I am selling a property to an individual out of Mexico. The funds are coming from Mexico and they are telling me I need an SAT number for transaction? Is this correct?

[Anonymous_]

@pk ?

[Critter-3]

Funds from/for  what ???   What do you mean by SAT ? 

[fullout4]

I misspoke.  I need to apply at the SAT office but need to apply for a RFC number.  Its basically the equivalent of a tax id number.  The closing company is stating I have to have the number for foreign transactions.  

[DoninGA]

Are you a US citizen or legal US resident and selling a property located in the US?  If so, you do not need anything from Mexico to report the property sale on a US tax return.

[Critter-3]

Not sure who "they" are ... maybe this is something specific to property sales  in Mexico ... I would ask "them" why you need it. 

https://immigrationtomexico.mx/what-is-an-rfc-and-10-steps-to-get-one/#:~:text=The%20RFC%20is%20a%20....

[pk]

@mlittleton-farme , having gone through the above discussion  and generally agreeing with my colleagues @Critter-3  and @DoninGA , the situation in Mexico  ( as I understand it  ) is 

(a) all residents  or persons  with permanent abodes in Mexico, must have a tax id called RFC --- these are issued by the local SAT office, free of charge.

(b) all transactions  incur IVA  ( like VAT in Europe )

(c) the payor ( the buyer ) in case of foreign persons selling  assets , must withhold  sales / transaction taxes  and IVA and deposit in the sellers RFC account.

(d) RFC cannot be acquired in the USA -- only local SAT can issue it

(e) since all  real asset sales are co-ordinated by a  "NOTARIO ",  --usually in locality / nearest larger town -- perhaps you should contact that Notario for advice on how to get around  this .  This is because as I understand the  tax department really one cares that the taxes are collected and if you are foreigner  you are not going to file return there in MX anyways.

(f) I am assuming here that the property you are selling is not held  under a fideocommiso by the bank ( i.e. you are a Mexican national )

Please can you update us on this once you speak to the local NOTARIO -- this is knowledge extension

pk