VAT in Mexico: Cash flow traps and compliance realities for multinationals
by Prof Sergio Guerrero Rosas A European CFO once told me: “I thought VAT was the same everywhere until Mexico proved me wrong”. This reflects a common experience; while value-added tax (VAT) is designed to be a neutral tax, businesses recover it and consumers bear the cost, and its application varies widely. Mexico, though based on the European […]
Banking without borders: Why multinational companies and expatriates in Mexico need a digital Plan B
by Prof Sergio Guerrero Rosas For many expatriates and international companies operating in Mexico, one of the challenges that is often overlooked is not tax, legal, or immigration – it’s banking. Traditional banks, while solid, have become increasingly slow, with complicated procedures and limited flexibility. Opening a corporate account can take weeks, international transfers can be […]
Cross-border employment in Mexico: Navigating challenges, unlocking opportunities
by Prof Sergio Guerrero Rosas Without a doubt, cross-border employment in Mexico can become a competitive advantage. It is essential to know how to handle legal, tax, and cultural challenges in order to seize expansion opportunities. When multinational companies look to expand in Latin America, Mexico naturally emerges as a key destination given its proximity to […]
Integrated corporate structuring: Combining tax optimisation and legal protection in business turnarounds in Mexico
by Prof Sergio Guerrero Rosas In Mexico’s evolving business environment shaped by growing regulatory complexity – both local and international, tax reforms, and economic uncertainty, companies facing financial challenges are confronted with a double burden: safeguarding their assets while regaining operational viability. When approached strategically and creatively, corporate and tax structuring can shift from being a reactive or […]
Redefining business development in Latin America: From relationships to strategic international alliances
by Prof Sergio Guerrero Rosas For decades, business development in Latin America has been deeply rooted in one fundamental value: personal relationships. Trust, face-to-face meetings, and long standing family or professional ties have traditionally driven deals, shaped alliances, and built market presence and reputation. This relationship-based culture worked well especially in environments where legal frameworks and […]
Strategic estate planning for Mexican families with cross-border assets in the Trump era
by Prof Sergio Guerrero Rosas With Donald Trump returning to the US presidency, Mexican families holding assets across borders face a renewed era of regulatory and political uncertainty. Anticipated shifts in tax enforcement, disclosure rules, and cross-border compliance, especially around US-based real estate, investment portfolios, and family-run companies, demand timely adjustments to estate planning strategies. Meanwhile, […]
Tax evasion in Mexico
by Prof Sergio Guerrero Rosas Tax evasion in Mexico involves deliberately underreporting or omitting income, overstating deductions, or failing to pay taxes due, as defined in the Federal Fiscal Code (Código Fiscal de la Federación). If detected by the tax administration service – Servicio de Administración Tributaria (SAT), the consequences include: Fines ranging from 55% to 75% of the […]
Cross-border estate planning between the US and Mexico: Opportunities and challenges amid shifting political landscapes
by Prof Sergio Guerrero Rosas Cross-border estate planning between the United States and Mexico finds itself at an interesting crossroads, marked by significant political changes with the arrival of Claudia Sheinbaum’s administration in Mexico and Donald Trump’s return to office in the United States. This political context presents both opportunities and challenges for families and businesses […]
Managing immigration challenges in cross-border employment
by Prof Sergio Guerrero Rosas In today’s globalised economy, the movement of talent across borders is not just common, it’s essential. For companies seeking to maintain a competitive edge, the ability to deploy skilled employees wherever they are needed is a significant advantage. However, this advantage is accompanied by a complex web of immigration regulations and […]
Digital transformation and automation: Navigating the future of employment in law and accounting firms
by Prof Sergio Guerrero Rosas The rapid advancement of automation and artificial intelligence (AI) is transforming industries globally, including law and accounting firms. These technologies present both challenges and opportunities, with the potential to revolutionise workflows and improve efficiency. The impact of automation and AI on employment Automation and AI streamline operations, handling tasks once time-consuming […]
NOM-037: Mexico’s new telework/home office regulation
by Prof Sergio Guerrero Rosas & Ana Livia Ruiz Velasco The Covid-19 pandemic posed a number of challenges in all areas of daily life, and the way we went about our work was no exception. The quarantine forced workers to continue their work from the safety of their homes. In response, Mexican authorities found it necessary […]
Obtaining temporary Mexican residence by acquiring property in Mexico
by Prof Sergio Guerrero Rosas Mexico is a country characterised by its openness to the migration of people from abroad, as well as its attractiveness as a tourist, relocation, and investment destination. For this reason, the different regulations applicable in Mexico regarding migration establish different mechanisms and procedures to facilitate and regulate the presence of […]
A quick overview of the controlling beneficiary figure in Mexico
by Prof Sergio Guerrero Rosas For as long as taxes have been around, tax authorities have designed mechanisms to ensure the collection of payment, and taxpayers have devised mechanisms to minimise its burden in a neverending cat-and-mouse game. The figure of controlling beneficiary is one the latest updates in this endeavour. Identifying the “real” owner […]
One step forward and two steps back: Mexico is skipping with energy reforms
by Prof Sergio Guerrero Rosas In March 2021, the Mexican Congress, at the initiative of President Lopez Obrador, passed a reform to the Mexican Electricity Industry Law, thus bringing an end to almost 10 years of open market/renewable energy-oriented policy. This latest constitutional reform dismantles the former administratio’s 2013 energy reform and all subsequent actions […]
Nearshoring: a new market of opportunities
by Prof Sergio Guerrero Rosas The COVID-19 pandemic, the invasion of Ukraine in 2022, and other new global tensions have brought to the fore the fragility of value chains in our hyper-globalised economy. The total closure of trade routes in Asia was the trigger that drove the new de-globalising era we are currently experiencing, and […]