Mexico

Mexico is part of continental North America and is a constitutional federal republic. It is bordered by the USA, the Pacific Ocean, the Gulf of Mexico, Guatemala, and Belize. Mexico is made up of 32 states, with Mexico City as its capital. Spanish is the official language, although English is widely used in business and tourism. The Mexican peso (MXN) is the official currency. 

In 1994, the North American Free Trade Agreement (NAFTA) was implemented – later renamed as the United States-Mexico-Canada Agreement (USMCA) – leading trade with the US and Canada to almost triple. 

More than 90% of Mexico’s trade operates under the multiple free trade agreements it has with over 50 other countries, including the European Union (EU).

Mexico has taken huge strides to boost its economic development and growth in recent years. Its deregulation, cutting back on the role of government, privatisation, enhancing IP rights and facilitating cross-border trade have all helped with this. 

Our local Tax Natives in Mexico can tell you everything you need to know about the ins and outs of your tax obligations there. Whether you’re buying a single property, or doing complex business deals, we’ll get you the advice you need. Just say the word and we’ll link you with a local expert who can answer all your questions. 

THE HEADLINES

• The corporate income tax rate in Mexico is 30%
• Mexico has graduated progressive rates of personal income tax for residents of up to 35%. For non-residents, the rate of personal income tax varies depending on the type of income. There are progressive rates of up to 30% on salaries.
• The standard VAT rate is 16%