Income Tax in Mexico
Mexico's tax laws are patterned after those of the United States and Canada, and state that:
“Physical persons (individuals) and Legal persons (companies) who are residents
of Mexico and who receive income in this
country, are obligated to
register with Hacienda (Mexican IRS), declare their income and
pay their taxes, regardless of the
source; and...Physical and Legal persons
who are residents in a foreign country (outside Mexico) must declare their
income and pay their taxes on all income generated in Mexico..."
If the property is held in a fideicomiso (trust), a Mexican accounting
firm can perform all necessary tax and accounting services including
the monthly filings and tax payments, and can also provide the foreign
owner with accounting and documents for obtaining tax credits on their
U.S. or Canadian taxes.
Wolf Property Management can offer you strategies to have in order your rental income and comply with the Mexican tax issues. Remember that all taxes you pay in Mexico are deductible in the US. Feel free to contact and ask us anything regarding this matter. If you need to manage all your income individually, Wolf Property Management can recommend you professional and trusted Accountants that may assist you thoroughly.
*This article is only intended to
provide general information. It is not intended to be relied upon as
legal, accounting, tax or other professional advice or services. Please
consult with legal counsel and a tax advisor to address your concerns.