Hello @Tammie65
Congratulations on your condo in Puerto Vallarta! Here's some guidance on getting started with renting it out on Airbnb:
You're correct that Airbnb requires an RFC (Registro Federal de Contribuyentes) number to process taxes in Mexico. If you don’t have an RFC number yet, Airbnb will automatically withhold a certain percentage of your earnings for taxes, which can be higher than if you had an RFC. It's advisable to get your RFC as soon as possible to minimize tax withholding and comply with Mexican tax regulations.
You can still list your property on Airbnb without an RFC number. However, until you provide it, Airbnb will continue withholding the applicable taxes. Once you obtain your RFC, you can update your Airbnb account, and they will adjust the withholding accordingly.
While you don’t necessarily need a Mexican bank account to start renting out your property, it’s something you should consider setting up. Having a Mexican bank account simplifies receiving payments and managing your finances, especially when dealing with rental income in Mexico.
Start the process of getting your RFC number as part of your permanent residency. You might want to consult a local accountant or tax advisor who can guide you through this process.
You may go ahead and list your condo on Airbnb. Just be mindful of the higher tax withholding until your RFC is provided.
Once you’ve settled more into your residency, consider setting up a Mexican bank account to streamline your rental income management.
Given the complexities of tax laws in Mexico, especially for foreigners, it’s a good idea to consult with a local tax advisor. They can help ensure you’re compliant with all regulations, help with obtaining an RFC, and offer guidance on managing your rental income efficiently.
Best of luck with your rental in Puerto Vallarta!
