Hosting in Mexico

[Pierre0]

We are a Canadian couple renting our apartment in Acapulco. We need to pay to the federal government a tax (approximately 20%) on the profit of our rental. To pay this tax we need a RFC number (similar to a Social Insurance Number in Canada, or a Social Security number in the USA). As per the Mexican tax authority (SAT), we are not able to obtain a RFC number as we do not reside in Mexico. When we are in Mexico, we are admitted as "foreigners". I would like to know what other foreigners do when renting their property in Mexico. Do you simply "forget" to pay this tax, or did you find a way of paying it? Thanks, Pierre

[Sarah977]

@Pierre0  I think you have incorrect information. If you are not eligible to receive an RFC number, Airbnb will charge the guests 20% occupancy tax and submit it to the Mexican tax dept. If you do submit an RFC number, guests will be charged something like 3-5%.

At least that is my understanding from the info provided by Airbnb. I have been closed to bookings since March 2020 due to Covid, so I'm not fully up to speed on all this.

But if you own a place in Mexico, and rent it out, it is actually illegal to earn money here without paying taxes on it- you can't "forget about it". And you also have to pay 16% IVA on your earnings. You should consult a Mexican accountant who is familiar with Airbnb/SAT regs.

I would suggest that you apply for temporary residency and stop entering as a tourist.