See Nick Fong’s Q&A about real estate taxes in Baja California Sur
In Nick Fong’s latest Q&A, he reveals what taxes to expect in Baja California Sur. Of course, these taxes apply to all of Mexico too. But since Nick Fong, of Ronival Real Estate is located in Baja, he typically refers to taxes there.
Being in the Baja Real Estate market since 2012, Nick Fong really knows his stuff! As such, he enjoys presenting these Q&A videos to keep you up-to-date on what to expect in Baja, which includes Cabo at the southern tip. Now, read more to learn about taxes in Baja, and to learn a little more about Ronival Real Estate.
What is the IVA tax?
In this first video, Nick Fong talks about IVA tax, which is a sales tax in Mexico. The IVA tax is charged by the Federal government on all products and services. It is 16% of the purchase price. Fortunately, this tax does not apply to real estate, which has a 2% acquisition tax instead.
So whenever you go shopping, like at Costco, you can expect to pay sales tax just like in the United States and Canada. But of course, many of the small shops and taco stands don’t charge IVA.
Uncover Capital Gains Tax in Baja
In this next video, Nick Fong discusses Capitol Gains Tax. Just like in the United States and Canada, whenever you sell a property for more than you spent for it, the profit is considered Capital Gains.
At the time of purchase, your currency is converted into Mexican Pesos at the current rate and are used to buy the property. Therefore, the purchase price is shown in Pesos. Then, at the time of closing, the selling price in Pesos is compared to what you originally paid for it in Pesos. If the selling price is higher than the purchase price, a Capital Gains tax is calculated.
Now, watch the video to see what percentage is calculated for Capital Gains Tax. You’ll uncover Nick Fong’s explanation, which makes it easy to understand.
Nick Fong’s previous Q&A videos
Being a leader in both real estate and property management in Cabo and all of Baja California Sur, Ronival truly understands the market. As such, Nick Fong, who is the founder of Ronival Real Estate, is excited to answer questions about current market conditions.
In one of Nick’s previous Q&A videos, he answers a question about title insurance in Baja California Sur. From “what is a title insurance policy?” to “where to buy title insurance in Cabo?”, get the facts from the source, the leading in real estate and property management in Baja, Ronival Real Estate and Ronival Property Management.
Nick Fong answers a question in his previous Q & A about who handles transactions and how is money transferred to the United States. In his answer, Nick explains that there are closing companies in Mexico, like the escrow company and title company in the US.
Baja California Sur real estate
Many Americans, Canadians, and people from other countries choose to make Los Cabos and other magical towns in Baja California Sur, Mexico, their home or vacation home. Discover how to purchase your dream home in Baja. Make an appointment with the top Real Estate Broker in Baja: Nick Fong, featured on HGTV’s Beachfront Bargain Hunt.
Since 2010, Ronival has been helping clients find the best homes in Cabo and throughout Baja California Sur. And, they’re highly-skilled negotiators that’ll get you the best price. Whether you plan to buy a property or quickly sell your Baja real estate, they’ve got you covered!
If you’d like to take a tour of a property in Cabo or anywhere else in Baja California Sur, just click CONTACT to inquire. Or, call directly at 619-831-2000. Ronival will be happy to answer your questions. You can also schedule a time to show you around this breathtaking location.
Ronival on YouTube
Thank you for reading See Nick Fong’s Q&A about real estate taxes in Baja California Sur. Be sure to read other posts about Cabo and Baja California Sur on the Ronival blog. There, learn about the many wonderful aspects of Baja California Sur, Mexico, from blog posts like this.