Top tax questions for beginners

What is an RFC?

An RFC is a national identifier for tax purposes. The Mexican Tax authority SAT can issue you an RFC.

Who is eligible for an RFC?

To apply for an RFC, you first need a CURP. A CURP is a [insert definition here]. For foreigners, CURPS are managed by the Immigration office in Mexico (INM) and are issued to Temporary and Permanent residents. With your CURP, you are now ready to apply for an RFC.

If you visit to Mexico on a tourist visa you cannot obtain a CURP and therefore are not eligible for an RFC. If this is your situations, you still have options.

How do I get an RFC (and a FIEL)?

Once you have your CURP, we can make an appointment with the local office closest to you so that you may obtain an RFC in person. Alternatively, we can get an RFC issued for you by attending the appointment on your behalf. Once issued, you will be able register your RFC with the booking platforms on which you advertise your vacation property.

Once you have your RFC, you will still need to return to the SAT office to obtain a digital eSignature (a FIEL) that you will need whenever you interact with the SAT office. The e-signature is a digital file that identifies you when you carry out formalities, procedures and services before the Government of the Republic of Mexico. It allows you to sign your documents electronically and you will need one for your tax filings.

How long does the process take?

The waiting time for obtaining appointments to obtain your RFC (and a FIEL) can take a number of weeks depending on the processing time in each office. So please take this into consideration if you are travelling. The appointment should take an hour or more, depending on how busy the office is on the day.

Once I have an RFC. What tax obligations do I have?

If you are earning income, you will have obligations to file both monthly and annually reports. In addition, you will be required to issue facturas (electronic invoices) for all reservation you take via the digital platforms and maintain a bank account in Mexico to receive your payouts. The process is complex and best handled by an accountant in Mexico. We have accounting services specifically tailored to your vacation rental needs. Or learn more in our Mexican Tax Center.

Do you need to become a Mexican taxpayer to rent my vacation home?

It is possible to rent out your vacation home without first obtaining a RFC. However, you will have additional taxes withheld from your payouts by the vacation rental platforms. We also have alternative options that may help you.

If I pay taxes in Mexico, what about paying taxes in my home country?

Mexico maintains many reciprocal tax agreements with other nations so that taxes you pay in Mexico can be deducted from obligations you owe in your country of tax residence. Speak with an accountant in your home country about how this works.