# Urgent help needed - selling house in Mexico



## bellabird

My Mexican husband and I live in the US. When he bought his mother's house in Monterrey last year, the notario left my name off the documents so that I would not have to pay the high tax as an "extranjera". But, he made the mistake of putting my husband as "casado" (married). We are now selling the house but found out that my name would have to be added as spouse and will have to pay $6K in taxes as an "extranjera". That will be more than the profit on the house, so we will be losing on the sale. Someone suggested I get an RFC (Registro Federal de Contribuyentes) but I have no proof of visiting Mexico recently, and I believe that is a requirement. Does anyone know what an RFC is exactly? Is it possible to obtain the RFC with a couple of witnesses who would sign an affidavit saying that I have lived in Mexico for a certain period of time? Does anyone have a suggestion so we don't have to pay such a large tax on this sale? The buyer is being patient and helpful, but he's been on hold since May, waiting for my husband to get a CURP and IFE -- which has also cost us expense for airfare, hotel, etc., so I would appreciate hearing from you as soon as possible. Thank you so much for your help.


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## johnmex

A "RFC" is the equivalent to a US "Tax ID number".


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## TundraGreen

An RFC is a tax ID number. It is issued by SAT. When I got mine, I had to give them copies of my passport and visa. I don't know if you can get one with just a tourist permit. You could start by looking at their web site (Servicio de Administración Tributaria). And then maybe call them.


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## AlanMexicali

*Capital gains in Mexico*



bellabird said:


> My Mexican husband and I live in the US. When he bought his mother's house in Monterrey last year, the notario left my name off the documents so that I would not have to pay the high tax as an "extranjera". But, he made the mistake of putting my husband as "casado" (married). We are now selling the house but found out that my name would have to be added as spouse and will have to pay $6K in taxes as an "extranjera". That will be more than the profit on the house, so we will be losing on the sale. Someone suggested I get an RFC (Registro Federal de Contribuyentes) but I have no proof of visiting Mexico recently, and I believe that is a requirement. Does anyone know what an RFC is exactly? Is it possible to obtain the RFC with a couple of witnesses who would sign an affidavit saying that I have lived in Mexico for a certain period of time? Does anyone have a suggestion so we don't have to pay such a large tax on this sale? The buyer is being patient and helpful, but he's been on hold since May, waiting for my husband to get a CURP and IFE -- which has also cost us expense for airfare, hotel, etc., so I would appreciate hearing from you as soon as possible. Thank you so much for your help.



I understand you will have to pay the tax if your husband did not use the house as his primary residence for 2 years out of the last 5 years. It would be considered an investment and taxable in Mexico and has nothing to do with you being his wife and a foreigner. I could be wrong. Most probably what the notario is telling you is right though. 

I found getting a CURP was instantly given when I married my Mexican citizen wife. We presented the Mexican marriage license, my passport and walked out with it in 1 hour, only had to go to the computer there on line and return with a few pesos to the window.

It appears he would pay the tax even if he was not married to you.

I wonder why he never had proper Mexican ID when purchasing the house?


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## AlanMexicali

*Curp*



TundraGreen said:


> An RFC is a tax ID number. It is issued by SAT. When I got mine, I had to give them copies of my passport and visa. I don't know if you can get one with just a tourist permit. You could start by looking at their web site (Servicio de Administración Tributaria). And then maybe call them.


Hello Will.

Thanks for the website and I found the 3 documents needed for the issuance of a CURP there:

a) Copia Certificada del Acta de Nacimiento 
b) Documento Migratorio vigente .. [possibly this is were I needed a FMM ]
c) Carta de Naturalización .. [I got mine without a FM2 or FM3 but needed my Mexican marriage license and FMM.

I will search for property sales and taxes for a person who sell it and is not using the property as their primary residence. I only have to show CFE [electric bills] with my name for the last two years the notario told me for this stipulation if I wished to sell and avoid capital gains taxes which would be about 17 to 25 % of the profit or total selling price, I forgot?


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## AlanMexicali

*Extranero pays taxes in Mexico?*



AlanMexicali said:


> I understand you will have to pay the tax if your husband did not use the house as his primary residence for 2 years out of the last 5 years. It would be considered an investment and taxable in Mexico and has nothing to do with you being his wife and a foreigner. I could be wrong. Most probably what the notario is telling you is right though.
> 
> I found getting a CURP was instantly given when I married my Mexican citizen wife. We presented the Mexican marriage license, my passport and walked out with it in 1 hour, only had to go to the computer there on line and return with a few pesos to the window.
> 
> It appears he would pay the tax even if he was not married to you.
> 
> I wonder why he never had proper Mexican ID when purchasing the house?



SAT website quote:

Which taxes should be paid?

Income tax (Impuesto sobre la renta)

People with Mexican or foreign nationality, who reside abroad and obtain income in Mexico, are obliged to pay income tax.


Value-added tax (Impuesto al valor agregado)

They must pay the value-added tax if they obtain income from the disposition of property or from the lease of real property different from residential property.

Value-added tax must also be paid if it has to do with leasing of furnished real property, or with hotels or boarding houses.

Furthermore, the value-added tax due in accordance with the Value-added Tax Law (Ley de Impuesto al Valor Agregado), must be paid by individual or juridical persons who make payments to residents abroad for rendering services used in Mexico, for the use or benefit of tangible or intangible property, among other cases, since this is considered as importations.


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## AlanMexicali

*Extranero pays taxes in Mexico?*



bellabird said:


> My Mexican husband and I live in the US. When he bought his mother's house in Monterrey last year, the notario left my name off the documents so that I would not have to pay the high tax as an "extranjera". But, he made the mistake of putting my husband as "casado" (married). We are now selling the house but found out that my name would have to be added as spouse and will have to pay $6K in taxes as an "extranjera". That will be more than the profit on the house, so we will be losing on the sale. Someone suggested I get an RFC (Registro Federal de Contribuyentes) but I have no proof of visiting Mexico recently, and I believe that is a requirement. Does anyone know what an RFC is exactly? Is it possible to obtain the RFC with a couple of witnesses who would sign an affidavit saying that I have lived in Mexico for a certain period of time? Does anyone have a suggestion so we don't have to pay such a large tax on this sale? The buyer is being patient and helpful, but he's been on hold since May, waiting for my husband to get a CURP and IFE -- which has also cost us expense for airfare, hotel, etc., so I would appreciate hearing from you as soon as possible. Thank you so much for your help.


After reading some parts of the SAT website it appears you two will have to declare the sale of your property to the SAT and I was told once from a noterio the total taxes are 17 to 2o or 25% [ I forget] depending on remolding receipts etc. unless you have CFE receipts for 2 out of the last 5 years proof that the house was your primary residence at least for 2 years and not a rental or investment property. 

Good luck on sorting it out. You may consider keeping the house for 2 years and getting the CFE bill in your name and leaving it empty if the sum you gain is more profitable and as house prices do go up you may do well. You can pay the CFE online with a Banamex account from the US probably. Keep the property taxes paid up in your name also.


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## bellabird

Thanks to all for the information. I'm trying to digest it all while reading what I can on the various websites. Again, thank you all.


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## bellabird

The $6,000 tax is for "Impuesto sobre la renta" but the house has been empty for a year. According to the notario, it is a tax assigned to ME as an extrajera (my husband's portion is either lower or null because of his IFE. So, I'm trying to apply for an FM2 as an imigrant married to a Mexican, which is a requirement to obtain an RFC, which I was told would lower my taxes. I don't think I need a CURP, but let me know if I'm wrong. Thank you!


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## AlanMexicali

*Curp*



bellabird said:


> The $6,000 tax is for "Impuesto sobre la renta" but the house has been empty for a year. According to the notario, it is a tax assigned to ME as an extrajera (my husband's portion is either lower or null because of his IFE. So, I'm trying to apply for an FM2 as an imigrant married to a Mexican, which is a requirement to obtain an RFC, which I was told would lower my taxes. I don't think I need a CURP, but let me know if I'm wrong. Thank you!



Getting your CURP is important in Mexico and relatively easy and costs only a few pesos. It registrars you and your status in many institutions. Keep all records of your FMM 180 day visas, you will need them. A appellate copy of your marriage license and divorce [last] if you have one from the state you married or divorced in is needed [no need to translate the document into Spanish] . Hopefully your husband has the last year of CFE receipts in his name to avoid all income taxes and also property taxes are current and in his name, then possibly a year from now no taxes will be charged to him and if you have a FM3, I don't know? Or possibly because of your FM3 a lower rate will apply, also I don't know.

I have checked about selling my house recently and at one point decided to keep it. I sold one house and went through all this several years ago also.


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## RVGRINGO

bellabird said:


> The $6,000 tax is for "Impuesto sobre la renta" but the house has been empty for a year. According to the notario, it is a tax assigned to ME as an extrajera (my husband's portion is either lower or null because of his IFE. So, I'm trying to apply for an FM2 as an imigrant married to a Mexican, which is a requirement to obtain an RFC, which I was told would lower my taxes. I don't think I need a CURP, but let me know if I'm wrong. Thank you!


Your notario is absolutely correct. All foreigners must pay that fee to the federal government for permission to do a property transaction. If you were both foreigners, the cost would be twice as much. As we have owned two homes in Mexico, at separate times, we have had to pay four times that amount. If the home was not your principal residence and you make a profit on the sale, you will pay an additional 'capital gains' tax on the profit amount. Be happy that you have found a buyer and don't jeopardize the closing by delaying. Buena suerte.
By the way, "renta" in this instance does not mean 'rent'.


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## AlanMexicali

*Realitor website*



bellabird said:


> The $6,000 tax is for "Impuesto sobre la renta" but the house has been empty for a year. According to the notario, it is a tax assigned to ME as an extrajera (my husband's portion is either lower or null because of his IFE. So, I'm trying to apply for an FM2 as an imigrant married to a Mexican, which is a requirement to obtain an RFC, which I was told would lower my taxes. I don't think I need a CURP, but let me know if I'm wrong. Thank you!



San Carlos Mexico AZ Homes for Sale & Real Estate by Mi Casa-Su Casa Realty Group

Impuesto sobre la renta:
I think this is the term for income tax.


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## TundraGreen

bellabird said:


> The $6,000 tax is for "Impuesto sobre la renta" but the house has been empty for a year. According to the notario, it is a tax assigned to ME as an extrajera (my husband's portion is either lower or null because of his IFE. So, I'm trying to apply for an FM2 as an imigrant married to a Mexican, which is a requirement to obtain an RFC, which I was told would lower my taxes. I don't think I need a CURP, but let me know if I'm wrong. Thank you!


You will need a CURP to get an RFC, but they can do it for you. I got a CURP first at INEGI, but they had spelled my name incorrectly (I didn't notice until I left the office). I pointed the error out to SAT and they changed the name and gave me a new CURP while they were giving me an RFC.

Apologies for the alphabet soup.


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## bellabird

That puts my mind at ease. Thanks so much.


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## scubakevin

BellaBird

I suggest that you discuss this with a real estate lawyer in Mexico because none of what you are saying makes much sense other than paying a tax on the sale of the property.

If you were married in Mexico you were married under one of two manners.

Bienes en Comunes which means you and hubby share everything in the case of a split or
Bienes por Separados which means that each owns his own and leaves with his own.

If you were married outside of Mexico and have never entered your marriage into the system here it doesn't matter what the title of the property says you and he are not legally married.

That being said like in my case my wife for legal motives purchased her fathers house last year for 100 pesos and we did the title in her name alone and of course it says she is Married. We were married in Mexico and have Bienes en Comunes (we share everything) so I don't have to worry and she doesn't have to worry if something goes wrong down the line to not get a fair shake.

The other issue is based on what your husband paid for the house on paper and what he is selling it for. Impuesto sobre la renta simply means "Tax on Profits" it has nothing to do with "RENT" or anything like that. When we talk about a business being viable we say it is "RENTABLE" which means profitable so RENTA = PROFIT. So if your husband bought the house for $100,000 pesos and sells it for $150,000 pesos you will pay tax on the $50,000 which is the profit.

There are many factors taken into account on sale of property or homes including how long you lived there, was it a primary residence, was it an income property etc.

Don't be scared by this but definately check with a Real Estate Accountant or lawyer who can give you correct answers. Most will charge you $50 US for a consultation and give you an estimate to handle the declaration paperwork etc. but if YOU are not on the title or "Escritura" as it is called in Mexico YOU do not have to register, get an RFC or CURP or anything like that. 

Regards
Kevin


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