Curious if anyone here has any short term rental properties in Mexico, specifically the Quintana Roo state? Wondering what taxes are like, occupancy rate, and any other helpful tips you would like to share!
Thanks in advance!
There is a 21% withholding tax on the rental income. You'll have to pay taxes on the US as well but you can deduct the taxes paid in Mexico. There is a transfer tax of 2% when you purchase the property. Property taxes are very low and could be as low as 0.001% of the value of the property or even less. The capital gains taxes is either 25% of the declared value or 35% of the profit adjusted for expenses.
There are no statistics on short-term rental occupancy rates that I know of. Prior to Covid, the hotel occupancy rate was around 80% - 85%, which is extremely high. The short-term rental occupancy rate should be lower than that but that gives you an indication though.