Rental Taxes in Mexico


US and Mexican Taxation for American Taxpayers in Mexico

 

AIRBNB TAXES IS NOW WITHHOLDING LODGING TAX FROM BAJA RENTALS - The Hacienda will collect income taxes and IVA next.

 

On August 6th the Gringo Gazette published an article by Doris Open regarding the impact of the Airbnb rentals in Mexico.    In Baja California Sur alone there are 2,400 owners registered with Airbnb!
   
Now………all these owners renting through Airbnb will be paying the 3% lodging tax to the municipal authorities.  This will be taken out of rental income BEFORE it goes to the owner!!
 
Rental owners of property in Mexico also owe Federal Income Tax Mexico and IVA Tax. Failure to pay these taxes on rental income can result in severe penalties.
 
One of these two taxes is the Impuesto Sobre la Renta (ISR) is the owner’s tax on income.  The other, the Impuesto al Valor Agregado (IVA) tax is a sales tax which must be paid by the tenant but collected by the owner and delivered to the Mexican authorities.
 
These taxes must be declared MONTHLY and paid each month to SAT, the federal tax authority.
    
Many tax authorities and accountants do not believe the 3% hospitality tax is an obligation of the owner of one or two units who rents only occasionally.  This issue has yet to be determined with any certainty.
 
No tax expert disputes the legitimacy of the two federal Federal taxes.    With all this publicity however, federal tax authorities will be looking more closely at the Airbnb websites and will be visiting those owners to check their compliance with federal tax laws.  They have already done so in some towns located on the Mexican mainland.
 
It is strongly suggested you get legal  with the Mexican tax authorities BEFORE they knock on your door!
 
If you have questions on IVA and Income Tax owed on your Mexican rental property either in Mexico or in the USA (if you are a US taxpayer), contact us at ddnelson@gmail.com.
 
To learn more about the details of these Mexican rental taxes visit www.rentaltaxmexico.com 
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The Settlement Company® has developed three options for meeting your obligations on income from rental properties located in Mexico.   For additional information; info@settlement-co.com
 
**This article published by Don D Nelson www.taxmeless.com**

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Connie (meyerhoff) Bezeredi
480-393-0639(Business)
624-122-2237(Cell)

ENGEL & VÖLKERS SNELL REAL ESTATE
The Shoppes at Palmilla
San Jose del Cabo, Baja California Sur