Under Mexican law, income generated from properties located within Mexican territory are subject to taxation, even if the owners are foreigners and even if all funds are collected in accounts located outside Mexico. For many years it has been a major issue for both Mexican tax authorities and individuals attempting to comply.
For years a Federal Taxpayer ID was required to file and pay the tax. In order to obtain this tax ID one needed to be a resident of Mexico. This was lose-lose for both the authorities and the foreigners who were willing to pay but baffled by the issues involved to “get legitimate”.
After more than five years of Settlement Company® dialogue with Mexican tax officials, a resolution was made in which the foreign property owner could appoint a Mexican company to pay his or her taxes and dispense with all other formalities.
This has become reality!
Mexican authorities are now looking seriously to collect this long-neglected source of tax revenue and foreigners not only are lining up to pay but also to receive the receipts for payment of the taxes which can then be credited against taxes paid in their native country under the terms of the NAFTA treaty. Remember! no double taxation is permitted under the terms of the treaty!
If you have a rental property in Mexico contact us for details. firstname.lastname@example.org.
by John K. Glaab, CIPS*
* (Certified International Property Specialist)
Vice President, International Marketing
- International REALTOR Member of the Year (2012)
- Founding Member, AMPI Los Cabos
- Founding Director, Global Mexico Real Estate Institute
Certified Negotiation Expert
- Tel 612 123 5056 # 0
- cel 612 157 7903
- URUAPAN 452 524 3802
ABOUT THE SETTLEMENT COMPANY®
The Settlement Company combines the resources, knowledge and the years of experience of our professional international staff. These individuals have brought together a set of standards that have responded in a creative, quick and cost effective manner to the constantly evolving and highly complex real estate related requests of our clients.
To date, these skills have assisted real estate agents, law firms, investors, financial institutions and the public at large, in all of the Republic of Mexico and the United States and Canada. The Settlement Company, is the ideal solution for closing simple and complex real estate transactions between dissimilar participants across geographic and business boundaries.