This levy on real estate holdings within Mexico’s borders is typically an annual charge based on the assessed value of the property. For example, a residential home in Playa del Carmen will be subject to this annual tax, the rate of which is determined by local municipalities. Commercial properties, undeveloped land, and other real estate assets are also typically subject to these charges.
These revenues provide essential funding for local governments, supporting public services such as infrastructure development, schools, and emergency services. Historically, such levies have been a cornerstone of municipal finance, ensuring the consistent provision of resources for community well-being. Stable and predictable revenue streams from these assessments contribute to the overall financial health and stability of local authorities, enabling them to plan and execute long-term projects.