On January 1, 2014 the Mexican Tax Office (Hacienda (SAT)) implemented a number of changes for property owners with rental property. In English, this is referred to as the SMALL BUSINESS TAX STRUCTURE. It is very important to be in compliance with new law. Penalties could result in 35% taxes, under the General Business Tax Rate. In addition, your rental company will not be to rent your condo if you are not tax compliant.
1.) Property owners must have current immigration papers in order with the Immigration Office (INM) in Mexico. (Your Permanent or Temporary Resident Card)
2.) Property owners must be registered (done by appointment only made through your accountant) with Hacienda, and given a TAX ID number (RFC NUMBER). Also, under the new structure you are obligated to give out Mexican fiscal invoices (factura), for all income you may receive for renting your condominium. An appointment must be made with Hacienda (usually either at Mexicali or Hermosillo locations) to receive an individual FIEL (electronic code for issuing facturas). This will then allow your accountant in preparing facturas corresponding to income that you receive from rent. (Additional information needed, copy of property taxes, a copy of your electric bill, your passport, your INM Card, and a computer memory stick [USB]).
3.) Property owners must open bank accounts (Peso & Dollar) in Mexico, to receive all income from rentals, and for payments such as electric bill, cleaning services, maintenance, property tax, Mexico SAT TAX, etc.
4.) Property owners must file income and expenses electronically with Hacienda. This can be done by yourself (forms are in Spanish only), your rental company, or your Mexican accountant.
It is suggested that you contact you rental company or accountant immediately to learn more about this NEW LAW as this is just a brief overview.
LCP Cristian Félix email@example.com