How Much Is Property Tax (Predial) in Tulum?

How Much Is Property Tax (Predial) in Tulum?

When considering an investment in Tulum, most buyers focus on appreciation, lifestyle, and vacation rental potential. However, one important detail that often goes unnoticed — yet can make a significant long-term difference — is the annual property tax, known in Mexico as predial.

The good news? Tulum remains one of the destinations with very low annual property taxes compared to other luxury real estate markets.

What Is Predial?

Predial is a municipal property tax paid once a year by owners of real estate, including villas, condos, and land.

In Tulum, the tax is calculated based on the cadastral value of the property, not the market value or purchase price — which is a major advantage for owners and investors.

How Is Property Tax Calculated?

The municipality applies a rate that typically ranges from 0.17% to 0.50% of the cadastral value, depending on the type and use of the property.

Key points:

• The cadastral value is usually much lower than the market value.
• In new developments, this difference can be substantial, making the annual cost very affordable.

Example

For a property with an estimated cadastral value of MXN $2,000,000, the annual property tax is approximately:

👉 MXN $3,000 to $5,000 per year

Many villas or condos in Tulum even pay less than MXN $2,000 annually, which is remarkably low compared to other international resort destinations.

Early Payment Discounts

The Municipality of Tulum encourages early payments with discounts:

• January: up to 30% off
• February: 15% off
• March: 10% off

This allows investors to further reduce the annual cost if paid promptly.

Why This Matters for Investors

Low property taxes have a direct impact on investment returns:

• Lower fixed annual costs
• Improved cash flow for vacation rentals
• Higher net returns
• Reduced tax burden compared to the U.S. or European markets

While taxes in cities like Miami, Los Angeles, or many European destinations can run into thousands of dollars annually, Tulum remains exceptionally cost-efficient.

Final Thoughts

Investing in Tulum is not only about capital appreciation and lifestyle — it’s also about smart financial planning.

The low cost of predial is one of those details that, over time, significantly enhances net returns and cash flow.

If you’re considering a specific property and want to know exactly how much you would pay in property tax, I can provide a personalized estimate for your investment.

The Bucket List by Melina Villavicencio

Boutique Real Estate & Investment Advisory

Tulum · Riviera Maya