Ask an Expert – Do foreigners have to pay taxes in Mexico?

If I do not earn any income in Mexico, nor have any investments in Mexico, as a permanent resident do I need to file a Mexican income tax return?

Question 1:

I sold my principal residence (not a rental) in PV in June and paid Capital Gains tax. I know I have to go to SAT (Servicio de Administración Tributariato) to prove with the registered papers that I paid the taxes. What I do not know is if I have to file a Mexican return because I live here full time. I do not earn any money in Mexico and do not have any investment income here. I would assume that I do not need to file unless I learn otherwise. – Denyce, PV

ANSWER:

In regards to the Capital Gains tax:

She does NOT need to file anything else.   The Notary Public did all of the filing as a part of the completion of the deed.

In regards to the question, do I need to file annual taxes just because I am a resident of Mexico even if I generate no income in Mexico?:

Only Mexico based income will be taxed in Mexico.

Question 2:

I am considering emigrating from England to Mexico and would appreciate your advice regarding the double taxation treaty between the UK and Mexico.

If I move to Mexico and become a permanent resident I will rent out 2 houses in England and from this I will receive an income that will be taxed by the British Government.

Would this income also be taxed by the Mexican tax office or would it not be taxed by the Mexican Government due to the double taxation treaty? – Lee, UK

ANSWER:

Only Mexico based income will be taxed in Mexico.