Renting and taxes

Paying Mexican federal, state and municipal taxes on rental income.

Why it matters

Mexican-source income is taxable in Mexico, and lodging is also taxed locally.

Who helps

A Mexican accountant (contador), or you can file yourself. Rental platforms and the trustee bank withhold part of the tax.

Documents

• RFC, CFDI invoices, platform withholding statements (constancias de retención), and the state lodging-tax registration.

Federal income tax (ISR)

• Non-resident landlord: 25% of gross rent, no deductions (LISR art. 158). The Mexican payer withholds it; if the payer is abroad, you file and pay within 15 days of receiving the rent. When rent flows through the trust, the trustee can issue the invoice and withhold.
  • Mexican tax resident using platforms: platforms withhold 4% of lodging income (LISR art. 113-A), or 20% if you don't give them your RFC (art. 113-C).

VAT (IVA)

• Short-term lodging and furnished rentals: 16% IVA. Platforms such as Airbnb collect IVA from guests and withhold 50% of it if you've given your RFC, 100% if not (LIVA art. 18-J).
  • Long-term rental of an unfurnished home: exempt from IVA (LIVA art. 20).

State lodging tax (BCS)

4% of the lodging charge (Impuesto sobre la Prestación de Servicios de Hospedaje); register with the state and pay monthly by the 15th. One private tax site lists 5%; the official state procedure and 2026 tables show 4%.

La Paz environmental sanitation charge (from 2026)

paid by guests and collected by the host, then reported and paid to the La Paz Tesorería by the 17th of the following month:

• • hotels, posadas and guest houses: 70% of the daily UMA per occupied room per night (≈MXN 82);
  • lodging booked through digital platforms: 2 UMA per room, house or apartment occupied (≈MXN 235). The law doesn't say whether this is per night or per stay; ask the Tesorería.

Long-term lease basics

• Use a written contract in Spanish (with a translation), stating rent, term, deposit, who pays utilities, and the inventory if furnished.
  • The BCS Civil Code caps a residential lease at 10 years (art. 2303).
  • Ask for a deposit (commonly one or two months, market practice) and a guarantee: a fiador (guarantor, ideally with property in BCS), a surety bond (fianza) or a rental-guarantee policy (póliza jurídica).
  • Unfurnished residential rent is IVA-exempt; furnished is not (see above). Rent paid by a Mexican company to a non-resident is subject to 25% withholding.

Common mistakes

• Assuming the platform's withholding covers everything (it doesn't cover the state 4% or the municipal charge unless the platform says so).
• Renting a condo where the bylaws ban short-term rentals.
• Forgetting to report the income at home too (foreign tax credits may apply; get home-country advice).

Say it in Spanish

• ¿La plataforma retiene ISR e IVA?
  Does the platform withhold income tax and VAT?
• ¿Cómo me inscribo al impuesto sobre hospedaje del estado?
  How do I register for the state lodging tax?

Terms

• UMA

Sources

• LISR (Diputados) (checked 2026-10)
• SAT, art. 113-A (checked 2026-10)
• BCS – trámites (checked 2026-10)
• BCS Secretaría de Finanzas (checked 2026-10)
• Meganoticias (checked 2026-10)
• Código Civil de BCS, art. 2303 (checked 2026-10)

Confirm the details for your case with your notario or attorney.

Common questions

All questions