How capital gains tax works in Mexico
Mexico does not have a separate flat CGT regime for individuals. For residents, capital gains are generally taxed under the broader income tax system, so the effective rate can reach 35% depending on the taxpayer's income level and the asset sold.
Sales of shares listed on the Mexican stock exchange can qualify for a special 10% final tax on net gains. Private share disposals, many real estate sales and other asset sales usually fall back into the ordinary ISR framework.
Nonresidents face separate Mexican-source capital gains rules, including gross and net methods in some cases. Property transfers also bring notary and local transaction costs that are separate from capital gains tax.
Tax rates at a glance
- Capital gains tax
- Up to 35%Income tax system
- Listed share gains
- 10%
- Property gains
- Up to 35%
- Nonresident gross method
- 25%
- Nonresident net method
- 35%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsShareholdersProperty ownersFoundersCross-border traders
Watch out for
- Capital gains in Mexico are not just about shares. Real estate, private equity interests, foreign securities and asset restructurings can each be taxed differently.
- The 10% listed-share rule is special and limited. Do not assume it applies to private sales or offshore exchanges.
- Foreign tax residence can still create a second layer of tax even if Mexico's own capital gains result is favorable.
Frequently asked questions
Does Mexico have capital gains tax?
Yes. Mexico taxes capital gains through its income tax system, and resident individuals can face progressive rates up to 35%.
Are stock gains taxed differently in Mexico?
Yes. Shares listed on the Mexican stock exchange can qualify for a special 10% final tax on net gains, which is different from the ordinary ISR treatment.
Are property gains taxed in Mexico?
Often yes. Real estate gains are usually taxed under the general income tax rules, although exemptions can apply in specific cases such as a principal residence if the legal conditions are met.