our Blog
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Tax Materiality in Mexico.
Tax Materiality in Mexico: How Business Groups Should Support Their Transactions Before an SAT Review In a group with several Mexican entities, the evidence for a single transaction is usually scattered. Legal keeps the contract, the deliverable sits in someone’s inbox, treasury records the payment and accounting books the entry. That works until the SAT,…
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Mexico AML Real Estate 2026
Most real estate agencies, developers, and brokers in Mexico first think about anti-money laundering compliance when SAT schedules a verification visit or a notary requests client information they never collected. By then, the breach already exists. Mexico AML for real estate in 2026 is governed by the LFPIORPI, Mexico’s Federal Anti-Money Laundering Law, amended on…
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RFC for Foreigners
Most foreign property owners first hear about the RFC when a notary, a bank, or a rental platform asks for it, usually at the worst possible moment. The RFC (Registro Federal de Contribuyentes) is Mexico’s tax ID, and in 2026 it determines whether Mexico taxes your rental income and your sale on a gross or…
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Fideicomiso Tax for Foreigners
Most foreign buyers of Mexican property first think about fideicomiso tax when the closing statement arrives and the trust bank’s fees appear next to the notary’s. By then, the decisions that drive the real cost have already been made. Fideicomiso tax in 2026 is not one fee but a structure: a government permit, an annual…
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Capital Gains When Selling Mexican Property
Most foreign owners of Mexican property first think seriously about capital gains tax when a buyer is already at the table. By then, the most valuable decisions have been made — years earlier, usually by whether receipts were kept. This article explains how the tax is calculated and collected, and which choices still change the…
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Mexico AML Reform 2026: New LFPIORPI Compliance Obligations for Business Owners
Mexico’s 2026 LFPIORPI reform changes AML compliance for vulnerable activities: risk-based approach, beneficial owner, PEPs, alerts, audits and automated controls. Mexico AML Reform 2026: New LFPIORPI Compliance Obligations for Business Owners Mexico’s anti-money laundering compliance framework is changing significantly. Through Agreement 115/2026, published in the Federal Official Gazette, the general rules related to the Federal…
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Business Purpose in Mexico: The Standard That Can Invalidate Your Transactions Even If They Are Legal
The SAT may recharacterize legally valid transactions if they lack a legitimate business purpose. Learn what Article 5-A of the Federal Tax Code requires and how to protect your corporate restructurings. Business Purpose: The Standard That Can Invalidate Your Transactions Even If They Are Legal Article 5-A of the Mexican Federal Tax Code (Código Fiscal…
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Do Foreigners Need an RFC in Mexico? Property Owner’s Guide
Foreign property owners in Mexico often assume an RFC is optional. Here’s when it’s required, when it isn’t, and what happens if you skip it. Do you actually need an RFC to own property in Mexico? One of the most frequent questions we hear from foreign property owners in Los Cabos is a deceptively simple…
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SAT Invitation Letter 2026: What to Do and Mistakes You Should Avoid.
Receiving a SAT Invitation Letter is not the same as being audited. However, if handled incorrectly, it can ultimately lead to one. Here’s what it is, why you received it, and how to respond properly. SAT Invitation Letter: What It Is and How to Respond Without Making Costly Mistakes Receiving an Invitation Letter from Mexico’s…
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Common Mistakes Foreigners Make When Starting a Business in Mexico
Starting a business in Mexico is a great opportunity, especially in booming sectors such as tourism, construction, and vacation rentals in Los Cabos, La Paz, San José del Cabo, and the East Cape. However, many foreign entrepreneurs face delays, unexpected costs, and penalties due to mistakes that can easily be avoided with proper legal and…
