If you run a rental business in Mexico, understanding your tax obligations doesn’t have to be complicated. The RESICO (Régimen Simplificado de Confianza) regime was created specifically to make taxes simpler for small businesses like yours.

What is RESICO?

RESICO (Régimen Simplificado de Confianza) is a simplified tax regime introduced by the Mexican government in 2022 to replace the old RIF (Régimen de Incorporación Fiscal). It’s designed for small businesses and individuals with annual income under 3.5 million pesos.

Key benefits:

Lower tax rates (1% to 2.5%)
Simplified tax calculations
Less paperwork than traditional regimes
No monthly provisional payments in some cases
Easier compliance for small businesses

Who Qualifies for RESICO?

Your rental business can use RESICO if:

✅ Annual income is below 3.5 million pesos (~$175,000 USD) ✅ You’re a Mexican resident (tax resident) ✅ You’re an individual or sole proprietor (not a corporation) ✅ Your income comes from permitted activities (rental services qualify)

Activities That Qualify for Rental Businesses

Party equipment rental (tables, chairs, tents)
Event equipment rental (sound, lighting)
Tool and machinery rental
Furniture rental
Inflatable games and entertainment rental
Linen and tableware rental
Any similar rental activity

RESICO Tax Rates for Rental Businesses

RESICO uses a progressive tax rate based on your annual income:

Annual Income (MXN)	Tax Rate
Up to $300,000	1.0%
$300,001 - $600,000	1.1%
$600,001 - $1,000,000	1.5%
$1,000,001 - $2,000,000	2.0%
$2,000,001 - $3,500,000	2.5%

Example: If your rental business earns $800,000 MXN per year, you pay 1.5% = $12,000 MXN in income tax.

Compare this to traditional regime rates of 30%+ and you can see the huge benefit for small businesses!

What Taxes Do You Actually Pay?

Under RESICO, your rental business pays:

1. ISR (Income Tax)

Based on the table above (1% to 2.5%)
Paid annually in April
Based on your total invoiced income

2. IVA (VAT - 16%)

Must charge 16% IVA on all rentals
Collected from customers
Paid monthly to SAT
Can deduct IVA you paid on business expenses

Important: Some rental businesses mistakenly think RESICO exempts them from IVA. It doesn’t! You must still collect and pay IVA.

How to Register for RESICO

If you’re starting a new rental business:

Step 1: Get your RFC (Tax ID)

Visit SAT website or local SAT office
Bring official ID and proof of address
This is your tax identification number

Step 2: Choose RESICO Regime

During RFC registration, select “Régimen Simplificado de Confianza”
Register for IVA as well
Provide your business activity code (732700 for equipment rental)

Step 3: Get Digital Signature (e.firma)

Required for filing taxes online
Request at SAT office with appointment
Bring ID, RFC, and proof of address

Step 4: Set Up Online Account

Access SAT’s online portal
Generate password and security questions
This is where you’ll file returns and pay taxes

Switching from Another Regime to RESICO

Already have a rental business under a different regime? You can switch:

Requirements:

Annual income must be under 3.5 million pesos
Submit notice to SAT before January 31st
Must meet all RESICO requirements

How to switch:

Log into SAT portal
Navigate to “Trámites” → “Aviso de cambio de régimen”
Select RESICO regime
Submit before deadline

Warning: Once you switch to RESICO, you must stay for at least 5 years (unless you exceed income limits).

Record Keeping Requirements

Even though RESICO is simplified, you must still keep records:

Required Documents

Income Records:

All invoices issued (CFDIs)
Payment receipts
Bank statements showing deposits
Rental contracts

Expense Records:

Invoices for purchases (CFDIs)
Receipts for deductible expenses
Payment proof
Mileage logs if applicable

Keep for 5 years minimum

What Expenses Can You Deduct?

While RESICO has simplified deductions, you can still reduce your taxable income:

✅ Allowed deductions:

Purchase of rental inventory (tables, chairs, tents, etc.)
Equipment repairs and maintenance
Transportation for deliveries
Storage or warehouse rent
Business insurance
Utilities for business location
Professional services (accountant, lawyer)
Marketing and advertising
Website and online tools
Cleaning supplies

❌ Not deductible:

Personal expenses
Cash payments without invoice
Expenses without proper CFDI
Luxury items not related to business

Monthly Obligations

Even with RESICO’s simplification, you have monthly tasks:

Every Month (by the 17th):

Issue all CFDIs (invoices) for rentals provided
Calculate and pay IVA collected from customers
File IVA return through SAT portal
Keep records organized for annual filing

Pro Tip: Use accounting software or hire a contador (accountant) to handle monthly IVA. It typically costs $1,500-3,000 MXN per month and ensures compliance.

Annual Tax Filing

Every April, you must file your annual tax return:

What to report:

Total income from rentals (all CFDIs issued)
Total expenses (with valid CFDIs)
Calculate ISR based on RESICO rates
Pay any balance due or request refund

Deadline: April 30th of the following year

Example timeline:

January 1 - December 31, 2025: Your business year
April 30, 2026: File annual return for 2025

Using Alquilame.io for Tax Compliance

Alquilame.io helps simplify your tax compliance:

Automated CFDI Generation:

Generate proper CFDIs for each rental
Includes all required tax information
Automatic numbering and tracking
Compliant with SAT requirements

Income Tracking:

Automatic income reports
Track all bookings and payments
Export data for your accountant
Monthly and annual summaries

Customer Information:

Store customer RFC and tax data
Generate CFDIs with correct customer info
Maintain proper records

Common Mistakes to Avoid

After helping hundreds of rental businesses in Mexico, we’ve seen these tax mistakes:

❌ Not Issuing CFDIs

Many small rental businesses think they can avoid CFDIs for small transactions. Wrong! All commercial transactions require proper invoices.

Penalty: Fines from SAT ranging from $12,000 to $70,000 MXN

❌ Not Charging IVA

Some owners think RESICO means no IVA. You must charge 16% IVA on all rentals.

Solution: Always quote prices + IVA. Example: “Table rental: $100 + IVA = $116 total”

❌ Accepting Cash Without Receipts

Cash payments are fine, but you must issue a CFDI and report the income.

Better approach: Use bank transfers or digital payments for better records.

❌ Missing Monthly Deadlines

Missing the 17th of each month for IVA filing leads to penalties.

Penalty: Fines start at 50% of tax due, plus interest

❌ Mixing Personal and Business Finances

Using the same account for personal and business makes tax filing a nightmare.

Solution: Open a separate business bank account. Many banks offer free business accounts.

❌ Not Keeping Expense Receipts

You can’t deduct what you can’t prove with a proper CFDI.

Tip: Use a digital tool to scan and store all receipts immediately.

What Happens If You Exceed 3.5 Million?

Great problem to have! If your rental business grows beyond 3.5 million pesos annually:

You must switch regimes:

Next tax year, you can no longer use RESICO
Switch to Régimen General or appropriate regime
Notify SAT of the change
Tax rates increase significantly (30%+ for income tax)

Planning tip: If you’re approaching 3.5 million, consult with an accountant about:

Incorporating (forming a legal entity)
Tax planning strategies
Optimal regime selection

Working with an Accountant

While RESICO is simpler, most rental businesses benefit from professional help:

What an accountant does:

Monthly IVA calculations and filing
Annual tax return preparation
Expense optimization
CFDI management
SAT communication

Typical costs in Mexico:

Monthly: $1,500 - 4,000 MXN
Annual filing: $3,000 - 8,000 MXN
Setup/registration: $2,000 - 5,000 MXN

Is it worth it? Absolutely. A good accountant saves you more in avoided penalties and optimized deductions than they cost.

Digital Tools for RESICO Compliance

Modern tools make tax compliance easier:

For Invoicing (CFDI):

Facturama
Aspel COI
Contpaqi
Built-in Alquilame.io invoicing

For Accounting:

Aspel NOI
Contpaqi
QuickBooks México
Simple online spreadsheet (for very small businesses)

For Banking:

Nu
Mercado Pago Business
Clip
Traditional banks (BBVA, Santander, Banorte)

Real Example: Tax Calculation

Let’s see how RESICO works for a real rental business:

Fiesta Rentas Guadalajara

Annual income: $600,000 MXN
Annual expenses: $180,000 MXN (with CFDIs)
IVA collected: $96,000 MXN
IVA paid on expenses: $28,800 MXN

Tax calculation:

Income Tax (ISR):

Income: $600,000 MXN
RESICO rate: 1.1%
ISR due: $6,600 MXN

IVA:

IVA collected: $96,000 MXN
IVA paid: $28,800 MXN
IVA to pay: $67,200 MXN (paid monthly)

Total annual taxes: ~$73,800 MXN

Compare this to regular regime (30% ISR):

ISR would be: ~$126,000 MXN (instead of $6,600)
RESICO saves: ~$119,400 MXN per year!

Key Takeaways

Do this: ✅ Register for RESICO if you qualify ✅ Always issue CFDIs for every rental ✅ Charge and collect 16% IVA ✅ File IVA monthly by the 17th ✅ Keep all receipts and invoices ✅ Use separate business bank account ✅ Hire an accountant for peace of mind ✅ File annual return by April 30th

Don’t do this: ❌ Skip issuing invoices for small transactions ❌ Accept cash without proper documentation ❌ Mix personal and business finances ❌ Miss filing deadlines ❌ Forget to charge IVA ❌ Lose expense receipts

Ready to Get Compliant?

Tax compliance doesn’t have to be scary. With RESICO, the Mexican government has made it easier than ever for small rental businesses to stay legal and pay fair taxes.

Start with:

Register for RFC and RESICO regime
Set up proper invoicing (use Alquilame.io)
Open business bank account
Find a good accountant
Keep organized records

Your rental business will be fully compliant, and you’ll sleep better knowing you won’t face SAT penalties.

RESICO Tax Guide for Rental Businesses in Mexico (2025)