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Does selling a property generate tax obligations?

Posted by nmktadmin on May 4, 2023
The answer is yes, among which is the payment of Income Tax (ISR) under the criteria of alienation of assets.
The amount to pay for this fee is a percentage of the surplus value that your property has had (the difference between what you paid for it and how much you will sell it for).
The ISR is a tax that only natural persons pay and in several cases the amount proportional to it is retained by the notary, just keep in mind to keep the documentation with which you can corroborate this compliance with the tax authorities< /b>.
However, there are some exemptions and deductions you can make. With the exemption the tax is not paid and with the deduction there is the possibility of integrating costs that are subtracted from the income to lower the profit and consequently pay a lower tax. The capital obtained for the sale of the property where you live are exempt from this tax up to an amount of 700,000 Udis (3 million 800 thousand pesos approximately). For this, it is a requirement that you prove that it was truly the house where you lived, you can do this with the assistance of some documents that are in your name; or if not all the utility bills in your house are in your name, it is not required to change them, it is enough that they are in the name of your spouse, your ancestors or descendants.
In any situation it is a requirement that you have two things present:
  • You can only exempt the payment of ISR once every three years.
  • In situations in which you cannot exempt this payment (because you have done it on another occasion, or because it is not within the stipulated amount) to calculate the corresponding tax, you can base yourself on different deductible concepts:
  • 1. The proven purchase value (what the property cost you).
  • 2. Investments in creations, updates and extensions.
  • 3. Commissions and mediations. The amount you paid to the real estate agency that helped you sell your home is also deductible; With a real estate commission invoice you will have the possibility of deducting this criterion.
Therefore, if you plan to sell your house, it is important that you have the support of experts (Real Estate Agents Security, notaries, accountants) this must be before, during and after the development of the property. sale, since if you make a mistake you may not be able to process the exemption or deduction of your taxes.
If you have concerns, or want information, call us, we are here to help you.

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