Foreigners can rent their homes in Mexico—legally and confidently—by following a few clear steps: correct ownership structure, permit compliance, and simple tax reporting. Here’s a practical guide.
Owning & Renting as a Foreigner
Whether your title is held via a fideicomiso (bank trust), a Mexican corporation, or a direct deed (escritura), you are allowed to generate rental income from your property. The structure you use determines how you register and report income—but the right to rent is not restricted to Mexican citizens.
Short-Term vs. Long-Term: What’s Different?
| Rental Type | Typical Channels | Key Compliance |
|---|---|---|
| Short-Term (Vacation) | Airbnb, Vrbo, Booking, direct site | Lodging registry (state/municipal), possible operating license, RFC (tax ID), monthly lodging tax (often 3–5%). |
| Long-Term (Monthly/Annual) | Direct contracts, relocation agencies | Written lease, RFC, income declaration, security deposit handling, local norms. |
Permits & Local Rules to Expect
- Lodging Registry: Many states require you to register a short-term rental address.
- Operating License: Some municipalities issue a “Licencia de Funcionamiento.”
- Condo Bylaws: Verify HOA/condo rules for minimum stays and guest conduct.
- Zoning: Ensure your use aligns with residential/tourist zoning in your area.
Taxes: Simple When Set Up Correctly
- RFC (Tax ID): Required to declare rental income properly.
- Monthly Filings: VAT/ISR where applicable, plus lodging tax for short-stays.
- Correct Structure: Fideicomiso vs. corporation can change rates and deductions.
Tip: Many owners reduce friction by letting a local accountant handle monthly filings.
The Bottom Line
Yes—foreigners can legally rent property in Mexico. With the right registration, permits, and tax routine, your rental can be a compliant, predictable income stream. Set it up once, and it becomes straightforward.
FAQ
Can I legally rent my property?
Yes. Compliance focuses on registering correctly, following local rental rules, and filing taxes.
Do I need a special permit for Airbnb?
Often yes—many cities require a lodging registry and monthly lodging tax filings. Some require an operating license.
How do taxes work for foreigners?
Obtain an RFC, declare rental income, and remit the lodging tax for short-term stays. A local accountant can manage this for you.
© MexicoPropertiesByKreto.com — Information is general and may vary by municipality. This is not legal or tax advice.