Does selling a property generate tax obligations?

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:

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.