Mexico — Taxes

Worldwide taxation — say it plainly This is where Mexico differs from Panama and Paraguay. Mexico taxes its tax residents on worldwide income, with a top personal rate of 35%. If Mexico becomes your home, your global income can be taxed here. Anyone selling Mexican residency as a tax haven is misleading you.

What makes you a Mexican tax resident Tax residence turns on your home and centre of vital interests, not a simple day count. That means you can hold immigration residency — a card that lets you live in Mexico — without automatically becoming tax-resident, if your real base and income stay elsewhere. This is a point to plan carefully, with advice.

Local rates Personal income tax is progressive up to 35%, corporate income tax is 30%, and VAT is 16%. These are ordinary, mainstream rates.

What is not taxed, and the citizenship line There is no net wealth tax, and inheritances are broadly exempt from federal income tax for the heir, though property transfers face state-level acquisition taxes. Residency is not citizenship — naturalisation takes five years — and holding a Mexican residence card does not remove obligations to a country that taxes on citizenship, such as the United States. Judge Mexico on lifestyle, proximity and access, and read our tax hub and residency hub, with our methodology on how each figure is checked.