Question:

I have been contacted about selling my timeshare in Mexico. The firm claims that I must pay 12.5% tax on this sale. Can you confirm that?

Answer #1

Rory King:

The answer to the question is a little complicated because it depends on the type of timeshare.   Most timeshares or fractional ownership packages are really just “Club Memberships” and as such it is not a tangible asset, and the transfer of such a club membership would not be a taxable occurrence.

Rory King is with KiZa Associates, a Marketing and Sales company in La Paz and Cabo, with projects in both of those cities, and in Todos Santos.  They specialize in Fractional ownership business models for American and Mexican developers and have 20 years in that business in Mexico.  http://www.kizaassociates.com, rory@kizaassociates.com

Answer #2

Gustavo Calderon:

If you’d been contacted to sell your timeshare at a higher price than what you paid for it and they are telling you that they have a new buyer who needs an immediate answer and/or that you need to pay your tax in advance, I would tell you that this is very unlikely to happen.  So if you are still interested in selling I would suggest that you contact the resort that sold you the timeshare and if possible contact an attorney that can review your contract carefully.

Gustavo Calderon is an independent Lawyer and professor of Family Law and part of the firm CHF Calderon & Associates in Playa del Carmen, Mexico. For more information about this firm, please visit www.chfmexico.com or contact us via email at info@chfmexico.com

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