Dear Pedregal Homeowners.
On behalf of Grupo Riveras, Pedregal de Cabo San Lucas, Pedregal de La Paz and Coldwell Banker Riveras realtors we would like to make you aware of some recent news relating to Mexico’s tax code. The Secretaria de Hacienda (the Mexican IRS) has issued a ruling that “one of the most important sources of income for them moving forward will be derived from foreign home owners that rent properties in Mexico without paying taxes to the country, and are therefore illegally conducting business in Mexico.”
If you are currently renting your home or are planning on doing so, we strongly recommend you do these activities in full compliance with Mexican Tax code; as doing otherwise may place your property at risk. Possible outcomes if in fact federal authorities (SHCP, Secretaría de Hacienda y Credito Público) identify you as renting ‘illegally’ are: fines, revocation of ownership trust, and other severe penalties.
Having this said, being in compliance with Mexican tax code is relatively straight forward and any taxes paid in Mexico can serve as a tax credit in the US. There are several reputable firms in Cabo San Lucas one such as CIDLC SA de CV (Contadores Internationals de los Cabos S.C.) among others.
For more information we would be glad to help and guide you through, please contact us at:
mgmthelp@pedregal.com
Download more information about the topic at the two documents attached (pdf files):