New Obligation for Residential Property Owners in Mexico City
Dear Clients and Friends,
As of January 1, 2025, owners or holders of residential properties subject to property tax, with a cadastral value equal to or greater than $4,524,974.08 (corresponding to ranges L, M, N, O, and P of the rate in Article 130 of the Mexico City Fiscal Code in effect in 2025), must submit an informational declaration to the Ministry of Finance regarding the status of these properties.
Purpose of the Measure
The primary objective of this new requirement is to maintain an updated cadastral registry that enables better planning and execution of public policies in Mexico City. However, this measure is also expected to facilitate the supervision of property conditions, which could lead to adjustments in their cadastral value and, consequently, impact the amount of property tax to be paid.
Legal Basis
This obligation was established in the “Decree Amending, Adding, and Repealing Various Provisions of the Mexico City Fiscal Code, Adding an Article to the Law of Austerity, Transparency in Remuneration, Benefits, and Resource Management of Mexico City, and Amending an Article of the Organic Law of the Executive Power and Public Administration of Mexico City,” published on December 27, 2024.
Pending Aspects
Although the measure is already in effect, the general rules outlining the procedures and deadlines for compliance have not yet been published.
Taxpayers are advised to stay informed about the issuance of these rules to avoid potential penalties.
Penalties for Non-Compliance
According to Article 465 of the Mexico City Fiscal Code, failure to submit this declaration could result in financial penalties ranging from $4,272.00 to $10,821.00.
Conclusion
Given the uncertainty regarding the operational details of this new requirement, it is recommended that owners of residential properties subject to this measure stay informed and prepared to comply with the tax authority’s regulations once the corresponding rules are issued.
As always, at Valdés, Morán y Asociados, we remain at your disposal for any inquiries regarding this information.
