Fideicomisos VS. Mexican Corporation for STR in Mexico

[Natasha Rooney]

Hello, 

Starting to research about STR options/opportunities in Mexico (as a Canadian living in Canada). I understand that a fideicomiso is needed if we are wanting to own a property by a beach (which we would). However, if using our property as a STR via Airbnb or another platform, would we be required to go the option of a Mexican Corporation instead in order to get an RFC?

Thank you!! Any info/insight on this would be appreciated :)

[Mike Lambert]

Hi Natasha,

You can choose between the two. In doing so, bear in mind that the cost and admin of a corporation is higher and that the tax treatment is different:

1. With a fideicomiso, the first $200k is tax-free when you sell.

2. With a fideicomiso, the gross income is taxed through a withholding tax whereas, with the corporation, the rate, you can deduct expenses but the taxation rate is higher.