The Secretary of Hacienda and Public Credit, the Mexican version of the IRS or Revenue Canada, issued a miscellaneous fiscal resolution that as of September 1, 2014 will affect all buyer and sellers of real estate in Mexico, regardless of their nationality.
If you are buying or selling real estate after September 1, 2014, you will need to have both the CURP and the RFC.
SAT- The tax authority has made the determination that in order for the costs involved in real estate transaction that is taking place be tax-deductible in the future for the party that is purchasing the real estate, the purchaser must provide, at closing, proof of a CURP (Clave Unica de Registro de Población, similar to a Social Security Number of Social Insurance Number) and a RFC (Registro Federal de Contribuyentes or Taxpayer ID Number).
Furthermore, since it is the Notary Públic that will issue the tax-deductible electronic receipt (CFDI or Comprobante Fiscal Digital a través de Internet), the current criteria of the local notaries here so far is to insist on having both buyer AND seller show proof of the CURP and RFC in order to fully complete the receipt or CFDI.
If you happen to be a foreign national, you will need to have either a permanent or temporary residency card as well, as right now it is a precursor to obtaining the CURP. (In practice those with a tourist visa are not being allowed to request a CURP).
Those who do not have the residency permit must apply at the nearest Mexican Consulate in the country of your origin and it should not take more than a few days. The card that you are issued should show the CURP. Once you have your CURP, you can apply for your RFC online. It's strongly recommend having a local accountant / or your attorney help you in order to make sure that the information you are providing online is correct. He/she can walk you through the process and coordinate the appointment to finalize the procedure.
Although these procedures can be done online, you will eventually have to be present to register your residency permit with the local immigration office and to pick up the proof of your RFC at the local office of the tax authority (SAT) so when planning your closing dates I would also allow for time to have these things completed.
Your residency and tax ID number will give you an identity in Mexico and will make certain procedures more streamlined and efficient.
This new regulation just passed a couple of weeks ago and as with any new law, we expect that there could be changes as it is gradually implemented. The reasoning behind this is to ensure fiscal transparency in all purchase sale operations for everyone - both national and foreigners alike.
It's important that once you receive your Deed ( Escritura) all original payment proof is attached such as Impuesto Cedular, Translado de Dominio and Notary fees paid. Your realtor must provide a legal invoice - Electronic Factura for their intermediary service fees.
*Legal disclaimer. The materials on this website, opinions and answers provided are for informational purposes only, and do not constitute and should not be relied upon as legal advice, the material is not guaranteed to be correct, complete or up-to-date.