What Is ISABI? Playa del Carmen Property Acquisition Tax Explained
If you are planning to buy property in Playa del Carmen, there is one tax you absolutely need to understand: ISABI, the local property acquisition tax. Since December 2025, this tax has increased and now represents a higher closing cost for buyers.
What Is ISABI and Who Collects the Property Acquisition Tax?
ISABI stands for the Tax on the Acquisition of Real Estate, commonly referred to as the property acquisition tax in Playa del Carmen. It applies when a property is acquired through a sale, inheritance, adjudication, debt settlement, transfer trust, or assignment of rights.
In Playa del Carmen, this tax is collected by the municipal government through the Treasury Department. In most transactions, the notary calculates the ISABI and pays it directly to the municipality at closing.
How Much Is the Property Acquisition Tax in Playa del Carmen?
The current ISABI rate in Playa del Carmen is 4%. Before the reform, the rate was 3%, meaning buyers are now paying one additional percentage point, which represents a 33.33% increase compared to the previous tax.
When Did the ISABI Increase Take Effect?
The increase took effect on December 10, 2025, the official publication date of Decree 167. From that date forward, all transactions formalized must calculate the property acquisition tax at the 4% rate.
What Value Is Used to Calculate the Property Acquisition Tax?
ISABI is not always calculated based on the purchase price. According to local tax law, the taxable base will be the highest value among the following:
- The agreed purchase price
- The cadastral (property tax) value
- A bank or certified appraiser valuation
- The last declared value by the seller
This means that even if you negotiate a lower price, the municipality may use a higher reference value to calculate the property acquisition tax.
Examples of the ISABI Impact
For a taxable base of $2,000,000 MXN: Before (3%): $60,000 Now (4%): $80,000
For a taxable base of $5,000,000 MXN: Before (3%): $150,000 Now (4%): $200,000
Are There Any Deductions for ISABI?
Yes. Local law allows a deductible amount for social interest and popular housing, expressed in UMAs, which is subtracted from the taxable base before calculating ISABI.
In Playa del Carmen, popular housing is generally considered to be properties with a value of approximately up to $1,033,000 MXN. This amount is for reference only and may change each year. Final eligibility and interpretation depend on the notary and the municipal Treasury.
Practical Recommendations for Buyers and Sellers
- Request an ISABI simulation before signing any agreement.
- Confirm with the notary which value will be used as the taxable base.
- Clearly define who is responsible for paying the property acquisition tax.
- If you believe your property qualifies as popular housing, confirm this before closing.
Understanding ISABI and the property acquisition tax before closing can save you tens of thousands of pesos and help you avoid unpleasant surprises during the transaction.