If your Mexico plans go beyond a beach holiday — say, buying a condo in Playa del Carmen, opening a local bank account, or freelancing from Guadalajara — you'll quickly bump into a three-letter acronym: RFC. It stands for Registro Federal de Contribuyentes, a unique registration number issued by SAT (Servicio de Administración Tributaria), Mexico's equivalent of the IRS. Tourists can't get one; only Mexican nationals and foreign residents holding residency cards can apply.
There are two flavours. Individuals get what's called a Persona Física RFC, roughly comparable to a US Social Security number. Registered companies get a Persona Moral RFC, the business equivalent. Either way, its job is the same: tracking income, payments and expenses for tax reporting.
Here's a common point of confusion: the RFC is not the CURP. When Mexico grants you legal residency, you're automatically assigned a CURP (Clave Única de Registro de Población), usually printed on your residency card. The RFC, however, requires a separate application. You'll need to book an appointment online at your local SAT office — they don't take walk-ins — and bring a printed CURP, your temporary or permanent residency card, and a passport as official ID. If no appointments are open in your state, you can join a waiting list and SAT will email you when slots appear.
Why bother? Because the RFC unlocks practical things residents need. Employers use it to report withheld income tax; the self-employed use it to declare income and deductible expenses; individuals can claim rebates for costs like certain medical bills. Crucially for property owners, no RFC means no capital gains tax exemptions when you sell a home in Mexico. Banks now want an RFC before opening an account, car dealers ask for it at purchase, and even the electricity company may request it for certain home installations.
One document to remember: the Factura. It's an official electronic tax invoice tied to both the seller's and buyer's RFC, issued through SAT's online system. A simple shop receipt won't cut it — if you want to claim an expense as a tax deduction, you must request a Factura at the point of purchase, quoting your RFC.
Most expats and business owners hand the whole thing to a local accountant, which is wise advice given the complexity of Mexican tax law. You can go it alone, but you'll want solid Spanish and plenty of patience for the bureaucracy. A good accountant stays current on the rules, helps structure income and expenses sensibly, and absorbs the paperwork load.
For holidaymakers sticking to hotels and tacos, none of this applies. But for anyone weighing a longer stay, a retirement home on the coast or a remote-working base in Mexico City, understanding the RFC — and getting one early — can save real money and headaches later. If you're buying property, in particular, factor the RFC into your timeline before you sign anything.
