Property Tax Comparison Tool

Mexico's property tax (predial) is extraordinarily low compared to Canada for two interconnected reasons. First, it is calculated as a percentage of the 'cadastral value' set by the municipal government — not the market value. Cadastral values in Mexico are typically set at 20–40% of actual market value, and they are updated infrequently. A condo selling for USD $350,000 in Puerto Vallarta might have a cadastral value of MXN 1,200,000 (approximately USD $60,000). Second, the percentage rate applied to that cadastral value is itself very low — typically 0.1%. The result: annual predial on a USD $350,000 Puerto Vallarta condo might be USD $60–$150/year. This is not a loophole — it is simply how the Mexican property tax system is designed. Foreign buyers benefit from the same rules as Mexican citizens. Many municipalities offer 5–25% discounts for early payment (usually January or February), making the already-low bill even smaller.

The Dominican Republic levies the IPI (Impuesto al Patrimonio Inmobiliario) on residential properties above a threshold. As of 2025, the threshold is approximately DOP 9 million (roughly USD $155,000) in assessed value. Properties below this threshold pay no IPI. Properties above it pay 1% of the value above the threshold annually. However, many popular buyer markets in the DR — including Punta Cana and Cap Cana — fall under CONFOTUR (Law 158-01), which provides complete tax exemptions for 15–20 years including IPI exemption for approved developments. Buyers in CONFOTUR-approved projects pay zero property tax for the entire exemption period. This is a meaningful financial benefit that Canadian buyers in the DR should specifically seek out. Confirm CONFOTUR status before purchasing any DR property — not all developments qualify.

Panama's 2019 property tax reform (Ley 66) restructured the country's property tax on residential real estate. Under the current structure: primary residences with a registered value up to USD $120,000 pay 0% property tax (a complete exemption). Values between USD $120,001 and USD $700,000 pay 0.5% annually on the amount above $120K. Values above USD $700,000 pay 0.7% on the amount above $700K. For foreign buyers in mid-range markets, this creates a very low effective rate. A USD $300,000 primary residence pays 0.5% on $180,000 = USD $900/year. A USD $500,000 primary residence pays 0.5% on $380,000 = USD $1,900/year. Secondary residences (investment properties) are taxed at higher rates. The Pensionado visa holders receive additional property tax discounts. Verify the registered value of any property — like Mexico, Panama's registered values are often below market value.

In Mexico, property tax (predial) is administered by the municipality and applies the same rates and cadastral assessment methodology to foreign and domestic owners. There is no surcharge or different rate for foreigners. Foreign ownership of property in restricted zones (50km from coast, 100km from border) requires a fideicomiso (bank trust) — but the fideicomiso holds title and the beneficial owner pays the same predial as any Mexican citizen. The fideicomiso itself has annual fees of approximately USD $600–$1,200/year, which is a cost unique to coastal foreign ownership that domestic owners don't bear. This is not property tax — it is a trust administration fee paid to the Mexican bank acting as trustee.

Portugal's IMI (Imposto Municipal sobre Imóveis) applies to both residents and non-residents at the same rates: 0.3–0.45% for urban properties, with the exact rate set by the municipality within that band. Non-habitual residents (NHR) — a tax status formerly available to new residents — were subject to the same IMI rates. Portugal's Non-Habitual Resident program ended for new applicants in early 2024 (replaced by the IFICI incentive for specific professions), but IMI rates were unchanged. Urban properties in the Algarve (most popular for Canadian buyers) typically pay IMI at 0.4–0.45%. Rural properties pay 0.8%. Properties owned by companies (rather than individuals) pay higher rates and are subject to AIMI (an additional surcharge above €600,000 in value). For most Canadian individual buyers, the relevant rate is 0.4–0.45% on the municipal assessed value.

Colombia's predial unificado (unified property tax) varies by municipality and by the property's social 'stratum' (estrato) — a 1–6 classification system originally designed to target subsidies and taxes based on socioeconomic area. Strata 4, 5, and 6 — the neighbourhoods popular with expats in Medellín (El Poblado, Laureles, Envigado) — pay higher predial rates than lower strata. For stratum 5–6 properties, the effective predial on market value runs approximately 0.8–1.4% annually, making it one of the higher foreign property tax rates of the destinations covered. However, the cadastral values used in Medellín are also significantly below market value (often 30–60% of market), meaning the actual bill is less severe than the stated rate implies. Budget USD $1,500–$3,500/year in predial for a USD $250,000–$350,000 El Poblado apartment — more than Mexico or Panama, but still well below comparable Canadian municipal rates.