I'm thinking of buying a property in Mexico and renting it out. What are my tax obligations?
There are several ways to get things done in Mexico, but if you take care to follow proper procedures, you can be financially better off than if you neglect important details. Here are some steps you should consider:
We are not immigration advisors or attorneys, but if you want to be tax-compliant, you will need to have your RESIDENT CARD. There are two types: TEMPORAL and PERMANENTE. However, you will need a special type of RESIDENTE card with a PERMISO DE TRABAJO (work permit).
People often confuse the PERMISO DE TRABAJO with a permit to work for a company. However, a permiso de trabajo allows you to engage in economic activities, such as renting out a property.
Can you rent out a property without a permiso de trabajo? Yes, but it's not advisable. Having a permiso de trabajo allows you to obtain an RFC (tax ID), which allows for deductions. Other types of RFCs are not as useful for tax purposes.
If you're interested in obtaining a permiso de trabajo, we recommend consulting with an immigration attorney to determine the necessary steps. Once you have your resident card with a work permit, we can help you obtain the proper RFC and strategize your operation to maximize tax deductions.
Without the proper RFC, you may end up paying up to 40% in taxes (between IVA (16%) and ISR (up to 30%)) when you rent out your property on platforms like Airbnb. However, if you have the proper RFC from your permiso de trabajo, we can help bring your tax rate down to 4%
For more details on how please visit