# Mexican income tax on rental income



## Adondevamos (Jan 4, 2018)

I would like to hear from people who own property in Mexico and rent it out (and who may or may not also live part-time in it). I have read that Mexican income tax must be paid on any rental income but I don't understand how to do that. How does it work, and how much is it?
If there are any Canadians who can tell me what they do on the Canadian income tax side of things, I would be interested to hear.


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## RVGRINGO (May 16, 2007)

You are supposed to have a Residente Temporal, with INM 'Lucrativa' permission, or a Residente Permanente Visa, with notification to INM, plus RFC and Curp. Then, an accountant to file your bimonthly taxes & pay them.
Your rate will be at 'hotel rates', if the place is furnished. It is pretty steep!
Are you ticking off all the boxes yet? That's just to keep you legal in Mexico.
Then, there are the tax implications upon the sale of the property. Is it worth it?
I suggest you consult Spencer.


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## Adondevamos (Jan 4, 2018)

RVGRINGO said:


> You are supposed to have a Residente Temporal, with INM 'Lucrativa' permission, or a Residente Permanente Visa, with notification to INM, plus RFC and Curp. Then, an accountant to file your bimonthly taxes & pay them.
> Your rate will be at 'hotel rates', if the place is furnished. It is pretty steep!
> Are you ticking off all the boxes yet? That's just to keep you legal in Mexico.
> Then, there are the tax implications upon the sale of the property. Is it worth it?
> I suggest you consult Spencer.


Thanks RV. Who is Spencer? And are you saying that the income can't be reported by someone with a tourist visa?


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## RVGRINGO (May 16, 2007)

Spencer McMullen is an excellent attorney, at Chapala Law dot com, located in Chapala.
A tourist may not do anything 'lucrative' in Mexico, under INM regulations, and cannot have the CURP or RFC credentials that are necessary for doing business in Mexico. Spencer can explain the details, and may help to keep you legal and out of trouble.


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## Adondevamos (Jan 4, 2018)

Thanks RV.


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## maesonna (Jun 10, 2008)

In almost every case, it’s worth consulting a Mexican accountant if you (might) have to pay Mexican income tax. Sometimes keeping track of changes in tax requirements and regulations can be a full time job, and they’re better qualified to do it than we are! At least that’s the case for me. My income is from business services, not from rental property, but anyway I would have been lost about how to handle my taxes without the help I get from an accountant.


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## DiverSailor123 (Sep 17, 2016)

That tax free income incentive for buying more than you could really afford was and maybe still is being used by realtors in Mexico.." You'll take in more tax free income than you will ever pay for the place etc etc "word it how ever you like"..Back in the day you could rent it out tax free and if you played it right no one got taxes from income..Those days are G O N E ..Mexico is tracking all the rental sites Airbnbs etc . Think about it ..They know when you arrive and when you leave ( Bar Code On Pass Port) Your electric bill is computerized..


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## RVGRINGO (May 16, 2007)

Yes, the 'good old days' have vanished, and one must be much more careful now with tax situations on both sides of the border. Nobody likes to respond to a knock on the door and see two strangers, in suits or uniforms.


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