Welcome to the latest episode of The Nick Fong PODCST where Nick Fong, the founder and broker of Ronival Real Estate, meets with Greg Willis, Ronival’s sales manager, and Javier Madero, Ronival’s real estate lawyer, an expert in the new RFC requirements. This is a topic that has been on the table for a few weeks now.
In this video, Nick and his guests discuss their task of investigating these new requirements to uncover the reality of the new law. This is the constant question asked by clients of Ronival Real Estate as they want to understand the new requirements for having an RFC, or Federal Tax ID number in Mexico. As such, read on to uncover more about this new Mexican law.
Mexican RFC number REVEALED
An RFC number is a Mexican Federal Tax ID Number, as mentioned. 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.
The affect on Ronival’s clients
As you’ll see, 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.
In the video, Greg Willis explains to Nick how 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.
Consequently, a large number of CFE employees have 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.
About the new RFC law
In the past, the RFC number has always been optional for foreigners. 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.
Applying for an RFC number
You must apply for an RFC number in person. To do this, just visit an office of the federal tax agency SAT. These offices are located within all major cities in Mexico. Start by making an appointment at your nearest SAT office via the agency’s online portal, which is in Spanish. That means, you must translate it if you don’t understand Spanish.
Once you request an appointment, choose the option for an individual taxpayer. Then, enter your CURP number – find that on your residency card. After that, follow the link to the next page. There, select the service for your appointment, the Mexican state where you live and the office where you’d like to submit your application.
Next, 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.
Finally, 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!
If you’d like to take a tour of a property in Cabo or anywhere else in Baja California Sur, just click CONTACT to inquire. Or, call directly at 619-831-2000. Ronival will be happy to answer your questions You can also schedule a time to show you around this breathtaking location.
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 The Nick Fong PODCAST: Do foreigners need an RFC number in Mexico?. 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.