Mexico · Tax regime
Mexican Personal Tax Regime
Standing regime. Residents are taxed on worldwide income at 1.92%–35%. There is no wealth tax, no net worth tax, no inheritance or estate tax, and no deemed-disposition exit tax. Tax residency arises at 183 days of physical presence in a 12-month period or where the centre of vital interests is in Mexico — it is NOT conferred by holding a residence card.
Mexico is one of very few places a family can hold real residency, real property and a real life with no wealth tax, no inheritance tax and no exit tax. The trade is that if you actually live there you are taxed on worldwide income at up to 35% — so the structure that works is residency without tax residency, and that requires disciplined day counting and a defensible centre of vital interests elsewhere.
The facts
- Total landed cost
- Up to 35% on worldwide income; 10% flat on gains from shares traded on the Mexican exchange; 16% VAT
- Physical presence
- 183 days in a 12-month period, or centre of vital interests (principal source of income or principal home) in Mexico
- Family
- assessed individually; Mexico has no joint filing
- Permanent residency
- n/a
- Citizenship
- n/a
- Language test
- n/a
- Dual citizenship
- Permitted
- Requirements
- tax residency at 183 days or centre of vital interestsworldwide income taxed at 1.92%–35% for residentsnotice of change of tax residence to the SAT at least 15 days before ceasing residence
- Immigration residency and tax residency are different things and are routinely conflated by promoters. A residente temporal card does not make you a Mexican tax resident; 183 days or a centre of vital interests does.
- Once resident, worldwide income is taxed — including foreign dividends, interest and rents.
- Mexican nationality creates a presumption of Mexican tax residency unless rebutted, and the REFIPRE rules keep a departing Mexican national taxable for the year of departure plus five years if the destination is a preferential tax regime without an exchange-of-information agreement. This is a reason to think carefully before naturalising.
- The notice of change of tax residence must be filed with the SAT at least 15 days before departure. Miss it and you are still resident.
- Mexico is a full CRS participant and exchanges account information automatically.
- The April 2026 Senate initiative on inheritances above ~MXN 14M (10–18%) is a proposal, not law, and the President has disavowed it — but it is the fourth such attempt in a decade.
- Mexican real estate held by foreigners in the restricted zone (50 km of coast, 100 km of border) requires a fideicomiso bank trust or a Mexican company; direct freehold is constitutionally unavailable there.