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Latin America

Nearshoring and contract manufacturers, Mexico

USMCA delivers tariff free access to US and Canada from Mexican production. The IMMEX programme defers VAT and import duties on inputs used in exports, and the maquila safe harbour gives contract manufacturers predictable transfer pricing treatment. Tesla Monterrey anchors the current wave.

USMCA accessIMMEX VAT deferralMaquila safe harbour
Start setup {placement} 4 min · no card required
Corp tax
30%
Fastest setup
8 weeks
Tax treaties
60
Region
Latin America

What you'll need

  • No resident director required
  • Local registered office required
  • Economic-substance test applies
  • Minimum capital: No minimum capital
  • Administrative language: Spanish
  • Legal system: Civil law

Tax and treaty profile

  • Corporate tax 30%
  • Tax treaties 60
  • VAT rate 16%
  • Withholding on dividends 10%
Key treaty partners
United StatesCanadaSpainGermanyUnited KingdomJapan

Banking and payments

  • Banking takes 2 to 4 weeks with KYC
  • Stripe supported
  • Wise supported
  • EMI license framework available

Considerations

If you license IP or pay heavy royalties

Mexico applies 35% withholding tax on royalties to non residents, a punishing rate for IP licensing structures. The CFC regime (REFIPRE) triggers when foreign income is taxed below 22.5%, capturing many holdco arrangements.

35% royalty WHTREFIPRE CFCIP licensing penalty