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6 years ago

Tax on rental income

6 years ago
Hi all,
I'm currently considering the option of buying a condo in Playa del Carmen that I will use myself for 4-5 months and rent out for the rest of the year.
However upon assessing the opportunity I've run into a hurdle with regards to tax. My real estate agent says that I'll only have to pay the 16% IVA on the income and that I'll report the rest in my home country (EU).
However when reading online, it says that I need to pay both IVA and 25% ISR on the income I generate.

Obviously the 2nd option would make this investment much less attractive, but could anyone confirm what the taxation actually is?

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William Russell
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