Mexico has restrictions on the use of cash. We are talking about limits for certain types of transactions. In this way, the state is trying to combat money laundering.
The limits are set by law with the long title Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita. It sets limits on amounts above which cash payments are prohibited and you should only make payments through the banking system. Limits are set in UMA units of account. The UMA changes annually to account for inflation.
The most important restrictions on cash payments are as follows:
When purchasing real estate in cash, you can pay only part of the amount within the limit of 8025 UMA. As of 2026, it is 941,418 pesos. Anything above must be paid through the bank only. The notary simply will not formalize a transaction that violates the limit. Moreover, even partial payment in cash is undesirable, which is why payment for real estate transactions in Mexico most often occurs by bank transfer.
When purchasing a car, the limit is 3,210 UMA (376,565 pesos).
The same cash limit is provided for purchases or payments:
- jewelry, watches,
- art objects,
- real estate rental,
- gambling and lotteries,
- security services and armored vehicle services.
In addition, for certain services, say, brokerage, intermediary, notary, asset management, creation of companies, transfer of shares, etc. (these are the so-called «vulnerable operations» — actividades vulnerables), mandatory notification to the tax service is provided. In other words, the provider of such services is obliged to identify the client and submit a report to the financial monitoring system, and it does not matter whether the payment was in cash or by bank transfer.
The restrictions apply specifically to large and formally significant transactions. These are not recommendations, but obligations. Cash payments in excess of established limits are legally prohibited. At the same time, it is impossible to split the payment into parts, each of which is below the limit, if the payment is for the same product or service. Violation may result in fines for both the seller and the buyer.
Here you also need to understand that the very fact of paying for a product or service with a large amount of cash, even within the limit, can also raise the question of declaring income from the tax service.
Separate restrictions apply in the banking sector. Any cash transactions (withdrawals, deposits, transfers) in amounts greater than 140 thousand pesos will require client identification using biometric data, which is most often only permitted at the bank in which the client already has an account. In addition, the bank has the right to request confirmation of the origin of funds. Under such circumstances, this is not a limit on withdrawal or transfer — you have the right to bring at least a million pesos to the bank, but an element of financial monitoring.