Property Taxes
Property owners are required to make an annual financial contribution to their municipal governments in the form of property taxes. In Yucatan, the collection of these taxes is managed by the City Hall.
The tax should be paid at the city hall’s office within the first three months of each year.
What is the property tax used for?
Property tax primarily funds urban development and community services, including:
Property tax contributions keep our streets in good condition and clean.
Road construction and repair.
Park creation and improvement.
Installation of public lighting.
Expansion of lighting systems.
Renovation of historic buildings.
Creation and dissemination of assistance programs.
Installation and cleaning of sewers.
Resurfacing of streets and avenues.
Failure to pay property taxes results in the accumulation of debt and may incur late payment penalties. In more severe circumstances, the property may be subject to seizure and auction to recover outstanding tax obligations.
How is property tax calculated?
To determine your property tax amount, you must first determine the value of the building.
In the state of Yucatan, the Cadastral Office plays an essential role in determining your property's value through an official cadastral appraisal. Unlike the market or commercial value, the cadastral value is generally lower and serves exclusively as the basis for property tax calculations. This process involves a thorough calculation of several factors to ensure a fair and standardized valuation.
Type of property: This means whether it is a commercial space, a house, an apartment, offices, or warehouses.
Surface area: The larger the property, the higher the tax amount may be.
Location: This factor affects the security level of the area in which a property is located, which, in turn, influences the amount of taxes owed.
Once this information is available, the Department compares the values with a maximum and minimum range for the home's price to obtain the property appraisal and determine the amount of taxes you owe.
Paying your property tax on time is important to avoid incurring fines or surcharges that increase the original amount.
All property tax payments are due at the start of each year. The city council where your home is located will offer various discounts, such as:
Payments made in January – 30% discount
Payments made in February – 15% discount
Payments made in March – 8% discount
The discounts apply to any property located in the state of Yucatan.
CLIMATE CHANGE ACTION INCENTIVE PROGRAM.
Homeowners who can prove their properties are used for residential purposes, and owners and/or usufructuaries who can prove commercial use on their properties and have solar panels installed, are eligible for a discount. Similarly, property owners who can demonstrate their homes are used for residential purposes and have green roofs installed can receive a discount.
It is recommended to contact the Cadastral Office in your city. The staff can provide up-to-date details on property valuations, applicable discounts, documentation requirements, and any recent change
