Mexico Income Tax
Mexico Value Added Taxes – IVA (16%) if the unit is furnished*
*IVA is paid by tenant but collected and declared by the owner.
Many nonresidents of Mexico have never paid any taxes on their rental income from properties owned in Mexico. This is a violation of Mexican tax law. The Mexico tax code clearly states that these Mexican taxes must be paid on rental income from apartments, houses, and commercial property. Failure to do so can result (and has resulted ) in substantial penalties and legal problems with the Mexican tax authorities.
It is now easy for you to pay these taxes and avoid problems if even if you do not have a Mexican tax identification number. The Settlement Company® has developed a simple and easy procedure which will allow you to be tax compliant on your rental income. You do not have to suffer the consequences of failing to pay. Email or phone us now to learn more and to get started.
The Good News: The IVA you pay in Mexico is deductible on your US tax return and the income taxes you pay in Mexico can offset your US taxes on the same income dollar for dollar. You will not be double taxed.
Visit this website for more information and to learn the rules at: www.RentalTaxMexico.com
Email us with questions at firstname.lastname@example.org