North America · North America

Mexico

52moderate

Overall Score

Mexico is a North America jurisdiction. with a standard worldwide income tax regime applicable to tax residents. Corporate profits are taxed at 30%. The jurisdiction offers a digital nomad visa for qualifying individuals.

Talk to an expert on Mexico Compare jurisdictions

Corporate Tax

30%

Personal Income Tax

35%

Capital Gains

25%

VAT / GST

16%

Overview

Key Data

Taxation

Personal Income Tax (max)35%

Personal Income Tax (min)2%

Corporate Tax Rate30%

Capital Gains Tax25%

VAT / GST16%

Dividend Tax Rate10%

Withholding Tax30%

Territorial TaxationNo

Foreign Income Exempt—

Remittance-Based Tax—

CFC RulesYes

Tax Residency Days183 days/year

Tax Treaties—

Residency & Visa

Digital Nomad VisaYes

Golden VisaNo

Retirement VisaNo

Investment VisaYes

EU MemberNo

Schengen AreaNo

EU PassportNo

Min. Days Required / Year—

Min. Monthly Income—

Min. Investment (residency)—

Citizenship Path—

Setup Difficulty—

Business & Cost of Living

Cost of Living Index40/100

Avg. Monthly Cost—

Company Formation Time—

Formation Cost (est.)—

Annual Compliance Cost—

Free Zone AvailableNo

Banking Easemoderate

Internet Qualitygood

Compliance & Reputation

FATF Statuscompliant

EU Blacklist Statusgrey_list

OECD Compliance—

CRS Participant—

FATCA Compliant—

BEPS Participant—

Treaty Network Quality—

Personal Tax Residency

Tax residency in Mexico is generally triggered by physical presence exceeding 183 days in a calendar year. Foreign income treatment: unknown. Controlled Foreign Corporation (CFC) rules are in force. Residents who own or control foreign entities may face attribution of that entity's undistributed profits under local anti-avoidance provisions.

Income tax (ISR) 1.92–35%. Additional 10% dividend tax. Digital nomad via temporary residency (Residente Temporal). VAT 16% (0% in border zones). Large nearshoring boom. Popular expat destinations: CDMX, Oaxaca, Mérida, San Cristóbal. EU Annex II (grey list).

Company Setup & Business Taxation

The standard corporate income tax rate is 30%. Establishing a legal presence here involves a higher degree of administrative complexity, often requiring local legal assistance.

Banking & Financial Access

Banking access in Mexico is attainable but may require more documentation and time than in simpler jurisdictions. Internet connectivity is generally good, with consistent broadband availability in business districts and main population centres.

Compliance & International Reputation

Mexico is a member of the Financial Action Task Force (FATF) and meets its anti-money-laundering standards. EU tax blacklist status: grey_list. Structures involving this jurisdiction may attract additional scrutiny or reporting obligations under EU member state rules.

Who This Jurisdiction Works Best For

Based on our scoring model, Mexico ranks highest for Digital Nomad and Freelancer. It offers a reasonable proposition for digital nomad (score: 58/100). It offers a reasonable proposition for freelancer (score: 53/100). It scores lower for founder / entrepreneur and high net worth individual, who may find other jurisdictions more suitable for their specific requirements.

Legal Notice

The information on this page is for general informational purposes only and does not constitute legal, tax, or financial advice. Tax laws and residency rules change frequently and vary significantly by individual circumstances. Always consult a qualified professional licensed in the relevant jurisdictions before making any decisions.