Housing and capital gain law in Mexico
In Mexico, 75% of the use of land corresponds to housing, thus it is of great importance.
Housing conforms an important part of family heritage, principally as a place where to live, though it may also be considered as a savings and investment for resource preservation.
Housing Law must be updated every certain period of time to offer new properties according to modern times, and create quality infrastructures with necessary sites for attention and recreation.
According to the Political Constitution of the United Mexican States, Chapter 1, Article 4: “Every family has the right to live in a dignified and decorous housing. The Law shall establish the instruments and supports needed to attain such goal.’’
In its single clause, Article 2 of the Mexican Housing Law describes that it is considered dignified and decorous housing that which “…complies with the legal dispositions regarding human settlements and construction, inhabitability, salubrity, has basic services and offers its inhabitants legal certainty of their property or legitimate possession, and takes into account criteria for disaster prevention and physical protection of its inhabitants before potentially aggressive natural elements.’’
To acquire a property, a housing savings must be created.
Article 59 mentions that “…programs that incorporate the beneficiaries previous savings will be fomented, using credit institutions and organizations for the collection of popular savings.”
Article 60 establishes that “programs that stipulate that, to the agreed settlement of the deposits in the amounts and savings periods, credit commitment, subsides or both, as appropriate, shall be established, without prejudice to other eligibility requirements that set applicable dispositions, considering the socioeconomic conditions of the beneficiaries’ savings, will be fomented.”
Capital Gain law
Capital gain is the added value a property gains over time, which increases the cost of purchase and sale in the market. It is also defined as the tax on the increase in the value of the land, that is, the terrain. The seller is who must pay for the capital gain tax.
Elements that influence the value of the capital gain:
- Location of the property
- Services of the zone
- Antiquity of the construction
- Costs of remodelling
