• Glenn Wilson
    Permit to Rent Your SMA Property Online
    The local government announced to homeowners in San Miguel who rent any part of their property that they need to apply for the proper permit to continue to do so.

    The process is simple: Fill out the paperwork and bring a copy of each of the following documents to the office of Urban Development. ...

    Remember, one also has to make a payment of 10,000 mxn. It can be made in full or in two payments of 5,000 mxn each. The cost to renew this document will be 10,000mxn each year.
    San Miguel Herald: Have Your Permit to Rent Your Property Online?
    SMA Government: Call Owners Of Rented Houses For Vacation Use (Airbnb) To Obtain Their Use Of Soil (sp).

    Requirements to obtain permission to use land AIRBNB

    The Municipal Government summons the San Miguel owners of houses that rent them for holiday use, approach the Directorate of Historic Center and Heritage or Urban Development to obtain the corresponding land use in order to provide them with greater security and Better services to its guests. The process is simple, ...
    News San Miguel Requirements to obtain permission to use land AIRBNB (sp).

    Authorization to Conduct Business in Mexico
    Many foreigners buy a condominium or second home in Mexico with intentions of renting it when they are not there. But, just like in the USA or Canada, foreigners must have authorization from the Immigration and Tax Authorities to conduct business operations.

    If you are a foreigner and you want to rent your property legally in Mexico without any problems you need to do the following...
    Augustin Galindo (Attorney): The ABCs for Foreigners to Rent Their Property Legally in Mexico.

    Update Sept 9, 2019:
    Mexico will charge VAT and ISR to Airbnb hosts and other hosting platforms
    A further step in the regulation of digital accommodation platforms is underway, with the modifications issued by the Ministry of Finance and Public Credit (SHCP) to the miscellaneous tax, in which the hosts must pay the taxes corresponding to the business activity.

    In accordance with the Criteria for the VAT Law, individuals or corporations that grant the temporary use or enjoyment of goods must pay the tax at a rate of 16 percent. The document details what is meant by temporary enjoyment of assets: “the lease, usufruct and any other act, by which a person allows another to temporarily enjoy or use tangible assets in exchange for consideration.”

    Although there is an exemption from the income tax of a real estate, it does not apply to spaces: furnished, destined as a hotel or destined as lodging houses. It indicates the document published in the Official Gazette of the Federation.
    Mexico will charge VAT and ISR to Airbnb hosts and other hosting platforms.

    Update Sept 11, 2019:
    Airbnb transactions to be monitored by tax collectors in Mexico
    Mexico’s government will monitor Airbnb payment accounts, making it harder to conceal income from the tax collector.

    A new regulation will crack down on tax evaders, said Gabriela Chavarría Román, the vice president of the Merida chapter of the Mexican Association of Real Estate Professionals (AMPI).
    Airbnb transactions to be monitored by tax collectors in Mexico.

    Tax Administration Service Issues Decision For Lodging Services Through Electronic Platforms
    Recently, the First Amendment to Annex 3 of the Treasury Rules for 2019 was published in the Official Gazette of the Federation, by means of which the following Non-Binding Ruling related to the operation of technological platforms that provide lodging services were announced: ...

    The first decision states that it is illegal not to accrue the income received by individuals and companies for providing lodging services through electronic platforms for Income Tax purposes. It establishes that individuals who rent real estate through these platforms provide lodging services and must pay taxes under the Business Activities Regime. ...

    The other ruling establishes that taxpayers who do not pay Value Added Tax ("VAT") for providing lodging services through technological platforms are acting illegally. This criterion is important because it confirms that leasing real estate for lodging purposes is subject to VAT.
    Tax Administration Service Issues Decision For Lodging Services Through Electronic Platforms

    Update Sept 13, 2019:
    First Rental Closed by Government.
    Today, Canal 54 was seen with “Closed” signs.

    According to city officials, the owners were called to attend to a meeting at the Urban Development Office to revise their permit of land use, but they never attend. For that reason, the authorities closed the house rental.

    Since January 2019, people with a house to rent on digital platforms must have a permit to operate and pay the annual fee of 10,000. Three weeks ago, the city published a list with the requierements to get a permit.
    First Rental Closed by Government.
    Rent house closed under Airbnb platform for not having land use (sp).

    Update Sept 14, 2019:
    4 other houses for rent for the weekend are closed for not complying with the change in land use
    With information from Ana Luz Solís Today, the owners of 4 houses that rent their weekend rooms in San Miguel de Allende, through digital platforms, were visited by municipal employees to close their business at Failure to comply with the notification of changing land use. ...
    (Another 100 home owners have been notified. The city has identified 3,500 homes for rent via digital platforms; 70 have complied or are complying.)
    4 other houses for rent for the weekend are closed for not complying with the change in land use (sp).

    Update Nov 4, 2019:
    Also see: Make Sure You Know Who’s Renting Your Mexican Home
    A new Mexican law empowers authorities to seize your home if it’s suspected that the property was obtained illicitly or if it’s being used for illegal activities.
    Make Sure You Know Who’s Renting Your Mexican Home

    Update Nov 9, 2019:
    Increase of 3.5% for services, charge for parking on public roads and a new tax for tourists staying
    As we have already informed you, last Wednesday the members of the Cabildo de San Miguel de Allende voted for the new Income Law for 2020, that is, they sent to the State Congress the proposal of tax increases and the creation of 2 New taxes...
    (GW: Includes 2% tax on lodgings through platforms like Airbnb, $10,500 peso annual fee for farms that host tourists, fee for dividing land into lots, raises other fees and sets the fee for parking meters.)
    Increase of 3.5% for services, charge for parking on public roads and a new tax for tourists staying (sp).

    Update Dec 17, 2019:
    SAT goes after landlords for not declaring rental income
    SAT will begin inspecting landlords to ensure that they meet their tax obligations.

    There has recently been a crackdown in tourist beach communities (GW: Can SMA be far behind?), many homeowners that use their property as vacation rentals have received notice to ensure they are registered as rentals and claim the income they are receiving. Most rentals are listed on social media or Airbnb, making it easy for the government officials to find properties being used as a rental. It is not unheard of for authorities to base taxes and penalties on a perceived rental income by using the area’s occupancy rate, which will be much more expensive for you in the end. ...

    The Federal Government expects foreign owners to follow the Mexican tax laws that come with owning property investments in Mexico. Any rental property in Mexico, whether it is just a small suite or a luxury condominium, whether you rent it part-time and live there part-time or you rent it full time, these tax laws apply. Many foreign homeowners in Mexico are not complying with the laws, whether they choose not to, because they think anything goes in Mexico, or they are not aware of the Mexican tax laws and tax system. The reality is you can not escape taxes, no matter where you live. Avoiding these laws will put their homes at risk.
    SAT goes after landlords for not declaring rental income.

    Update Feb 6, 2020:
    Three rental houses closed through digital platforms
    Three houses for rent through @airbnb_mx were closed in January for not having a land use permit, to date only 43% of the houses in the downtown area are in order, the owners must pay $ 10,000 for the permit.
    In order to maintain the safety of the Municipality and preserve the safeguard of citizens, the Municipal Government closed three houses for rent offered by the Airbnb platform, during January.

    After the closings, the owners of the three buildings carried out their regularization process and are up to date with the use of land, said Francisco García, director of Historical and Heritage Center.

    These properties are located in the streets Volanteros, San Dimas and Huertas, actions carried out through the Directorate of Historical and Heritage Center together with the Directorate of Urban Development.
    Three rental houses closed through digital platforms (sp).
    Three Properties for Rent Closed During January (sp).

    More in the category Finance and Legal.

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  • Glenn Wilson
    From Ian Clement on his SMABUZZ website (you may need to be a member to see his post there):

    I am sure that some of you know that there is a new municipal law which obligates all renters (private homes and hotels, alike) to establish an 'Uso de Suelo' and pay a yearly fee, in order to continue with this activity. We are currently processing applications for this set-up. This is a maneuver that we can handle for you whether you are in Mexico, or not. With the necessary paperwork and a POA, we can get everyone correctly situated to continue renting, w/o the looming possibility of an Hacienda audit. Please reach out to me at the email address listed below to get started.Ian Clement

    Ian Clement
  • Glenn Wilson
    From Sonia Diaz via Facebook:
    If one needs assistance please ask. .

    In San Miguel de Allende AirBnB and similar digital rental properties are assessed an annual fee of 10,000 pesos per unit. In addition, those with AirBnB and similar properties throughout Guanajuato state pay a 2% tax.

    If the property is within the Historic Centre, the business owner will need to go to Direccion del Patrimonio (Heritage Office). If the property in the urban area outside of Centro, they will need to go to Desarrollo Urbano (Urban Development). Proteccion Civil (Civil Protection) will conduct an evaluation, and if they approve it, the owner will be given a land-use permit once the 10,000 pesos is paid. The city will follow up with those who do not follow the law.

    1. The process takes about 2 months.

    2. A tourist may not operate an AirBnB or similar digital rental business.

    3. One must be a Temporary Resident with Permiso Para Trabajar Visa (permission to earn income) or if Permanent Resident proof the rental operator has informed Inmigracion of their change of status of earning income.

    4. Person must be registered with SAT for Federal taxes with an RFC and registered for taxes at the Guanajuato state level with a RGC number.

    5. The fee is 10,000 pesos per year per unit.

    6. The 2% Guanajuato state tax is paid when one pays their state tax using their RGC.
    Sonia Diaz

    More here.

    Sonia Diaz
    Sonia Diaz Consulting
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