Buying a Business in Mexico: Tax Findings That Can Affect the Purchase Price
When a foreign buyer acquires a Mexican company, the target’s tax history comes with it. The Mexican Tax Administration Service (SAT) can review prior years after closing, and any assessment lands on the company the buyer now owns. A tax due diligence review is useful only if its findings reach the deal terms: the price, […]
Intra-Group Services in Mexico: How to Document the Benefit and Support Corporate Charges
Many groups with several companies in Mexico centralize administration, IT, legal and management in one entity and charge the others a monthly fee. For the company that provides the services, the charge is income; for the one that receives it, it is a deduction. Mexico’s tax authority, the Tax Administration Service (SAT), usually focuses on […]
Entering Mexico: Tax Decisions to Make Before Funding Your Mexican Subsidiary
Most foreign groups decide how to fund a new Mexican subsidiary at the last minute, often when the first payroll or equipment invoice is due. The quickest option is usually an intercompany wire booked as a loan. That choice has Mexican tax consequences that are hard to undo: whether interest is deductible, how much tax […]
Tax Materiality in Mexico.
Tax Materiality in Mexico: How Business Groups Should Support Their Transactions Before an SAT Review In a group with several Mexican entities, the evidence for a single transaction is usually scattered. Legal keeps the contract, the deliverable sits in someone’s inbox, treasury records the payment and accounting books the entry. That works until the SAT, […]
Mexico AML Real Estate 2026
Most real estate agencies, developers, and brokers in Mexico first think about anti-money laundering compliance when SAT schedules a verification visit or a notary requests client information they never collected. By then, the breach already exists. Mexico AML for real estate in 2026 is governed by the LFPIORPI, Mexico’s Federal Anti-Money Laundering Law, amended on […]
RFC for Foreigners
Most foreign property owners first hear about the RFC when a notary, a bank, or a rental platform asks for it, usually at the worst possible moment. The RFC (Registro Federal de Contribuyentes) is Mexico’s tax ID, and in 2026 it determines whether Mexico taxes your rental income and your sale on a gross or […]
Fideicomiso Tax for Foreigners
Most foreign buyers of Mexican property first think about fideicomiso tax when the closing statement arrives and the trust bank’s fees appear next to the notary’s. By then, the decisions that drive the real cost have already been made. Fideicomiso tax in 2026 is not one fee but a structure: a government permit, an annual […]
Capital Gains When Selling Mexican Property
Most foreign owners of Mexican property first think seriously about capital gains tax when a buyer is already at the table. By then, the most valuable decisions have been made — years earlier, usually by whether receipts were kept. This article explains how the tax is calculated and collected, and which choices still change the […]
Mexico AML Reform 2026: New LFPIORPI Compliance Obligations for Business Owners
Mexico’s 2026 LFPIORPI reform changes AML compliance for vulnerable activities: risk-based approach, beneficial owner, PEPs, alerts, audits and automated controls. Mexico AML Reform 2026: New LFPIORPI Compliance Obligations for Business Owners Mexico’s anti-money laundering compliance framework is changing significantly. Through Agreement 115/2026, published in the Federal Official Gazette, the general rules related to the Federal […]
Business Purpose in Mexico: The Standard That Can Invalidate Your Transactions Even If They Are Legal
The SAT may recharacterize legally valid transactions if they lack a legitimate business purpose. Learn what Article 5-A of the Federal Tax Code requires and how to protect your corporate restructurings. Business Purpose: The Standard That Can Invalidate Your Transactions Even If They Are Legal Article 5-A of the Mexican Federal Tax Code (Código Fiscal […]
