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V4252-16 4 October 2016 · SG de Fiscalidad Internacional Criterion in force
IRPF · renta mundial

Rental income from Mexican property may be taxed in both Mexico and Spain

A Spanish tax resident enquires about the taxation of rental income from property in Mexico. The DGT states that both countries may tax such income and that Spain must eliminate double taxation.

The question raised

Question posed: Taxation of income obtained in Mexico derived from the rental of real estate located therein.

The DGT's ruling

Income derived from the lease of real estate located in Mexico may be subject to taxation in Mexico in accordance with its domestic regulations. As the taxpayer is a resident of Spain, this income is also taxable in Spain on a worldwide basis. To avoid double taxation, Spain will allow a deduction for the tax effectively paid in Mexico.

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What is published here, applied to a company or a specific case. The first meeting is free.

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