UnderstandMexico: Investment Incentives

Most investment incentives in Mexico will be offered at a state level through the Secreteria de Desarrollo Economico, often referred to as SEDECO. Alternatively, some municipalities offer tax incentives through their municipal investment promotion agency.

Corporate Income Tax Incentives

The tax sheltering system pioneered by the Irish Development Agency in the early 90's is not used in Mexico, primarily as a result of the close relationship between the US and Mexico do to NAFTA and related transfer pricing agreements. Do not expect to see any significant reductions in corporate taxation as a result of investing in Mexico.

Training

Most training incentives will be managed through a relationship with a state university and will not involve any cash transfer to the investing company for the purpose of education.

Other Possible Incentives

  • Payroll Tax Incentives
  • Job Creation Grants
  • Municipal Incentives
  • Utilities Incentives
  • Real Estate Tax
  • Employment Tax