A contentious tax reform has sparked outrage among national and local business organizations on Isla Mujeres, with critics accusing the municipal administration of Atenea Gómez Ricalde of imposing an unfair burden on investors.
The new Real Estate Acquisition Tax (ISABI) law, approved this year, increases the tax rate from a fixed 3% to a variable rate of up to 4.5%, and introduces a new fixed fee on municipal units (UMAs). Large transactions, such as those in the hotel sector, are now subject to an additional tax of up to four times the original amount.
For example, operations exceeding 10 million pesos are now taxed with a fixed fee of 9,350 UMAs, equivalent to an extra 1.057 million pesos on top of the percentage applied to the property’s value. This has led to a total tax burden estimated at up to 11%, making Isla Mujeres one of the most expensive destinations in Mexico.
Industry leaders have denounced the new tax as “confiscatory” and a “brutal disincentive to investment”. Formal complaints have already been filed with federal authorities, highlighting the unfairness of the tax burden imposed on the island’s businesses.
In comparison, other municipalities in Quintana Roo maintain much lower tax rates. Benito Juárez, Solidaridad, and Puerto Morelos charge 3%, Tulum 4%, while Bacalar and Othón P. Blanco barely charge 2%. This has raised concerns about Isla Mujeres’ competitiveness as an investment destination.
The situation is particularly concerning Costa Mujeres, an area the federal government aims to promote as a new tourist hub. With this tax burden, business owners are questioning the purpose of public works such as the federal highway being built in the area, whose purpose now seems uncertain.
Source: Reportur
