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.
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- real-estate
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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.
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