Mexico

Last update: 2026-06-14
MX MXN$ 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.
Personal income
1.9 → 35%
progressive
Corporate
30%
flat
Capital gains
1.9 → 35%
progressive
VAT (standard)
16%
standard rate
i 3.6 HOLDING
i 3.6 PRIVACY GRADE
i 3.1 VERY LOW TAX
i 3 DIVIDEND PIPELINE
i 2 CRYPTO HAVEN
i 1.8 EASY CITIZENSHIP
VERYLOW TAX 3.1/10 HOLDING 3.6/10 DIVIDENDPIPELINE 3/10 CRYPTOHAVEN 2/10 PRIVACYGRADE 3.6/10 EASYCITIZENSHIP 1.8/10
01/08

Will Mexico tax what you earn?

income tax tax residency territorial system

YES, A LOT. Mexico taxes personal income heavily, peaking at 35%. Standard residency rules apply (day-count, economic interest, habitual abode), so anyone who actually lives here pays the full schedule. The state shows up.

Personal income taxi
1.9 → 35%
progressive · 11 brackets
Income simulatori
Income
Tax due
Effective rate
all-in
Marginal rate
+10%
dividends from profits generated after 2013 (domestic or foreign)
Tax residence testi
no day count
183-day rule
Economic interest
Family centre
Habitual abode
Extended-stay test
Just one rule above is enough to make you tax-resident here.
02/08

Will Mexico tax what you own?

capital gains wealth tax inheritance dividends interest

YES, A LOT. Mexico taxes capital gains heavily (35% at the top), but stops short of an annual wealth charge or inheritance regime. Realisation is the trigger; until you sell, the position keeps compounding.

Capital gainsi
35%
progressive
Dividend taxi
35%
progressive · +10% Dividends paid from profits generated after 2013 (withheld at source, in addition to annual tax return)
Interest incomei
35%
progressive
Wealth taxi
NONE
no annual wealth tax · no real-estate wealth tax · no net-worth assessment
Crypto · tax regimei
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-cryptoi
TAXABLE
each swap counts as a disposal — gains realised at every trade
FATF travel rulei
NOT SIGNED
no information-sharing obligation on VASP transfers
Inheritance systemi
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.
03/08

Is it easy to run a company in Mexico?

corporate tax criminal liability public registry VAT IP box

NO. Corporate tax in Mexico is 30% with no IP-box relief, on top of VAT at 16. Running a company here is operationally fine but fiscally expensive: the state takes a large bite of every unit of profit.

Corporate taxi
30%
flat
IP Box · Patent Boxi
NONE
no IP regime · IP income taxed under standard corporate rules
Misuse of corporate assetsi
NO CRIMINAL LIABILITY
Civil Matter / Breach of Fiduciary Duty
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 privacyi
PUBLIC PAYWALL
Registro Público de Comercio (RPC)
Directors privacyi
PUBLIC PAYWALL
Registro Público de Comercio (RPC)
Incorporation costi
Limited Liability Company with Variable Capital
Sociedad de Responsabilidad Limitada de Capital Variable (S. de R.L. de C.V.)
Notary Public Fees (Formalization of Articles of Incorporation) USD 1,047
Public Registry of Commerce (RPC) Registration Fees USD 204
Professional Legal and Incorporation Service Fees USD 2,908
Total USD 4,159
VAT standard ratei
16%
2 distinct tiers in force
0% 16%
Food & drink
0%
food
16%
non-alcoholic
16%
alcohol
Print media
0%
books
0%
ebooks
0%
newspapers
Culture
16%
cultural events
16%
cinema
16%
theatre
16%
museums
16%
sports
Transport
16%
public transit
16%
rail
16%
air
Hospitality
16%
hotels
16%
restaurants
16%
takeaway
Health
0%
pharma
16%
medical dev.
Energy
16%
electricity
16%
natural gas
16%
district heat.
16%
domestic fuel
Utilities
16%
water
16%
waste
Clothing
16%
kids clothing
Digital & telecom
16%
digital
16%
telecom
16%
broadcast
Construction
16%
construction
16%
social housing
Agriculture
0%
farm inputs
0%
animal feed
Personal services
16%
funeral
16%
hairdressing
Finance
16%
insurance
16%
financial svc.
04/08

Is Mexico good for your holding company?

treaty network participation exemption withholding

NOT REALLY. Mexico carries an extensive treaty network (54 agreements), which cuts inbound withholding on cross-border flows. The missing piece is a participation exemption: dividends received from subsidiaries face the full corporate schedule (30%) unless the treaty does all the work alone. Useful for operations, not for a pure holding vehicle.

Territorial systemi
Individuals
WORLDWIDE
Corporates
WORLDWIDE
Individuals: worldwide income taxation regardless of source. Corporates: worldwide.
Participation exemptioni
NONE
no dividend participation exemption regime
CFC rulesi
APPLY
Mexico taxes undistributed profits from foreign entities if the effective tax rate abroad is less than 75% of the Mexican corporate rate. Such entities are classified as being under a preferred tax regime.
WHT · dividendsi
10%
non-resident outbound
WHT · interest
35%
non-resident outbound
WHT · royalties
35%
non-resident outbound
Tax-haven WHT
10%
penalty rate · blacklisted destinations
Treaties signedi
52
active
Treaties pending
2
in negotiation
Tax treaty networki
origin · MX 0% > 0% no treaty
Inspect a country
Hover any country on the map to read its withholding-tax treaty with MX.
Country Status Dividends Interest Royalties
// no treaties match
05/08

What does it cost to come and go from Mexico?

exit tax territorial system dual citizenship

SOME. Mexico taxes worldwide income while you're resident, but there's no exit tax on the way out. The cost of leaving is mostly paperwork: unrealised gains follow you to the next jurisdiction untouched.

Exit taxi
NONE
no triggers active · residence change tax-free · no deemed-disposal mechanism
Dual citizenship
ALLOWED
naturalised citizens may keep their existing nationality
Citizenship paths
Residence
Marriage
Birth
Descent
Investment
06/08

Will Mexico protect your privacy?

info exchange corporate registries

NOT AT ALL. Mexico has signed every exchange framework that matters and operates a public corporate registry. Whatever you do here (earn, hold, structure) is reportable, accessible, or both. Privacy is not the strategy in this jurisdiction.

Multilateral reporting frameworks 5/10 active · 2 pending
CRS
2017
CARF
FATCA
2014
MLI
2023
BEPS
MAAC
2012
GLOBAL FORUM
EOIR
CRYPTO-CARF
CRYPTO TRAVEL RULE
07/08

Is Mexico itself a liability?

blacklists FATF standing

NO. Mexico is clear of every major blacklist (FATF, EU, France, Spain, Portugal, Brazil) and sits inside FATF membership. Dealing with this jurisdiction is reputationally inert: no flags follow the transaction.

Blacklist exposure Clear everywhere
FATF
grey / black list
EU
non-cooperative list
FRANCE
ETNC list
SPAIN
tax-haven list
PORTUGAL
favourable regimes
BRAZIL
low-tax list
08/08

Will you feel free in Mexico?

press freedom crypto CBDC EU

NO. Press freedom in Mexico is restricted (RSF rank #124). Civic space and independent media operate under pressure or not at all, a constraint that typically extends to financial expression as well, even where crypto isn't formally banned.

Press freedom · RSF indexi
124/180
score 45 · ↓ 3 ranks year-on-year
Central bank digital currencyi
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
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.
NOTABLY MORE FAVORABLE Same family of strategies, higher total score.
NOTABLY LESS FAVORABLE Same family of strategies, lower total score.