In recent years, Mexico has seen significant growth in remittance inflows. According to the Banxico report, income and outflows in January of this year showed an increase of 6.6% and 4.7%, respectively. This represents an annual growth of 1.9%, also indicating that remittance flows will continue to rise.

However, doubts about the tax treatment of remittances are also growing among recipients. That’s where questions arise like: If I receive money from abroad, do I have to pay taxes? How much tax do you pay on remittances?

For this reason, today we’ll explain the tax conditions for remittances in Mexico. We’ll also show you some options for receiving money from abroad.

Remittances in Mexico: Do You Have to Declare and Pay Taxes?

Do I Have to Pay Taxes in Mexico for Receiving Remittances?

Not all remittances are subject to SAT tax—there are exceptions.

Here’s what you need to know:

Remittances may be subject to income tax (ISR) according to what the SAT establishes. However, this depends on the source of the money and the total amount received.

Some remittances are considered donations, in which case, they are exempt under Article 93 of the LISR.

Now, this type of income qualifies as a donation if it comes from:

• Direct family members (parents, children, or spouse), regardless of the amount sent from abroad.

• Children or grandchildren, as long as it is not transferred to other descendants/third parties.

• Indirect relatives or any other person, but only if the amount does not exceed three times the annual minimum wage of the taxpayer's geographical area. If this limit is exceeded, you must pay ISR on the surplus.

This means that although remittances are not generally taxed, there are situations in which they can create tax obligations.

What Is the Maximum Amount I Can Receive Without Declaring to the SAT?

The amount is calculated based on the taxpayer’s current minimum wage. According to the Mexican government, the general daily minimum wage is 278.80 MXN. While in the Northern Border Free Zone (ZLFN), it is 419.88 MXN.

So, how much money can I receive from abroad without declaring it to the SAT?

Based on the wages mentioned, the maximum amount would be:

• 459,768.60 MXN for the Northern Border Free Zone.

• 305,286.00 MXN for the rest of the country.

And How Much Tax Do You Pay on a Remittance?

Depending on the total amount received, the tax can range from 1.92% to 35%, according to the SAT's progressive table.

Additionally, the SAT requires you to report any income exceeding 600,000 MXN in an annual tax return. This applies regardless of whether it’s combined or separate income and whether it comes from loans, donations, or prizes. It must be reported even if exempt from taxes.

What Happens If I Receive Money from the U.S. and Don’t Declare It?

Now I know that if I receive money from abroad, I might have to pay taxes, but what happens if I don’t declare it?

If you receive income from the U.S. and don’t declare it when you’re obligated to, you could face issues with the SAT.

Here’s why: Mexican financial institutions are required to report the income of their clients to the SAT. Not all income, but that of account holders who exceed 15,000 pesos per month.

This allows the SAT to monitor deposits and detect possible tax omissions. If you cannot justify the origin, you could receive official notices for clarification and, in some cases, face sanctions or adjustments to your tax status.

How to Receive Remittances from Abroad in Mexico?

There are several ways to receive remittances from abroad while in Mexico. Among the most common are:

• Bank transfers. We’re talking about international transfers—a secure method, but one that often involves high fees and can take up to 5 business days. Additionally, the exchange rates applied by banks are often not favorable.

• Cash transfer companies. Services like Western Union allow you to receive money within minutes through a network of branches. However, their fees vary depending on the country of origin and the amount sent, and their exchange rates are not usually ideal.

• Specialized digital platforms. Some fintech companies allow you to receive money from abroad quickly and at a lower cost compared to traditional banks—such as DolarApp and Wise.

Each method has its own features, and there’s a wide range to evaluate. Still, with our app, you won’t have to worry about hidden fees or unfavorable exchange rates.

DolarApp: Receive Money from Abroad Without Hidden Fees

An alternative for remittances in Mexico is DolarApp, whose services include receiving payments from another country with no hidden fees.

With us, you’ll not only be able to receive but also send payments to the U.S. after activating your account in USDc (digital dollars). The best part is that everything can be done from anywhere, by accessing the app from your device.

Unlike other options, the process is fast, transparent, and without surprises. And besides receiving your payments in digital dollars, you can convert them to pesos at a competitive exchange rate.

Also, DolarApp charges a flexible fee to its users—regardless of the transaction amount, the fee is 3 USDc. No intermediaries that only reduce your income.