Can Foreigners Work in Mexico?
Yes, but you need proper authorization. Working without the correct visa/permit is illegal and can result in deportation and entry bans.
Legal Work Options
- Residente Temporal with work permit: Must be sponsored by Mexican employer
- Residente Permanente: Can work freely without additional permit
- Intra-company transfer: For employees transferred to Mexican subsidiary
🚨 Working on Tourist Visa: Any paid work on an FMM (tourist permit) is illegal - including remote work for foreign employers. INM enforcement has increased significantly. See our Enforcement Tracker for deportation cases.
Getting a Work Permit
Most work permits require a Mexican employer to sponsor you through INM.
Process Overview
- Mexican employer obtains INM authorization to hire foreigners
- Employer submits work permit application for specific employee
- INM approves and issues authorization letter
- Employee applies at Mexican consulate abroad for Residente Temporal with work permit
- Employee enters Mexico and exchanges visa for residency card at INM
💡 Note: The employer-sponsored process means you generally can't get a work permit independently. Some expats form their own Mexican company and then have the company sponsor them.
Starting a Business
Common Business Structures
S.A. de C.V.
Sociedad Anónima de Capital Variable
- Most common corporate form
- Limited liability
- Minimum 2 shareholders
- Variable capital structure
- Suitable for medium-large businesses
S. de R.L. de C.V.
Sociedad de Responsabilidad Limitada
- Limited liability company (LLC equivalent)
- Simpler structure than S.A.
- Maximum 50 members
- Good for small-medium businesses
- More flexible management
Persona Física con Actividad Empresarial
Sole Proprietorship
- Simplest to set up
- No separate legal entity
- Personal liability
- Good for freelancers
- Easier tax compliance
Restricted Activities for Foreigners
Some business activities are reserved for Mexican nationals or require special authorization:
Reserved for Mexicans Only
- Retail gasoline sales (historically, opening up)
- Some transportation services
- Broadcasting (radio/TV)
- Credit unions serving specific sectors
Maximum Foreign Investment Limits
- Domestic air transportation: 25% max foreign ownership
- Certain airlines: 49% max
- Newspapers: 49% max
- Some security services: 49% max
⚠️ Tourism Businesses: Many expats operate tour companies, restaurants, or rental businesses. These are generally allowed but require proper business registration (RFC), permits, and often a Mexican corporation. Operating informally on a tourist visa is a common enforcement target.
RFC for Businesses
Every business in Mexico needs an RFC (Registro Federal de Contribuyentes) - the tax ID number.
Requirements
- Legal entity formation documents (for corporations)
- Proof of business address
- Representative's identification and RFC
- E.firma (electronic signature) for online SAT transactions
Tax Regimes
- General Regime: Standard corporate taxation
- RESICO: Simplified regime for small taxpayers (income limits apply)
- RIF (phasing out): Former small business regime
Digital Nomads & Freelancers
Mexico doesn't yet have an official digital nomad visa, creating a legal gray area.
Current Options
- Tourist status: Technically illegal to work, including remotely
- Residente Temporal: Allows you to be legally present but work authorization is separate
- Form a Mexican company: Have the company sponsor your work permit, invoice foreign clients through the company
Reality vs. Law
Many digital nomads work remotely in Mexico without incident. However:
- INM has conducted coworking space raids
- Posting about remote work on social media has led to deportations
- Border officers increasingly ask about work intentions
- No formal digital nomad visa is currently available
💡 Safer Approach: If planning long-term remote work, consider Residente Temporal status plus forming a small Mexican company. This provides legal cover and allows you to invoice clients properly.
Hiring & Labor Law
Mexico has strong employee protections. Key points for business owners:
- Mandatory benefits: IMSS (social security), INFONAVIT (housing), Christmas bonus (aguinaldo)
- Minimum vacation: 12 days after first year, increasing with tenure
- Severance: 3 months salary + 20 days per year worked for unjustified dismissal
- Profit sharing: 10% of pre-tax profits must be distributed to employees (PTU)
- Probation limits: Maximum 30-180 days depending on position type
⚠️ Contractor Misclassification: Mexican labor law takes a broad view of employment relationships. If someone works exclusively for you with set hours, they may be considered an employee regardless of contract terms. Consult a labor lawyer before structuring contractor relationships.