Tax Alert: Capital Repatriation Incentive for 2026. Get Specialized Advice In Order To Avoid Future Contingencies

By Aureliano "Kir" González-Baz

With extensive experience advising foreign clients on real estate transactions in México, Bryan, González Vargas & González Baz highlights an important tax opportunity now available under Mexican law.

The Federal Revenue Law for Fiscal Year 2026 (published in the Official Gazette on November 7, 2025) reintroduces a tax incentive for the repatriation of capital. This program grants preferential tax treatment to funds held abroad, offering a valuable planning opportunity for individuals and entities with assets outside México.

Under the incentive, eligible taxpayers — including individuals, legal entities, and foreign residents with a permanent establishment in México — may repatriate funds of lawful origin held abroad as of September 8, 2025. The program allows the application of a single 15% income tax (ISR) rate on the total amount repatriated, with no deductions permitted. This rate is significantly lower than those applicable under ordinary tax regimes. To qualify, certain requirements must be met. Among the most relevant:

• Funds must derive from lawful activities

• Funds must enter México no later than December 31, 2026

• Repatriated funds must be invested in México and remain invested for at least 3 years

• The corresponding income tax must be paid within 15 calendar days, along with required filings

While the program presents meaningful advantages, prior repatriation initiatives have shown that proper implementation is critical. Tax authorities have historically reviewed compliance closely, particularly regarding the origin of funds and investment requirements.

Capital repatriation can be a powerful strategic tool — but it requires careful planning and specialized guidance. For personalized advice on how this incentive may apply to your situation, contact Aureliano "Kir" González Baz.

agb@bryanlex.com

www.bryanlex.com

+52 (55) 1333-3449