The current hot topic in the area is the epidemic of Clausurado signs showing up on properties.
May articles in Por Esto newspaper reported that Tulum tax authorities placed clausurado signs on more than 50 residences in Punta Solimán. These residences were discovered by checking the friendly internet booking sites, then comparing with Hacienda tax rolls. Turns out taxes weren’t being paid by property owners on rental income.
According to Rubén Pardo, head of control and collection in Tulum, 80% of properties from Akumal to Tulum generate rental income, but only 20% are regularized to do so.
So why are Tulum authorities checking? What agreement exists between the Tulum Treasurer’s office and Hacienda? Does the Tulum Treasurer have a legal right to cite residential properties that do not pay taxes on rental income and, in turn, collect a penalty fee? Lic. Augustín Elizondo, an attorney from Mexico City who represents a house Punta Sur , says that the action by Tulum is illegal. In a telephone interview with Elizondo he stated categorically, “It’s a scam by Tulum.”
Be that as it may, the current situation in Mexico is that many foreign property owners are not complying with the laws either because they don’t know about them, they’re getting bad advice, or they’re choosing to ignore the law altogether. Regardless of the reason, lack of compliance is risky at best.
The law in Mexico is simple: any income from a rental property located in Mexico is taxable in Mexico….period.
According to David Connell, a licensed attorney and the managing partner of the firm Connell & Associates in D.F., if you rent your Mexican property, you have tax obligations in Mexico. Many people believe that if they receive rental monies in the U.S. or Canada, they don’t have tax obligations in Mexico. Not so: if you rent a property that is located in Mexico, the income generated by this rental is taxable in Mexico.
And that’s all we know!
So what kind of licensure do I need to be able to both rent and live on my property? Where do I go to pay taxes to Hacienda?
There are options. According to Frank Jackson writing in http://www.theyucatantimes.com/2014/11/facts-to-know-about-taxation-when-renting-your-condos-houses-or-villas-in-mexico/ one option, and probably easiest, would be to hire a company specialized in the administration of rentals, which would then take care of all fiscal obligations for the property.
And again, that’s all we know!
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