Deducciones Autorizadas (Authorized Deductions)deh-dook-see-OH-ness ow-tor-ee-SAH-dahs
Deducciones autorizadas are expenses that Mexico's Income Tax Law (Ley del ISR) permits taxpayers to subtract from taxable income when calculating ISR (income tax). For rental property owners, Article 115 of the ISR Law lists specific authorized deductions including predial, maintenance, insurance, real interest on property loans, salaries and depreciation.
By Daniel Ortega · Last reviewed 9 November 2026
How it works
<p>Foreign property owners in Mexico who are tax residents may choose between two methods when reporting rental income: itemized deducciones autorizadas (real expenses with valid facturas) or a standard 35 percent deduction (deducción ciega) plus predial, whichever yields a lower tax bill. <cite index='22-6,26-2,26-3'>Itemized deductions under Article 115 include predial and applicable local taxes or contributions; maintenance and water costs that do not constitute additions or improvements; real interest on qualifying loans; salaries, commissions and fees; insurance premiums; and investments in constructions, additions and improvements, according to Mexico's Income Tax Law</cite>. <cite index='10-15,11-7,11-8'>The 35 percent blind deduction allows owners to deduct 35 percent of gross rental income automatically without receipts, plus the predial tax paid</cite>. Non-resident foreign owners face a different rule: <cite index='fact-bank'>they pay a flat 25 percent ISR on gross rental income with no deductions allowed</cite>. Every deduction must be supported by a factura (CFDI) to be valid, and expenses must be strictly necessary for generating the rental income.</p>