Mexico (MX)
Mexico is one of the world's most important expat destinations, especially for US and Canadian retirees, remote workers, entrepreneurs, families and lifestyle migrants.
Capital: Mexico City
Region: Americas
Language: Spanish
Currency: MXN (MX$)
Cost of living: Very affordable (index 38)
Emergency: 911
Premium
Business Setup
Start a business or go freelance in Mexico.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 Confirm immigration permission: visitor status without remunerated activities does not authorise local paid work. Business visa or Temporary Resident with work permission required.
- 2 Obtain CURP (population ID) and RFC (tax ID) from SAT. Apply for e.firma (digital certificate) — mandatory for filing returns and business administration.
- 3 Choose your tax regime with a Mexican accountant (contador): Actividad Empresarial/Profesional, RESICO if eligible, or a company structure. Regime choice affects ISR rates, IVA obligations, deductions, and monthly filings.
- 4 Register for IVA (VAT) with SAT — all taxpayers with professional/entrepreneurial activity must register regardless of turnover. Standard rate: 16%.
- 5 Set up CFDI electronic invoicing: Mexico requires CFDI 4.0 digital invoices. Clients will not pay without valid CFDI. Use SAT-approved billing software (Aspel, ContPAQi, Facturama, or the SAT portal).
- 6 Open a separate business bank account (BBVA, Banamex, Santander, or Banorte). Keep personal and business accounts strictly separate.
- 7 Clarify whether clients are Mexican or foreign-based, where services are performed, and whether withholding applies to your invoices.
- 8 File monthly ISR and IVA declarations via the SAT portal by the 17th of the following month. Keep all XML/PDF CFDI invoices and bank statements.
Tax registration
Register with SAT (sat.gob.mx) for RFC, tax obligations, and e.firma digital certificate. Regime choice affects IVA, ISR, deductions, invoicing, and monthly filings. Self-employed pay ISR monthly advance payments and file annual return by April 30.
VAT threshold
No registration threshold — all taxpayers with entrepreneurial or professional activity must register for IVA with SAT regardless of turnover. Standard rate: 16%. File monthly IVA declarations. Exports of services to foreign clients paid in foreign currency are zero-rated (IVA 0%) — keep payment evidence and FX records.
Invoicing
Mexico uses CFDI 4.0 electronic invoices (Comprobante Fiscal Digital por Internet). Required fields: RFC and fiscal address of both parties, digital fiscal seal (CSD from SAT), sequential folio, date/time, service description, unit price, subtotal, IVA amount (or 0% for exports), and total. Clients will not pay without valid CFDI — this is business-critical. Register at sat.gob.mx and use SAT-approved billing software.
Social security
Self-employed individuals may access voluntary IMSS options (Seguro de Salud para la Familia or voluntary affiliation) but coverage and cost differ from employment payroll. Private health insurance remains important for freelancers. Employees of a company trigger mandatory IMSS, INFONAVIT, and payroll tax obligations.
💡 Use a contador (accountant) experienced with expat and foreign-income clients. Do not mix personal and business bank accounts. File monthly obligations on time — SAT penalties and audit risk increase with late filings. Check RESICO eligibility carefully before relying on low rates; the regime has strict conditions and can be revoked. Keep XML and PDF copies of all CFDI invoices permanently.
🏢 Business Structures
Persona Física con Actividad Empresarial · Persona Física con Actividad Empresarial y/o Profesional
Self-Employed Individual / Sole Trader
None
Min. capital
1–2 weeks (RFC registration + e.firma digital certificate)
Setup time
Liability: Unlimited personal liability
Setup cost: SAT/RFC registration free; professional accountant fees MXN 2,000–5,000/month
Best for: Freelancers, consultants, and professionals billing clients directly. Requires immigration authorisation to perform remunerated activities in Mexico. Taxed under progressive ISR rates up to 35%.
RESICO Persona Física · Régimen Simplificado de Confianza — Persona Física
Simplified Trust Regime (individual)
None
Min. capital
1–2 weeks (SAT regime election)
Setup time
Liability: Unlimited personal liability
Setup cost: SAT registration free; simplified monthly ISR payments 1–2.5% of income
Best for: Eligible small taxpayers earning up to MXN 3,500,000/year who bill only CFDI-registered clients. Strict eligibility rules — check with a Mexican accountant before relying on this regime.
S. de R.L. de C.V. · Sociedad de Responsabilidad Limitada de Capital Variable
Limited Liability Company (LLC equivalent)
MXN 3,000 minimum (2 partners required)
Min. capital
4–8 weeks
Setup time
Liability: Limited to company assets
Setup cost: MXN 8,000–20,000 (notary + Public Registry + SAT registration)
Best for: Closely held businesses, US tax-planning structures (check-the-box elections), SMEs with 2–50 partners. Common for foreign-owned operations alongside S.A. de C.V.
S.A. de C.V. · Sociedad Anónima de Capital Variable
Corporation / Joint Stock Company
MXN 50,000 minimum (2 shareholders required)
Min. capital
4–8 weeks
Setup time
Liability: Limited to share capital
Setup cost: MXN 10,000–25,000 (notary + Public Registry + legal/accounting setup)
Best for: Scalable companies, institutional investors, and formal operations requiring a corporate structure. Standard vehicle for foreign subsidiaries in Mexico. ISR corporate rate: 30%.
S.A.S. · Sociedad por Acciones Simplificada
Simplified Stock Company
MXN 1 minimum (single owner possible)
Min. capital
1–2 weeks (online if eligible)
Setup time
Liability: Limited to company assets
Setup cost: Formation free via SAT online portal for eligible entities; no notary required
Best for: Small Mexican-owned ventures seeking the simplest corporate structure. Annual income capped at MXN 5,000,000. Foreigner eligibility must be confirmed — restrictions apply in some cases.
Sucursal / Branch · Sucursal de Empresa Extranjera
Branch of Foreign Company
No minimum; parent company guarantees all obligations
Min. capital
8–16 weeks
Setup time
Liability: Parent company fully liable for all branch obligations
Setup cost: MXN 15,000–50,000 (SE registration + SAT + legal fees; apostilled parent documents required)
Best for: Established foreign businesses expanding into Mexico without creating a separate legal entity. Taxed on Mexico-source income at 30% ISR. Often less preferred than S.A. de C.V. due to full parent liability.
Business Setup
Unlock the complete Business Setup guide for Mexico — including every detail, document, tip and link you need.
Become a SupporterSupport the guide on Ko-fi · Unlocks every premium section, everywhere