New Fiscal Reforms in Quintana Roo 2024: Impact on Real Estate
The Congress of the State of Quintana Roo recently approved a package of fiscal reforms in 2024 that amend, repeal, and add various provisions to the state’s legal framework. Of course, this will impact the real estate market in the Riviera Maya.
These amendments affect several laws, including the Treasury Law, Tax Code, Valuation Law, Public Administration Organic Law, Tax Administration Service Law, Cadastre Law, and the State Rights Law. The goal of these reforms is to update regulations on real estate valuation and related tax procedures, among other critical aspects of the state’s regulatory framework.
Notably, as of August 1 this year, all real estate transactions handled by a Notary Public must now have an appraisal valuation validated by the SATQ (Tax Administration Service of Quintana Roo) before their formalization. This appraisal must be conducted by a SATQ-registered appraiser. This will ensure that properties are accurately valued, minimizing undervaluations and tax evasion in the deed process.
What it means
These new rules present challenges for various stakeholders. Among others, they include real estate advisors, lawyers, and notaries, as well as increased bureaucratic and fiscal burdens for both domestic and foreign investors. Acquiring property, particularly in high-demand tourist areas such as Cancun, Playa del Carmen, and Tulum, may become more restrictive. This could lead to a reduction in the available supply of real estate in these areas and potentially drive up property prices.
While these regulations aim to enhance tax collection, transparency, and fairness in the real estate sector, there are concerns about their potential impact on tourism and investment in the region.
The full effect of these changes will only be known once the State Executive issues the harmonized regulations for the State Valuation Law and other relevant regulatory provisions. This will provide clearer guidance on the valuation criteria governing the state’s real estate market.
