:
• Property title (escritura), which the seller already has
• Receipts evidencing the payment for real estate taxes for a period of five years (boletas del
impuesto predial)
• Receipts evidencing the payment of water fees for a period of five years (boletas del servicio de
agua)
• Public deed(s) containing the incorporation and by-laws of the seller company (escritura
constitutiva), together with copy of any public deed(s) containing amendments to the by-laws of
the seller company
• Public deed(s) containing the powers of attorney granted in favor of the seller’s representatives
(for acts of domain and acts of administration in terms of the second and third paragraph of article
2554 of the Civil Code of the Mexico City)
• Copy of the official identification of the seller's and buyer's representatives
The notary will procure on behalf of the parties:
• Non-encumbrance certificate (obtained in Procedure 1)
• The zoning certificate (obtained in Procedure 3)
• The valuation (obtained in Procedure 2)
• Certificate of good standing with the water company (obtained in Procedure 4)
• Certificate of good standing in the property tax (obtained in procedure 5)
3 days
MXN 527,645.42; (MXN
475,595.71 according to
the case study (Property
Acquisition Tax plus Notary
Fees Tax)
The Property Acquisition
Tax is determined,
pursuant to article 113 of
the Fiscal Code of the
Federal District. The Tax
schedule is as follows
(cumulative and
progressive fee schedule):
From MXN 0.12 to MXN
98,973.75: MXN 239.95.
Rate between these
amounts 0.01275.
From MXN 98,973.76 to
MXN 158,375.95: MXN
1,439.53 Rate between
The buyer is subject to pay the acquisition tax ("Impuesto sobre Adquisiciones o Transmisión de
Dominio"). In this respect, on the date of execution of the real estate purchase agreement before
the notary public, said notary public will retain the above mentioned taxes and pay them before
Treasury Department.
The scale of notary tariffs is with respect to the Notary Publics of the Federal District only. Other
Mexican states have varying scales.
The seller will also have to pay the income tax and the value added tax as follows:
The applicable Income Tax for transferors resident in Mexico is 30% on the gain (the excess of the
sale price over the adjusted tax basis). The tax basis of real estates is in general terms the original
cost of acquisition as updated for inflation.
The value added tax (16%) is applicable only with respect to the constructions that conform to the
property and therefore an allocation of the price to the land and constructions should be made in
the sales agreement based on an appraisal. The value added tax will be shifted to the buyer.
these amounts 0.02715
From MXN158,357.96 to
MXN 237,536.70: MXN
2,972.26 Rate between
these amounts 0.03548
From MXN 237,536.71 to
MXN 475,073.54: MXN
5,642.16 Rate between
these amounts 0.04139
From MXN475,073.55 to
MXN 1,187,683.82: MXN
14,986.87 Rate between
these amounts 0.04598
The notary public shall calculate its fees as set forth in Article 15 of the Notary Fees of the Federal
District (Arancel de Notarios of March 2018), taking into account the highest of (i) the purchase
price, (ii) the cadastral value, and (iii) the value resulting from the commercial valuation by the
fiscal authorities or authorized appraiser.
From MXN 1,187,683.83
to MXN 2,375,367.65:
MXN 46,127.95 Rate
between these amounts
0.05023
From MXN 2,375,367.66
to MXN 4,575,934.62:
MXN 102,827.98 Rate
between these amounts
0.05449
From MXN 4,578,934.63
to MXN 11,916,496.98:
MXN 216,795.36 Rate
between these amounts
0.05667 [Applicable Rate]
From MXN 11,916,496.99
to MXN 21,975,704.18:
MXN 612,158.06 Rate
between these amounts:
0.05716
From MXN 21,975.704.19
to MXN 43,951,408.38
MXN 1,158,674.79. Rate
between these amounts
0.05767
From MXN 43,951.408.39
and up: MXN 2,363,163.15
Rate between these
amounts 0.06265
Notary fees are calculated
according to Art. 15 of the
official Ciudad de Mexico
Notary Fees schedule. The
fee schedule is as follows
(cumulative and regressive
fee schedule):
Notary Fees as of January
18, 2019:
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