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http://chapalaancestral.com/

RENTING YOUR HOUSE OUT WHEN NOT LIVING HERE. To do so, you would need a Residente Visa with a Work Permit. You would also need to get an RFC number (taxpayer I....D. number) from SAT (Mexico’s version of the IRS) and pay taxes to Mexico on the rental income. Mexico taxes rental income at a flat rate of 25%. If the rental property is furnished, add another 16% (total 41% in taxes). And, as a U.S. citizen, you are required to include your rental income in Mexico on your U.S. Federal Income Tax Return each year. You can use IRS form 1116 to get credit from the U.S. for the taxes you’ve already paid on your rental income to Mexico. But, adding your Mexican income to your U.S. income on your U.S. Federal Tax Return could put you into the next higher tax bracket and then you’d end up paying higher taxes on your U.S. income. And, without hiring a local property management company (another expense) to manage/oversee your rental property, how will you get things repaired/replaced when things break from thousands of miles away? Something to consider. See more