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Friday, September 22, 2023

End of gentrification? CDMX deputies propose this special tax on digital nomads – El Financiero

Deputies of the CDMX Congress presented a initiative for impose a special tax to the digital nomads who live and work in the Mexican capital.

The proposal – promoted by the deputy Frida Jimena Guillen– proposes charging foreigners a tax of a UMA for every day additional after his twentieth night in CDMX; as well as limit the number of temporary hosting platforms such as AirbnbExpedia, etc.

That is to say, 103.74 pesos per day that happen in CDMX, equivalent to 3 thousand 112 pesos monthly.

This tax would be charged from the 21st after for a digital nomad to contract an accommodation service in hotels, hostels, motels, apartments or houses in Mexico City.


The money raised would be used to build social interest housing for young, public transport and urban services in non-gentrified areas to which thousands and thousands of capital residents are displaced.

“I celebrate the arrival of foreigners to the country and of course the fact that they spend their money here benefits some, but harms others. Faced with this situation, some countries have chosen to establish a special tax for foreigners who do remote workso that these revenues compensate for the inconvenience caused to national citizens through public mitigation policies“said the legislator.

“The problem is that none of these foreigners pay taxes in our country for using the infrastructure built over decades and billions of pesos from our pockets. Yes, of course they pay VAT on everything they consume – just like all residents of the capital – but they enjoy a privilege that the majority of us do not have, because They do not pay taxes on the profits they earn from their jobs abroad”he added.

According to the PAN legislator, the presence of digital nomads has caused an increase in rental costservices and even food in many areas of CDMX


“Rent in areas such as Condesa, Del Valle, San Ángel and Coyoacán increased up to 60 percent. Thousands of residents of the capital have had to move from where they have lived for years to make way for more than 60 thousand foreigners who have arrived in our city”, he indicated.

The first period of the last year of the II Legislature of the Congress of Mexico City began on September 1 and ends on December 15.

During this period, the initiatives presented in commissions or committees will be analyzed, discussed and voted on, so The initiative for a special tax on digital nomads could be approved before the end of 2023.

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