Duo Citizen US-Mexican with property in Mexico

[Santos157]

Hello,

I have a duo citizenship Mexico-US and own a property in Mexico that I just listed on AirB&B. I wanted to know if I need to enter my Mexican or my US tax information to my listing? I do have an RFC ( mexican tax number). Also, I am not sure if I need to make my tax declarations to both countries. Please advise. Any information will be appreciate. 

[Sophia · Accepted solution]

Hey @Santos157, as our Community Center is a global forum, it may be a bit difficult to get ideas about area-specific information. I would also recommend you ask this question to Local Hosts through the Local Host Clubs 😊

Please check out this guide from the Resource Center about Responsible Hosting in Mexico.

I also found about article about Business licensing in Mexico City.

Feel free to post in the Spanish CC, you may have better luck getting the advice you're looking for 🤞🏽

I hope this helps!

[Fabiola367]

Hola @Santos157 . Did you ever figured this out?  Because is exactly what is happening to me. I'm a Dual citizen and I'm not sure what I need to do. I notice Airbnb is withholding us income tax and mexico income tax. I hope you can help me. Thanks in advance

[Gunnar84]

Hello!

Mexican here. I know it has been a year since your posting, but it might still be useful, to you or to other readers.

First of all, if your property is in Mexico, the Mexican government is entitled to receive taxes related to it. Even if you get your money transferred directly to your USA account, you are bound to the laws of the country you are operating in.

Second, I understand the USA is quite unique in the fact that if you are an USA citizen/resident, you have to declare your earnings and pay taxes for them there even if the economic activity was completely carried out in a different country.

Of course, this casual answer is by no means complete fiscal advice. Some items will be paid to each of the tax authorities --I understand the double-taxing should not be that extensive.

I suggest you.... ask a local accountant in both countries, or ask people with a similar situation to yours, to avoid getting in trouble.

[Emilie]

Thank you @Gunnar84 for sharing your experience on this with the rest of the community! I wanted to mention @Santos157 and @Fabiola367, to make sure they get a notification of your response and can come back to check out your advice. 🙂

Quick tip: To tag someone, tap "@" and select the host's username from the dropdown menu.

[Alicia753]

Hi Santos,

As a dual citizen of Mexico and the US who owns a property in Mexico listed on Airbnb, you should use your Mexican RFC (tax ID) for the listing. This is because the property is located in Mexico, and Mexican tax regulations require rental income from properties within its borders to be declared and taxed there. Providing your RFC ensures that Airbnb withholds and reports the correct amounts for VAT and ISR, as mandated by Mexican tax authorities (SAT).

You are also required to declare income in both Mexico and the US. In Mexico, rental income must be reported to the SAT, where you can deduct expenses related to the property to reduce your taxable income. In the US, as a citizen, you must report global income, including rental income from your Mexican property, on your federal tax return. However, the Foreign Tax Credit allows you to offset US taxes with those paid to Mexico, preventing double taxation. The US-Mexico tax treaty further supports this by clarifying tax obligations across both countries.

Consulting a tax professional experienced in cross-border taxation is highly recommended to ensure compliance with the specific requirements of both countries. Keeping thorough records of income, expenses, and taxes paid will simplify the process and ensure accurate reporting.

I hope this helps.

All the best,

Upfish Management