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Carlos All income in Mexico is supposed to be declared just like in the US. But,then that doesn't always happen does it?
After getting your Immigration permits FM2 for living there & FM-3 for working/having a business or income you are supposed to sign up with the federal tax office 'Hacienda' in town.
Then you hire a Mexican accountant to figure out & complete the many tax forms (and keep you out of trouble) & pay your taxes every month at any local bank (they are part owned by the federal government).
Enforcement on foreigners with a little rental income has been spotty at best unless someone turns you into officials. [/b]
mercy I found this on the internet. Are those that are renting in RP having to declare the rental income? Where do they do it? How?

Rental income generated in Mexico is taxed at regular income tax rates, after deducting actual expenses or a blind deduction of 35%, whichever is greater. This provision applies to residents. Non-residents pay a flat 25% on the gross income. Both residents and non-residents may be required to charge valued added taxes and may also need to charge a 2% hotel tax, depending on the circumstances. While it has been relatively easy to avoid taxes on Mexican rental income, some jurisdictions, for example in San Miguel de Allende, are cracking down on those persons who are not paying income taxes on rental income.
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