Evole logo

Mexico Digital Nomad Visa Tax Rate

Overview of the Mexican Digital Nomad Visa

The Mexican digital nomad visa, officially known as the temporary resident visa, is an attractive option for remote workers and digital nomads looking to experience life in Mexico. Visa processing times are now taking up to three months due to high demand! This visa allows individuals to live and work in the country for up to four years, with the possibility of renewal for an additional year. It’s an ideal choice for those who want to immerse themselves in Mexico’s vibrant culture, enjoy its low cost of living, and connect with its friendly and welcoming people. Whether you’re a freelancer, entrepreneur, or remote employee, the Mexican digital nomad visa offers a flexible and enriching way to explore this beautiful country.

Eligibility and Requirements

To qualify for the Mexican digital nomad visa, applicants must meet several criteria, which can vary based on nationality. Generally, the requirements include:

  • A valid passport

  • A clean police record

  • Health insurance coverage

  • In 2025 The income requirement has increased to $3,737.95 per month or $73,257.65 in savings.

  • A bachelor’s degree or higher

  • At least two years of work experience

  • A valid job offer from a Mexican company

Additionally, specific requirements for the digital nomad visa in Mexico may include:

  • Proof of income from sources outside of Mexico

  • Proof of health insurance

  • A police certificate

  • A birth certificate

  • A marriage certificate (if applicable)

  • A divorce or death certificate (if applicable)

Meeting these requirements ensures that applicants are well-prepared to live and work in Mexico under the digital nomad visa.

Application Process

Applying for the Mexican digital nomad visa involves several steps and can take a few weeks to complete. Here’s a general outline of the process:

  1. Check Requirements: Contact the Mexican consulate or embassy in your home country to get the most up-to-date information on the visa requirements.

  2. Gather Documentation: Collect all necessary documents, including a valid passport, police record, health insurance, and proof of income.

  3. Submit Application: Submit your application and required documents to the Mexican embassy or consulate.

  4. Wait for Approval: The processing time can vary, so be prepared to wait for your application to be reviewed and approved.

By following these steps, you can navigate the application process for the Mexican digital nomad visa with confidence.

 

Taxation Rates for Digital Nomads in Mexico

In a previous article, we examined the Mexico Digital Nomad Visa and how to best apply for it. To qualify for the Mexican digital nomad visa, also known as the Mexico temporary resident visa, applicants must meet several criteria, which can vary based on nationality. The official name for the Mexican digital nomad visa is the temporary residence permit, which allows holders to stay for between one and four years in Mexico, depending on renewals.

When deciding on whether to apply for a temporary residence permit, one of the important questions that location-independent travellers ask themselves is whether they will be better off in terms of taxation. We will explore this further in this article and compare the situation with some other countries, including Malta.

Taxation as a Digital Nomad in Mexico

If you earn 51% of your income or more outside Mexico, you will most likely be taxed in your country of origin and will not be subject to the Mexican tax regime at all. This is because they have agreements in place with many other countries to prevent double taxation on earnings.

The level of taxation you will therefore be liable for while you are in Mexico will be heavily dependent on which other country you are a tax resident of. Many digital nomads who travel constantly will seek to minimize their exposure to taxation and try not to be resident for tax purposes in any one jurisdiction.

This can be a complex situation to maintain and a mis-step along the way can see very large tax bills suddenly appearing on the horizon, so great care should be taken if attempting to navigate that particular route.

Nothing in this article constitutes financial advice and for the best and most up-to-date advice on international taxation you should contact your own tax adviser.

Application Process for a Mexican Visa

  1. Gather Required Documents: Ensure you have all necessary documents such as your passport, proof of income, and any other required paperwork.

  2. Complete the Application Form: Fill out the visa application form accurately and completely.

  3. Submit Application: Submit your completed application form along with all required documents to the Mexican embassy or consulate.

  4. Pay Visa Fee: Once all documents are submitted, you will need to pay the required visa fee at the Mexican embassy or consulate.

  5. Attend Interview: If required, attend an interview at the embassy or consulate.

  6. Wait for Approval: After completing all the steps, wait for your visa application to be processed and approved.

Taxes in Mexico

If you are planning to be tax-resident in Mexico then you should be aware that Mexican taxes range from 0-30% and these bands are determined in a progressive manner with higher tax bands for those who are earning more money.

If you choose to remain in Mexico for more than 183 days per calendar year, you may be asked to pay tax in Mexico on all of your worldwide earnings, if you are unable to conclusively prove that you qualify on other grounds in another country. For example, you may own property in the UK and be employed by a company there, so HMRC would most likely still see you as a UK tax resident in that scenario.

There are generally two tax bands that can apply to non-residents in Mexico and these are 15% or 30%, dependent on your level of income but it is unlikely that most digital nomads will have to contend with this, as most wont have to pay Mexican taxes at all.

If you are in any doubt, stay on the correct side of the law by seeking accurate financial advice from an expert. Additionally, after holding a temporary residence visa for four years, you may be eligible to apply for permanent residency in Mexico.

How does the Tax Situation Compare to Malta?

The gold standard that all of the other digital nomad visas and taxation offers have to match up to is Malta’s temporary residence visa. That is because Malta is keen to attract digital nomads for the skills, entrepreneurship and expertise that they bring to the country.

Making Malta the home to many tech startups is a main goal and rooting it as a technology hub is well underway, with reliable internet infrastructure and coworking and coliving spaces on the island already.

Malta has a tax situation for digital nomads that is probably one of the best in the whole world. For the first year of the digital nomad visa in Malta, you will pay no tax at all. This isn’t dependent on tax residence in any other country either. For the second and subsequent years, if you renew, it is a 10% flat no matter what you earn.

The tax offer from Mexico is inferior to the one from Malta, because you will still have to pay tax to the country that you are a tax resident of, and at its lowest rate, the Mexican tax for digital nomads is 15%. This means that the zero % first year and subsequent years of 10% tax make Malta a much better low taxation solution for any digital nomads and remote workers who would like to take advantage of it.

Digital Nomad Lifestyle in Mexico

The lifestyle offered to digital nomads in Mexico is one that is varied and is only limited by your own imagination.

Once you have your temporary resident visa, you will need to register your residency within 30 days at the Instituto Nacional de Migración (INM) to obtain your temporary resident card, which allows you to stay in Mexico for extended periods.

Depending on where you are planning to go in Mexico, you may opt for beaches and wild nightlife in a resort such as Cancun or Playa Del Carmen.

Alternatively, you may prefer to spend some time exploring the beauty and splendour of Mexico City, or take off to explore some of the Aztec and Mayan ruins.

One of the most iconic and world-renowned of these ruins is Chichen Itza.

Digital Nomad Hotspots in Mexico

Mexico is home to a thriving expat community, making it a popular destination for digital nomads and remote workers. Some of the top digital nomad hotspots in Mexico include:

  • Mexico City: As the bustling capital, Mexico City offers a rich cultural heritage, a growing digital nomad community, and numerous coworking spaces.

  • Puerto Vallarta: This coastal city boasts a vibrant expat community, beautiful beaches, and a variety of coworking spaces and cafes.

  • Playa del Carmen: Known for its stunning beaches and lively atmosphere, Playa del Carmen is a favorite among digital nomads, offering plenty of coworking spaces and cafes.

  • Tulum: A picturesque coastal town, Tulum attracts digital nomads with its laid-back vibe, beautiful scenery, and growing expat community.

  • Oaxaca: This mid-size city is renowned for its rich cultural heritage, delicious cuisine, and welcoming digital nomad community.

These hotspots provide digital nomads with diverse options for living and working in Mexico, each offering unique experiences and opportunities.

Violent Crime in Mexico

Mexico generally has a sinister reputation for drug cartel violence but tourists rarely get caught up in it, and if you are careful with your belongings and your personal safety, this should not be an issue for you. The Mexican authorities have done a lot of work in recent years to ensure that the violent crimes related to the narco-traffickers is contained and kept away from tourist areas.

While many tourists visit Mexico on a tourist visa, which allows for a stay of up to 180 days, digital nomads often prefer the temporary resident visa for longer stays and more stability.

Experienced travellers will know better than to involve themselves in anything to do with the drug trade in Mexico and those who are new to travelling should go in with a healthy awareness of the situation.

Don’t allow the threat of violent crime to diminish your trip. You are probably far more at risk by wandering into the wrong part of any major US city than you are in most places in Mexico. Just keep your wits about you, try not to show lots of money in public, and take care when walking alone at night. It is preferable to get a taxi if you are in an area that isn’t familiar to you.

Do digital nomads in Mexico pay taxes?

Digital nomads in Mexico are not usually expected to pay tax there unless over 50% of their income is made from clients or employers in Mexico. It is more usual for freelancers and remote workers to make most of their income from outside Mexico so they shouldn’t have to pay tax in Mexico.

Do temporary residents pay tax in Mexico?

Temporary residents like digital nomads are not eligible to pay taxes in Mexico unless more than 50% of their income is derived from business with Mexican companies. They will pay taxes where they are ordinarily tax resident, and may be able to make the case that they are not tax resident anywhere, depending on whether they have assets and how long they stay in one location for.

Are taxes high in Mexico?

Taxes range from 0% to 30% in Mexico. The top rate of 30% is not a high taxation rate by most international standards and is far below that of parts of the UK, where it is 45% to 48%. Taxation rates are reasonable in Mexico, compared to a great many countries.

Being a digital nomad in Mexico can mean that you don’t pay any tax there at all unless you have over half of your business with Mexican companies. There are also agreements in place so that if you pay tax in Mexico, you will only pay it there rather than paying additional tax in your country of origin.

How are digital nomads taxed in Mexico?

Digital nomads in Mexico are only taxed if they make over half of their money in Mexico, with Mexican companies. Digital nomads are otherwise exempted from paying Mexican tax. If you are in any doubt, you should contact a financial adviser in Mexico.

Mexico Digital Nomad Visa Tax - FAQ

Do digital nomads in Mexico pay taxes?
Digital nomads in Mexico are not usually expected to pay tax there unless over 50% of their income is made from clients or employers in Mexico. It is more usual for freelancers and remote workers to make most of their income from outside Mexico so they shouldn’t have to pay tax in Mexico.
Do temporary residents pay tax in Mexico?
Temporary residents like digital nomads are not eligible to pay taxes in Mexico unless more than 50% of their income is derived from business with Mexican companies. They will pay taxes where they are ordinarily tax resident, and may be able to make the case that they are not tax resident anywhere, depending on whether they have assets and how long they stay in one location for.
Are taxes high in Mexico?
Taxes range from 0% to 30% in Mexico. The top rate of 30% is not a high taxation rate by most international standards and is far below that of parts of the UK, where it is 45% to 48%. Taxation rates are reasonable in Mexico, compared to a great many countries.
Is Mexico tax-free?
Being a digital nomad in Mexico can mean that you don’t pay any tax there at all unless you have over half of your business with Mexican companies. There are also agreements in place so that if you pay tax in Mexico, you will only pay it there rather than paying additional tax in your country of origin.
How are digital nomads taxed in Mexico?
Digital nomads in Mexico are only taxed if they make over half of their money in Mexico, with Mexican companies. Digital nomads are otherwise exempted from paying Mexican tax. If you are in any doubt, you should contact a financial adviser in Mexico.
Evolve Coliving, 30 dimora, Triq il Venew, San Ġwann SGN 1912
All rights reserved 2022.
starstar-emptychevron-down
Evolve Team

Evolve Team

Typically replies within an hour

I will be back soon

Evolve Team
Hey, thanks for getting in touch, how can we help today?
Start Chat with:
chat
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram