question

[Angela4352]

Can a Canadian rent out a property in Mexico, and then rent it out on AirBnb?

[Karen114]

@Angela4352  Sounds like you are looking into an arbitrage situation.  Nothing wrong with it other than needing the landlords blessing.  

Mexico is etremely saturated with Airbnbs.  So much so that it's a race to the bottom with pricing.  Million dollar condos listing for $49 per night.  It's a shame. I own a condo  here in Playa del Carmen since 2018.  It's never been a  money maker just due to the pricing in the area and saturation. 

What part of Mexico are you thinking?  Cancun and Playa are very saturated.  

[Angela4352]

@Karen114 so its legal to sublet a rental on Airbnb as long as you have the landlords permission. can i ask how taxes work?

[Karen114]

Yes it’s legal. Rental arbitrage is very much alive and well. It used to be a lot more popular however rents rose so dramatically in the US and even here in Mexico, the delta between the rent you are paying and the difference is what you are earning is small. 

Taxes in Mexico are withheld by Airbnb and are submitted to the city as well as country taxes. They are steep for the host if you are not a resident and don’t have an RFC. You can’t get the RFC until you’re a resident. We just got our residency this visit so once my RFC is assigned I will get less taxes taken out of me. 

[Angela4352]

cool, thanks for the info!

[Helen3]

In the UK it's very hard to do arbitrage as most tenant leases forbid sub letting @Angela4352 

what are your thoughts around how you will cover your costs if you don't generate the income you need @Angela4352 

an accountant can advise on dual taxation .

[Elisa]

Hi @Angela4352  😊,
Thank you so much for asking this questions here, it's really interesting!

I'm happy you found many hosts to discuss this with. ‌

Would you mind marking the 'Top Answer' if you find one particularly useful?

Warm regards ‌🌻‌,