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Need tax i.d. # to buy a house?


cookj5

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Under the current rules of the game (understanding that they change regularly) does a buyer of property in Mexico need a tax i.d. number? We believe that the seller does but we're not sure whether buyers need one. Is there anyone who has bought a house recently who can answer this?

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No, no and no. A CURP is not a tax ID number, a tax ID number is an RFC number and they do not issue CURP numbers at city hall anymore (since 2 years ago), only through immigration. It is best to buy a property and have an RFC number, there were some new rules published (I do not know how they have been implemented as it is too early to tell) that state if you do not buy with an RFC than your basis is zero which means all your future sales price could be capital gains.

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Right, a CURP is just an identification number... originally supposed to be something loosely like a social security number, I believe? Remember when everyone had to get one, to buy a cell phone, and people were using Felipe Calderon's name...

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Puerto Vallarta, Mexico - On July 4, 2014, the Secretary of Hacienda and Public Credit, the Mexican version of the IRS or Revenue Canada, issued a miscellaneous fiscal resolution that as of September 1, 2014 will affect all buyer and sellers of real estate in Mexico, regardless of their nationality.

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Without getting into all of the details of the whys and wherefores of these new rules, basically the tax authority has made the determination that in order for the costs involved in real estate transaction that is taking place be tax-deductible in the future for the party that is purchasing the real estate, the purchaser must provide, at closing, proof of a CURP (Clave Unica de Registro de Población, similar to a Social Security Number of Social Insurance Number) and a RFC (Registro Federal de Contribuyentes or Taxpayer ID Number).

Furthermore, since it is the notary public that will issue the tax-deductible electronic receipt (CFDI or Comprobante Fiscal Digital a través de Internet), the current criteria of the local notaries here so far is to insist on having both buyer AND seller show proof of the CURP and RFC in order to fully complete the receipt or CFDI.

http://www.banderasnews.com/1408/re-tropicasa-mexico-real-estate-resolution.htm

Guess it's getting more complicated. I did a lot of RE transactions here. Never had an RFC. Never kept a house five years. Never paid any Capital Gains. Did most transactions on an FM3. Guess those days are over too.

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We sold our home in Chapala on October 9th and no RFC was required of us, and we do not have an RFC; however, we both have CURPS, which we have had for over a decade. If the buyer had to have an RFC, I was not aware of it.

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RV you needed an RFC number, it was possible that the notary applied for one for you. We get people their CURP numbers and RFC numbers, we need some questions answered (home address, type of home, color, nearest landmark, phone #s and email and CURP #) and assuming the system is working we can do the RFC in about 10 to 15 minutes, sometimes less.

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RFC 200 or 300 pesos to get, pretty cheap with us, most notarios charging 300 to 500 pesos.

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  • 3 years later...

I was amazed how efficient the Mexican tax system is.   I needed an RFC to open up an account with the electricity company here in GDL and I was able to just go to https://www.siat.sat.gob.mx/PTSC/    and in the section where it says RFC I just plugged in my CURP and information from my apartment and it instantly generated a RFC that I was able to print.   

I've purchased properties all over the world and had to deal with various tax entities but never seen anything as efficient as the Mexican system for getting Permanent Residency and also getting tax ID #.

Wow. Impressed.

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11 hours ago, earlyretirement said:

I was amazed how efficient the Mexican tax system is.   I needed an RFC to open up an account with the electricity company here in GDL and I was able to just go to https://www.siat.sat.gob.mx/PTSC/    and in the section where it says RFC I just plugged in my CURP and information from my apartment and it instantly generated a RFC that I was able to print.   

I've purchased properties all over the world and had to deal with various tax entities but never seen anything as efficient as the Mexican system for getting Permanent Residency and also getting tax ID #.

Wow. Impressed.

If you open a Mexican bank account, be aware that they tend to assume that foreigners don't have RFC numbers. So they assign you some generic one which is attached to your account. Make sure you tell them you actually have an official RFC number and what it is. It's good if all your bureaucratic info matches up and is accurate to avoid any future snafus.

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18 hours ago, mudgirl said:

If you open a Mexican bank account, be aware that they tend to assume that foreigners don't have RFC numbers. So they assign you some generic one which is attached to your account. Make sure you tell them you actually have an official RFC number and what it is. It's good if all your bureaucratic info matches up and is accurate to avoid any future snafus.

 

Thanks mudgirl. This is great advice. You're right when I opened my bank account they didn't ask me for a RFC #.  They just wanted to see that I had a Permanent Residency Card.   The only frustrating thing is that they told me my account was opened so I proceeded to send a wire from a USA account where I already had a lot of pesos.   I requested the wire only to have it sent back.   

When I inquired the manager said that the account wasn't yet open up as Americans have more scrutiny and more background checks to go through.  Then they asked me to sign a W-9 Form which I was happy to do but I felt they should have done that when I was in their office the first time.  But just 2 days later it was all set up and I had a personalized Visa ATM/Debit card mailed to my address within 3 days.   And the checkbooks came only 3 more days after that.   

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What about foreign investors who do not live in Mexico and are buying sight unseen via Internet and won't even set foot in Mexico?

(I actually know someone who wants to do this.) He is a company (a US LLC) though, not an individual.

 

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9 hours ago, Aquaponicsman said:

What about foreign investors who do not live in Mexico and are buying sight unseen via Internet and won't even set foot in Mexico?

(I actually know someone who wants to do this.) He is a company (a US LLC) though, not an individual.

 

In this type of situation, it's almost best to hire someone on the ground in that area that knows the area well.   I've purchased tens of millions of dollars in real estate for this type of investor that you're talking about above but it always makes sense to hire a good lawyer, accountant and people on the ground that know the area they are buying in.

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You do NOT need a Tax/RFC # to buy a house here. If you don't believe me you can ask some nice people from Iowa who closed on a house yesterday in the Raquet Club.

(This thread started in 2014 and there's a lot of shit information in it, even some posted recently. Time for it to die.)

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