Exención por Casa Habitación (Primary-Residence Capital-Gains Exemption)ex-en-see-OHN por CAH-sah ah-bee-tah-see-OHN
Exención por casa habitación is a capital-gains tax (ISR) exemption for individuals selling their primary residence in Mexico, governed by ISR Law Article 93, fraction XIX, inciso a). The exemption covers sale prices up to 700,000 UDIs (investment units), measured against the price, not the gain.
By Daniel Ortega · Last reviewed 10 November 2026
How it works
<p>The exemption applies only if the seller is an individual (persona física), the property was the seller's primary residence, the sale price does not exceed 700,000 UDIs (approximately MXN 6.23 million in November 2026), and the sale is formalized before a notary. The seller must prove residence with official documents showing the property address (credencial INE, utility bills or bank statements) and must not have used the exemption in the three years before the sale. The notary must verify with SAT that the seller did not sell another primary residence with this exemption during the prior five years. When the sale price exceeds 700,000 UDIs, only the amount above that threshold is subject to ISR. Each co-owner may apply the exemption to their portion of the price independently. Foreigners must hold an RFC (tax ID) and be Mexican tax residents to claim the exemption, so non-resident owners cannot use it. Sales by fideicomiso or Mexican corporation do not qualify; only direct individual ownership qualifies. The sale of a primary residence is also exempt from IVA regardless of price.</p>