Buyer Intelligence Tools
Mexican Property Tax Calculator
Rental income tax, capital gains on exit, and US/Canada reporting obligations. The three tax layers most foreign buyers never model — and the ones that most often destroy projected returns.
Foreign nationals renting property in Mexico owe ISR (Impuesto Sobre la Renta) on rental income. There are two methods: 25% flat withholding on gross income, or 35% on net income after deductions. The notario or property manager is required to withhold and remit this tax.
Annual gross rental income
Total rent collected before any expenses
$
Annual deductible expenses
Management fees, maintenance, utilities, insurance
$
Tax calculation method
Choose whichever results in lower tax
Gross rental income
$24,000
Allowable deductions
Deductible against net method only
-$8,000
Net taxable income
$16,000
ISR at 35% of net
-$5,600
Effective tax rate
23.3%
After-tax rental income
$18,400
Withholding obligation
If you use a property manager, they must withhold and remit ISR monthly. If you self-manage, you must file and pay quarterly.
RFC required
You need a Mexican tax ID (RFC) to legally receive rental income. Your notario or accountant can obtain this.
Method selection
You choose your method at the start of the fiscal year and cannot change it mid-year. Model both before deciding.
STR platforms
Airbnb Mexico withholds 4% IVA and may report income to SAT. Understand how this interacts with your ISR obligation.
Treaty benefits
The US-Mexico tax treaty allows a credit for Mexican ISR paid against US federal tax owed on the same income. Consult a cross-border CPA.