Expat Tax Treatment of Income Generated in Mexico

Expat tax treatment of income generated in Mexico is regulated by Title V of the Income Tax (Ley del Impuesto Sobre la Renta). Income can be:

  • Cash
  • Assets
  • Services
  • Credits
  • Any other income as determined by the tax authorities.

In article 9 of the Fiscal Code, the following are defined as residents in Mexico:

  1. Physical persons who have established their home in Mexico. If physical persons have a domicile in another country, they will be considered as residents in Mexico if this is where they hold their vital interests. For purposes of determining the vital interests, amongst other things, the following will be taken into account:
  • If 50% or more of total income in the calendar year is generated from Mexico
  • If the main center of work activities is located in Mexico

2. Legal entities that administer their businesses in Mexico or have their operating headquarters in Mexico. Based on this information, nationality is not relevant in determining the place of residence.

Looking For More Information?

Looking for more information about expat tax treatment in Mexico? At Biz Latin Hub we have a group of local professional accountancy experts, who are specialized in taxes and can answer all the questions you may have. Besides, Biz Latin Hub has extensive experience in assisting foreign individuals and companies to do business in Mexico and Latin America. Don’t hesitate, and contact our CEO, Craig Dempsey here to see how we can be of assistance.


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Tags: Business | Expats | Taxes

Categories: Mexico

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