If your neighbors or a friend cleans for you, that payment w...
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If your neighbors or a friend cleans for you, that payment will not be considered for any claim you may need to submit. Note...
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Foreigners who earn income in Mexico may apply for a foreigner RFC without applying for residency.
You need to find a facilitator or Mexican accountant who understands this process and won’t tell you that you must apply for residency. This link to Mexican tax authority (SAT) says it is possible: **
You need to this soon after you purchase your property because you need to be able to obtain the electronic invoices (facturas) that will allow you to write off expenses that will reduce your capital gains when you go to sell your property. I know of people who are selling their condos because AirBnb recently started withholding 20% for income tax because they don’t have an RFC. If you have a personal RFC, the rate is 4%.
I would like to hear from someone who has obtained an RFC through this process. It should be considerably less than the residency process.
**[Broken link removed by Community Manager]
You have to be retired to go straight to permanent residency. I got a very nice write-off and refund of over $2k on my US taxes and a nice refund of over $12,000 pesos from the Mexican government this year. HOA fees, property management and having to pay a Mexican accountant really piled up the write-offs. So for me, it is advantageous to declare in both countries. The difference in Mexico though - you need those facturas in order to get the write-offs.
Hello Karen
I was born and raised in Mexico, I have my curp and I believe my RFC, I just don't know where it is, I became American citizen 16 yrs. ago and just recently I been looking into buying a property in Mexico, and to rent it.
My question is, the taxes that Airbnb is retaining when people book the properties how much is and where the money go? Mexico or USA? and do you have to double pay taxes in USA and in Mexico too. I found your articles very helpful, thank you so much for taking your time and responding to other people questions
Best Regards
@Karen3152 - We own a home in Cabos San Lucas and now have a 3 year temporary residency. We will apply for residency once we are close to expiration. Can we get a RFC with temporary residency or do you need permanent residency? Any information you have is appreciated.
Hi Karen, such a small world! I also live in Sacramento and have a condo in Cabo.
Could you recommend an accountant to help with the RFC process?
Thank you!
I am sorry to say that my accountant passed away in December. His office is not taking on any new clients as they figure out a new business model.