Mexico Tax Guide for Foreign Entrepreneurs: What You Need to Know in 2025
Planning to operate in Mexico? Here’s what every foreign entrepreneur needs to know about Mexican taxes, invoicing, and staying compliant.
Mexico’s Tax System: An Overview
Mexico uses a digital tax infrastructure. All businesses must register with SAT, issue electronic invoices (CFDIs), and file taxes monthly and annually.
Do You Need an RFC?
Yes. Every business or individual doing business in Mexico needs an RFC — it’s your official tax ID.
What is CFDI?
CFDI stands for Comprobante Fiscal Digital por Internet, Mexico’s digital invoicing standard. Every transaction must be issued with a CFDI — no exceptions.
Main Taxes to Consider
IVA (VAT): 16% on most goods and services
ISR (Income Tax): Ranges from 1.9% to 30% depending on revenue
Retenciones: Withholdings may apply when invoicing individuals or platforms
E-commerce and Services: Key Tax Considerations
If you sell products or services online (e.g. via Amazon, Mercado Libre), you must issue CFDIs and pay VAT/ISR. Platforms may withhold taxes if you don’t comply.
What Happens If You Don’t Register?
SAT may withhold up to 36% of your income
You can’t issue legal invoices (no CFDIs = no clients)
You risk fines and closure of your account
Common Mistakes by Foreigners
Operating without RFC or e.Firma
Using foreign bank accounts for Mexican income
Not issuing proper invoices
Assuming the rules don’t apply if selling online only
How MBP Avoids Tax Headaches
We handle your SAT registration, CFDI invoicing setup, monthly compliance and fiscal representation — so you can focus on growing.