Mexico Tax Residency Rules
Mexico triggers tax residency through two independent tests: 183 days in any 12-month period, or having your principal home (casa habitación) in Mexico with no equivalent home elsewhere. The 12-month window is rolling — it can span two calendar years. Either test alone is sufficient, and each requires different tracking.
| Residency threshold | 183 days in any 12-month period |
| Counting window | Rolling 12-month period — not bound to calendar year. Can span Jan 1 boundary. |
| Additional trigger | Principal home (casa habitación) in Mexico — no day-count required if Mexico is your only home |
| Secondary trigger | Centre of vital interests: 50%+ of income from Mexican sources in preceding tax year |
| Rule type | Day-count + domicile (Article 9 CFF) |
| Complexity | Medium — rolling window and domicile test require careful tracking |
| Tax year | Jan 1 – Dec 31 |
| Special regimes | None broadly accessible for new residents |
| Schengen area | No |
| Treaty network | Moderate — tax treaties with ~65 countries |
| Official source | SAT — Servicio de Administración Tributaria (sat.gob.mx) ↗ |
The 183-day rolling window
Under Article 9 of Mexico's Código Fiscal de la Federación (CFF), an individual who is physically present in Mexico for more than 183 days in any 12-month period is a Mexican tax resident. The SAT considers this window to roll continuously — it is not reset at January 1.
The practical implication: a person who arrives in Mexico on August 1, 2025 and stays until February 28, 2026 has spent approximately 212 days in Mexico across that 7-month span, all within a single 12-month window. Both the August 2025 and the February 2026 calendar-year counts are less than 183, but the rolling window test is met.
Days need not be consecutive. Extended stays with brief absences accumulate toward the 183-day total. Both the arrival day and the departure day count as full days of Mexican presence.
The rolling window is the most common miscalculation for Mexico. Many long-stay visitors who split their time across two calendar years — believing each year is under 183 days — may still have crossed the rolling 12-month threshold. If you plan to be in Mexico for 5–7 months and return, count the aggregate days from a rolling perspective, not just the days within a single January-to-December year.
The principal home test — casa habitación
Article 9 of the CFF creates a domicile-based residency trigger independent of the day-count. If Mexico is the country where you have your principal home (casa habitación) and you do not maintain a home in any other country, Mexico is your tax residence regardless of how many days you actually spent there.
If you have a home only in Mexico — an apartment you own or rent under a long-term lease — and no home maintained in any other country, you are a Mexican tax resident. This applies even if you spent fewer than 183 days in Mexico that year, because Mexico is your only home.
If you maintain homes in more than one country, the SAT applies the centro de intereses vitales test: if 50% or more of your total income during the preceding year was derived from Mexican sources, Mexico is considered your tax home, and you are a Mexican tax resident. This is assessed on the basis of the prior year's income, not the current year.
The casa habitación test is most relevant for permanent residents and long-term expatriates. Digital nomads who rent a short-term apartment in Mexico City for a few months typically do not have a casa habitación in Mexico — a hotel or Airbnb booking does not constitute a principal home. A year-long lease with furniture and personal effects likely does.
Non-resident taxation in Mexico
Individuals who are not Mexican tax residents — either because they spent fewer than 183 days in any 12-month window and have no Mexican casa habitación — are still subject to Mexican tax on Mexican-sourced income. The SAT withholds these taxes at source.
Key rates for non-residents as of 2026:
- Employment income: 25% flat on gross, or 15% on the amount exceeding 125,900 pesos (approximately USD 6,200), whichever is higher under the applicable treaty or unilateral rules. For most practical cases, 25% on gross is the applicable rate.
- Dividends: 10% withholding on dividends paid by Mexican companies.
- Interest: Rates vary from 4.9% (financial institutions) to 35% (other cases). Most treaty jurisdictions benefit from a reduced 10% rate on interest.
- Rental income: 25% flat or the applicable treaty rate.
Non-residents generally do not file a Mexican tax return if all income was subject to correct withholding. Mexican-source income subject to withholding is the final tax obligation for non-residents.
Track your Mexico days
Monitor your rolling 12-month accumulation against the 183-day threshold alongside other countries.
Frequently asked questions
How does Mexico's 183-day rule work?
Under Article 9 CFF, more than 183 days in any 12-month rolling period makes you a Mexican tax resident. The window does not reset at January 1 — it rolls continuously. Days need not be consecutive and both arrival and departure days count in full.
What is the casa habitación test?
If Mexico is the country where your principal home is located and you have no home maintained elsewhere, you are a Mexican tax resident regardless of day-count. If you have homes in multiple countries, the SAT checks whether 50%+ of your prior-year income came from Mexican sources — if so, Mexico is your tax home.
Is Mexico's counting window calendar year or rolling?
Rolling. The 183-day window covers any consecutive 12-month period, not a fixed calendar year. A stay spanning August–February crosses a January 1 boundary but still counts as a single rolling window. This is the most common source of miscalculation for people splitting time between Mexico and another country.
What taxes do non-residents pay on Mexican income?
Non-residents are taxed only on Mexican-sourced income: 25% flat on employment income, 10% on dividends, 4.9–35% on interest, and 25% on rental income. Mexico withholds at source; non-residents generally do not file a return if withholding was applied correctly.
Do I need to file a Mexican tax return as a resident?
Yes. Residents file a declaración anual with the SAT by April 30. Mexican residents are taxed on worldwide income at progressive rates up to 35%. The SAT provides pre-filled returns for salaried employees, but individuals with foreign income or multiple sources must complete the full filing manually.
How do I formally exit Mexican tax residency?
Obtain a tax residency certificate from your new country confirming you are a tax resident there, then notify the SAT using the designated form (currently via the SAT online portal). There is a 15-day grace period after which the cessation takes effect. Income accrued during the period of Mexican residency remains subject to Mexican tax. A Mexican contador público should handle the filing to ensure it is correctly documented.
Related guides and tools
Tracking Mexico alongside other countries?
Elcano monitors your rolling 12-month day count for Mexico alongside every other jurisdiction — free, no signup required. The rolling window (not calendar year) is the default for Mexico.
Open ElcanoNeed a compliance report for a tax advisor? Learn about the Advisor PDF →
This page is for informational purposes only and does not constitute tax or legal advice. Mexican tax residency rules under the Código Fiscal de la Federación are applied by the SAT on a facts-and-circumstances basis. Verify rules with the SAT (sat.gob.mx) and consult a qualified Mexican tax advisor (contador público) for your specific situation.