Friday, January 11, 2019
THE 3% HOSPITALITY TAX AND ITS IMPLICATIONS FOR RESIDENTIAL RENTALS
Many have suggested that the 3% hospitality tax needs to be paid by owners of residential rental properties (single family homes, condominiums) Airbnb is trying to collect it.
Following is an explanation by a Mexican certified public accountant of the tax provided in 2015:: .
The 3% hospitality tax is a local tax, not a federal tax. If paid by the owner of a home (house or condominium) in Mexico, the tax is being paid in an improper manner, contrary to the purpose of the tax.
The 3% hospitality tax is not paid by those who handle rental properties (understanding that rental properties is the temporary use or enjoyment of a real property that has a residential dwelling or commercial use.). Those who pay the hospitality tax are those whose activity is hotels. The hotel business is a totally commercial and touristic activity. The real properties destined for hotel usage were not designed to be residential dwellings such as the ones non-resident owners have in the Mexican bank trust (fideicomiso). The local authorities should not request same tax from you since you are not managing hotels.
As US tax professionals we express no opinion on Mexico's tax structure and suggest you contact a Mexico tax accountant to advise you on your personal situation if you are a rental property owner.