Living in Mexico: who is a tax resident, and on what income is taxed according to the law

In Mexico, housing is the primary determining factor. The Federal Tax Code (CFF) considers a person who has established their "casa habitación" (home) there as a resident. A resident is taxed on all their income, regardless of its source. This page is based on these two laws and immigration regulations. It does not provide the personal income tax rates, wealth tax, social security contributions, or information on local savings products: these details could not be obtained from official sources.

Mexican tax resident: housing, then the center of vital interests

Article 9 of the Mexican Civil Code begins with housing: a resident is defined as a natural person who has established their "casa habitación" (home) in Mexico. If they also have a residence in another country, they are considered a resident when their center of vital interests is located in Mexico. The text cites two cases where this center is deemed to be located there:

• over 50% of the total revenues of the calendar year have their source of wealth in Mexico; ;
• the person has the main center of their professional activities there.

The text presents these two cases among the situations where the center is deemed to be there: the article should be reread in its entirety before any conclusion.

Civil servants, dual nationals, companies

Three rules supplement article 9.

The presumption directly concerns a French citizen who also holds Mexican nationality: it is up to him to establish that he is a resident of another state. The text, as interpreted here, does not specify the form this proof should take.

Test of the 50 %s of article 9: numerical example (fictitious profile)

Situation. Sarah, a fictional profile, has one property in Mexico and another in France. For convenience, in euros, she received €62,000 in salary from a Mexican employer, €28,000 in French rent, and €10,000 in French dividends during the year.

Issue. She wants to know if her center of vital interests is deemed to be in Mexico within the meaning of Article 9.

Strategy. She relates her Mexican source income to her total income for the calendar year and compares the resulting share to the 50 % threshold.

Result. His total income reaches €100,000; the Mexican share is 62 %, above 50 %: the first case in the text is met. With €48,000 of Mexican income and €52,000 of French income, the share would be 48 %: this first case would not be met, but the second (main center of professional activities) would still need to be examined. The definition of Mexican "source of wealth" income has not been read: this calculation is an illustration.

Resident: taxed on worldwide income, with a credit for foreign tax

Article 1 of the Income Tax Law (LISR) subjects residents of Mexico to tax "respecto de todos sus ingresos, cualquiera que sea la ubicación de la fuente de riqueza" (with respect to all their income, regardless of the source of their wealth). Residents abroad are taxed only on income attributable to a permanent establishment in Mexico and on income from sources located in Mexico.

To avoid double taxation, Article 5 allows residents to credit against their Mexican tax liability the income tax paid abroad on foreign-sourced income. The income must be taxable in Mexico, and the payment must be supported by documentation. The applicable limit for individuals is not specified here.

The LISR text consulted bears the mention "Última Reforma DOF 01-04-2024": the cited articles should be read in the current version.

Dual residency with France

If you remain domiciled in France as defined in Article 4 B while also being a Mexican resident as defined by the French Tax Code (CFF), you are subject to both residency tests. The Franco-Mexican tax treaty then determines eligibility based on your permanent home, center of vital interests, habitual residence, nationality, and finally, the amicable agreement of the competent authorities. Our page on the treaty details these criteria and the tax credits under Article 21. For a resident of Mexico, the treaty allows for a tax credit equal to the tax paid in France, up to the limit of the corresponding Mexican tax liability.

On the Mexican side, Article 4 of the LISR (Law on the International Retirement of Mexican Citizens) limits the benefits of the tax treaties to taxpayers who can prove their residency. The form of the certificate issued by the French tax authorities is not described here.

Visitor, temporary resident, permanent resident

The Migration Law (Article 52, amended January 15, 2026) distinguishes three useful situations. A visitor without paid work permit may stay for a maximum of 180 consecutive days. A temporary resident may stay for a maximum of four years and may obtain a work permit upon receiving a job offer. A permanent resident may stay indefinitely and holds a work permit.

France Diplomatie reminds the public that no short-stay visa is required and that tourist stays are limited to 180 days, without paid or volunteer work. The page is undated.

The National Institute of Migration (INM) sets two deadlines for residents. The temporary resident visa must be exchanged for the permanent immigration document within 30 calendar days of entry. Changes to marital status, name, nationality, residence, or place of work must be reported within 90 calendar days. The transition to permanent status is planned, in particular, for retirees or pensioners who receive their income from abroad.

Ceasing to be a Mexican resident: prior notice

Article 9 of the Mexican Tax Code (CFF) requires anyone ceasing to be a resident to notify the tax authorities "a más tardar dentro de los 15 días inmediatos anteriores" of the change. Failure to notify does not result in the individual losing their resident status in Mexico. Nor does it result in the individual losing their resident status if they fail to prove their new tax residence: leaving the country or filing the notification alone is insufficient. The same article also maintains Mexican residency when the new residence, even if proven, is located in a country where income is subject to a preferential tax regime: during the tax year in which the notification is issued and the following five tax years. The definitions and exceptions are not detailed here. Our page on returning to France covers this point.

What this page does not cover

It does not provide information on the progressive personal income tax scale, Mexican withholding taxes on income paid to non-residents, wealth tax, Mexican social security or agreements with France, assurance-vie and local accounts, or the income and savings requirements for residency. It also does not address inheritance matters. Local tax regulations should be reviewed with a Mexican professional; matters pertaining to France are covered in our pages on departure and return.

Living in Mexico: What changes depending on your situation

• The location of your main residence, and the existence of a second residence.
• The portion of your income from Mexican sources in the calendar year.
• Your nationality, especially if you are also Mexican.
• Your immigration status, its date and duration.
• Holding companies in Mexico or accounts abroad.

The rule depends on your situation. No results are guaranteed.