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Updated over 8 years ago,
25% income taxes for rents in Jalisco
Hi I'm still learning the real esta laws here in Jalisco. But I have gotten many conflicting answers on one point. My accountant told me that all rent income I get I have to immediately give 25% to Secretaría de Hacienda ( Mexican IRS ). Granted he has never handled clients that have rental properties so he wasn't 100% sure of this. I also asked two friends whom each have rental properties and both also gave me different answers.
One stated that while you're paying mortgage you don't have to pay an taxes for rental income. Then once the mortgage is paid you only pay 16% ( standard tax rate down here ). The other told me you simply don't pay taxes ever on rental income.
I hoping someone here has had any experience with this down here in Mexico, since googling only brings up documents from 10 to 15 years ago which are probably not update.