Starting a business in
🇲🇽Mexico
Checked November 4, 2026 · How we score
Corporate tax
30%
Top income tax
35%
Setup from
$1,500
all-in, first year
Time to form
20 days
visit usually needed
Taxes in Mexico
| Corporate income tax | 30% Flat 30% corporate income tax; employees' statutory profit sharing (PTU) of 10% of taxable profit applies. Individuals and some small businesses can use RESICO (1%–2.5% on gross income up to MXN 3.5M). Nearshoring incentives (Plan Mexico decree) offer accelerated deductions for certain investments. |
|---|---|
| Personal income tax (top) | 35% Progressive rates up to 35% for income above about MXN 4M in annual terms (top bracket); residents are taxed on worldwide income. RESICO taxes eligible individuals at 1%–2.5% on gross income up to MXN 3.5M. |
| Tax system | Worldwide income |
| Capital gains tax | 10%10% flat on gains from shares sold through the Mexican stock exchange; other gains are taxed at ordinary progressive rates. Real property sales taxed at up to 35% with exemptions for a primary residence. |
| Dividend withholding (non-residents) | 10% |
| VAT / GST | 16% |
| Social security | IVA 16% (8% in border zone). IMSS social security, Infonavit and state payroll tax add roughly 30%+ on top of salary costs. Dividends from profits earned after 2014 face a 10% additional tax for residents and non-residents (treaties may reduce). |
Forming a company in Mexico
| Usual entity | S.A. de C.V. or S. de R.L. de C.V. (limited liability company); S.A.S. also exists |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $1,500–$4,000 |
| Annual running cost | $3,000–$8,000 |
| Time to incorporate | 20 days |
| Form remotely as a foreigner | No |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | No |
| Statutory audit for small companies | No |
| Business banking for non-residents | Hard |
Residency and visas
Mexico has no formal digital nomad visa, but visitors get up to 180 days, and a Temporary Resident visa is available to remote workers who show about US$4,000+ in monthly income or sizeable savings (thresholds are indexed to minimum wage and set at consulates). Permanent residency can follow after four years or via financial solvency. Apply at a Mexican consulate before arrival.
| Digital nomad visa | No |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 2/5 (1 = easiest) |
Special tax regimes
RESICO (Simplified Trust Regime)
Individuals with annual income up to MXN 3.5M pay 1%–2.5% on gross receipts, with limited deductions. Available to Mexican tax residents registered with the SAT.
Nearshoring / Plan Mexico incentives
Decrees offer immediate or accelerated depreciation for qualifying new investments in strategic sectors and industrial parks; benefits depend on size and sector.
IMMEX (maquiladora)
Temporary import regime for manufacturing and export operations, deferring import duties and VAT on inputs.
Pros and cons
Why founders pick Mexico
- Large consumer market and USMCA access
- Low cost of staff and service providers
- Treaty network of 60+ agreements
- Easy temporary and permanent residency for remote workers
Watch out for
- 30% corporate tax plus 10% PTU and heavy payroll costs
- Mandatory e-invoicing (CFDI), monthly filings and an e-signature (e.firma) require local help
- Incorporating and banking without a local presence is slow
- Complex VAT and customs rules; tax audits are common
Best for: Companies selling to Mexican and Latin American customers · Manufacturers and nearshoring operations serving the US · Freelancers who become Mexican residents and use RESICO
Mexico: common questions
Can a foreigner open a company in Mexico remotely?
Technically a notary can incorporate a Mexican company for foreign shareholders using a power of attorney after the SRE approves the company name, but you then need an RFC tax ID, an e.firma electronic signature and an accountant, which usually involves local representatives. Most founders find it impractical to run entirely from abroad.
What is the corporate tax rate in Mexico?
The corporate income tax rate is a flat 30%. In addition, companies must distribute 10% of taxable profit to employees (PTU), and dividends to non-residents carry a 10% withholding tax, which treaties can reduce.
What is RESICO?
RESICO is the simplified trust regime for individuals and small companies in Mexico, taxing gross income up to MXN 3.5M at 1%–2.5% for individuals, with no deductions. It suits freelancers who are Mexican tax residents and whose clients can issue invoices or withhold.
How can a remote worker live in Mexico long term?
Visitors can stay up to 180 days. Longer stays require a Temporary Resident visa from a Mexican consulate based on monthly income of roughly US$4,000 or equivalent savings, renewable up to four years, then permanent residency. Spending more than 183 days makes you a Mexican tax resident on worldwide income.
Is Mexico a tax haven?
No. Mexico taxes residents on worldwide income, has 30% corporate tax and is not on any EU or OECD blacklist. Its appeal is market access and cost of operations, not low taxes.
Sources
- SAT (Servicio de Administración Tributaria)
- SecretarÃa de EconomÃa: Constitución de sociedades
- PwC Worldwide Tax Summaries: Mexico
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.