Temporary resident visa
The permit is usually issued for 1 year, but it is renewable annually for a further 3 years (3+1), provided that requirements are still met. Prior to its expiration, a temporary resident may apply for a permanent resident permit if he or she has continuously resided in the country for 4 years (i.e. has paid Mexican income taxes).
After 5 years of legal residency, a resident may be eligible for naturalization. To obtain citizenship they must have Spanish language skills and pass a test and interview about Mexican history, culture and values. Nationals of Iberia (Spain and Portugal) or Latin American countries may be eligible for citizenship after 2 years of legal residency.
Economic SolvencyYou may obtain a temporary resident visa in Mexico, if you prove that during the last year you had an overall bank balance of over US$27,000 or during the last 6 months you had a monthly income of over US$1,620.
Under this visa category, you may not be allowed to conduct lucrative activities, such as employment, in the country.
- Original and a photocopy of investment receipts or bank statements showing you had an overall bank balance of over US$27,000 during the past twelve months; or
- Original and a photocopy of documents showing a monthly income of over US$1,620 (6 months).
No nationality is officially restricted
Dual citizenship is recognized in Mexico. You are not required to renounce your previous nationality to become a citizen of Mexico.
- Original and photocopy of passport
- Proof of income
- One passport-size photo
- Proof of net wealth
- Bank Statement
- dual citizenship Yes
- Family members included Yes
- land ownership Yes
- Physical residence required No
- Personal visit required No
- Language skills required No
- Interview required No
- Investment Single -
- Investment Family 4 -
- Minimum annual income $40,000
- Time to citizenship 60
- Time to permanent residency 48
- Visa-free countries 156
- Financing available No
permanent residency benefits
temporary residency benefits
It has an estimated population of 119 million people. Most of them have Spanish as their mother tongue, which the state recognizes as a national language along with 67 other indigenous languages. Its capital and most populated city is Mexico City, with a population of over 9 million, or 20 million when considering the whole metropolitan area. Its official currency is the Mexican Peso (MXN), which is the 8th most traded currency worldwide.
Visa Free Travel
Mexican tax residents are individuals who have established a permanent home in Mexico, or their center of vital interests is in Mexico. Mexico is considered to be the center of vital interests if more than 50% of an individual’s income is obtained from a Mexican source, or Mexico is their primary professional activities place.
Tax residents are subject to taxation on their worldwide income, while non-residents are taxed on their income derived from Mexico.
The personal income tax rate is progressive up to 35% on income exceeding MXN3,000,000. Nonresidents are exempt on their first MXN125,900 and subject to a tax rate of 15% on income between MXN125,900 and MXN1,000,000, and 30% on the excess.
Capital gains are treated as ordinary income, however those derived from the sale of securities listed in the Mexican Stock Exchange are taxed at a reduced rate of 10%. Sale of a main residential property is tax exempt. The exemption is limited to a certain amount and a sale every three years.
Dividends are considered taxable income and also subject to a 10% withholding tax, however a tax credit may apply for corporate tax paid. Dividends received from foreign entities are fully taxable and also subject to the 10% withholding tax.
Interests are included in the tax base, except those derived from certain exempted small balance accounts. Rental income is also taxable under personal income tax, although certain deductions may be available.
Mexico has enacted controlled foreign company (CFC) rules. Profits retained in foreign entities resident of considered tax havens, owned by Mexican tax residents, may be attributable, provided that the taxpayer has effective control of the administration of the investment, or the total amount is more than MXN160,000.
Municipalities levy real property taxes. Tax paid may be deductible on rental taxable income. There is a transfer tax between 2% and 5% on the transfer of real properties.
There are no inheritance taxes, nor taxes on net wealth.
The standard V.A.T. rate is 18%. Food and medicine are usually exempt.
Regarding corporate taxation, resident entities are subject to income tax on their worldwide income at a 30% rate. Capital gains are included in taxable income. Dividends from resident entities are tax-exempt, whereas those from foreign subsidiaries are subject to taxation. Usually a tax credit is available for foreign tax paid.
To learn more about the Mexican corporate legal framework, taxation and tax treaties, check out incorporations.io/mexico.
This should not be construed as tax advice. We have access to a global network of qualified attorneys and accountants who can give you the proper advice for your particular circumstances. Contact us for further information.
- Property tax Yes
- Transfer tax Yes
- Inheritance tax No
- Net worth tax No
- CFC law Yes
- Tax residency days -
- Personal income tax rate 35%
- Capital Gains tax rate 35%
- Investment income tax rate 35%
- Territorial taxation No