How residency affects buying and owning
What residency changes for a property owner, and what it doesn't.
Who helps
SAT, your notario, and tax advisors in both countries.
What to do: Ask your tax advisors what residency changes for you as an owner.
What changes
- Capital gains on sale: the primary-residence exemption (up to 700,000 UDIS) generally requires Mexican tax residency, proved to the notario (step 5.9).
- Easier paperwork: a CURP and RFC make CFE contracts, invoices and permits smoother.
- Rental taxes: Mexican tax residents file under resident rules instead of the flat 25% non-resident withholding.
What doesn't change
- The trust. Residents still need a fideicomiso in the restricted zone. Only Mexican nationality changes that.
- Your annual trust fee, RNIE obligations and predial.
Important
A resident card is not the same as being a tax resident. Tax residency depends on where your home and center of vital interests are, and on the treaties with the US and Canada.
Common mistakes
- Assuming the card alone qualifies you for the exemption.
Say it in Spanish
- ¿Califico como residente fiscal en México para la exención por venta de casa habitación?
Do I qualify as a Mexican tax resident for the home-sale exemption?
Terms
Confirm the details for your case with your notario or attorney.
Common questions
Does owning property give me residency?
Property value can count toward solvency for some consulates, but owning doesn't grant residency by itself.