# Mexico

 Country code: MX · Currency: MXN · Language: Spanish

**Pros**
- Low tax burden relative to international averages to allow greater private capital retention and reinvestment.
- Extensive free trade network to provide duty-free access to major global markets and supply chains.
- Competitive cost of living and diverse lifestyle choices in emerging tech and business hubs.

**Cons**
- Pervasive systemic corruption and complex bureaucracy increasing business costs and legal risks.
- Widespread security concerns and organized crime activity affecting logistics and personal safety.
- State-controlled energy markets and uneven infrastructure development limiting access to essential industrial resources.

Long story short: In Mexico, the state won't gut you with taxes, but paperwork and bureaucratic slowness will drive you mad, and a small bribe often speeds things up.

On the flip side: a solid banking system, nearshoring fueling explosive opportunities, and Mexico City offering decent infrastructure for a Latin American capital.

Besides that: in wealthy neighborhoods like Polanco or Roma Norte, insecurity is barely noticeable, the food is fantastic, the landscapes stunning, and expats keep pouring in, pushing rents up.

## Will your income be taxed?

Long story short: YES, A LOT.
**Mexico** shears personal income hard, peaking at **35%**. Residency rules are the classic kit (day counts, economic ties, habitual abode), so if you actually live here, you hand over the full schedule.

The state shows up early, and with a receipt book.

**01.1 Income tax**

| Metric | Value | Detail |
| --- | --- | --- |
| Personal income tax | 1.9 → 35% | progressive · 11 brackets |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 595 | 1.9% |
| 595 – 5,052 | 6.4% |
| 5,052 – 8,879 | 10.9% |
| 8,879 – 10,322 | 16% |
| 10,322 – 12,358 | 17.9% |
| 12,358 – 24,924 | 21.4% |
| 24,924 – 39,284 | 23.5% |
| 39,284 – 74,999 | 30% |
| 74,999 – 99,999 | 32% |
| 99,999 – 299,996 | 34% |
| 299,996 + | 35% |

**01.2 Tax residence test**

_A single active rule is enough to make you tax-resident._

| Metric | Value | Detail |
| --- | --- | --- |
| 183-day rule | does not exist here |  |
| Economic interest | exists here |  |
| Family centre | does not exist here |  |
| Habitual abode | exists here |  |
| Extended-stay test | does not exist here |  |

## Will your wealth be taxed?

Long story short: YES, A LOT.
**Mexico** shears capital gains hard (**30%** at the top), but at least it stops there: no annual wealth levy, no inheritance regime.

Selling is the trigger; as long as you don't pull it, the position compounds untouched.

**02.1 Investment income**

| Metric | Value | Detail |
| --- | --- | --- |
| Capital gains | 30% | progressive · +10% Sales of shares in the Mexican stock exchange · +25% Non-resident investor electing flat rate on gross proceeds · +35% Non-resident investor electing flat rate on net gain |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 7,395 | exempt |
| 7,395 – 58,734 | 15% |
| 58,734 + | 30% |

| Metric | Value | Detail |
| --- | --- | --- |
| Dividend tax | 10% | flat |
| Interest income | 35% | progressive |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 595 | 1.9% |
| 595 – 5,052 | 6.4% |
| 5,052 – 8,879 | 10.9% |
| 8,879 – 10,322 | 16% |
| 10,322 – 12,358 | 17.9% |
| 12,358 – 24,924 | 21.4% |
| 24,924 – 39,284 | 23.5% |
| 39,284 – 74,999 | 30% |
| 74,999 – 99,999 | 32% |
| 99,999 – 299,996 | 34% |
| 299,996 + | 35% |

**02.2 Wealth & estate**

| Metric | Value | Detail |
| --- | --- | --- |
| Wealth tax | NONE | no annual wealth tax · no real-estate wealth tax · no net-worth assessment |
| Inheritance system | NONE | no estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply. |

**02.3 Crypto**

| Metric | Value | Detail |
| --- | --- | --- |
| Crypto · tax regime | PROGRESSIVE | Rate: 35% · Crypto-assets are classified as 'virtual assets' (intangible movable property) under the Fintech Law. Gains are taxed as 'Enajenación de Bienes' (Sale of Assets) or 'Demás Ingresos' (Other Income) at progressive ISR rates up to 35%. Crypto-to-crypto swaps are considered taxable exchanges (permuta). A 16% VAT applies to sales within Mexico as they are treated as intangible goods. An annual exemption for movable property gains exists if the total value of sales in the year does not exceed 3 annual UMAs (approx. 118,800 MXN for 2024). Large transactions may trigger a 20% withholding tax on the gross amount as an advance payment. |
| Crypto-to-crypto | TAXABLE | each swap counts as a disposal — gains realised at every trade |
| FATF travel rule | SIGNED | committed but not yet enforced |

## Easy to run a company there?

Long story short: NO.
Corporate tax in **Mexico** is **30%**, no IP-box mercy, VAT at **16** on top.

Operationally, running a company here is fine; fiscally, the state helps itself to a fat slice of every unit of profit. You do the work, they skim the cream.

**03.1 Rates**

| Metric | Value | Detail |
| --- | --- | --- |
| Corporate tax | 30% | flat |
| VAT standard rate | 16% | 2 distinct tiers in force |

| VAT family | Category | Rate |
| --- | --- | --- |
| Food & drink | food | 0% |
| Food & drink | non-alcoholic | 16% |
| Food & drink | alcohol | 16% |
| Print media | books | 0% |
| Print media | ebooks | 16% |
| Print media | newspapers | 0% |
| Culture | cultural events | 16% |
| Culture | cinema | 16% |
| Culture | theatre | 16% |
| Culture | museums | 16% |
| Culture | sports | 16% |
| Transport | public transit | 16% |
| Transport | rail | 16% |
| Transport | air | 16% |
| Hospitality | hotels | 16% |
| Hospitality | restaurants | 16% |
| Hospitality | takeaway | 16% |
| Health | pharma | 0% |
| Health | medical dev. | 16% |
| Energy | electricity | 16% |
| Energy | natural gas | 16% |
| Energy | district heat. | 16% |
| Energy | domestic fuel | 16% |
| Utilities | water | 16% |
| Utilities | waste | 16% |
| Clothing | kids clothing | 16% |
| Digital & telecom | digital | 16% |
| Digital & telecom | telecom | 16% |
| Digital & telecom | broadcast | 16% |
| Construction | construction | 16% |
| Construction | social housing | 16% |
| Agriculture | farm inputs | 0% |
| Agriculture | animal feed | 0% |
| Personal services | funeral | 16% |
| Personal services | hairdressing | 16% |
| Finance | insurance | 16% |
| Finance | financial svc. | 16% |

**03.2 Regime & registry**

| Metric | Value | Detail |
| --- | --- | --- |
| IP Box · Patent Box | NONE | no IP regime · IP income taxed under standard corporate rules |
| Misuse of corporate assets | NO CRIMINAL | no criminal liability · In Mexico, the misuse of corporate assets by a sole shareholder-director of a solvent company is not treated as a criminal offense. While the Federal Penal Code (Art. 388) and state codes define 'Administración Fraudulenta' (Fraudulent Administration) as a crime, these are 'delitos de querella,' meaning they require a formal complaint from the victim. Since the sole shareholder is the only person authorized to represent the company, no complaint is filed. Consequently, such conduct is addressed through tax law as 'deemed dividends' (Art. 140, Income Tax Law) or civil litigation rather than criminal prosecution. |
| Shareholders privacy | PUBLIC PAYWALL | Registro Público de Comercio (RPC) |
| Directors privacy | PUBLIC PAYWALL | Registro Público de Comercio (RPC) |

**03.3 Incorporation cost**

_In this country, the most standard company form is called Sociedad de Responsabilidad Limitada de Capital Variable (S. de R.L. de C.V.) (Limited Liability Company with Variable Capital). The costs below are for incorporating a company in its simplest form, for reference only._

| Metric | Value | Detail |
| --- | --- | --- |
| Notary Public Fees (Formalization of Articles of Incorporation) | USD 1,057 |  |
| Public Registry of Commerce (RPC) Registration Fees | USD 206 |  |
| Professional Legal and Incorporation Service Fees | USD 2,937 |  |
| Total | USD 4,199 |  |

## A good fit for a holding?

Long story short: NOT REALLY.
**Mexico** carries an *extensive* treaty network (**54** agreements) that cuts inbound withholding nicely.

The missing piece is a participation exemption: dividends coming up from subsidiaries eat the *full* corporate schedule (**30%**) unless a treaty does all the work on its own.

Good for operations; as a pure holding base, the domestic layer helps itself on the way through.

**04.1 Substance & exemptions**

| Metric | Value | Detail |
| --- | --- | --- |
| Territorial · individuals | WORLDWIDE | worldwide income taxation regardless of source |
| Territorial · corporates | WORLDWIDE | worldwide corporate taxation |
| Participation exemption | NONE | no dividend participation exemption regime |
| CFC rules | APPLY | Mexican corporations are subject to tax on income generated by foreign subsidiaries located in low-tax jurisdictions (preferred tax regimes) even if such profits are not distributed, unless the taxpayer lacks management control. |

**04.2 Withholding tax · non-resident**

| Metric | Value | Detail |
| --- | --- | --- |
| WHT · dividends | 10% | non-resident outbound |
| WHT · interest | 35% | non-resident outbound |
| WHT · royalties | 35% | non-resident outbound |
| Tax-haven WHT | 40% | penalty rate · blacklisted destinations |

**04.3 Treaty network**

| Metric | Value | Detail |
| --- | --- | --- |
| Treaties signed | 52 | active |
| Treaties pending | 2 | in negotiation |

## Easy to come and go?

Long story short: SOME.
**Mexico** taxes your worldwide income while you're resident, but at least the exit is free: *no exit tax* on the way out.

Leaving costs you paperwork, not money; your unrealised gains walk out the door with you, untouched.

**05.1 Exit & dual nationality**

| Metric | Value | Detail |
| --- | --- | --- |
| Exit tax | NONE | no triggers active · residence change tax-free · no deemed-disposal mechanism |
| Dual citizenship | ALLOWED | naturalised citizens may keep their existing nationality |

**05.2 Citizenship paths**

| Metric | Value | Detail |
| --- | --- | --- |
| Residence | 5 years | available path to naturalisation |
| Marriage | 2 years | available path to naturalisation |
| Birth | jus soli | available path to naturalisation |
| Descent | 1 gen | available path to naturalisation |
| Investment | — | not available |

## Is your money watched?

Long story short: YES, CLOSELY.
**Mexico** signed *every exchange framework that matters* and runs a *public corporate registry*. Whatever you do here (earn, hold, structure) is reported, searchable, or both.

Your money is watched from every angle; if discretion is part of your plan, this isn't your jurisdiction.

**Multilateral reporting frameworks — 5/9 active · 2 pending**

| Item | Status | Detail |
| --- | --- | --- |
| CRS | In force | 2017 |
| CARF | None | — |
| FATCA | In force | 2014 |
| MLI | In force | 2023 |
| BEPS | Signed | — |
| MAAC | In force | 2012 |
| GLOBAL FORUM | Signed | — |
| EOIR | In force | — |
| CRYPTO TRAVEL RULE | None | — |

## Is it blacklisted?

Long story short: NO.
**Mexico** is *clean on every major blacklist* (FATF, EU, France, Spain, Portugal, Brazil) and sits *inside* the FATF club.

Wiring money to or from here raises zero eyebrows: no flags, no extra questions, no compliance officer waking up. Reputationally, a non-event.

**Blacklist exposure — Clear everywhere**

| Item | Status | Detail |
| --- | --- | --- |
| EMBARGO | Clear | un / us / eu sanctions |
| FATF | Clear | grey / black list |
| EU | Clear | non-cooperative list |
| FRANCE | Clear | ETNC list |
| SPAIN | Clear | tax-haven list |
| PORTUGAL | Clear | favourable regimes |
| BRAZIL | Clear | low-tax list |

## Do you feel free there?

Long story short: NO.
Press freedom in **Mexico** is *locked down* (RSF rank **\#124**). Independent media and civic space operate under pressure (when they operate at all), and that kind of grip usually spills over into economic life too.

Small mercy: crypto isn't formally banned.

**08.1 Press freedom**

| Metric | Value | Detail |
| --- | --- | --- |
| Press freedom · RSF index | 124/180 | score 45 · ↓ 3 ranks year-on-year |

Central bank digital currency

    Program Status Cross-border Sources     Moneda digital del banco central (MDBC)

The asset, which is expected to be launched in 2024, will allow opening accounts to contribute to financial inclusion in the country.

Banco de México

   RESEARCH   —   [announce →](https://www.ledgerinsights.com/mexico-plans-a-retail-cbdc-by-2025/ "Announcement")

 programs 1

## Connected to the world?

Long story short: WELL CONNECTED.
The two rails that matter both run in **Mexico**. *Stripe* takes you on: cards get charged, money lands. *Amazon* delivers to your door.

Around them the picture thins out (**8/11** services available), so check your niche processors before you commit, but the backbone of an online business is here.

**Accept payments — 4/6 available**

| Item | Status | Detail |
| --- | --- | --- |
| Stripe | Available | card payments |
| PayPal | Available | wallet payments |
| Adyen | Available | enterprise psp |
| Mollie | Not available | eu payments |
| GoCardless | Not available | direct debit |
| Paddle | Available | merchant of record |

**Bank and move money — 2/3 available**

| Item | Status | Detail |
| --- | --- | --- |
| Wise | Available | multi-currency |
| Revolut | Not available | personal banking |
| Revolut Business | Available | business banking |

**Buy and sell on Amazon — 2/2 available**

| Item | Status | Detail |
| --- | --- | --- |
| Amazon | Available | consumer delivery |
| Amazon Seller | Available | marketplace selling |

  SEE ALSO## Other jurisdictions worth comparing

Picked by similarity of strategic profile to Mexico. No editorial ranking — neighbours in the same scoring space.

  PROFILE-ADJACENT Same shape, comparable overall friction.

 [   Brazil BR  → ](https://stateless.sx/en/country/br) [   New Zealand NZ  → ](https://stateless.sx/en/country/nz) [   Tunisia TN  → ](https://stateless.sx/en/country/tn)

  NOTABLY MORE FAVORABLE Same family of strategies, higher total score.

 [   Albania AL  → ](https://stateless.sx/en/country/al) [   Greece GR  → ](https://stateless.sx/en/country/gr) [   Canada CA  → ](https://stateless.sx/en/country/ca)

  NOTABLY LESS FAVORABLE Same family of strategies, lower total score.

 [   Argentina AR  → ](https://stateless.sx/en/country/ar) [   Israel IL  → ](https://stateless.sx/en/country/il) [   Lebanon LB  → ](https://stateless.sx/en/country/lb)