In this latest episode of The Nick Fong PODCST, Nick Fong discusses a topic that has been on the table for a few weeks now. Therefore, he meets with Javier Madero, Ronival’s real estate lawyer, an expert in this matter, and Greg Willis, Ronival’s sales manager. Nick is the broker and founder of Ronival Real Estate.
The constant question asked by clients of Ronival Real Estate is about the new requirements for having an RFC, or Federal Tax ID number in Mexico. In this video, Nick and his guests discuss their task of investigating these new requirements to uncover the reality of the new law. Now, continue reading to learn the details of this new legal development.
What is a Mexican RFC number?
As mentioned, an RFC number is a Mexican Federal Tax ID Number. Every Mexican citizen 18 years of age and older must attain this number and use it throughout their lifetime in Mexico. To explain it, the RFC number is used by the Mexican federal government for a range of purposes. The primary purpose is to track income. On top of that, it detects any potential money laundering activities.
Discover the details of the new RFC law
For foreigners, the RFC number has always been optional. Thats because, not all foreign residents have income in Mexico. But now, all foreigners who set up Federal accounts, like with the electric company, must provide an RFC number is they have one. If they don’t, they can use their tax ID number from their home country or their Social Security Number from the United States, as an example.
How has this affected Ronival’s clients?
As Greg Willis explains to Nick, many of Ronival’s clients have been curious, concerned and even in a panic about this new law. Therefore, the purpose of this video is to inform everyone about the details of it and that there’s nothing to worry about. Greg has been sorting through the conflicting statements and rumors, and is now consulting the source through Ronival’s lawyer, Javier Madero.
The main problem has been with establishing an account with Mexico’s electrical company, CFE, after purchasing a new home. As such, Greg went to CFE directly to discuss how everything will work when this new law goes into affect on July 1st. It turns out, it’s not as complicated as people have been thinking.
Unfortunately, many of the employees at CFE misunderstood this new law. They were saying that every foreigner is required to have an RFC number. But in reality, they only need to provide that number if they have one already. If they don’t, they can use their SSN or tax ID number from their home country, as mentioned earlier.
When you apply for your RFC number
To begin, you need to apply for your RFC number in person. Easy enough, just visit an office of the federal tax agency SAT located within all major cities in Mexico. Start by setting your appointment at your nearest SAT office via the agency’s online portal. Note that this portal is in Spanish. As such, you need to translate it if you can’t read Spanish.
After making your appointment request, you’ll choose the option for an individual taxpayer. Next, enter your CURP number – find that on your residency card. Then, follow the link to the next page. When you’re there, just select the service for your appointment, the Mexican state where you live and the office where you’d like to submit your application.
You’ll either schedule your appointment on the page’s virtual calendar or the page will state that no appointments are available. If no appointments are available, you’ll be given the option to join a virtual line. By entering your email address, you’ll be sent a “token,” which is an alphanumeric code to be used for joining the virtual line.
Once you’ve completed everything, you’ll receive an email confirming that you’re in the virtual line. Also, you’ll be advised to monitor your email for an appointment date and time.
On the day of your appointment, you must take a variety of documents to the SAT office. These documents include: A valid migration document i.e. a residency card, proof of address, such as a bank statement, electricity bill or rental contract, and your passport. Also, be sure to bring a printout of your CURP and a thumb drive to save files.
Listen to the full episode also on Spotify https://spoti.fi/39hPBgI or Apple podcast https://apple.co/3xBSylF
Baja California Sur real estate
Many Americans, Canadians, and people from other countries choose to make Los Cabos and other magical towns in Baja California Sur, Mexico, their home or vacation home. Discover how to purchase your dream home in Baja. Make an appointment with the top Real Estate Broker in Baja: Nick Fong, featured on HGTV’s Beachfront Bargain Hunt.
Since 2010, Ronival has been helping clients find the best homes in Cabo and throughout Baja California Sur. And, they’re highly-skilled negotiators that’ll get you the best price. Whether you plan to buy a property or quickly sell your Baja real estate, they’ve got you covered!
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Ronival on YouTube
See Nick Fong in action on his Ronival YouTube Channel. Find his videos on the Rovival VLOG, where you can read a short, yet in-depth post. Below is an example of one of Nick Fong’s Ronival videos:Thank you for reading Do you need the RFC in Mexico? The new law for foreigners explained. Be sure to read other posts about Cabo and Baja California Sur on the Ronival blog. There, learn about the many wonderful aspects of Baja California Sur, Mexico, from blog posts like this.