1) Owning & renting as a foreigner
Whether you hold title through a fideicomiso (bank trust), a Mexican corporation, or a direct deed (escritura), you can generate rental income from your property. The structure you use mainly affects how you register and report income—not your right to rent.
2) Short-term vs. long-term: what’s different?
The biggest difference is the compliance layer: short-term rentals often come with extra lodging registration and lodging-tax routines, while long-term rentals rely more on contracts and standard income reporting.
| 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%), plus income reporting rules. |
| Long-Term (Monthly/Annual) | Direct contracts, relocation agencies | Written lease, RFC, income declaration, deposit handling, and local tenant/landlord norms. |
3) Permits & local requirements to expect
- Lodging registry: Many states require registering a short-term rental address.
- Operating license: Some municipalities issue a “Licencia de Funcionamiento.”
- Condo bylaws: Verify HOA rules for minimum stays, guest limits, and quiet hours.
- Zoning: Confirm your use aligns with local residential/tourist rules.
4) Taxes: simple when set up correctly
- RFC (Tax ID): commonly required to declare rental income properly.
- Monthly filings: VAT/ISR where applicable, plus lodging tax for short-stays (rules vary by area).
- Right structure: fideicomiso vs. corporation can change deductions and workflow.
Tip: many owners reduce friction by hiring a local accountant to handle monthly filings and receipts.
5) The bottom line
Yes—foreigners can legally rent property in Mexico. With the right registration, permits, and tax routine, your rental can become a compliant, predictable income stream.
FAQ
Can I legally rent my property?
Yes. Compliance focuses on correct registration, local rules, and tax filings.
Do I need a special permit for Airbnb?
Often yes—many cities require a lodging registry and lodging-tax filings. Some require an operating license.
How do taxes work for foreigners?
Typically: obtain an RFC, declare rental income, and file any applicable lodging taxes for short-term stays. An accountant can manage this.