How much are Capital Gains taxes, and who pays them?
The Seller pays all capital gains taxes and real estate fees. Capital gains taxes are a percentage of the difference between assessed values at the time of purchase and sale, with adjustments made for inflation and capital improvements. Mexican nationals and foreigners that have dual citizenship or an immigration document known as FM2 may be exempt from capital gains if they prove that the residence they are selling is their primary residence, that they have lived in the residence for six months or more prior to the sale, they must have electric and water bills in their names and the same names on the trust deed. Real estate held by corporations and property used as a personal vacation homes do not qualify as being tax exempt for capital gains taxes.
