You’ve just arrived in Mexico? You’re probably worried about paying your taxes. We’ve covered that for you. Here are the main things you should be aware of when it comes to taxes in Mexico.
First of all, as a foreign resident working in Mexico, you have 10 days to register with the Federal Register of Taxpayers (FRT).
Note that if you own a house in Mexico and you rent it, you’ll have to go through this process as well.
As a resident in Mexico, you will pay your taxes in the country on money earned anywhere in the world. You are considered resident for taxes purpose if your primary home is in Mexico and you live more than 183 days a year in the country.
Note that if you paid foreign taxes on income earned in France for example, you will receive a tax credit. This is possible because of the non-double taxation agreements Mexico signed with several countries.
Non-residents pay 15% or 30% tax on their Mexican income. The first MXN 125,900 (USD $7,000) is exempt in most cases.
Income taxes in Mexico depend on your level of income and are progressive:
If you own a property in Mexico, you will have to pay taxes. Local property tax is paid annually. It is called the “predial” in Spanish. It depends on the “castastro” value of your property. This value is defined by the municipality and represents a small fraction of the commercial value of the property. Local property tax is very low compared to other countries.
You’ll find here helpful articles about the Mexican tax system: