Quick Answer
An RFC is not required to purchase property, but it is required to sell property and is strongly recommended if you earn rental income. The RFC (Registro Federal de Contribuyentes) is Mexico's equivalent of a US Social Security Number for tax purposes. Your closing attorney or accountant can help you obtain one — the process takes a few weeks.
Detailed Answer
The RFC (Registro Federal de Contribuyentes) is Mexico's taxpayer identification number, equivalent to a US Social Security Number for tax purposes. You do not need an RFC to purchase property — many buyers close their transaction without one. However, you will need an RFC to sell property in Mexico and to properly report rental income, making it a smart step to take early in your ownership journey.
Without an RFC, platforms like Airbnb withhold approximately 4% of gross rental receipts as ISR tax. With an RFC and proper monthly filings, you can instead be taxed on net income after deductions, often resulting in significant savings. The registration process involves visiting a SAT (tax authority) office in Mexico with your passport, proof of address, and CURP number. The entire process takes a few weeks, and a local accountant can handle most of the paperwork on your behalf.
Our team recommends that every buyer who plans to rent their property — even occasionally — obtain an RFC within the first year of ownership. It is a small administrative step that pays for itself many times over. For help getting started, contact us for a referral to an English-speaking accountant in Los Cabos, or browse our FAQ hub for more tax guidance.