Originally Posted by RVGRINGO
Is the house your principal residence? For how long?
"Income Tax on Property Gains: If the home has not been your main residence for at least the last two years, will be required to pay income tax on the property. You may either pay 20% on the gross amount of the transaction, or elect to pay 38- 40% tax on the net profit obtained from the property. This law prevents short-term speculation on the property market. Commercial property is taxed at above rates, regardless."
Closing taxes in Mexico - Teresa Gutierrez
This is interesting from the site above. I have never heard of this yet.