Owning real estate in Mexico, and
particularly in the Riviera Maya, can have several advantages for you &
your family. Having a vacation home in one of Mexico’s most renowned
destinations & earning additional income is considered having the best of
both worlds. All through the years, several foreign investors have created a
nice rental income for themselves. But like anywhere else in the globe, you
have to sacrifice a part of your profits by way of taxes. Learning the local
tax laws should be researched & studied before and/or during the buying
process.
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Mexico
Luxury Real Estate
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Listed below are some simple tax tips
that might assist when investing in Mexico’s growing real estate market:
·
If
you work and/or gain income from an investment in Mexico (even if you aren’t a
citizen), you’ll most probably have to pay income taxes. A good place to begin
is by contacting the Servicio de Administración Tributaria (SAT or Hacienda).
·
All
income earned in Mexico carries a certain taxation. Regardless of how it’s distributed
or gifted, paid in pesos or USD, or any other monetary valued payout. It has to
be reported as income.
·
When
you own property in Mexico & are a partial or full-time resident, you have
to register with Mexico’s Registro Federal de Contribuyente (RFC). This is identical
to your Tax ID number.
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All
rental earning is subject to Impuesto Sobre la Renta (ISR). Your residential
status is independent from it. You must pay taxes on your rental earning. The
ISR tax rate is based on 25 percent of your gross income earned.
·
If
the rental property is furnished, on top of the ISR tax, there’s an Impuesto al
Valor Agregado (IVA), or valued added tax (VAT). The IVA is collected from the
renter & paid to the Mexican govt by the landlord. This is an extra 16
percent tax charged directly to the tenants.
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| Luxury Real Estate Mexico |
For more information on Mexico luxury
real estate feel free to contact Run Away Realty. Working with a
collaborative team approach, we help others in discovering how special our
community is. If you’re thinking of buying or selling in Mexico, we are always
here to assist you. For a hassle free real estate experience in Mexico you can
always rely on us. Sign up with us now to receive news and property listing
alerts.
