Selling: capital-gains tax (ISR) and the home exemption
When you sell, the notario calculates and withholds ISR on the gain. Your documented purchase price, closing costs and invoiced improvements reduce the gain.
Why it matters
Mexican tax residents selling their home may qualify for an exemption up to a cap in UDIs. Without invoices, the taxable gain can be much higher.
Who helps
The notario computes and withholds; an accountant can review. Report the sale at home too.
Documents
- Your purchase deed
- Closing-cost and improvement invoices (CFDI)
- RFC and, for the exemption, proof of tax residency
- Trust documents and bank instruction letter
Costs Estimate
- ISR on the sale.
- Broker commission.
- Trust assignment or cancellation.
Estimates only. Get written quotes.
Common mistakes
- Losing improvement invoices.
- Claiming the exemption without qualifying.
Say it in Spanish
- ¿Puede calcular el ISR de la venta con mis facturas?
Could you calculate the ISR on the sale using my invoices?
Terms
Confirm the details for your case with your notario or attorney.
Common questions
Should I declare a lower price to save tax?
No. It's illegal, and it raises your capital-gains tax when you sell.
What tax do I pay when I sell?
ISR on the gain, withheld by the notario. Documented purchase costs and invoiced improvements reduce it, and residents may qualify for a home exemption.
Why keep invoices (CFDI)?
They prove your costs and improvements, which lowers capital-gains tax when you sell.