Visit the SAT website to learn how to subscribe for an RFC as a fiscal person as a foreigner .  ( Learn more at SAT website: https://www.sat.gob.mx/tramites/97439/inscribete-en-el-rfc-como-persona-fisica-si-eres-extranjero  If you do not read Spanish use google to translate the webpage for you.   You must have this number if you rent out property you own in Mexico even though you do not have a temporary or permanent resident status.  Many Mexican banks and others are now requiring this number. The process securing an RFC tax number is complex and will require the ..read more

Mexico vacation rental through VRBO The Hacienda or SAT has reached a deal with VRBO, ARBNB and other web based vacation rental companies to withhold Mexico income taxes and IVA from payments made by renters on vacation homes. If you are using one of these services to rent your property stating June 1, 2020, these taxes will be withheld from your rent receipts prior to the balance being remitted to you as the property owner. When you rent out yourself or a long term rental  or do not use one of web vacation rental companies you still must pay rental income tax and the tenant mu ..read more

Expatriate taxation for US citizens living and working in Mexico are complicated. You must file a US expat tax return no matter where you live and work in the world each year so long as you earned in excess of a certain amount. Failure to file can result in substantial penalties and interest and possible criminal prosecution. Learn all of the rules and regulations at our website www.taxmeless.com   At our website you can download a 2022 tax questionnaire which you can use for the current year and any past unfiled returns. Contact us with your questions and inquiries by email&nb ..read more

If you rent your real estate in Mexico full time or part time when not using it the income you make is subject to several rental taxes in Mexico. This applies to owners who are residents and nonresidents. These taxes also apply to rental of your timeshare.  Failure to pay all applicable taxes can result in severe penalties. The following examples explain the taxes and penalties you will incur for ignoring Mexican tax laws: Example 1.  Bill and his wife Sarah rent out their  condominium in San Jose for 5-6 months out of the year on a weekly or monthly basis to tourists ..read more

 2022 Fast Tax Facts  for  US Expatriates and Green Card Holders   Living and Working in Mexico Kauffman Nelson LLP CPAS - Don D. Nelson , Attorney,   Charles Kauffman  CPA If you are a US Citizen or green card holder you must file a US tax return every year unless your taxable income is below a certain threshold.  Even if your income is below that threshold, you may still be required to file certain forms to report foreign assets, etc. Failure to file these forms can result in severe IRS penalties If you do not itemize your health, tax, interest, charitab ..read more

Dear  Mexico Expat, Clients and Friends Right now, your highest priority is the health of those you love and yourself. But if you have time to read about some non-medical but important matters related to the health crisis, here is a summary of IRS action already taken and federal tax legislation already enacted to ease tax compliance burdens and economic pain caused by COVID-19 (commonly referred to as Coronavirus). I’ll be sending you summaries of additional developments as they take place.  Filing and payment deadlines deferred. After briefly offering more limited relief, the ..read more

 There are two main types of Mexican corporations.  Both are taxed in the same way in Mexico but only when  of those two are  eligible for often advantageous tax treat on your US tax return if the proper election is made for US tax purposes. That US tax election must be made with the IRS within a certain time period after your Mexican corporation is formed.  If you do not make the election in that period making it later may cause you to pay unnecessary US and Mexico income taxes. The two primary types of Mexico corporations are (a) Sociedad Anonima or (2) So ..read more

When you need to form a Mexican Corporation for your business or real estate rental needs, it is very important if you are a US tax filer that you chose the right kind of Mexican corporation.  Only one type of Mexican corporation allows you tile an election to which will cause the corporations net  taxable income and any Mexico income taxes it pays  to flow through to your personal US income tax  return.  You can take a credit on your US return for the Mexican tax offsetting your US tax on the same income and avoid double taxation. That type of corporation is a So ..read more

Most of the special tax rules and breaks (14 items in all) that apply to US expatriates are listed in the the following summary:  DOWNLOAD HERE.  These rules can be applied to your situation, as a Mexico resident or property owner with our expertise.  We have been serving US expatriates living in Mexico with our tax return preparation and planning for over 30 years.  Contact us with your questions at taxmeless@gmail.com    Visit our website at  wwww.taxmeless.com    You can text of whatsapp us at 818-519-9219 (US No.) We are Attorney and CPAs wit ..read more

Go the following link to read about Mexicoś personal income tax rates on individuals.  Cabo San Lucas - a Tax Haven? https://taxsummaries.pwc.com/mexico/individual/taxes-on-personal-income. Mexican corporations pay a flat rate of 30% of net profit. Most Mexico dividends and interest paid by banks are taxed at 10% which is the amount the payor withholds when that income is distributed to you. Need further advice or return preparation  on your US taxes with respect to you rental, business or other income from Mexico?  Email us at  Mexico -US tax informaton ..read more