Rental revenues and income taxes

mexicogc wrote:

Does anyone knows the exact formalities on rental your own house or your bungalows/apartment you own as a foreigner or national.

Register to RFC (registro federal del contribuyente)
Collect and reimbursement of the IVA
Rent must be in pesos (profeco, consumer protection)
Formal rental agreement as per the cvil code of the state

Hope this subject, will be usefull to many

Adios y buen dia a todos, GyC

You need to have a RT with a work permit or a RP to rent furnished apartments in Mexico - AirBnB included. You send the 16% IVA in if it is furnished every 3 month plus the calculated by SAT income tax that is sent in wth the 16% IVA tax. At the end of the year doing your income tax return you deduct any maintenance and usually get a refund. For unfurnished apartments you send in the calculated income tax every 3 months. When you go to sell it you cannot get the $3,400,000 peso deduction after 5 years - every 5 years you can get this deduction on a residential property-  as your primary residence as it is a commercial rental. The $3,400,000 peso deduction is calculated on the price it sold for before capital gains cuts in. If the deduction is unable to be used the capital gains is on the total gain in value of the apartment. from buying price to selling price.