On August 6th the Gringo Gazette of Los Cabos published an article by Doris Open regarding the impact of the Airbnb rentals in Mexico. In Baja California Sur alone there are 2,400 owners registered with Airbnb! In Playa del Carmen, Cancun and Tulum there are even more. Airbnb boasts an amazing number of 73,000 throughout Mexico!
Now………all these owners renting through Airbnb will be paying the 3% lodging tax to the municipal authorities. This will be taken out of rental income BEFORE it goes to the owner!
What NO ONE is mentioning (YET!) Is the Federal Tax due to Mexico’s version of Uncle Sam!
What NO ONE is mentioning (YET!) Is the retention of the IVA Federal Tax due to Mexico’s version of Uncle Sam!
One, the Impuesto Sobre la Renta (ISR) is the owner’s tax on income. The other, the Impuesto al Valor Agregado (IVA) tax is a sales tax which must be paid by the renter but collected by the owner and delivered to the Mexican authorities.
These taxes must be declared MONTHLY and paid each month to SAT, the federal tax authority.
Many tax authorities and accountants do not believe the 3% hospitality tax is an obligation of the owner of one or two units who rents only occasionally.
HOWEVER………..no tax expert disputes the legitimacy of the Federal taxes. With all this publicity, however, federal tax authorities will be looking more closely at the Airbnb websites and will be visiting those owners to check their compliance with federal tax laws.
It is strongly suggested you get legal BEFORE the authorities knock on your door!
INFORMATION ORIGINALLY PUBLISHED ON THE The Settlement Company – Playa del Carmen FACEBOOK PAGE.
The Settlement Company® has developed three options for meeting your obligations on income from rental properties located in Mexico. For additional information conact: firstname.lastname@example.org