Tax residency in Mexico
Mexico considers you a tax resident if you establish a home in Mexico, or if your center of vital interests (income sources, professional activities) is in Mexico. Simply having a temporary resident visa doesn't automatically make you a tax resident — but living there full-time likely does.
RESICO simplified regime
Mexico's RESICO (Regimen Simplificado de Confianza) offers dramatically reduced tax rates for individuals earning under MXN 3.5 million (~$200,000). Rates range from just 1% to 2.5% depending on revenue. This is one of the most favorable tax regimes available anywhere for freelancers.
Planning your move to Mexico?
Get a personalized tax breakdown based on your home country and income sources.
RFC registration
If you become a Mexican tax resident, you need an RFC (Federal Taxpayer Registry). This is your tax ID for all Mexican tax purposes. Getting an RFC requires an appointment at SAT (Mexico's tax authority) and can take several weeks.
Digital platform taxes
Mexico applies withholding taxes on payments made through digital platforms. If you receive income through Mexican platforms, withholding may be applied automatically.
US-Mexico tax treaty
The US-Mexico tax treaty is comprehensive. American digital nomads in Mexico can generally avoid double taxation through treaty provisions and foreign tax credits. However, US citizens are taxed on worldwide income regardless of residence.