In short
When a Mexican property is sold by public deed, the notary (notario público) calculates the income tax “under their own responsibility” and pays it to the tax authorities, normally within fifteen days of the signing (Income Tax Law, LISR, arts. 126 and 160). A resident seller’s payment goes through form R46, a non-resident’s through form R17 (RMF 2026, rules 3.15.15 and 3.15.16). The notary also calculates a separate 5% payment on the gain that is paid to the state where the property is located (art. 127). The tax rules are federal; the notary’s fees and appointment are set by each state’s notary law.
Why the notary is involved
A sale of a home is normally recorded in an escritura pública (public deed), a document drawn up and kept by a notary. Articles 126, 127 and 160 give notaries, and “brokers, judges and other officials with notarial functions”, a tax role: they compute the tax, record it, pay it and issue a tax receipt (comprobante fiscal) showing the transaction and the tax paid. The Federal Tax Code (art. 26-I) makes persons who must collect or withhold a tax jointly liable up to the amount.
Three payments, three different bases
| Seller | Payment | Basis | Law |
|---|---|---|---|
| Resident of Mexico | Provisional income tax | Gain divided by years held (max. 20), table, multiplied back | Art. 126 |
| Resident of Mexico | State payment | 5% of the gain | Art. 127 |
| Non-resident | Definitive income tax | 25% of the gross price, or the top rate on the gain by option | Art. 160 |
For the first row, the tax paid is only provisional: it is credited in the seller’s annual return. For the third row, the tax paid at the signing is the definitive payment under RMF rule 3.15.16.
The deadline and the forms
The return is filed within fifteen days after the deed or its draft (minuta) is signed (art. 126). RMF rule 3.15.15 says the resident seller’s payment is made on form R46 “ISR por enajenación de bienes inmuebles”, following procedure sheet 86/ISR. Rule 3.15.16 says notaries pay the non-resident’s tax with form R17 “ISR otras retenciones”.
The notary must also give the seller the information on how the calculation was made and issue the tax receipt. In addition, the law requires notaries to file an annual information return on the operations of the previous year; the details are set by the Federal Tax Code.
What the seller must provide
The law and the rules point to the following documents or statements, which the notary uses:
- Acquisition cost and date, to compute the gain: the purchase deed, and the proof of improvements, notary costs and commissions deductible under art. 121.
- Tax identity: RFC (tax ID) or CURP for residents.
- For the main-home exemption: the declaration, under oath before the notary, that no other exempt home was sold in the previous three years. The notary checks this on the SAT website and reports the sale (RMF rule 3.11.4). See home sale exemption.
- For a foreign national claiming tax residence: a declaration in the deed of tax residence, a tax address that is not the home sold, the RFC or CURP, and the SAT residence certificate or tax identification card, attached to the deed file (rule 3.11.3).
- For a non-resident choosing the gain-based method: the deductions to which the seller is entitled, communicated by the seller or representative to the notary (art. 160).
When the notary applies 25%
If a foreign national does not prove Mexican tax residence, rule 3.11.3 says the exemption does not apply and the notary must calculate and pay the tax under art. 160, that is 25% of the total price unless the seller opts for the gain-based method. Where the proof is complete, the rule says notaries are not jointly liable with the taxpayer for that sale unless there is proof to the contrary.
Instalment sales
For deeds that agree payment in instalments over more than 18 months, art. 160 lets the tax be paid as each payment falls due, if the tax authority’s interest is secured; tax is payable on the 15th of the month after each instalment is due. For residents, art. 120 provides a similar spread for the non-cumulative portion of the gain.
The state’s share
Article 127 says that the 5% payment is filed with the authorised offices of the state where the property is located, and that the notary calculates it in the same period as the federal payment. It can be credited against the federal provisional payment for the same sale; see state tax on property gains.
What it costs
The tax itself depends on the sale (see the guides on capital gains and non-resident sales). The law read here does not set a fee for the withholding service; the notary’s fees for the deed are set under each state’s notary law and differ between states.
Which professional to consult
- A notary, the official who prepares the deed and the returns: notary page. The page is for readers; Payotte does not recommend or rank notaries.
- A tax accountant, to check the figures before the signing.
- A real estate lawyer, for powers of attorney when the seller is abroad: real estate lawyer page.
Frequently asked questions
Does the buyer withhold the tax?
Under art. 160 the buyer withholds the non-resident’s tax if the buyer is a Mexican resident, but with a deed the notary calculates and files it, per rule 3.15.16.
What if the notary makes a mistake?
The law says the notary calculates “under their responsibility”. A dispute over an amount is a matter for the tax authority and a lawyer.
Can I pay later instead of at the signing?
The standard is fifteen days after the signing. A longer period applies only to instalment sales over 18 months, with security.
Do I need a Mexican bank account?
The law read does not say; ask the notary how the tax is paid in practice.
Is the notary’s work the same in every state?
The federal tax duty is the same. State notary laws govern the notary’s appointment, fees and procedures.
More guides on selling and taxes
- Capital gains tax on Mexican property: how it works
- Mexico's main-home sale exemption: 700,000 UDIS
- Rental income tax for residents of Mexico
- Selling a home in Mexico: the seller's costs and taxes
- Taxes on platform rentals in Mexico (Airbnb-type)
- The 5% state payment on a property sale in Mexico
- VAT on furnished rentals in Mexico
Sources
- Ley del Impuesto sobre la Renta, arts. 126, 127, 160 (Cámara de Diputados) (consulted 15 October 2026)
- Resolución Miscelánea Fiscal para 2026, rules 3.11.3, 3.11.4, 3.15.15, 3.15.16 (DOF 28-12-2025) (consulted 15 October 2026)
- Código Fiscal de la Federación, art. 26 (Cámara de Diputados) (consulted 15 October 2026)