earlyretirement Posted May 22, 2017 Report Share Posted May 22, 2017 Hey all you rental experts. I do plan on consulting an accountant but I was curious to hear advice from those of you that are renting furnished properties. I just bought an apartment in Guadalajara that I will turn into a high end luxury short-term rental. I'm currently researching what the all in taxes are renting out the property on a short-term rental. Besides the annual property tax, which seems quite low compared to the USA and other places I own real estate, what are all the other taxes involved that are required as a non-resident American renting out their furnished property? I understand that there is an IVA tax (16% for interior of Mexico counties) as well as income/rental taxes. If someone can shed light on their experiences renting out short-term. I realize many probably don't declare all their income and therefore don't pay all the proper taxes but I always prefer to do everything legal. I also understand that there are several items deductible against the income tax like utilities, repairs, cleaning supplies, staff salaries, property management fees, property taxes and replacement of items, etc for Mexican citizens but looks like flat 25% tax on gross income for non-resident foreigners. I'm just trying to do some estimates of what the net taxes will look like. A huge thanks in advance for any information or insight you can provide on this topic along with your experiences. PS. I found this link online but it's a few years old so I wanted to see if this falls in line with your experiences: http://www.theyucatantimes.com/2014/11/facts-to-know-about-taxation-when-renting-your-condos-houses-or-villas-in-mexico/ Link to comment Share on other sites More sharing options...
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