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Selling listed Mexican shares as a foreign investor: 10 percent broker withholding on the gain, the treaty exemption and the block sale exceptions

Last verified: 2026-10-26 · Status: Stable

Gains of foreign residents on shares placed with the investing public and sold through a Mexican stock exchange bear a final 10 percent tax on the gain, withheld by the broker by the 17th of the following month. A resident of a country with a tax treaty in force with Mexico pays nothing if it gives the broker a written statement of treaty residence and its tax ID number. The 10 percent regime does not apply to large holders selling 10 percent or more within 24 months, to sales of control, or to off market and cross trades; those sales fall under the ordinary 25 or 35 percent rules.

USD conversions use MXN 18.6638 per US dollar, the US Federal Reserve H.10 noon buying rate in New York for 23 October 2026 (FRED series DEXMXUS), the latest observation available when this page was verified. Mexican tax law uses the Banxico FIX for foreign currency amounts, which differs slightly. Conversions are for orientation only.

Key facts

Tax on gains on listed Mexican shares, foreign resident	10 % of gainLISR art. 161, as of 2026-10-26 · in force
Tax for treaty residents with a residence statement	0 %LISR art. 161, as of 2026-10-26 · in force
Holder and sale size that excludes the 10% regime	10 % within 24 monthsLISR art. 129, as of 2026-10-26 · in force
Small sale allowance for shares not acquired on recognized markets	1 % of outstanding shares in 24 monthsLISR art. 129, as of 2026-10-26 · in force

The rule

1. For shares issued by Mexican companies sold through concessioned stock exchanges or recognized derivatives markets, when the shares are placed among the investing public (and for listed foreign shares, index securities and related equity derivatives), the tax is paid through withholding by the securities intermediary at 10 percent on the gain, computed per transaction under LISR art. 129, without deducting losses. The broker pays it by the 17th of the following month and the withholding is the final tax.
Cost to do it: 10 percent of the gain, final.
Example: A foreign fund sells listed Mexican shares for MXN 10,000,000 that cost MXN 7,000,000: the broker withholds 10 percent of the MXN 3,000,000 gain, MXN 300,000. / Gain of about USD 160,739; tax about USD 16,074.Ley del Impuesto sobre la Renta (LISR), DOF 11 December 2013 (Chamber of Deputies consolidated text, last reform DOF 1 April 2024), Art. 161, tenth and eleventh paragraphs, 2013-12-11 official text · verified 2026-10-26

2. No tax is due if the seller is resident in a country with which Mexico has a tax treaty in force. The seller must give the broker a written statement under oath that it is a treaty resident, with its tax registration or identification number issued by its tax authority; without it the broker withholds.
Cost to do it: Zero, against a residence statement.
Example: A US pension fund delivers its statement and tax ID to the Mexican broker before trading; its gains on listed Mexican shares are not withheld. / USD 0 of Mexican tax.Ley del Impuesto sobre la Renta (LISR), DOF 11 December 2013 (Chamber of Deputies consolidated text, last reform DOF 1 April 2024), Art. 161, eleventh paragraph, 2013-12-11 official text · verified 2026-10-26 · changed: Wording of the paragraph was amended by the DOF 12 November 2021 reform.

3. The 10 percent regime does not apply, and the ordinary share sale rules do, to: shares not placed among the investing public or not acquired on recognized markets (except sales on exchange of up to 1 percent of outstanding shares within 24 months); a person or group holding 10 percent or more of the issuer that sells 10 percent or more of its paid shares within 24 months; a controlling person or group that sells control within 24 months; sales outside the exchanges or as registered or protected cross trades; and shares received in mergers or spin offs of shares in those cases. For foreign residents in those cases the tax is the art. 152 top rate (35 percent) on the gain.
Cost to do it: 35 percent of the gain for excluded sales.
Example: A foreign shareholder with 15 percent of a listed company sells 12 percent through a block trade within 24 months. The 10 percent regime does not apply; on a gain of MXN 200,000,000 the tax is MXN 70,000,000. / Gain about USD 10,715,931; tax about USD 3,750,576 instead of USD 1,071,593 under the 10 percent regime.Ley del Impuesto sobre la Renta (LISR), DOF 11 December 2013 (Chamber of Deputies consolidated text, last reform DOF 1 April 2024), Arts. 129, last paragraph, and 161, twelfth paragraph, 2013-12-11 official text · verified 2026-10-26

4. For securities placed among the investing public that are sold off exchange, SAT uses the last trade price of the day of sale instead of an appraisal.
Cost to do it: No fee.
Example: An off market sale at a 20 percent discount to the closing price is tested against the closing price. / Not a monetary rule.Ley del Impuesto sobre la Renta (LISR), DOF 11 December 2013 (Chamber of Deputies consolidated text, last reform DOF 1 April 2024), Art. 161, sixteenth paragraph, 2013-12-11 official text · verified 2026-10-26

5. The sale of shares is exempt from VAT.
Cost to do it: No VAT.
Example: Broker commissions bear VAT, but the share price does not. / USD 0 VAT on the price.Ley del Impuesto al Valor Agregado (LIVA), DOF 29 December 1978 (Chamber of Deputies consolidated text, last reform DOF 12 November 2021), Art. 9, section VII, 1978-12-29 official text · verified 2026-10-26

Case	Tax	Who pays
Ordinary exchange sale, non treaty resident	10% of gain, final	Broker withholds
Ordinary exchange sale, treaty resident with statement and tax ID	0%	None
Holder of 10%+ selling 10%+ within 24 months	35% of gain	Seller or representative
Sale of control within 24 months	35% of gain	Seller or representative
Off exchange or cross trade	35% of gain	Seller or representative

Listed share sales by foreign residents (LISR arts. 129 and 161)

Worked example

A Cayman fund (no treaty) sells listed shares at a MXN 3,000,000 gain: the broker withholds MXN 300,000 (about USD 16,074).
A treaty resident fund with a residence statement and tax ID pays nothing on the same gain.

Step by step

1. Confirm the shares are placed among the investing public and were acquired on a recognized market.
2. If treaty resident, give the broker the sworn statement and tax ID before selling.
3. Track holdings and sales over rolling 24 month periods against the 10 percent and control thresholds.
4. For block or control sales, plan the 35 percent gain route with a representative, or check treaty relief.

Common traps

Assuming every exchange sale is at 10 percent: large holder and control sales within 24 months are excluded (LISR art. 129).
Forgetting the residence statement: the broker must withhold without it (LISR art. 161).
Using cross trades or registered trades: they are excluded even if CNBV treats them as exchange trades (LISR art. 129).

Sources

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