11.01.2020 Views

Tax Obligations for Vacation Rentals in Mexico

Owning real estate in Mexico, and particularly in the Riviera Maya, can have several advantages for you & your family. Having a vacation home in one of Mexico’s most renowned destinations & earning additional income is considered having the best of both worlds. All through the years, several foreign investors have created a nice rental income for themselves. But like anywhere else in the globe, you have to sacrifice a part of your profits by way of taxes. Learning the local tax laws should be researched & studied before and/or during the buying process.

Owning real estate in Mexico, and particularly in the Riviera Maya, can have several advantages for you & your family. Having a vacation home in one of Mexico’s most renowned destinations & earning additional income is considered having the best of both worlds. All through the years, several foreign investors have created a nice rental income for themselves. But like anywhere else in the globe, you have to sacrifice a part of your profits by way of taxes. Learning the local tax laws should be researched & studied before and/or during the buying process.

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

Tax Obligations for

Vacation Rentals in Mexico


Owning real estate in Mexico,

and particularly in the Riviera

Maya, can have several

advantages for you & your

family. Having a vacation home

in one of Mexico’s most

renowned destinations &

earning additional income is

considered having the best of

both worlds. All through the

years, several foreign investors

have created a nice rental

income for themselves. But like

anywhere else in the globe, you

have to sacrifice a part of your

profits by way of taxes. Learning

the local tax laws should be

researched & studied before

and/or during the buying

process.


Listed below are some simple tax tips that might assist when

investing in Mexico’s growing real estate market:

• If you work and/or gain income from an investment in Mexico

(even if you aren’t a citizen), you’ll most probably have to pay

income taxes. A good place to begin is by contacting the Servicio de

Administración Tributaria (SAT or Hacienda).

• All income earned in Mexico carries a certain taxation.

Regardless of how it’s distributed or gifted, paid in pesos or USD,

or any other monetary valued payout. It has to be reported as

income.

• When you own property in Mexico & are a partial or full-time

resident, you have to register with Mexico’s Registro Federal de

Contribuyente (RFC). This is identical to your Tax ID number.


• All rental earning is subject to Impuesto Sobre la Renta (ISR).

Your residential status is independent from it. You must pay

taxes on your rental earning. The ISR tax rate is based on 25

percent of your gross income earned.

• If the rental property is furnished, on top of the ISR tax,

there’s an Impuesto al Valor Agregado (IVA), or valued added

tax (VAT). The IVA is collected from the renter & paid to the

Mexican govt by the landlord. This is an extra 16 percent tax

charged directly to the tenants.


For more information on Mexico luxury real estate feel free to

contact Run Away Realty. Working with a collaborative team

approach, we help others in discovering how special our community

is. If you’re thinking of buying or selling in Mexico, we are always

here to assist you. For a hassle free real estate experience in Mexico

you can always rely on us. Sign up with us now to receive news and

property listing alerts.


Contact Us

Address:

Run Away Realty

Avenida Niños Héroes, Puerto Morelos

Mexico , USA

Zip: 77580

Phone: +52 1 998 100 3125

Email: info@runawayrealty.com

Web: http://runawayrealty.com/

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!