Taxes are a key question when relocating. The good news: Mexico has favorable regimes and treaties with many countries. Here's how expat taxation works in 2026.
When you become a tax resident
Immigration and tax residency are different. You become a Mexican tax resident if you spend more than 183 days a year here OR your "center of vital interests" (main income, family, home) is in Mexico. A tax resident declares worldwide income; a non-resident only Mexican-source income.
Main 2026 rates
| Tax | Rate |
|---|---|
| Income tax (ISR), individuals | progressive up to 35% |
| ISR for companies | 30% |
| VAT (IVA) | 16% |
| RESICO regime (small business/freelance) | 1–2.5% on revenue |
RESICO — for freelancers and small business
If your income is up to 3.5 million pesos a year, RESICO gives a rate of just 1–2.5% on revenue with minimal reporting. Ideal for remote workers and entrepreneurs.
Double taxation
Mexico has double-taxation treaties with over 60 countries, including the US, Canada and most of the EU. For example, under the US–Mexico treaty, US Social Security is taxed only in the US, even if you're a Mexican tax resident — protecting retirees from double taxation.
What to do
- Get an RFC (tax ID) — without it you can't invoice or pay taxes.
- Determine your tax status before moving.
- For remote work, choose the optimal regime (often RESICO).
Taxes are individual — we recommend a consultation before applying for residency. Message us to review your situation.