Dear clients & friends,

The Fiscal Code of Mexico City (“CFCDMX”) governs, among other taxes, the property tax and has undergone various reforms over the years to grant reductions to taxpayers who own land and constructions in Mexico City.

In this regard, the CFCDMX offers reductions ranging from 10% to 25% of the total property tax payable, provided that the roof of the residence is greened or the property has mature, living trees or non-wooded green areas on its surface, requirements that are met by many homes in the Mexico City.

It is important to point out that the CFCDMX provides various reductions of up to 80% of the total amount of this tax, in addition to the possibility of combining different types of reductions, depending on the specific case, along with reductions for other concepts such as water supply fees.

The payment of the property tax must primarily be made bimonthly during the months of February, April, June, August, October, and December; however, fiscal legislation allows for advance payments, enabling taxpayers to be eligible for greater reductions.

In line with the reductions mentioned in the previous paragraphs, if you reside in an apartment or house within Mexico City, K&G can conduct a legal analysis of the requirements and procedures before administrative authorities to ensure that, as a taxpayer, you qualify for green area-related reductions.

Should you have any questions or require advice on this matter, our team of experts is available at the following email:

Paul Kavanagh: paul@k-g.com.mx

Miguel Alonso: malonso@k-g.com.mx

Luis Kanchi: Lkanchi@k-g.com.mx