Tax Services for Foreign Property Owners in Mexico

Owning property in Mexico as a foreigner means Mexican ISR on rental income, capital gains tax when you sell, and SAT obligations most foreign accountants miss entirely.

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Who This Is For

  • US citizens who own a condo, villa, or land in Mexico
  • Canadian snowbirds with vacation homes in Puerto Vallarta or Riviera Nayarit
  • Foreign property owners holding title through a fideicomiso (bank trust)
  • Expats who rent their Mexican property on Airbnb or to long-term tenants
  • Foreigners planning to sell Mexican real estate and wanting to minimize capital gains tax

What's Included

  • RFC registration and SAT activation for non-resident property owners
  • Tax residency analysis — Mexico vs. home country obligations
  • Monthly ISR declarations on rental income
  • IVA filing for short-term rentals (Airbnb, Vrbo)
  • Capital gains tax calculation and planning before property sale
  • US-Mexico and Canada-Mexico tax treaty guidance
  • Annual income tax return (declaración anual)
  • Coordination with notary on sale-day withholding tax

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Why AccountingPV

Accounting experts who know Puerto Vallarta

Your US CPA Does Not Know Mexican Tax Law

Most US and Canadian accountants are not equipped to handle SAT obligations. We specialize in Mexican tax law for foreign owners and coordinate with your home-country advisor when needed.

Fideicomiso Does Not Protect You from ISR

Many foreign owners mistakenly believe their bank trust shields them from Mexican taxes. Rental income and capital gains are fully taxable in Mexico regardless of ownership structure.

Capital Gains Planning Can Save Tens of Thousands

The difference between good and poor capital gains planning on a Mexican property sale can be $20,000 USD or more. We run the numbers before closing so you keep more.

Bilingual Communication Throughout

We communicate entirely in English, file in Spanish, and provide bilingual copies of every document — no translator required.

FAQ

Common questions

Yes. Mexico taxes income earned within its territory regardless of where you live. Rental income from Mexican property is subject to Mexican ISR, and capital gains on property sales are taxable in Mexico.

A fideicomiso is a bank trust that allows foreigners to hold property in the restricted zone (within 50 km of the coast). It does not change your Mexican tax obligations — rental income and capital gains are still fully taxable.

In most cases, yes. The US-Mexico tax treaty allows US citizens to claim a foreign tax credit for Mexican ISR paid on their US federal return. We provide the documentation your US CPA needs.

Capital gains (ISR on property sale) is based on the difference between your adjusted cost basis and the sale price. Deductible costs include the original purchase price, notary fees, improvements with CFDI, and an inflation adjustment. Proper documentation can significantly reduce this amount.

You will need an RFC when you sell the property, as the notary is required to withhold ISR. Getting registered before a sale is strongly recommended — the process takes time and affects which deductions you can claim.

SAT receives information from Airbnb and can cross-reference property ownership. We can help you regularize your situation and file overdue returns, often reducing or eliminating penalties.

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Related services & resources

Service Tax Services for Foreigners Mexican tax compliance for non-residents. Calculator Property Sale Tax Calculator Estimate ISR on your Mexican property sale. Calculator Income Tax Calculator Calculate your annual ISR liability. Resource Taxes for Foreigners in Mexico What foreign property owners must file. Resource Property Sale Tax Guide Tax implications when selling Mexican property. Landing Accounting for Airbnb Hosts Tax and accounting for short-term rental hosts. Landing Foreign Investor Tax Services Tax planning for foreign investors in Mexico.

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Whether you're a business owner, foreign investor, or vacation rental operator — we're here to help.

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