Confused by Acronyms?
By: Cheryl MIller, Broker, Baja Realty and investment
Just like in your own home country, Mexico has various acronyms that have become part of the language, but, stand for longer names or phrases. Whether you live here, own property or are just visiting, some, if not all will be part of your experience here. Here are a few, demystified:
IVA - Impuesto Sobre el Valor Agregado. For foreigners, think: Value Added Tax or Sales Tax. Currently in all of Mexico the amount is 16% of all goods and services.
SAT - Servicio de Administración Tributaria. Also “affectionately” called “The Hacienda”, SAT
is the Mexican version of the IRS in the United States or the Canadian Revenue Agency in
ISR - Impuestos Sobre la Renta. A tax on income gained. It could be either a straight income
tax on money earned in Mexico or Capital Gains, say, from a real estate transaction.
ISABI - Impuesto Sobre Adquisicion de Bienes Inmuebles. Literally, an acquisition tax on the purchase of or transaction involving real estate. Here in Baja Sur, initial transactions are at 2% of the sales price. Elsewhere in Mexico, it may be as high as 4.5%, like in Mexico City.
IMPUESTO PREDIAL – No acronym, but sometimes just called “Predial”. This is your property tax.
RFC - Registro Federal de Contribuyentes. This is your tax ID number. For U.S. Citizens, think of your Social Security Number when used for tax purposes. It is required for all permanent residents and nationals. And it is a good idea to obtain if you own property here.
CURP - Clave Única de Registro de Población. This is a unique number/letter code issued to each citizen or foreign resident in Mexico. Think of it like a registry of the residents, but it is issued for life and like the Social Security Number in the United States when associated for social programs or for identification.
Cheryl Miller, Broker of Baja Realty and Investment, CIPS, ABR, NAR. www.forsaleinbaja.com, firstname.lastname@example.org, 011-521-624-122-2690.