Do I pay taxes in Mexico with a digital nomad visa?
AI Answer
Yes, you will pay taxes in Mexico with a digital nomad visa if you become a tax resident. The key is how long you stay.
If you are in Mexico for less than 183 days within any 12-month period, you are generally not taxed on income earned from outside Mexico. This means your remote work income from a foreign employer would likely be exempt.
However, if your stay extends to 183 days or more within that 12-month period, Mexico considers you a tax resident. As a tax resident, you are taxed on your worldwide income. Personal income tax rates in Mexico can range from 1.92% up to 35% for higher earners. For example, income over 3,042,485.75 MXN (roughly $180,000 USD) is taxed at 35%.
So, plan your stay carefully. If you intend to stay longer, factor Mexican income taxes into your budget.