RESICO in Mexico: Simplified Tax Regime for Freelancers
The income cap, the five rate brackets, monthly and annual returns, the 1.25% withholding by companies and what changes with foreign clients.
The Simplified Trust Regime (Régimen Simplificado de Confianza, RESICO) lets individuals who live in Mexico for tax purposes pay income tax at 1 to 2.5 percent of the business, professional or rental income they actually collect, with no deductions. It is open while that income stays at or below MXN 3.5 million a year, under Articles 113-E to 113-J of the Income Tax Law (LISR), as of November 2026.
Who can use RESICO?
RESICO is an option, not an obligation, for individuals whose only activities are business, professional services or renting out property. Freelancers who invoice clients, consultants, small shop owners and landlords are typical users. The person must be registered with the Tax Administration Service (SAT) and have a tax ID (RFC); our guide on getting an RFC in Mexico explains the steps.
Other conditions in the law, as of November 2026:
- Income from those activities in the previous year did not exceed MXN 3,500,000. New taxpayers estimate their first year.
- The taxpayer is active in the RFC and up to date with tax obligations.
- The taxpayer is not on SAT’s list of issuers of fake invoices.
- Salary and interest income may sit alongside RESICO if the combined total stays under the cap.
RESICO is part of the rules for Mexican tax residents. If you are unsure whether Mexico taxes you as a resident, read our explainer on Mexican tax residency for foreigners first.
Who cannot use RESICO?
Article 113-E excludes four groups:
- Partners, shareholders or members of companies, and people who are related parties under the law’s transfer-pricing article.
- Residents abroad with a permanent establishment in Mexico.
- People with income subject to preferential (low-tax) foreign regimes.
- People who receive certain income treated like salary, such as fees as board members or advisers and some payments from companies listed in Article 94.
A foreigner who owns shares in a Mexican company, even a small stake, falls in the first group. Check with a contador before choosing the regime.
How much tax do you pay under RESICO?
Monthly tax is a flat percentage of the month’s income collected and backed by electronic invoices (CFDI), without VAT and without deductions. The rate depends on the amount:
| Monthly income collected, MXN | Rate | Annual income collected, MXN | Rate |
|---|---|---|---|
| Up to 25,000.00 | 1.00% | Up to 300,000.00 | 1.00% |
| Up to 50,000.00 | 1.10% | Up to 600,000.00 | 1.10% |
| Up to 83,333.33 | 1.50% | Up to 1,000,000.00 | 1.50% |
| Up to 208,333.33 | 2.00% | Up to 2,500,000.00 | 2.00% |
| Up to 3,500,000.00 | 2.50% | Up to 3,500,000.00 | 2.50% |
The rate applies to the whole amount, not by slices. A freelancer who collects MXN 40,000 in a month pays 1.1 percent, which is MXN 440. In the annual return, the yearly table applies and the monthly payments are credited.
RESICO covers income tax only. Value added tax (IVA) is a separate obligation, and many services carry IVA on top of the fee.
What do you file and when?
The law sets the following obligations, as of November 2026:
- Monthly payment: by the 17th of the following month.
- Annual return: in April of the following year. Our guide to the annual tax return for individuals covers the SAT portal.
- Invoices: issue a CFDI for every sale or service. When customers do not ask for one, issue a global invoice for sales to the general public.
- Expense invoices: keep CFDIs for your expenses and investments, even though they are not deducted.
- Tools: hold an advanced electronic signature (e.firma) and keep the tax mailbox (buzón tributario) active.
- Employees: withhold and pay their income tax monthly.
What changes with company or foreign clients?
When a RESICO taxpayer invoices a Mexican company (persona moral), the company must withhold 1.25 percent of the payment before VAT and give a CFDI showing the withholding. That amount is credited against your monthly payment.
Foreign clients do not withhold Mexican tax, so you pay the full monthly amount yourself. You still issue a CFDI for each payment you collect. Some services used abroad qualify as exports taxed at 0 percent VAT under Article 29 of the VAT Law, but only the types of service that article lists, so ask a contador how your invoices should be set up. Remote workers can compare this with the options in our guide to working remotely in Mexico legally.
How do you leave or lose RESICO?
You leave RESICO automatically and move to the general business or rental regime from the next month if any of these happen:
- Income passes MXN 3.5 million during the year.
- You miss three or more monthly payments in a calendar year, consecutive or not, or skip the annual return.
- SAT detects income without invoices.
People expelled for non-compliance cannot return to RESICO. People who only passed the income cap can come back when a later year’s income is back under MXN 3.5 million and they are up to date. Joining is done by updating your tax obligations with SAT, online or at a SAT office, within the windows SAT sets each year; check the SAT portal before changing regimes.
These are the general rules, not tax advice; SAT and a licensed contador decide how they apply to you.
Bottom line
If you invoice up to MXN 3.5 million a year, own no shares in companies and live in Mexico for tax purposes, ask a contador to compare RESICO with the regular regime using your real income and expenses. Once inside, file every month by the 17th, since three missed months end the regime for good.
FAQ
Can I deduct rent or equipment in RESICO?
No. RESICO taxes income collected without deductions, which is why the rates are low. People with large expenses can pay less in the general regime.
Can a landlord use RESICO for rental income?
Yes. Renting out property is one of the activities the law allows, under the same cap and rates.
Does RESICO create a company?
No. RESICO is only a way of calculating Mexican income tax for individuals. You still invoice under your own name and RFC, with no change to your legal liability.
Does the 3.5 million cap include salary?
The cap counts business, professional and rental income, and if you also earn salary or interest, the combined total must stay within MXN 3.5 million for the previous year.
