It depends. The Mexican law provides options that will allow you to diminish or be exempted from paying a CGT. In general, while land and commercial buildings are not subject to tax exemptions, the primary residence is. The government allows to exempt up to 700,000UDIs per person (about 4000,000pesos) every 3 years on primary residence sales. The UDI value fluctuates and you can consult the current value of UDI on the website of Banco de Mexico. The tax exemption can be used only if: the property is your primary residence; you have not sold another home (where you used the tax exemption) in the last 3 years; you have a temporary or permanent visa (in case of foreigners); your CFE bill (or another qualifying bill) is registered to your name and it has your RFC registered on it; your RFC is registered to another address than the property you are selling (foreigners). You can also use qualifying deductible costs to lower your CGT. The max. CGT you can pay is 35% and it is charged off the gain generated on the sale of the property.