Do I pay Mexican tax if I rent out my condo?
Yes, and the rate depends on one piece of paper. Without a Mexican tax ID (an RFC), platforms withhold about 36% of your gross rent — roughly 20% income tax plus 16% VAT. With an RFC registered, that drops to around 10%, and you can deduct expenses. The RFC itself is free.
The detail
Mexico taxes rental income earned inside the country. That is true whether you live here or not, and whether the money lands in a Mexican account or a foreign one.
The platforms do the withholding for you. Airbnb, Vrbo and the rest are required to hold back tax and send it to the tax authority, called SAT. What they hold back depends on whether they have your RFC on file.
Without an RFC
Roughly 20% income tax plus 16% VAT comes off the top. You cannot deduct anything. You get no receipt that helps you at home, either.
With an RFC
The income tax withholding drops to around 10%. More importantly, you can deduct real costs against the income: electricity, HOA fees, internet, cleaning, laundry, cable and property tax.
On a condo earning a typical Mazatlán season, that gap is not small change. It is thousands of dollars a year, decided by a free registration most owners never hear about.
The part people miss
Registering for an RFC also puts your rental income on the record. That is the point — but it connects directly to the next question, which is whether Mexico now considers you a tax resident. Read that one before you register anything.
What to do now
- Ask a Mexican accountant whether your situation calls for an RFC. This is the one place where an hour of paid advice pays for itself many times over.
- If yes, you will need your residency card or passport, proof of a Mexican address, and a CURP in most cases. The registration itself costs nothing.
- Give the RFC to every platform you rent through. The lower rate applies from the moment they have it, not retroactively.
- Keep every receipt. Deductions only count if you can show them.
- Ask the same accountant what you must file monthly, and who files it. This is the step people forget after doing everything else right.
Who handles this
We are verifying accountants in Mazatlán who work in English and handle foreign-owned rentals. Until each one is checked, we are not listing anyone.
We would rather show you an empty space than a name we have not verified. If you have used someone good, tell us and we will check them properly.
Where this comes from
- Mexican rental withholding rates for non-resident owners, specialist guides, consulted August 2026.
- Airbnb has acted as a VAT withholding agent for Mexico since 2020 and reports host data to the tax authority.
- Rates and thresholds change. Confirm with a Mexican accountant before you file.
Figures verified August 2026. Rules change — if you spot something out of date, tell us and we fix it.