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Legal & Tax Guide - Mexico

Last updated: 2/11/2026

Legal & Tax Guide for Freelancers in Mexico

Introduction

Essential tax and legal information for Mexican developers working remotely for international clients and receiving payments in USD or EUR.

Important: Always consult a certified accountant for your specific situation.

Tax Regime

RIF (Régimen de Incorporación Fiscal)

Ideal for first 10 years as freelancer:

  • Years 1-2: 1% tax on income
  • Years 3-4: 2% tax
  • Years 5-6: 3% tax
  • Years 7-8: 5% tax
  • Years 9-10: 10% tax

Requirements:

  • Annual income under 2 million pesos
  • Electronic invoices (CFDI)
  • Monthly SAT declarations

General Tax Regime

After RIF or if income exceeds limit:

  • Progressive rates 1.92%-35%
  • Allowed deductions (equipment, internet, software, training)
  • Monthly and annual declarations

Legal Structure

Individual (Persona Física)

Pros:

  • Simple registration (RFC)
  • Low administrative costs
  • Ideal for income under $50,000 USD/year

Cons:

  • Unlimited liability
  • Fewer deductions than corporation

Corporation (Persona Moral)

Pros:

  • Limited liability
  • Better tax options for high income
  • Greater credibility with corporate clients

Cons:

  • Setup costs ($750-1,500 USD)
  • Complex accounting

Banking

USD Accounts

Traditional banks:

  • BBVA: Dollar account, 1.5-2% conversion fees
  • Santander: Multi-currency account
  • Banorte: International transfers

Fintechs (recommended):

  • Wise: Real exchange rate, 0.5-1% fees
  • Payoneer: Receive from international clients
  • Mercury: US bank account for non-residents (requires US LLC)

Recommended Setup

  1. Wise for receiving USD with best exchange rate
  2. Traditional Mexican bank for local expenses
  3. Consider Payoneer for marketplaces (Upwork, Toptal)

Invoicing

Electronic Invoice (CFDI)

Mandatory for all income:

  1. Get your RFC at SAT portal
  2. Generate Digital Seal Certificate (CSD)
  3. Use authorized provider (PAC):
    • Facturama (free up to 50 invoices/month)
    • SAT portal (free, less friendly)

International invoicing:

  • 0% VAT for service exports
  • Record income in pesos at day's exchange rate
  • Keep proof of international transfers

Resources

Official Portals

Accounting Platforms

  • Kontigo: Online platform for freelancers, $25-50 USD/month
  • Clara: Accounting for startups and freelancers

FAQs

How much should I save for taxes?

  • RIF (early years): 1-5% of income
  • General regime: 15-25% depending on income level
  • Always save at least 20% to be safe

What if I don't invoice?

SAT can fine up to 100% of omitted tax plus penalties. Not worth the risk.

Update

Last updated February 11, 2026. Tax laws change frequently. Always verify with SAT or accountant.