Mexico Resort Real Estate Update, Second Quarter, 2018 newsletter.
Update from The Settlement Company®, Los Cabos, Baja California Sur, Mexico.
In this edition we cover two major real estate events, a report on international tourism and information on paying taxes on Mexican rental properties and Record number of tourists visited Mexico in first quarter of 2018. The Settlement Company® offers a Rental Tax Program designed to help in compliance with U.S., Mexican and Canadian reporting and tax filing obligations for those who own Mexican properties. If you own a property in Mexico and rent it often or only occasionally, ENJOY your rental income and SLEEP EASILY KNOWING YOU HAVE COMPLIED WITH TAX LAWS!
RENTAL PROPERTY IN MEXICO – YOU MUST PAY THE MEXICAN RENTAL TAXES
The Settlement Company® with many years of experience in the transfer of titles and resolution of problems related to title, is now able to assist you in receiving your funds in an escrow account, complying with your fiscal obligations in Mexico, and depositing the balance of rental income and the documents you require in your country of residence to avoid double taxation!
Under new government regulations, the taxpayer now has two options: One with a Federal Taxpayer Identification number, and the other with NO Taxpayer Identification number!
Record number of tourists visited Mexico in first quarter of 2018.
International visitors to Mexico totaled 10.6 million in first three months of 2018. Record number of tourists visited Mexico in first quarter. A record number of international tourists visited Mexico in the first quarter of 2018, the federal Tourism Secretariat (Sectur) has announced.
Sectur said in a statement that 10.6 million people came to the country in the first three months of the year, 12.6% more than the 9.4 million tourists who visited in the same period last year. The amount of money those tourists spent while they were here increased by 7.2% in the first quarter to just over US $6.2 billion compared to just over US $5.8 billion in the same period of 2017. However, the average expenditure per tourist dropped by 4.4% to US $533.40 compared to US $558 last year.
March was a particularly good month for tourism, with four million international visitors, 14.6% more than the same month last year, and their spending was up more than in the previous two months. They spent US $2.36 billion in March, 13.8% more than the US $2.07 billion spent in March 2017. Average spending was also up but only by the slimmest of margins, increasing by US $0.20 or 0.04% to US $539.60.
Tourism Secretary Enrique de la Madrid said last week that Mexico is now the sixth most visited country in the world and explained that an upsurge in violent crime had not had an impact on visitor numbers. He also said that international tourism is growing at 12% annually compared to 7% in the rest of the world and that the tourism industry contributes to 8.8% of gross domestic product (GDP).
Just over 39 million international visitors came to Mexico last year but if the number of visitors recorded in the first quarter is maintained, this year will see the 40-million barrier broken for the first time. De la Madrid said in February that the number of international tourists visiting Mexico annually could reach 50 million by 2021, which would likely make the country the world’s fifth most visited. Despite the strong growth, one challenge that the government continues to face despite efforts to overcome it is diversification of the tourism sector. Sectur data showed that 92.1% of all international tourist arrivals by air in January were at just seven airports. Source: El Financiero (sp)
The Settlement Company® can provide an outline of each program.