The Secretary of Hacienda (Mexican Tax Authority) and Public Credit announced on July 4th, 2014 a new fiscal resolution regarding buying and selling of property in Mexico. This new resolution went into effect on September 1st 2014.
Regardless of nationality, it is now required that all Buyers of real property, with deeds dated September 1st 2014 and onwards, receive a tax-deductible receipt called a CFDI (Comprobante Fiscal Digital), also known as Factura Complementaria (Complimentary Invoice), in order to be able to use the purchase price (in pesos) for tax purposes when selling the property in the future. Otherwise, the tax value basis will be around 0 (zero), without being able to offset the purchase price (in pesos) towards capital gains when the owner sells the property.
The CFDI is generated in one of two ways:
- If the buyer is acquiring the property from a Personal Fisica (Physical Person), the designated Public Notary will issue the CFDI after the Closing. If the buyer is a Mexican National (Persona Fisica or Persona Moral [Mexican Corporation]) or foreigner with Mexican residency status (Temporary or Permanent Resident), said purchaser must provide the Notary with their RFC (Tax ID) information. The Notary will generate the CFDI, in the form of PDF and XML files after the closing date and email it to the email address provided by the buyer. If the purchaser is a non-resident foreigner, the Notary will use the generic RFC number. It is the buyer’s responsibility to contact the closing Notary if said CFDI PDF and XML files are not received.
- If the seller is a Persona Moral (Mexican Corporation), said corporation will issue the CFDI (PDF and XML files). If the buyer is a Mexican National (Persona Fisica or Persona Moral [Mexican Corporation]) or foreigner with Mexican residency status (Temporary or Permanent Resident), said purchaser must provide the seller with their RFC (Tax ID) information. The seller will generate the CFDI, in the form of PDF and XML files after the closing date and email it to the email address provided by the buyer. If the purchaser is a non-resident foreigner, the seller will use the generic RFC number. It is the buyer’s responsibility to contact the seller (Personal Moral) if said CFDI PDF and XML files are not received.
The seller and/or Notary don’t send the CFDI files to the buyer’s real estate representative(s). Allow approximately 30-60 days after Closing to receive the CFDI files. If these files are not received by then, the buyer should inquire about the status of these documents. The new owner may want to consider asking his/her real estate represtantive(s) for their assistance in obtaining said files, otherwise the buyer needs to contact the Notary or Seller (Persona Moral) directly.
When the owner sells the property, he/she will need to email the CFDI files (PDF and XML) to the new designated closing Notary. The XML file is the more important of the two files, as it is a digital authentication file verifying the accompanying PDF is a genuine document and not forged or fake. It is recommended both the PDF and XML files be stored in multiple locations (USB, cloud, hard drive, external hard drive, in an email, to name a few).
Should you have any questions about the CFDI or buying/selling process, contact Taniel Chemsian at info@tanielchemsian.com.
