Tax Audits in Construction: What No One Tells You About Deductions and Materiality in Mexico
Tax Audits in Construction: What No One Tells You About Deductions and Materiality in Mexico Do you want to ensure
Do you own a house, condo, or apartment in Mexico and are renting it out for residential purposes? Whether you’re a Mexican resident or a foreign national, the residential lease in Mexico involves key tax obligations that you must understand to avoid penalties and maximize your income.
A residential lease refers to the temporary use of real estate exclusively for living purposes. This type of rental excludes commercial or industrial use and is very common among both Mexican residents and foreign property owners in Mexico, particularly in high-demand areas such as Los Cabos, La Paz, San José del Cabo, and the East Cape.
Generating income from the temporary use of real estate in Mexico creates tax obligations for landlords, including both individuals and legal entities. These obligations include:
Registering with the Mexican Tax Authority (SAT) under the RFC.
Issuing digital tax invoices (CFDI) for rental payments.
Calculating and paying Income Tax (ISR) and, if applicable, Value Added Tax (IVA).
Filing monthly and annual tax returns.
Choosing between the general tax regime or the final payment regime for rental income.
Those renting through platforms such as Airbnb or VRBO must also comply with specific rules related to digital platform rental taxation in Mexico.
If you are a non-resident earning rental income from property located in Mexico, you are subject to Mexican tax obligations, even if the payments are deposited into foreign accounts.
At Tax Art Accountants & Attorneys, we specialize in advising foreign individuals on tax matters related to rental income in Mexico. Our Bilingual CPA Mexico team has extensive experience in cross-border taxation US-Mexico, including the proper application of tax treaties to avoid double taxation.
We help with:
Proper structuring to avoid triggering permanent establishment in Mexico.
Accurate calculation of withholding taxes for foreign landlords.
Filing of SAT rental income tax returns.
Strategic tax planning to minimize your global tax burden while staying compliant in Mexico.
Our expertise includes:
Tax advisory for residential lease income in Mexico.
Foreign investor compliance with Mexican rental tax laws.
Airbnb and VRBO rental taxation and compliance.
Legal representation before the SAT and tax authorities.
Application of international tax treaties in rental income scenarios.
At Tax Art Accountants & Attorneys, we provide a comprehensive approach that combines legal, accounting, and tax services tailored for both national and foreign property owners. We understand the complexities of Mexican real estate taxation, including Airbnb audits, fiscal obligations for foreign landlords, and reporting rental income to the SAT.
📌 Located in Los Cabos, Baja California Sur, serving clients across Mexico and abroad.
📌 Experts in Mexican property rental tax compliance for non-residents.
📌 Specialized in rental income taxation for foreigners.
Do you own property in Mexico and want to rent it out legally and efficiently?
Are you a foreign national unsure how to handle your Mexican tax obligations for rental income?
Schedule a personalized consultation with our bilingual tax experts today.
Stay compliant, avoid costly mistakes, and make the most of your rental investment in Mexico.
Tax Audits in Construction: What No One Tells You About Deductions and Materiality in Mexico Do you want to ensure
Tax strategies, documentation and asset protection for business owners and investors. In the dynamic Mexican business environment, remuneration of partners
