Mexico Tax Center
Get answers to your tax questions about your vacation rental property in Mexico.
The Digital Platform Tax Law
GET STARTED WITH THE DIGITAL PLATFORM TAX LAW
The digital Platform Tax law governs how income is reported on online digital platforms such as Airbnb and VRBO. This law affects all hosts renting property on such platforms in Mexico.
REGISTERING YOUR RFC WITH THE DIGITAL PLATFORM SUCH AS AIRBNB
Read our step by step guide on how to file your taxes on vacation rental property earnings in Mexico.
How to register your RFC on the platform.
What happens if I don’t register.
What happens if I register the taxpayer ID I use in my home country?
FILING TAXES ON VACATION RENTAL INCOME AS A MEXICAN INDIVIDUAL TAXPAYER
If you are earning income from your vacation home in Mexico, you probably have a tax obligation under the new Digital Platform Tax law. Learn more about your tax obligations.
Do I need an accountant?
About the Mexican Tax Authority (SAT)
WHAT IS SAT?
Learn about the SAT, the tax authority who is tasked with administering taxation in Mexico.
AM I ELIGIBLE TO BECOME A MEXICAN TAXPAYER?
Want to know you if you are ready to become a Tax Payer. You first need to ensure you are eligible by obtaining a CURP which you can then use to get an RFC (a Mexican Taxpayer ID). Not sure how all this works? Read on.
What is a CURP?
What is an RFC?
Who is eligible to obtain an RFC?
REGISTERING AS A MEXICAN TAXPAYER
How do you become a taxpayer in Mexico? If you are eligible, you will need to register with the tax authority and obtain a RFC (a Mexican Taxpayer ID).
Read our step by step guide.
Do I need to become a taxpayer.
Types of Taxation for Vacation Rental Property in Mexico
SALES TAX (IVA)
Many countries have a form of sales tax that is applied to the sale of goods and services at the point of sale. In Mexico, this is called IVA and is a 16% tax on sales. When booking your home, your guests may pay this amount on the digital platforms so that they may remit to the government on your behalf.
IVA basics.
Configuring IVA on platforms.
INCOME TAX (ISR)
Income tax is paid on the your rental profits, namely your income minus your expenses. It is paid monthly to the SAT, the Mexican tax authority based on the earnings within the month.
ISR Basics in Mexico.
How is ISR calculated?
LODGING TAX
Have you ever noticed a lodging or local hospitality tax added to your bill when you stay in a hotel? These taxes apply to vacation rental property as well depending on the state in which the home is located. These taxes are collected automatically by the digital platforms and automatically remitted to the local authority on your behalf.
Learn More.
Learn about Facturas
FACTURA BASICS
A factura is an electronic invoice that accompanies the sale of goods and services in Mexico. One is generated by the seller to show income and used by the the buyer as proof of the expense. Official facturas are registered with the Mexican government electronically for tax purposes.
Learn all about how to spot a factura.
GENERATING INCOME FACTURAS
Want to know you if you are ready to become a Tax Payer. First you need to have a CURP. Do you have one?
Why do I need to generate an income factura?
How to generate an income factura.
GENERATING EXPENSE FACTURAS
Proving the expenses you incur on the operation of your vacation home is important, as you can use these expenses to lower the income taxes you owe on your rental earnings.
How collecting expense facturas lowers my income taxes.
How to obtain expense facturas when you buy something.
More information in our Insights
