Frequently Asked Questions
Answers to common questions about accounting, taxes, and compliance in Mexico.
Getting Started in Mexico
Yes. Short-term rental income in Mexico is subject to ISR (income tax) and IVA (VAT). Airbnb withholds some taxes automatically, but you are still required to file monthly declarations with the SAT. An accountant ensures compliance and often reduces your total tax burden through proper deductions.
Foreigners can obtain an RFC by scheduling an appointment at a local SAT office. You will need a valid passport, immigration document (FMM, temporary or permanent residency card), proof of address in Mexico, and an email address. We assist all our foreign clients with RFC registration as part of onboarding.
ISR (Impuesto Sobre la Renta) is Mexico's income tax — paid on your earnings. IVA (Impuesto al Valor Agregado) is Mexico's value-added tax (VAT) — charged on most goods and services at 16%. If you sell services or short-term rentals, you collect IVA from your clients and remit it to the SAT monthly.
The total employer cost in Mexico is approximately 30-35% above the gross salary, due to IMSS (social security), INFONAVIT (housing fund), SAR (retirement), and mandatory benefits like aguinaldo and vacation premium. Use our Payroll Calculator for a detailed estimate.
Taxes & Compliance
Yes. Non-residents pay either 25% on the gross sale price or 35% on the net gain — whichever is lower, calculated by the notary. Mexican tax residents may qualify for an exemption of up to approximately MXN 4.7 million on a primary residence, available once every 3 years.
CFDI (Comprobante Fiscal Digital por Internet) is Mexico's mandatory electronic invoice system. If you sell goods or services in Mexico, you must issue CFDI invoices. If you pay business expenses, you need CFDI receipts to claim deductions. Our bookkeeping service handles all CFDI management.
Yes. Foreigners can own 100% of most types of Mexican companies. The most common structures are SAS (simple, digital registration), S.A. de C.V. (standard corporation), and S. de R.L. (flexible, common for partnerships). Some industries have foreign ownership restrictions. We handle the full registration process.
Airbnb Mexico withholds ISR (4%) and IVA (16%) on behalf of hosts registered under the Plataformas Tecnologicas regime. These withheld amounts reduce your monthly tax liability but must be offset against your SAT declarations. Even with Airbnb withholding, you are still required to file monthly declarations.
Vacation Rentals & Property
Most monthly SAT declarations (ISR provisional and IVA) are due by the 17th of the following month. IMSS payroll payments are also due by the 17th. Annual ISR declarations for individuals are due April 30. Missing deadlines results in penalties and surcharges that compound monthly.
Our monthly accounting packages start at a flat fee that covers bookkeeping, monthly SAT declarations, and basic reporting. Pricing depends on transaction volume, number of employees, and services needed. Contact us for a free consultation and a fixed monthly quote — no hourly billing surprises.
Yes. Short-term rentals (under 1 month) are subject to 16% IVA in Mexico. Long-term rentals (over 1 month) are IVA-exempt. If you use Airbnb under the Plataformas Tecnologicas regime, Airbnb handles IVA collection and remittance. If you operate independently, you must register for IVA and file monthly.
IMSS (Instituto Mexicano del Seguro Social) is Mexico's social security system. You must register each employee with IMSS on or before their first day of work — not after. Late registration results in penalties and back-payment obligations. Our payroll service handles all IMSS registrations and monthly payments.
Ready to Get Your Accounting in Order?
Whether you're a business owner, foreign investor, or vacation rental operator — we're here to help.