For Americans and other foreign residents, Mexico is a very attractive country to live and work, because of its weather, rich culture, delicious food, friendly locals, and cost of living. And in an increasingly global society, foreign residents are not only coming to work in Mexico, but Mexicans are also moving to the U.S. or other countries abroad. Foreign residents planning to work or invest in Mexico, as well as Mexican residents leaving Mexico, may face tax implications.
In this article, we provide a general overview of the most common legal and tax implications of working in Mexico and moving abroad.
Non-Mexican Citizens
Individuals
An individual qualifies as a Mexican tax resident if the following requirements are met:
- The individual has a home in Mexico, or
- If the individual has a home in another country, they are nonetheless a Mexican resident if their center of vital interests is in Mexico.
The individual’s center of vital interests is in Mexico if (1) more than 50% of their income is derived from a Mexican source in a calendar year, or (2) Mexico is the primary place of their professional activities.
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