The sellers will be responsible for the Real Estate fees and the IVA tax on these fees. In Puerto Vallarta the fees are normally 8% ( 4% to the buyer agent and 4% to the selling agent ) however Gerard may be able to reduce the commission fee under the correct circumstance.
This fee is higher than what Americans and Canadians pay back home however the fees are at this number as the days on market are so high. This means that the brokerage and the agent face larger carrying costs over this time period.
The Capital Gains is 35% of the gain between the original purchase price and the new sale price which is usually paid by the seller unless the sale price is below the assess value. In this case then the buyer may be responsible for a capital loss.
Gerard will make sure that his clients will know what they will be facing before they make the decision to sell or purchase. Keep in mind that this 35% can be lowered through taxation exemption rules that are different for each person depending on their circumstance.
Down payment on an existing property is usually 10% of the accepted offer which will be wired to a escrow account. If purchasing a new construction unit, then the down payment is larger ( 35% ) and on most occasions will go directly to the developer.
Other cost that may or may not be present are explained below:
• Trust Bank Annual Payment(s) (Pago(s) Anual(es) de Fideicomiso)
• Notification RNEI Cancelation Trust (Notificación al RNEI por Cancelación de Fideicomiso)
• Employee Liquidation (Liquidación de los Empleados)
• Physical Inspection Credit to Buyer (Credito al Comprador por Inspección) if applicable
• Capital Gains Tax (Impuesto Sobre la Renta) Power of Attorney (Poder Notario) Prorations (Prorrateos)
Your home in the paradise of Puerto Vallarta will be one of the finest investments you can make, both financially and in the resulting lifestyle. Vallarta has a huge ‘ex-patriot’ community where you will make new life-long friends amongst not only your fellow ex-pats’, but also among the friendly residents who will welcome you to the community! You won’t be alone…as we said, Vallarta is already home to THOUSANDS of your compatriots!
© Gerard Allard