What Hosts in Mexico need to know about taxes

[Sybe]

Hi everyone, 

Our team at Airbnb Mexico recently shared this video from the CEO of Fiscalia.com, Gustavo Leal Cueva about paying federal taxes in Mexico. In it, he covers key topics, including: 

* How the different types of taxes work (ISR and VAT)

* Why it is important to register your business (RFC) before you start earning money

* What happens to the taxes Airbnb withholds from your payments

* What expenses you may be able to deduct from your taxes

I hope you find this video useful and please share any other questions you may have that weren’t covered in the video.

If you also need more information, you can read about hosting regulations or taxes for Hosts. Please note that this video is for informational purposes only and should not be considered legal or financial advice of any kind. Before making any decisions, please consult a specialist.

Thanks,

Sybe

[Karen114]

This is great if you have an RFC. What about American and Canadian hosts who host in Mexico and are US or Canadien citizens. 
An American or Canadian can’t obtain an RFC unless they obtain permanent or temporary residency which is not a simple feat for most. 
on the interim those hosts have 20% Mexican Witholding taxes taken out of their pay out. 

It would be nice to have some direction as to better navigate this. As an American citizen I of course claim and pay my taxes in the US. 

[Emilie]

Hi @Karen114, 

Great questions, thanks for raising those points!

There's more info here on hosting in Mexico, which might be handy. @Karen3152 also shared some fantastic tips in this post about hosting in Mexico while being a US resident - I'd recommend having a look if you can as it might help you out!

Emilie