Property Taxes and Ownership Rules for Cozumel Owners

Property Taxes and Ownership Rules for Cozumel Owners

Owning property in Cozumel carries a set of ongoing tax obligations that are modest by North American standards but easy to underestimate. Between the annual predial, the one-time acquisition tax, the rules for rental income and the treatment of capital gains on sale, foreign owners need a clear map. This guide summarizes the 2026 figures. It is general information, not legal or tax advice; always confirm your specific situation with a Mexican notario, accountant (contador) or tax attorney before acting.

Predial: the annual property tax

Mexico's annual property tax, the predial, is strikingly low compared with the United States or Canada. In the Quintana Roo region it runs roughly 0.25% to 0.28% of the property's cadastral (assessed) value per year. In practical terms, a typical property owner pays on the order of MXN 5,000 to MXN 10,000 annually, about US$250 to US$500. Predial is usually billed at the start of the year, and paying early (commonly in January or February) often earns a discount. Keeping predial current is also a due-diligence checkpoint when you eventually sell, since buyers and the notario will verify there are no arrears.

ISAI: the acquisition tax you pay at purchase

When title transfers, the buyer pays the Impuesto Sobre Adquisicion de Inmuebles (ISAI), the acquisition or transfer tax. In Quintana Roo this is about 2% of the property's taxable value, plus an additional 10% surcharge, giving an effective rate near 2.2%. The notario calculates and collects ISAI at closing and remits it to the state, and it is one of the larger single line items within total closing costs.

Rental income tax for non-residents

If you rent your Cozumel property, the income is taxable in Mexico regardless of where you live or where the tenant pays you. For non-resident owners, the headline figure is a 25% withholding on gross rental income. Owners who register with the tax authority (SAT), obtain an RFC and file properly can often move to a net-income basis and access deductions, bringing the effective burden into a range of roughly 15% to 25% depending on circumstances. Value-added tax (IVA) can also apply to certain short-term and furnished rentals. Because platforms and property managers may withhold on your behalf, coordinate early with a Mexican accountant to avoid double withholding and to stay compliant.

Capital gains when you sell

On sale, non-residents generally face one of two calculation methods: a flat 25% withholding on the gross sale price, or a tax on the net gain (sale price less documented, adjusted acquisition cost and allowable expenses) under conditions the notario applies. Which method produces a lower bill depends on your cost basis and documentation. This is where good record-keeping pays off: keep your original escritura, receipts (facturas) for capital improvements, and proof of closing costs, because undocumented expenses cannot reduce the gain. A primary-residence exemption exists but has strict residency and documentation requirements that most non-resident foreign owners will not meet, so do not assume it applies.

The fideicomiso and ongoing ownership costs

Because Cozumel lies within the 50-kilometer coastal restricted zone, most foreign owners hold title through a bank trust, the fideicomiso. This is an ownership structure rather than a tax, but it carries recurring cost: setup of roughly US$1,000 to US$2,500 and an annual trust fee of about US$500 to US$1,000, with the federal permit around MXN 21,650. The trust runs 50 years and is renewable. It grants full beneficial rights, including the right to rent, sell and bequeath the property, and your heirs are named in the trust, which can simplify succession compared with a foreign will.

Staying compliant

Three habits keep Cozumel owners out of trouble: pay predial every year and keep the receipts; if you rent, register with SAT, obtain an RFC and file, coordinating withholding with any platform or manager; and preserve every document that establishes your cost basis for the eventual sale. Because rates, surcharges and procedures can change and vary by circumstance, treat the figures here as a starting point and verify current amounts with your notario and a licensed Mexican contador or tax attorney.

Bottom line

Cozumel's carrying costs are genuinely low: predial of a few hundred dollars a year and an ISAI of roughly 2% plus surcharge at purchase. The areas that demand attention are rental income, where non-residents face 25% gross withholding that careful filers can reduce, and capital gains, where documentation drives the outcome. Combined with the fideicomiso's modest annual fee, these are the numbers every Cozumel owner should plan around, ideally with professional guidance.