More and more foreigners choose to live and work in Mexico, especially in tourist destinations such as Playa del Carmen, Tulum, Puerto Vallarta, Guadalajara and Zapopan. For those who generate income such as freelancers, consultants, digital nomads or entrepreneurs, he Simplified Trust Regime (RESICO) It is an excellent tax alternative that allows them to operate legally, pay less taxes and maintain their tax residency in Mexico.

In this article, we explore how RESICO works for foreigners, who can benefit from it, and how to comply with tax obligations in a simple way.

What is the Simplified Trust Regime (RESICO)?

The RESICO It is a tax regime in Mexico designed for individuals with annual incomes of less than $3.5 million Mexican pesos (approximately $205,000 USD or €190,000 EUR)It is characterized by its simplified structure and low tax rates, making it an attractive option for self-employed foreigners.

Main benefits of RESICO:

• Low tax rate: Depending on the income level, the ISR rates range from 1% to 2.5%, significantly lower than in other regimes.
• Pre-filled declarations: The SAT (Tax Administration Service) pre-fills your returns, reducing the administrative burden, however this information must be verified against internal records.

Who can benefit from RESICO?

This regimen is ideal for Foreigners residing in Mexico and generate income independently. Some profiles that can take advantage of it include:

• Digital nomads: Professionals who work remotely for clients abroad.
• Freelancers and consultants: Designers, programmers, writers, coaches and consultants who provide online services.
• Digital Entrepreneurs: People who sell products or services through their own online store (does not apply to Amazon, MercadoLibre, etc.).
• Short-term rental property owners: Foreigners who rent properties on Airbnb and other platforms, especially in areas such as Guadalajara and Zapopan, where the real estate and tourism market is growing.

How to register with RESICO as a foreigner?

To register with RESICO as a foreigner, it is necessary to meet certain requirements:

1️.-RFC (Federal Taxpayers Registry): If you are a foreigner and have a tax residence in Mexico, you can request it from the SAT.

2️.- CURP: You must have a Unique Population Registry Code (CURP), which is obtained when processing temporary or permanent residency.

3.- Tax domicile in Mexico: You need a registered address within the country.

4.-Electronic signature: To issue digital tax receipts (CFDI) and declare income.

Tax obligations under RESICO

• Submit monthly returns of ISR and VAT with the corresponding tax rate.
• Issuing electronic invoices to national and international clients.
• Make tax payments in a timely manner to avoid sanctions.
• Not exceeding the annual income limit of $3.5 million pesos (approximately $205,000 USD or €190,000 EUR), otherwise it is necessary to change the regime.

Conclusion

The Simplified Trust Regime (RESICO) It is an efficient and accessible tax option for foreigners working in Mexico, especially those who operate independently in destinations such as Playa del Carmen, Tulum, Guadalajara, Zapopan or Mexico City.

If you are a freelancer, digital nomad or foreign entrepreneur and you want to operate legally in Mexico with low taxes and few complications, RESICO could be the best option for you.

Consult with our experts!

If you need help registering for RESICO, understanding your tax obligations, or finding the best strategy to pay less taxes in Mexico, Contact us today.

Telephone: +52 1 33 3468 4172

Email: hgalicia@taxid.mx 

Visit our website: www.taxid.mx

Home: C. Eca Do Queirós 5147University Gardens, 45110 Zapopan, Jal.

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