Jump to content
Chapala.com Webboard

Rental Taxation


Ajijic

Recommended Posts

One can enquire with Hacienda if a landlord is registered and paying taxes on rental income.

The tax to be paid, at least in San Miguel by the landlord, to Hacienda, is 2% plus 17.5% as a single business plus 16% IVA of the 19.5%. The total is 22.62% of the rental income. Furnished and unfurnished are same tax rate. I do not know if tax rate varies in other parts of Mexico.

A landlord also needs to have the appropriate visa.

One can then go on line and file a "denuncia" formal complaint against the landlord and that can be done anonymously if desired.

If the landlord is out of the country the tenant is responsible for withhold the tax and paying it to Hacienda is my understanding.

On a side note, many complain about corruption, poor infrastructure, lack of services, security etc. yet, millions of dollars are withheld from landlords throughout Mexico.

Link to comment
Share on other sites

There are many ways to get recalcitrant landlords to return deposits, we have been quite successful in doing so and not had to use the means available that would cause grief to the landlord, so far they have been reasonable with our clients.

The goal should be to get the parties to agree and get money back as more animosity will not put $$$ in the tenant´s pocket. Many people skirt taxes here and the cost to comply is very minimal in most cases versus the penalties, etc. or risks.

Link to comment
Share on other sites

mmmm. I presume you are speaking for yourself Ajijic. Every person I know who owns rental property is properly registered. No doubt there are cheating landlords just as there are dirty tenants who skip. Isn't it unfortunate that we don't all have our characteristics tatooed on our foreheads so we need have no doubts about persons with whom we deal?

Link to comment
Share on other sites

mmmm. I presume you are speaking for yourself Ajijic. Every person I know who owns rental property is properly registered. No doubt there are cheating landlords just as there are dirty tenants who skip. Isn't it unfortunate that we don't all have our characteristics tatooed on our foreheads so we need have no doubts about persons with whom we deal?

Do you live in MEXICO? I wish what you said was true. So few people in Mexico pay tax on their rental properties.

So few people pay taxes at all.

Taxes are paid only by 11% of the population.Generally those who work for formal companies.

Link to comment
Share on other sites

There are many ways to get recalcitrant landlords to return deposits, we have been quite successful in doing so and not had to use the means available that would cause grief to the landlord, so far they have been reasonable with our clients.

The goal should be to get the parties to agree and get money back as more animosity will not put $$$ in the tenant´s pocket. Many people skirt taxes here and the cost to comply is very minimal in most cases versus the penalties, etc. or risks.

What did I miss? I reread Ajijic's post and can't find where he suggested turning landlords in to get a deposit back. I read that he is informing people that many landlords do not pay taxes on rental property to the Hacienda and I don't know of any foreigners who have the proper permission from the Hacienda or on an FM3 to legally rent property. Getting permission from the Hacienda to rent property is difficult and time consuming.

Brandol:

I've lived in Mexico for many years Happy Feet. I guess I've just been lucky having honest people as my friends and business associates.

Or, you are incredibly naive.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...