What is IVA?

IVA is a value added tax that Mexico collects on ALL sales for products and services, with the exception of real estate, food, drugs and medical care. It is similar to what the US and Canada charge as a sales tax.

As it relates to your real estate transaction, IVA is not charged on the sale of your property, but is charged on the fees and commissions that the lawyers, notario, and real estate agents/agencies charge for their services. IVA in Mexico is currently 16% and has been for many years.