Paperwork Requirements
For all purchases made after 2014, the property owner must provide the CFDI — the official tax invoice for the purchase.
This is issued by the notary when the purchaser is an individual without business activity, and when the property was purchased by an individual with business activity or a company.
When you purchase a property in Mexico, make sure to follow up so this document is delivered to you, the purchaser on the day of signing or in the days immediately after.
In the future when the owner decides to sell it must be provided for the listing file approval. In both cases, without it, the ISR: Capital Gains Tax will be calculated as if the purchase price were $0, which will significantly impact the capital gains.
A CFDI, or “Comprobante Fiscal Digital por Internet,” is Mexico’s mandatory electronic tax receipt that replaces traditional paper invoices. It is an XML-formatted digital document that certifies commercial and payroll transactions, providing details on goods, services, costs, and taxes. Issued and validated by the Mexican Tax Administration Service (SAT) to ensure tax compliance, it serves as a tool for transparency, tax evasion reduction, and streamlined tax collection.
Key features and purpose
- Electronic and mandatory: All taxpayers in Mexico, both individuals and businesses, are required to issue CFDIs for transactions to comply with tax regulations.
- XML format: CFDIs are electronic documents in a structured XML format that contains comprehensive details about a transaction.
- Proof of transaction: A CFDI acts as the legal and fiscal proof of a commercial or financial transaction, including payments and payroll.
- SAT validation: To be valid, a CFDI must be stamped or certified by the SAT or an authorized third-party provider (PAC).
- Unique identifier: Each CFDI is assigned a unique fiscal folio number by the SAT that serves as a unique identifier for the transaction.
- Replaces paper invoices: CFDIs have replaced paper invoices, providing a more efficient and transparent way to manage and report financial activities.
- Other documents need for the listing file are:
- Complete copy of the deed, Escritura or Fideicomiso
- 2% acquisition tax
- ISABI also used for the capital gains tax calculation
- Valid ID in two forms, generally a passport and driver license
- Water and electricity bills for the property
- A utility bill from your primary residence
- Annual Trust Fee payment
- Current property tax statement
- Home owners dues paid statement
- Marriage license
- Manifestation of the property
- Articles of Incorporation
- Tax ID cedula fiscal for corporations and applicable individuals
- KYC Know your client form
- Privacy agreement
- Broker listing agreement