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Investing in Mexico: the foreign investment regime, screening and the Plan México incentives

Last verified: 2026-10-25 · Status: Changing

Foreign capital can own any share of a Mexican company by default; the National Foreign Investment Commission (CNIE) screens only a listed set of activities and large acquisitions, and decides within 45 business days or the request is deemed approved. The main federal incentive is the Plan México decree: an immediate deduction of 35 to 91 percent of new fixed assets bought up to 30 September 2030 and an extra 25 percent deduction on increases in training and innovation spending, both subject to a certificate from an evaluation committee and a MXN 30 billion cap. A bill adding a national security review to the Foreign Investment Law passed the Senate on 30 September 2026 and is pending in the Chamber of Deputies, so deal timetables for 2027 should allow for it.

USD figures use MXN 18.5026 per US dollar, the Federal Reserve H.10 noon buying rate for 16 October 2026 (FRED series DEXMXUS), the latest official observation verified for this page. Conversions are for orientation only.

Key facts

Default foreign ownership allowed in Mexican companies	Any proportion, except as the LIE provides textLIE art. 4, as of 2026-10-25 · in force
Maximum time for the CNIE to resolve an application (silence means approval)	45 business daysLIE art. 28, as of 2026-10-25 · in force
Foreign share above which listed activities and large companies need CNIE approval	49 % (more than)LIE arts. 8 and 9, as of 2026-10-25 · in force
CNIE power to block foreign acquisitions on national security grounds	Yes textLIE art. 30, as of 2026-10-25 · in force
Bill adding a national security review to the LIE (Senate approved 30 September 2026, pending in the Chamber of Deputies)	Pending textSenate committee report on the LIE reform bill, 30 September 2026, as of 2026-09-30 · pending
Deadline to register foreign investment in the RNIE	40 business daysLIE art. 32, as of 2026-10-25 · in force
Highest Plan México immediate deduction rate for new fixed assets, 2025 and 2026	91 %Plan México decree art. Segundo, as of 2025-01-22 · in force
Lowest Plan México immediate deduction rate for new fixed assets, 2025 and 2026	41 %Plan México decree art. Segundo, as of 2025-01-22 · in force
Highest Plan México immediate deduction rate for new fixed assets, 2027 to 2030	89 %Plan México decree art. Segundo, as of 2025-01-22 · in force
Lowest Plan México immediate deduction rate for new fixed assets, 2027 to 2030	35 %Plan México decree art. Segundo, as of 2025-01-22 · in force
Plan México immediate deduction rate for machinery in activities not otherwise listed, 2025 and 2026	72 %Plan México decree art. Segundo, fraction II, n), as of 2025-01-22 · in force
Last acquisition date for the Plan México immediate deduction	2030-09-30 datePlan México decree art. Primero, as of 2025-01-22 · in force
Minimum years assets must stay in use after the immediate deduction	2 yearsPlan México decree art. Primero, as of 2025-01-22 · in force
Extra deduction on the increase in training or innovation spending over the prior three year average	25 %Plan México decree art. Cuarto, as of 2025-01-22 · in force
Total Plan México tax incentives that may be authorized through 30 September 2030	30000000000 MXNPlan México decree art. Quinto, as of 2025-01-22 · in force
Minimum Plan México incentives reserved for taxpayers with prior year revenue up to MXN 100 million	1000000000 MXNPlan México decree art. Quinto, as of 2025-01-22 · in force
Corporate income tax rate	30 %Ley del Impuesto sobre la Renta art. 9, as of 2026-10-25 · in force
Foreign direct investment inflows, 2025 (preliminary, as first published)	40871 USD millionMinistry of Economy release no. 13 of 25 February 2026, as of 2026-02-25 · in force
Foreign direct investment inflows, first half of 2026 (preliminary)	34968 USD millionMinistry of Economy release no. 79 of 24 August 2026, as of 2026-08-24 · in force
Share of new investments in FDI inflows, first half of 2026	7.8 %Ministry of Economy release no. 79 of 24 August 2026, as of 2026-08-24 · in force
Share of reinvested earnings in FDI inflows, first half of 2026	88.5 %Ministry of Economy release no. 79 of 24 August 2026, as of 2026-08-24 · in force
Share of the United States in FDI inflows, first half of 2026	48.2 %Ministry of Economy release no. 79 of 24 August 2026, as of 2026-08-24 · in force
ICSID Convention in force for the country since	2018-08-26 dateICSID Convention art. 68(2), as of 2018-07-27 · in force
Mexico and Argentina double taxation treaty in force since	2017-08-23 datePromulgation decree DOF 18 August 2017, as of 2017-08-18 · in force

The rule

1. Open by default. Foreign investment may hold any proportion of the capital of Mexican companies, acquire fixed assets, enter new fields of activity or make new product lines, and open, expand or relocate establishments, except as the Foreign Investment Law provides. Foreign investment made indirectly through Mexican majority owned companies that foreigners do not control is not counted toward the sector caps.
Cost to do it: No approval or government fee to invest in an activity that is not reserved, capped or listed for CNIE review; the cost is setting up and registering the vehicle (see Start here).
Example: A foreign group may put MXN 100,000,000 into a wholly owned Mexican auto parts company with no CNIE filing, as long as the target's activity is not listed in LIE arts. 5 to 8 and the art. 9 asset test is not met. / MXN 100,000,000 is about USD 5,404,646.Ley de Inversión Extranjera (Foreign Investment Law, LIE), DOF 27 December 1993, last reform DOF 27 May 2024, Art. 4 (third paragraph added DOF 24 December 1996), 1993-12-27 official text · verified 2026-10-25

2. When the CNIE must approve. A favorable CNIE resolution is needed for foreign investment above 49 percent in the activities listed in art. 8 (inland port services to vessels such as towing and mooring, deep sea shipping companies, public service aerodromes, private schools from preschool to higher education, legal services, and railways). Separately, any direct or indirect foreign participation above 49 percent in a Mexican company needs CNIE approval only when the company's total assets, at the time the application is filed, exceed the amount the CNIE sets each year by general resolution; the most recent one was published in the DOF on 5 August 2025.
Cost to do it: No filing fee is set in the LIE. Acting without a required CNIE resolution is fined 1,000 to 5,000 times the daily reference wage (LIE art. 38, fraction I).
Example: A buyer taking 51 percent of a Mexican private university needs CNIE approval whatever the size of the school, because private education is listed in art. 8, fraction IV. / The same applies to a USD denominated deal; the test is the activity and the share, not the currency.LIE, Arts. 8 and 9; art. 26, fraction II, 1993-12-27 official text · verified 2026-10-25

3. How the CNIE decides. The CNIE must resolve within 45 business days of the filing; if it does not, the request is deemed approved as filed and the Ministry of Economy must issue the authorization on request. It weighs the impact on employment and worker training, the technology contribution, compliance with environmental rules and the contribution to competitiveness, and may only impose conditions that do not distort international trade. Under the law in force, the CNIE may also block acquisitions by foreign investment for reasons of national security.
Cost to do it: Time is the main cost: budget up to 45 business days, about nine calendar weeks, between filing and closing for any deal that needs approval.
Example: An application filed on 2 November 2026 must be resolved within 45 business days; silence after that period counts as approval (LIE art. 28). / No fee in either currency; the cost is the closing delay.LIE, Arts. 28, 29 and 30, 1993-12-27 official text · verified 2026-10-25

4. Registering the investment. Mexican companies with foreign investors (including through a trust), foreign individuals or entities that trade habitually in Mexico, and trusts that give rights to foreign investors must register in the National Foreign Investment Registry (RNIE) within 40 business days from incorporation or from the entry of the foreign investment. The registry is not public.
Cost to do it: Late, missing, incomplete or wrong registrations, reports or notices are fined 30 to 100 times the daily reference wage (LIE art. 38, fraction IV).
Example: A company incorporated on 2 November 2026 with a foreign shareholder must be registered within 40 business days of that date. / No registration fee in either currency under the LIE; see Start here for the renewal calendar.LIE, Arts. 31 and 32; art. 38, fraction IV, 1998-01-23 official text · verified 2026-10-25

5. Plan México immediate deduction. Companies taxed under Title II (or Title VII, chapter XII) of the Income Tax Law and individuals with business activities may deduct in the year of investment a fixed percentage of the original cost of new fixed assets (first used in Mexico) acquired from 22 January 2025 to 30 September 2030, instead of normal depreciation. Rates for 2025 and 2026 run from 41 to 91 percent and for 2027 to 2030 from 35 to 89 percent, by type of asset or by the activity in which machinery is used: for example 67 percent (62 percent from 2027) for machinery used to make motor vehicles and parts, metal products and machinery, 88 percent (85 percent) for computers and servers, 89 percent (86 percent) for dies, molds and tooling, and 72 percent (67 percent) for activities not otherwise listed. The balance is deductible only when the asset is sold, lost or stops being useful. Assets must stay in use for at least two years after the year of the deduction. Office furniture and equipment, combustion engine cars, car armoring, assets that cannot be individually identified and aircraft other than crop dusters are excluded.
Cost to do it: No government fee. Access requires RFC registration with an active tax mailbox, a positive tax compliance opinion (CFF art. 32-D), the investment project, and a certificate of compliance from the Evaluation Committee, plus a specific register of the assets (art. Primero).
Example: A motor vehicle parts maker buying MXN 100,000,000 of new machinery in 2026 deducts MXN 67,000,000 that year (67 percent). At the 30 percent corporate rate that lowers 2026 tax by MXN 20,100,000. The remaining MXN 33,000,000 is deductible only when the machinery is sold, lost or stops being useful. The same purchase in 2027 would allow MXN 62,000,000 (62 percent). / Investment about USD 5,404,646; deduction about USD 3,621,113; tax saved in the first year about USD 1,086,334; deferred balance about USD 1,783,533.Decreto por el que se otorgan estímulos fiscales para apoyar la estrategia nacional denominada "Plan México", para fomentar nuevas inversiones, que incentiven programas de capacitación dual e impulsen la innovación, DOF 21 January 2025, Arts. Primero and Segundo; art. Tercero, fraction III, 2025-01-21 official text · verified 2026-10-25

6. Plan México training and innovation deduction, and the cap. For fiscal years 2025 to 2030, eligible taxpayers may take an extra deduction equal to 25 percent of the increase in spending on training their IMSS registered workers (with a dual education agreement with the Ministry of Public Education) or on innovation (projects toward patents or initial certifications needed to join local or regional supply chains), measured against the average of the three prior years. The extra deduction is lost if not taken in the year of the spending and cannot create or increase a loss. An Evaluation Committee chaired by the Finance Ministry, with the Ministry of Economy and the regional development and relocation advisory council (voice only), issues the certificates. Total incentives authorized may not exceed MXN 30 billion through 30 September 2030 (MXN 28.5 billion for immediate deduction and MXN 1.5 billion for the extra deduction), with at least MXN 1 billion for taxpayers with prior year revenue up to MXN 100 million. Taxpayers on the SAT lists of non located taxpayers, of confirmed issuers of simulated invoices (or with a shareholder on that list), or with firm unsecured tax debts cannot apply.
Cost to do it: No government fee; the practical cost is preparing the project file and dual education agreement for the Evaluation Committee, which professional advisers price case by case.
Example: A company that spent an average of MXN 3,000,000 a year on technical training in 2023 to 2025 and MXN 5,000,000 in 2026 has an increase of MXN 2,000,000 and may deduct an extra MXN 500,000 in its 2026 return, worth MXN 150,000 at the 30 percent rate. / Increase about USD 108,093; extra deduction about USD 27,023; tax value about USD 8,107. The MXN 30 billion cap is about USD 1.62 billion.Plan México decree, DOF 21 January 2025, Arts. Cuarto, Quinto and Sexto, 2025-01-21 official text · verified 2026-10-25

7. Pending: national security review of foreign acquisitions. A bill sent by the Executive to amend the Foreign Investment Law passed the Senate on 30 September 2026 and went to the Chamber of Deputies. According to the Senate record, it adds the Defense and Navy ministries to the CNIE with voice and vote, lets the CNIE widen by general resolution the list of sectors subject to review, sets 45 days for a response and replaces approval by silence with denial by silence under the Federal Administrative Procedure Law for these reviews. It is not law until passed by the Chamber of Deputies and published in the DOF.
Cost to do it: No fee is known; the cost would be timing and deal certainty for foreign acquisitions in the reviewed sectors.
Example: A foreign buyer signing a Mexican acquisition in late 2026 with closing in 2027 should add a condition covering any new CNIE national security approval. / Same treatment for USD priced deals.Dictamen de las Comisiones Unidas de Economía y de Estudios Legislativos, Primera, del Senado, con proyecto de decreto por el que se reforman, adicionan y derogan diversas disposiciones de la LIE, Whole bill (CNIE membership, national security review procedure), 2026-09-30 official text · verified 2026-10-25 · changed: Senate approval on 30 September 2026; the bill is pending in the Chamber of Deputies as of 25 October 2026. If enacted, CNIE silence on national security reviews would mean denial, not approval as under LIE art. 28 today.

8. Investor protection: ICSID. Mexico deposited its ratification of the ICSID Convention (the World Bank's Convention on the Settlement of Investment Disputes) on 27 July 2018, and it entered into force for Mexico on 26 August 2018, so treaty claims against Mexico can use ICSID arbitration where the relevant treaty allows it.
Cost to do it: ICSID fees depend on the case; the Convention itself adds no cost to investing.
Example: An investor protected by a treaty that offers ICSID can file there rather than only under other arbitration rules. / Not applicable.Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention), Art. 68(2) (entry into force 30 days after deposit), 2018-08-26 official text · verified 2026-10-25

9. Argentina link, high level only. Mexico and Argentina have a treaty to avoid double taxation on income and capital, with protocol, signed in Mexico City on 4 November 2015; the promulgation decree was published in the DOF on 18 August 2017 and the treaty entered into force on 23 August 2017. Groups investing between the two countries should read it with the Argentine side of the rules in the Argentine guide.Decreto Promulgatorio del Acuerdo entre los Estados Unidos Mexicanos y la República Argentina para Evitar la Doble Imposición y Prevenir la Evasión Fiscal con respecto a los Impuestos sobre la Renta y sobre el Patrimonio y su Protocolo (DOF summary published by the Supreme Court), Whole instrument (promulgation and entry into force), 2017-08-18 official text · verified 2026-10-25

Asset or activity	2025 to 2026	2027 to 2030	Decree reference
Construction (general), including installations and improvements	56%	49%	Fraction I, a), 2
Electric and hybrid cars, buses, trucks, tractor trailers, forklifts, trailers	86%	83%	Fraction I, e)
Desktop and laptop computers, servers, printers, network hubs	88%	85%	Fraction I, f)
Dies, molds, matrices and tooling	89%	86%	Fraction I, g)
Machinery for electricity generation and distribution, grain milling, sugar, edible oils, water transport	56%	49%	Fraction II, a)
Machinery for motor vehicles and parts, metal products, machinery, food and beverages	67%	62%	Fraction II, d)
Machinery for chemicals, petrochemicals, pharmaceuticals, rubber and plastics	70%	65%	Fraction II, e)
Machinery for textiles and apparel	74%	69%	Fraction II, g)
Machinery for mining, aircraft building, land freight and passenger transport	76%	71%	Fraction II, h)
Machinery for construction, agriculture, livestock, forestry and fishing	86%	83%	Fraction II, k)
Machinery used directly for research and technology development in Mexico	89%	86%	Fraction II, l)
Manufacture of magnetic components for hard drives and electronic cards for computing	91%	89%	Fraction II, m)
Machinery in other activities not listed	72%	67%	Fraction II, n)

Plan México immediate deduction, selected rates (decree DOF 21 January 2025, art. Segundo). The rate applies to the original cost of new fixed assets in the year of investment.

Period	Total	New investments	Reinvested earnings	Intercompany accounts	Source
2025 full year	40,871	7,378 (18.0%)	27,650 (67.7%)	5,844 (14.3%)	Release no. 13, 25 February 2026
First half of 2026	34,968	2,726 (7.8%)	30,957 (88.5%)	1,285 (3.7%)	Release no. 79, 24 August 2026

Foreign direct investment into Mexico, Ministry of Economy preliminary figures (USD million). Later revisions may change prior period numbers.

Worked example

A US group expands its Mexican auto parts subsidiary, an open activity under LIE art. 4, buying MXN 100,000,000 (about USD 5,404,646 at MXN 18.5026) of new presses and robots in 2026. The subsidiary's assets are well below the CNIE art. 9 threshold and the activity is not in art. 8, so no CNIE filing is needed.
Before claiming the incentive, the subsidiary files its investment project with the Evaluation Committee, holds a positive tax compliance opinion and an active tax mailbox, and obtains the certificate of compliance (Plan México decree art. Primero).
In its 2026 return it deducts 67 percent, MXN 67,000,000 (about USD 3,621,113), under art. Segundo, fraction II, d). At the 30 percent rate (LISR art. 9) that lowers 2026 tax by MXN 20,100,000 (about USD 1,086,334). The other MXN 33,000,000 waits until the machinery is sold, lost or stops being useful (art. Tercero, fraction III).
It also raises technical training for IMSS registered staff from an average of MXN 3,000,000 to MXN 5,000,000 under a dual education agreement, and takes an extra MXN 500,000 deduction (25 percent of the MXN 2,000,000 increase), worth MXN 150,000 (about USD 8,107) at 30 percent (art. Cuarto).
It keeps the machinery in use through at least 2028, two full years after 2026, and keeps the specific asset register the decree requires; otherwise the incentive does not apply (art. Primero).

Step by step

1. Classify the target activity against LIE arts. 5 to 8 and check total assets against the current CNIE art. 9 threshold (see Start here for the amount and the full lists).
2. If CNIE approval is required, file before closing and plan for up to 45 business days (LIE art. 28). Prepare the case on jobs, training, technology, environment and competitiveness (LIE art. 29).
3. For deals signing now and closing in 2027, track the LIE national security bill pending in the Chamber of Deputies and draft a closing condition for any new review.
4. Register the foreign investment in the RNIE within 40 business days of incorporation or entry (LIE art. 32).
5. For new capital spending through 30 September 2030, map each asset to its Plan México rate (decree art. Segundo), confirm it is new to Mexico and not excluded, and build the investment project file.
6. Obtain a positive tax compliance opinion (CFF art. 32-D), activate the tax mailbox and apply for the Evaluation Committee certificate before claiming the incentive in returns.
7. Claim the deduction in monthly provisional payments as the decree allows, report it in the annual return, keep the specific asset register and keep the assets in use for two years after the deduction year.

Common traps

Counting on the incentive before the certificate. Without the Evaluation Committee certificate of compliance the immediate deduction and the extra deduction cannot be applied (Plan México decree art. Primero, fraction IV).
Assuming funds are unlimited. Total authorizations are capped at MXN 30 billion through 30 September 2030 and the Committee sets a yearly maximum per incentive (art. Quinto), so late applicants may find less room.
Buying used or excluded assets. Only new assets first used in Mexico qualify; office furniture, combustion engine cars, armoring and most aircraft do not (art. Primero).
Selling the assets early. The incentive applies only to assets kept in use for at least two years after the deduction year, except for losses under LISR art. 37 (art. Primero).
Missing the year. The extra 25 percent training or innovation deduction is lost if not taken in the year the spending occurs (art. Cuarto).
Supplier risk. A company that bought from a confirmed issuer of simulated invoices and cannot prove the goods or services were real is barred from the incentives (art. Sexto, fraction II).
Reading CNIE silence as approval after reform. Today silence means approval (LIE art. 28); the Senate approved bill would make silence a denial for national security reviews if enacted.
Ignoring indirect deals. LIE art. 9 covers direct or indirect participation, so an offshore acquisition of a parent can trigger CNIE review of a large Mexican subsidiary.
Reading headline FDI as new money. In the first half of 2026, 88.5 percent of FDI was reinvested earnings and 7.8 percent new investments (Ministry of Economy release no. 79).

Sources

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