Are You American or Canadian? Discover the Tax Benefits of Owning
in Los Cabos, Mexico
Did you know that owning residential real estate in Los Cabos also brings meaningful tax advantages?
As an American or Canadian home buyer, your Wen Living property offers more than a relaxed lifestyle by the sea—it’s a smart investment with compelling tax benefits.
Whether you plan to live in your condo year-round, visit seasonally, or rent it out as an income property, here’s what you should know about how owning in Mexico could benefit you financially.
Tax Benefits for U.S. Home Buyers
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✓ Mortgage Interest Deduction
Deduct interest on your Mexico mortgage—just like on a U.S. home—if it’s your primary or secondary residence.
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✓ Foreign Tax Credit
If you earn rental income and pay taxes on it in Mexico, you can claim a credit on your U.S. tax return to avoid double taxation.
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✓ Rental Expense Deductions
Expenses like property management fees, repairs, insurance, and platform fees (Airbnb, Booking.com)
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✓ Depreciation
Deduct 1/30th of your property’s value (excluding land) each year for foreign rental properties under IRS rules.
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✓ Capital Gains Exclusion
If your property has been your primary residence for at least 2 of the last 5 years, you may be able to exclude up to $250,000 ($500,000 if married) in capital gains.
Tax Benefits for Canadian Home Buyers
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✓ Foreign Tax Credit
Canada allows a tax credit for income taxes paid in Mexico, avoiding double taxation on rental income.
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✓ Capital Gains Exemption
If your home in Los Cabos is your principal residence, profits from a future sale may be tax-free.
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✓ Rental Deductions
Mortgage interest, maintenance, insurance, property management fees, and other rental-related costs may be deducted.
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✓ Depreciation (CCA)
You can depreciate the property, but overuse may impact your eligibility for capital gains exemptions.
Owning a property at Wen Living doesn’t just elevate your lifestyle—it could also support your financial wellness. As always, we suggest speaking with a trusted tax advisor, but the potential is clear: life in Los Cabos is even more rewarding than you thought.
Sources:
Internal Revenue Service Link
Government of Canada Link
DISCLAIMER: The information provided in this blog is for general informational purposes only and does not constitute legal, tax, or financial advice. Tax laws and regulations can vary and are subject to change. We recommend consulting a qualified tax professional or financial advisor familiar with the tax laws of your home country and Mexico before making any real estate or investment decisions. Wen Living does not accept liability for any actions taken based on the information provided in this blog.
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