The RFC (Registro Federal de Contribuyentes) is Mexico's tax identification number — the equivalent of a Social Security Number or EIN for tax purposes. If you own property in Mexico or plan to, you need one. It's required for closing most real estate transactions, it unlocks tax deductions and exemptions that can save you tens of thousands of dollars, and it's increasingly required for utility accounts, banking, and rental income reporting.
Getting an RFC as a foreigner is straightforward but involves a few bureaucratic steps. This guide walks you through the process.
Why You Need an RFC
Real estate closing. Most notarios now require the buyer to have an RFC to complete the escritura (deed). It's used on the official tax invoices (CFDI) and government filings associated with the transaction.
Capital gains tax exemption. When you sell your property, the primary residence exemption (potentially saving 25–35% in capital gains tax) requires an RFC. Without one, you pay the maximum rate.
Lower rental income tax. If you rent your property, having an RFC and filing in Mexico allows you to pay on a sliding scale (10–18% effective rate) rather than the flat non-resident withholding rate (~25–35%).
Utility accounts. CFE (electricity), Telmex, and water companies increasingly require an RFC to set up accounts in your name — which matters for proving primary residence if you later claim the capital gains exemption.
Official invoices (facturas). Any purchases you want to deduct — property improvements, closing costs, professional fees — require facturas issued to your RFC. No RFC = no deductible facturas.
How to Get an RFC
Option A: With Mexican Residency (Easier)
If you have a Temporary or Permanent Resident card, you can register for an RFC directly at a local SAT (Servicio de Administración Tributaria) office in Mexico.
What you need:
- Your Mexican residency card (original + copy)
- Proof of address in Mexico (utility bill, bank statement, or property tax receipt in your name)
- A valid passport (original + copy)
- CURP (Clave Única de Registro de Población) — this is typically obtained during the residency process
- SAT appointment (scheduled online at sat.gob.mx)
The process takes 1–2 hours at the SAT office. You'll leave with your RFC number and your e.firma (electronic signature), which is used for tax filings.
Option B: Without Mexican Residency (Tourist Status)
Foreigners without residency can also obtain an RFC, though the process is slightly more involved and depends on the SAT office's local interpretation. Some offices process tourist RFC applications readily; others may require additional documentation or a tax representative (representante legal).
What you typically need:
- Valid passport (original + copy)
- Proof of Mexican address (this can be your property's address, shown via a predial receipt, utility bill, or a letter from your property manager)
- SAT appointment
- A Mexican representative or tax accountant may need to accompany you
Many American property owners hire a Mexican accountant or tax facilitator ($100–$300) to handle the SAT appointment and paperwork, especially if their Spanish is limited.
Option C: Through Your Notario at Closing
Some notarios can facilitate your RFC registration as part of the closing process. This varies by notario and region — ask early in the process whether they offer this service. It's the most convenient option but not universally available.
What Your RFC Looks Like
An RFC for an individual is a 13-character alphanumeric code based on your name and date of birth. For example, if your name is John Michael Smith and you were born on July 4, 1960, your RFC might look something like: SMJO600704XX3.
You'll also receive a Constancia de Situación Fiscal — an official document that shows your RFC, tax status, and registered address. Keep this document safe; you'll need it for various transactions.
Common Issues and Tips
Schedule your SAT appointment early. Appointments can be booked weeks in advance, especially in popular expat areas. Plan ahead.
Bring a Spanish speaker. SAT offices operate in Spanish. If your Spanish isn't strong, bring your accountant, facilitator, or a bilingual friend.
Address proof can be tricky. If you've just purchased and don't have utilities in your name yet, a predial receipt or a letter from your notario confirming the address may work. Discuss options with your accountant before the appointment.
Get your RFC before you sell — not during. If you wait until you're already in the selling process, it may be too late to claim the primary residence exemption (which requires utility bills with your RFC at the address for a qualifying period).
Your RFC has ongoing obligations. Having an RFC means you exist in Mexico's tax system. If you earn rental income or sell property, you may need to file annual declarations with SAT. A Mexican accountant can handle this for $200–$500/year.