What is an RFC?
RFC (Registro Federal de Contribuyentes)
RFC: /EH-reh-SEH/
Registro Federal de Contribuyentes: /reh-HEES-troh feh-deh-RAHL deh kohn-tree-boo-YEN-tehs/
Quick Definition: RFC (Registro Federal de Contribuyentes) is Mexico's federal tax identification number, similar to a Social Security Number in the US or Social Insurance Number in Canada. It is required for all significant financial transactions in Mexico, including property purchases, and serves as your unique identifier within the Mexican tax system.
Your Key to Mexican Property Transactions
The RFC is a fundamental requirement for any foreign national purchasing property in Mexico. This 12-13 character alphanumeric code serves as your official identification within Mexico's tax system and is essential for legal property ownership, tax compliance, and various financial transactions. The Mexican tax authority (SAT - Servicio de Administración Tributaria) assigns each RFC uniquely to individuals and entities conducting business or owning assets in Mexico.
For property transactions, the RFC serves multiple purposes: it identifies you as the legal buyer, ensures proper tax reporting, enables the notario público to process your transaction, and establishes your status within the Mexican tax system. Without an RFC, you cannot legally complete a property purchase in Mexico, making it the first essential step in your real estate journey.
Why RFC Matters for Bajío Buyers
Obtaining an RFC is typically the first step in purchasing property in Mexico's Bajío region. This simple but essential process establishes your legal identity within the Mexican system and enables all subsequent transaction steps. Most buyers can obtain their RFC quickly and easily, either before arriving in Mexico or during their first property visit.
Key Features of the RFC System
RFC Application Process for Foreign Buyers
The RFC application process is straightforward and can often be completed in a single day:
Step 1: Document Preparation
- Valid passport with tourist visa stamp
- Proof of address in Mexico (hotel receipt or rental agreement)
- Completed RFC application form (available online or at SAT offices)
Step 2: SAT Office Visit
- Visit any SAT (tax authority) office in Mexico
- Submit documents and application form
- Provide biometric data (fingerprints and photo)
- Pay application fee (typically $30-50 USD equivalent)
Step 3: RFC Issuance
- Receive temporary RFC certificate immediately
- Official RFC card mailed to Mexican address within 2-3 weeks
- Can begin property transactions with temporary certificate
Application Timeline:
- Document preparation: 1-2 hours
- SAT office processing: 1-2 hours
- Immediate temporary RFC: Same day
- Official card delivery: 2-3 weeks
Required Documents for RFC Application
Foreign buyers need specific documentation to apply for an RFC:
Essential Documents:
- Valid passport with current photo page
- Mexican tourist visa stamp or immigration document
- Proof of Mexican address (hotel registration, rental agreement, or utility bill)
- Completed RFC application form (R1 or R2 form)
Optional but Helpful Documents:
- Driver's license from home country
- Proof of foreign address
- Letter from real estate agent or notario explaining property purchase intent
- Immigration status documentation if applicable
Important Notes:
- All foreign documents may need certified translation
- Passport must be valid for at least 6 months
- Mexican address can be temporary (hotel or Airbnb)
- Some SAT offices accept notarized copies instead of originals
RFC Structure and Format
Understanding your RFC format helps ensure accurate use in all transactions:
Individual RFC Format (13 characters):
- First 4 characters: Letters from first and last names
- Next 6 characters: Birth date (YYMMDD)
- Final 3 characters: Verification digits and letters
Example: JOHN850315AB2
- JOH: First name letters
- N: Last name letter
- 850315: Birth date (March 15, 1985)
- AB2: Verification sequence
Common RFC Uses:
- Property purchase contracts and escrituras
- Bank account opening and wire transfers
- Annual tax filings (if required)
- Utility account setup and service contracts
- Vehicle registration and major purchases
RFC Obligations and Responsibilities
Having an RFC creates certain obligations within the Mexican tax system:
Minimal Requirements for Property Owners:
When Annual Filing is Required:
Most foreign property owners with vacation homes have minimal ongoing RFC obligations beyond keeping their information current.
Common RFC Challenges for International Buyers
International buyers sometimes encounter specific challenges during the RFC process:
Address Verification Issues
Some buyers struggle to provide acceptable Mexican address proof, especially if staying in short-term accommodations.
Address Solutions
- Use hotel registration as temporary address
- Ask real estate agent to provide address letter
- Use Airbnb confirmation with host contact information
- Consider using agent's office address with permission
Name Format Differences
Foreign names may not fit standard RFC formatting, especially those with multiple surnames or special characters.
Name Resolution
- SAT staff will work with you to adapt your name to RFC format
- Bring multiple identification documents showing name variations
- Consider how you want your name to appear on Mexican documents
Frequently Asked Questions
The RFC application is free of charge from SAT offices. However, you may incur costs for document translations ($100-300) or transportation to SAT offices. Some service providers offer RFC assistance for fees, but this is not necessary as the process is straightforward.
No, you must apply for an RFC in person at a Mexican SAT office. However, you can prepare all documents in advance and complete the application quickly once you arrive. Some buyers obtain their RFC during their first property viewing trip.
You can recover your RFC information online through the SAT website using your personal details, or visit any SAT office with identification. Your RFC number never changes, so once you have it, you can always retrieve the information.
Most foreign property owners who use their homes personally and don't generate rental income above 400,000 pesos annually have minimal tax filing requirements. However, you should consult with a Mexican tax professional about your specific situation.
Related Terms
SAT (Servicio de Administración Tributaria)
Mexico's tax authority that issues RFCs
Escritura
Property deed that requires your RFC for legal transfer
CURP
Alternative Mexican identification number
Tax Obligations
Ongoing responsibilities that may come with RFC ownership
Ready to Start Your Mexican Property Journey?
Getting your RFC is the first step toward property ownership in Mexico's Bajío region. Our team can guide you through the process and connect you with local resources to make your RFC application quick and easy.