Talking about taxes rarely sounds inspiring. But if you’re an independent professional or freelancer in Mexico, understanding how you’re taxed can make the difference between feeling in control or panicking every time the SAT drops an email into your inbox.
During a recent Hacks to Master the SAT session with Isidro Padilla from acount, we explored the most common tax regimes for freelancers, consultants, and entrepreneurs.
Here’s a clear, jargon-free guide to help you understand how the system works and which regime might fit you best.
The first thing Isidro clarified is that what you do is not the same as how you pay taxes.
Your economic activity might be consulting, digital services, or rental, but the tax regime is the legal and fiscal framework you use to pay taxes.
In Mexico, you can register as either a natural person (individual) or a legal entity (company).
Within natural persons, there are three main options: RESICO, Business and Professional Activity, and Digital Platforms.
The Simplified Trust Regime (RESICO) was created to make life easier for people who bill modest amounts and don’t want complex accounting.
It’s designed for individuals earning up to 3.5 million MXN per year.
You pay between 1% and 2.5% income tax (ISR) on what you collect, not on your profit.
You don’t need complex bookkeeping.
It applies to professional, business, long-term rental, and even agricultural activities.
However, you can’t deduct expenses.
You must have an active e.signature and tax mailbox (buzón tributario).
You can’t be a shareholder or partner in a company unless it’s non-profit.
If you meet all these criteria, RESICO can be your best ally: simple, low-tax, and headache-free.
If you have higher income or many deductible expenses such as rent, travel, tools, or equipment, the Business and Professional Activity Regime (RAEP) might be a better fit.
Here you pay income tax on your actual profit (income minus deductible expenses).
Rates range from 1.92% to 35%, depending on your income level.
The advantage is that you can deduct almost everything necessary to operate.
The drawback is that bookkeeping is more formal and requires discipline.
Isidro also mentioned that once you reach certain income levels, it may be worth setting up a company.
Legal entities pay a flat 30% income tax rate, which can be more efficient if you reinvest or have partners.
This regime applies if you earn income through platforms like Uber, Airbnb, Mercado Libre, or Didi.
In these cases, the platform automatically withholds VAT and ISR, and you simply file your annual return.
If your income doesn’t exceed 300,000 MXN per year, you can be exempt from provisional payments. Even so, you must still file your annual return.
Isidro also explained that Mexico’s Value-Added Tax (VAT) has four rates:
Exempt: food, medicine, agricultural goods
8%: border regions
16%: most professional services (like freelancers)
0%: export of services (if payment comes from abroad)
Pro tip: always specify “+ VAT” in your national quotes.
If you work with foreign clients, you can invoice at 0% VAT, which is a key advantage for remote businesses.
Beyond choosing a regime, Isidro emphasized three essentials.
As a Landa member, you can book a 30-minute session with Isidro to review your numbers and find the tax regime that fits you best.
“The right regime isn’t the cheapest. It’s the one that gives you stability and control” — Isidro Padilla
If you work independently in Mexico, understanding this will save you stress and give you confidence.
Paying taxes shouldn’t be a source of anxiety. It’s part of your growth strategy.