Mexico RFC

[Will4127]

Hi All!

For hosting in Mexcio, does anyone have a good accountant or law firm that can help a foreigner obtain an RFC number? 

Thanks!

[Karen114]

@Will4127  Not sure if you have obtained your residency in Mexico temp or perm, however that is the only way you can get an RFC. 

We are halfway through the process now that starts at the Mexican Embassy in our country.  We have 6 months to finalize it in Mexico.  We are using a facilitator for this as our Spanish skills are not great. 

[Will4127]

Hi Karen, thanks so much for this reply. If you don't live in Mexico what are the options available? 

[Rebecca]

Hey @Will4127, 

It's great that @Karen114 was able to support here. I've tagged @Karen114 here so they receive a notification of your message. 

Quick tip: if you type "@" and then the username, this will tag the member that you're replying to. 

Have a wonderful day! 🌼

[Karen114]

@Will4127  As far as I know the only way to get an RFC is to get your residency either temp or permananent.  You will not get permanent residency unless you can show that you are retired.  At least not at my emabassy in Boston MA.  Every embassy is different and will have different criteria.  The Florida ones I understand are much more lenient. 

[Jonathan2599]

@Will4127 did you ever figure this out? My wife and I just started hosting in Cabo, but neither live there permanently or even temporarily. Perhaps an RFC number isn't needed? Trying to figure out how to account for the Mexico VAT that is taken out of each booking on my taxes. We live in the US. 

[Karen114 · Accepted solution]

@Jonathan2599  Sorry late to the party. 

You will need the RFC to avoid heavy taxation from Airbnb that they submit to the Mexican government, SAT.  This is not an Airbnb mandate, it's the Mexican goverment that requires this.

With the RFC you will have 4% deducted as tax witholding vs 20% without the RFC.   You of course can claim this on your US taxes when you file them to show that you have paid this tax to SAT. 

It is a processt to get your residency whether temp or perm however it will be worth it in the end.  With an RFC you will not pay capital gains to Mexico if you sell or very little vs not being a resident.

You are also afforded discounts once you are a resident.  I had an ER visit this past February and my cost was $25 USD, crazy..  You can also get local discounts as well.  

[Jonathan2599]

@Karen114 Very helpful!! I’m actually meeting with a Mexico based tax accountant later today so your response and information is rather timely! Thank you kindly 🙂