Freelancing Guide for Mexico

This guide is intended for both Mexican nationals and foreign citizens who wish to work as freelancers in Mexico.

Mexico is a premier destination for freelancers, offering locals a growing domestic and international client base in tech and creative fields.It provides an unbeatable combination of a low cost of living, a clear temporary resident visa for foreign remote workers, and proximity to the US market.

If you are a foreigner seeking to work legally in Mexico, please make sure to meet the following requirements before proceeding with any other steps:

Hold a valid residency (temporary with work authorization or permanent).
Register with the SAT (Mexican Tax Administration Service) as an individual taxpayer (persona física) under any of the below mentioned tax regimes, with an RFC.
Apply to the Instituto Nacional de Migración INM for permission to work independently as a freelancer.
Issue invoices and comply with your tax obligations (filings and payments).

Disclaimer: This guide is current as of August 2025 and subject to change. Always consult with a local tax advisor and official sources for the most up-to-date information.

Step 1: Determine Your Freelance Status in Mexico

Legal Definition of Freelancing in Mexico

In Mexico, freelancing is legally recognized as independent work (trabajo independiente) or professional services (servicios profesionales) where individuals provide services to clients without employment relationships. The Federal Labor Law (Ley Federal del Trabajo) distinguishes between employees and independent contractors.

Types of Business Structures for Freelancers

There are two types of legal entities in Mexico: personas físicas (individuals) and personas morales (corporate entities). Freelancers, by definition, always fall under persona física and have three options. The right choice depends on the freelancer’s type of income and expenses:

A) Régimen de Persona Física con Actividad Empresarial o Profesional

Professional or business activity regime – for those earning income through services or commercial activities, where monthly IVA (16%) and ISR (1.92%–35%) must be declared, with the advantage of deducting professional expenses.

B) Régimen Simplificado de Confianza (RESICO)

Simplified Trust Regime – available since 2022 for incomes up to MXN $5 million per year; taxes are 1–2.5% ISR, but no deductions are allowed.

C) Régimen de Actividades Empresariales con Ingresos a Través de Plataformas Digitales

Business activities with income from digital platforms – required if income comes through online platforms.Note: It is also possible to combine regimes (e.g., A and C), provided obligations for each are fulfilled.

Step 2: RFC Registration (Tax ID)

What is RFC?

The RFC (Registro Federal de Contribuyentes) is a unique tax ID assigned by Mexico's Tax Administration Service (SAT). It contains 13 characters for individuals (4 letters + 6 digits + 3 alphanumeric characters) and is required for all tax purposes. You can obtain it as early as age 16, and every formal job requires one.

RFC Registration Process

You need to attend your local SAT office in person to apply. SAT only receives applications by prior appointment, which must be requested online.

Required Documents

CURP (Clave Única de Registro de Población)
Valid official identification (INE, passport)
Proof of address (not older than 3 months)
Birth certificate or nationality certificate
Proof of business activity (if applicable)

Registration Steps

Online Pre-registration: Start with CURP-based online RFC pre-registration on the SAT website
Schedule Appointment: Request appointment online through SAT portal
Visit SAT Office: Complete registration in person
Receive RFC: Process can be completed online after information review

Timeline

Online pre-registration: Immediate
Appointment scheduling: Varies by location availability
In-person completion: Same day
Full activation: 1-3 business days

Official Resources

SAT Main Portal: sat.gob.mx
RFC Application: Available through SAT online services
Appointment Scheduling: SAT Cita portal

Step 3: Tax Obligations & Rates

Income Tax (ISR - Impuesto Sobre la Renta)

Tax rates range from 1.92% to 35%, with higher income levels subject to higher rates.

2025 Tax Brackets for Individuals

Tax rates are effective for resident individuals for calendar year 2025. Non-residents face tax rates from 15% to 30%.

Progressive Tax Rates (Simplified)

0% - $125,900 MXN: Tax-free allowance
1.92% - 6.4%: Lower income brackets
10.88% - 21.36%: Middle income brackets
23.52% - 30%: Higher income brackets
35%: Maximum rate for highest earners

Value Added Tax (IVA - Impuesto al Valor Agregado)

The VAT in Mexico (IVA) is payable at a general rate of 16% on sales of products and services. Standard VAT rate is 16%.

Border Region Special Rates

The border region maintains reduced rates: IVA of 8% and ISR of 20% continue for individuals and corporations in 2025.

Social Security (IMSS)

Freelancers can voluntarily pay for their social security (~MXN $8,500–$19,600/year) or apply for free public healthcare alternatives available.

Tax Payment Schedule

Monthly: ISR provisional payments, no later than the 17th day of the month immediately following the corresponding period.
Monthly: IVA payments, no later than the 17th day of the month immediately following the corresponding period.
Annual: Final tax return (April 30th deadline)

Official Tax Resources

SAT Portal: sat.gob.mx
Tax Calculators: Available on SAT calculator website

Professional Tax Advice: Consult local contadores (accountants)

Step 4: Banking & Financial Management

Recommended Banks for Freelancers

Major Traditional Banks

Banorte
- Leading Mexican bank
- Good local market knowledge
- Business banking solutions
- Competitive rates
Banamex (Citibanamex)
- Extensive branch network
- International banking relationships
- Multi-currency account options
- Good customer service
Santander México
- International banking expertise
- Strong online banking platform
- Business account options
- Foreign exchange services
BBVA México
- Strong international banking network
- Good digital banking platform
- Foreign currency accounts available
- Business banking packages for freelancers

Digital and Alternative Banks

Nu México (Nubank)
- Digital-first banking platform
- No monthly fees for basic accounts
- Modern mobile app
- Growing presence in Mexico
Banco Azteca
- Focus on underserved markets
- Accessible banking solutions
- Good for starting freelancers
- Extensive physical presence
Banregio
- Regional bank with good service
- Business-focused solutions
- Competitive rates
- Strong SME support

Business Banking Requirements

RFC (Tax ID) required for business accounts
Proof of business activity
Valid identification
Proof of address
Initial deposit (varies by bank)

Business Bank Accounts - Some examples

Bank	Features	Cost	Link
Nu (Nubank) Negocios	Free digital account	MXN $0/month	nubank.com.mx
BBVA Negocios	Traditional banking	MXN $200–$500/month	bbva.mx
Wise Business	Multi-currency	€7–€25/month	wise.com

Step 5: Payment Platforms & Solutions

International Payment Platforms

Top Recommended Platforms

Payoneer
- Available in Mexico with local bank withdrawals
- Multi-currency receiving accounts
- Integration with major freelance platforms
- Competitive exchange rates
- USD, EUR, GBP virtual accounts
Wise (formerly TransferWise)
- Multi-currency borderless accounts
- Real exchange rates with transparent fees
- Good for international client payments
- Debit card available for spending
PayPal
- Widely accepted globally
- Available in Mexico
- Good buyer protection
- Higher fees for Mexican withdrawals
- Peso and USD account options
Remitly
- Good for receiving international payments
- Competitive rates for money transfers
- Focus on Latin American markets
- Bank deposit options
Western Union Business Solutions
- Traditional money transfer service
- Good for large transactions
- Established network in Mexico
- Business account options

Mexican Payment Solutions

SPEI (Sistema de Pagos Electrónicos Interbancarios)
- Mexico's real-time payment system
- Instant bank-to-bank transfers
- Available 24/7
- Low cost for domestic transfers
CoDi (Cobro Digital)
- Local payment gateway developed by Banco de México that allows digital payments through QR codes or NFC technology, using SPEI infrastructure
- QR code-based payments
- Free for consumers
- Growing adoption
DiMo
- Newly launched real-time payment system that allows account-to-account transfers using phone numbers, with strong support from major banks
- Phone number-based transfers
- Fast and secure payments
Mercado Pago
- Integrated with various e-commerce platforms and Mercado Libre marketplace, offering payment splitting and comprehensive payment solutions
- Popular e-wallet and payment platform
- QR code payments
- Business payment tools

Payment Considerations

Exchange rate margins (2-4% typical)
Transfer fees to Mexican banks
Processing time for international payments
Tax implications for foreign income
RFC requirements for business payments

Payment Challenges & Solutions

Issue: High PayPal fees (~5.4% + MXN $25)
Solutions:
- Use TransferWise (Wise) for USD/MXN transfers
- SPEI transfers (free for local clients)

Scaling & Compliance

E-firma renewal: Every 4 years (SAT requirement)

Pro Tips

CFDI 4.0: Mandatory e-invoicing format (use SAT-approved software)
Digital Nomad Visa: Available for remote workers since 2023

Step 6: Finding Work

Utilize both local and international platforms to secure freelance projects.

International Freelancing Platforms

Upwork
- Largest global freelance marketplace
- Strong presence in Mexico
- Integration with Payoneer
- Wide variety of project types
Fiverr
- Gig-based service model
- Good for creative and digital services
- Growing Mexican freelancer community
- Package-based pricing
Freelancer.com
- Contest and project-based work
- International client base
- Various skill categories
- Milestone payment system
Toptal
- Elite platform for top developers
- High-paying projects
- Rigorous screening process
- Premium client base
99designs
- Design-focused platform
- Contest and direct project formats
- Good for Mexican designers
- Strong creative community

Mexico-Specific and Latin American Platforms

Workana
- Leading freelance platform in Latin America
- Spanish and Portuguese language projects
- Regional client base
- Various skill categories
Computrabajo Freelance
- Mexican job board with freelance section
- Local market focus
- Direct client contact
- Various industries
Freelancer México
- Localized version of international platform
- Mexican peso payments
- Local client base
- Regional project focus
Nubelo
- Spanish-speaking freelance platform
- Regional client base
- Various service categories
- Growing presence in Mexico

Top Freelance Platforms in Mexico

Platform	Focus	Fees	Link
Workana	Latin America	15%	workana.com
Freelancer Mexico	Local clients	10%	freelancer.com
Upwork	Global projects	20%%	upwork.com

Direct Client Acquisition

Professional Networks

LinkedIn: Optimize for Mexican and international markets
Mexican freelancer Facebook groups
Industry-specific associations
Local chambers of commerce
Coparmex

Local Business Events

Mexico City Tech Meetups
Guadalajara Innovation Events
Monterrey Business Networking
Mexican Digital Marketing Association events
Mexico City Tech Week

Step 7: Industry-Specific Tips

Technology & Software Development

High Demand: Artificial Intelligence, Machine Learning, Web development, mobile apps, fintech solutions, e-commerce platforms
Certifications: AWS, Google Cloud, Microsoft Azure, Oracle
Local Opportunities: Growing Mexican tech ecosystem, nearshoring opportunities
Average Rates: $300-800 MXN/hour for development work

Content Creation & Writing

Specializations: Spanish copywriting, technical writing, translation (English-Spanish)
Local Focus: Tourism, finance, manufacturing, e-commerce content
Opportunities: US companies expanding to Mexico, localization projects
Average Rates: $200-500 MXN/hour for quality writing

Creative Services

Growth Areas: Digital marketing design, brand identity, video production, animation
Platforms: Behance, Dribbble for portfolio showcase
Local Market: Strong advertising and media industry
Average Rates: $250-600 MXN/hour for design work

Digital Marketing & SEO

Opportunities: Social media management, Google Ads, SEO for Mexican market
Certifications: Google Ads, Facebook Blueprint, HubSpot
Local Market: Mexican businesses expanding online presence
Average Rates: $300-700 MXN/hour for marketing services

Translation & Localization

High Demand: English-Spanish translation, website localization, document translation
Specializations: Technical, legal, medical, marketing translation
Opportunities: US companies entering Mexican market, international organizations
Average Rates: $3-8 MXN per word for translation

Manufacturing & Engineering Consulting

Opportunities: Process optimization, quality control, project management
Local Market: Strong manufacturing sector, nearshoring trend
Certifications: Six Sigma, PMP, industry-specific certifications

Average Rates: $400-1000 MXN/hour for specialized consulting

Step 8: Essential Tools & Software

Invoicing Requirements

Must include:
- Your name/RFC
- Client’s RFC (for Mexican clients)
- Folio fiscal (CFDI)
Tools: SAT, Facturama, Contpaqi

Invoicing & Accounting

CONTPAQi
- Leading Mexican accounting software
- SAT-compliant invoicing (CFDI)
- Tax calculation and reporting
- Integration with Mexican banking
Aspel
- Popular Mexican business software
- Complete business management suite
- SAT compliance features
- Local support and training
Facturama
- Cloud-based invoicing for Mexico
- CFDI electronic invoicing
- API integration available
- Competitive pricing
QuickBooks México
- International platform with local features
- Multi-currency support
- Professional invoicing
- Tax reporting capabilities

Project Management

Trello: Visual project organization (popular in Mexico)
Asana: Team collaboration and task management
Monday.com: Comprehensive project tracking
Notion: All-in-one workspace

Communication

WhatsApp Business: Essential for Mexican clients
Slack: Professional team communication
Microsoft Teams: Video conferencing and collaboration
Zoom: International client meetings

Time Tracking

Toggl: Simple time tracking with Spanish support
RescueTime: Automatic productivity tracking
Clockify: Free time tracking with reporting
Harvest: Time tracking with invoicing integration

Step 9: Legal Protections & Contracts

Essential Contract Elements

Scope of Work (Alcance del Trabajo): Detailed project description
Payment Terms (Condiciones de Pago): Amount, schedule, currency
Delivery Timeline (Cronograma de Entrega): Clear deadlines and milestones
Intellectual Property (Propiedad Intelectual): Ownership and usage rights
Termination Clause (Cláusula de Terminación): Conditions for ending agreement
Force Majeure: Protection against unforeseen circumstances
Governing Law: Mexican law application

Mexican Legal Considerations

Federal Labor Law: Understanding contractor vs employee classification
Commercial Code: Governing commercial contracts
Federal Consumer Protection Law: May apply to certain services
Intellectual Property Law: Protecting creative work and innovations

Professional Insurance

Consider professional liability insurance for:

IT consultants and developers
Engineers and technical consultants
Financial advisors
Creative professionals
Legal and medical consultants

Insurance Providers

GNP Seguros
Seguros Monterrey New York Life
AXA Seguros
MAPFRE México
Zurich México

Legal Resources

Colegio de Abogados: Local bar associations for legal guidance
PROFECO: Consumer protection agency
Legal contract templates: Available through legal professionals
Arbitration centers: For dispute resolution

Step 10: Social Security & Benefits

IMSS (Instituto Mexicano del Seguro Social)

Freelancers can voluntarily enroll in these three options:

A) IMSS Modality 44 (Independent Worker) – contributions based on income; includes medical care, pension, daycare, and sick leave.
B) IMSS Modality 33 (Family Health Insurance) – annual fixed fee depending on age; covers only healthcare and medicines.
C) IMSS Bienestar – free; covers only basic care and medicines in public hospitals, available to those without other insurance.

INFONAVIT

Housing fund for workers, available to voluntary contributors:

Housing loans
Home improvement credits
Retirement housing savings

Private Health Insurance

Since freelancers may not have comprehensive IMSS coverage:

Top Health Insurance Providers

GNP Seguros
- Comprehensive medical plans
- Good hospital networks
- Various coverage levels
Seguros Monterrey New York Life
- Competitive rates
- International coverage options
- Good customer service
AXA Seguros
- International insurance company
- Comprehensive health plans
- Emergency coverage
MAPFRE México
- Established insurance provider
- Various health plan options
- Good regional coverage

Retirement Planning Options

AFORE: Pension fund administrators for retirement savings
Personal Investment Accounts: Mutual funds, stocks, bonds
Real Estate Investment: Popular long-term investment

Private Pension Plans: Supplementary retirement savings

Step 11: Monthly Budget Estimation (MXN)

Essential Business Expenses

Accounting Services: $500 - $5,000
Professional Software: $1,000 - $3,000
Internet (High-Speed Fiber): $400 - $1,200
Mobile Phone (Business): $400 - $800
Payment Platform Fees: 2-5% of earnings
Health Insurance: $2,000 - $6,000
Professional Development: $1,000 - $3,000
Office Supplies/Equipment: $500 - $2,000

Total Monthly Overhead: $5,800 - $20,000 MXN

Tax Provisions

Set aside 20-35% of gross income for taxes
Include ISR and IVA obligations
Consider quarterly provisional payments
Factor in additional taxes for higher income levels

Pro Tips for Success

Getting Started

Register for RFC immediately to formalize your business
Build portfolio showcasing both Mexican and international work
Leverage bilingual capabilities (Spanish-English)

Pricing Strategy

Research both Mexican and international rate standards
Consider peso volatility when pricing for foreign clients
Factor in all taxes and platform fees
Use time zone advantages for US clients (overlapping business hours)

Building Reputation

Deliver exceptional quality consistently
Communicate professionally in Spanish and English
Build strong testimonials and case studies
Showcase cultural understanding and business acumen

Scaling Your Business

Diversify across local and international clients
Build relationships with Mexican businesses expanding internationally
Consider specializing in nearshoring opportunities
Network within Mexican business communities
Leverage Mexico's position as gateway to Latin America

International Opportunities

Highlight Mexico's strategic location and time zone benefits
Emphasize cultural bridge between US and Latin America
Use USMCA/NAFTA business relationships
Leverage growing nearshoring trend
Build relationships with US companies establishing Mexican operations

Common Challenges & Solutions

Challenge 1: Currency Volatility (MXN fluctuations)

Solutions:

Price in stable currencies (USD) when possible
Use hedging strategies for large projects
Build currency risk into pricing models
Maintain USD accounts through international platforms

Challenge 2: Complex Tax System

Solutions:

Hire qualified contador (accountant) for compliance
Use the SAT website for CFDI invoicing
Keep detailed records of all transactions

Challenge 3: Competition from Other Latin American Countries

Solutions:

Emphasize proximity to US market
Leverage cultural and linguistic advantages
Focus on specialized niches
Build strong client relationships
Highlight quality and professionalism

Challenge 4: Payment Delays from International Clients

Solutions:

Use milestone-based payment structures
Require upfront payments for new clients
Use platforms with payment protection
Build clear payment terms into contracts

Challenge 5: Bureaucratic Complexity

Solutions:

Work with local professionals for registration
Use digital services where available
Join freelancer communities for advice
Stay updated on regulatory changes

Final Success Checklist

✅ Legal Setup

[ ] Obtain CURP and valid identification
[ ] Register for RFC with SAT
[ ] Choose appropriate tax regime
[ ] Open business bank account
[ ] Set up international payment platforms

✅ Professional Setup

[ ] Create professional profiles on chosen platforms
[ ] Build comprehensive portfolio (Spanish and English)
[ ] Set up SAT-compliant invoicing system
[ ] Prepare contract templates (bilingual)
[ ] Purchase essential software and tools

✅ Financial Management

[ ] Separate business and personal finances
[ ] Set up tax provision savings (20-35% of income)
[ ] Create detailed budget and pricing strategy
[ ] Plan for currency exchange considerations
[ ] Research health insurance options
[ ] Set up retirement savings plan

✅ Tax & Legal Compliance

[ ] Understand ISR and IVA obligations
[ ] Set up bimonthly/monthly tax payment system
[ ] Create comprehensive service contracts
[ ] Research professional insurance options
[ ] Establish relationship with qualified contador

✅ Marketing & Growth

[ ] Develop bilingual personal brand
[ ] Join Mexican and international professional networks
[ ] Create content marketing strategy
[ ] Build referral network and systems
[ ] Plan continuous learning and skill development
[ ] Research nearshoring and international opportunities

Important Reminders

⚠️ RFC Compliance: All business income must be reported with valid RFC - non-compliance results in severe penalties

⚠️ Tax Payments: Stay current with ISR and IVA obligations - late payments incur significant interest and penalties

⚠️ CFDI Invoicing: Use only SAT-approved electronic invoicing systems for business transactions

⚠️ Record Keeping: Maintain detailed financial records for at least 5 years as required by SAT

⚠️ Currency Reporting: Report foreign income and assets as required by Mexican tax law

⚠️ Professional Development: Invest in continuous learning to stay competitive in nearshoring market

Additional Resources

Government Resources

SAT (Tax Administration Service): sat.gob.mx
PRODECON - Procuraduría de la Defensa del Contribuyente (Taxpayer Defense Attorney’s Office): prodecon.gob.mx - a government institution that provides free tax advice. They can help with invoices, regularization, monthly or annual filings, and even mediate in disputes. Their guidance is clear, personalized, and extremely helpful.
Economy Ministry: gob.mx/se - Business support programs
INADEM: National Entrepreneur Institute (now integrated into Economy Ministry)
Mexican Development Bank: Financing programs for small businesses
IMSS (Social Security): www.imss.gob.mx

Professional Organizations

AMITI: Mexican Association of Information Technology Industry
AMAP: Mexican Association of Advertising Agencies
CANACO: National Chamber of Commerce
Local professional associations: State and city-specific groups

Support Services

INADEM Programs: Government support for entrepreneurs
Business Incubators: Support for growing businesses
Technological Parks: Networking and support for tech freelancers
Freelancer Communities: Online forums and local meetups

Legal and Financial Support

Local Bar Associations: Legal guidance and contract support
Certified Public Accountants (Contadores): Tax compliance and financial planning
Business Consultants: Growth strategy and market expansion
Banking Advisors: International payment and currency management