Mexico Capital Gains Tax Guide 2026

Overview — CGT Within ISR

Unlike many countries that have a distinct capital gains tax (CGT) regime, Mexico integrates capital gains into the ordinary ISR framework. This means that, in most cases, capital gains are added to the taxpayer's other income and taxed at the progressive ISR rates (1.92–35%). However, there are special optional regimes for certain asset classes that may offer more favourable treatment. The SAT requires all capital gains transactions to be reported, even if no tax is due.

Listed Shares — 10% Optional Flat Rate

Gains from the sale of shares listed on the Mexican Stock Exchange (BMV) or recognised international stock exchanges may qualify for a preferential 10% flat rate, at the taxpayer's option. Key conditions:

• The shares must be listed on a recognised stock exchange (BMV, NYSE, NASDAQ, etc.)
• The taxpayer must have held the shares for at least 12 months (or the gain may be taxed at ordinary rates otherwise)
• The 10% rate applies to the net gain (sale price minus acquisition cost, adjusted for inflation)
• If the taxpayer does not elect the 10% rate, the gain is aggregated with other income and taxed at progressive rates (potentially up to 35%)
• The elects the 10% rate, the taxpayer cannot offset losses from other sources against this gain
• Mexican-resident individuals are eligible; non-residents may be subject to different withholding rates

The optional 10% rate is generally beneficial for higher-income taxpayers who would otherwise pay 32–35% on this income.

Real Estate — 20% Rate or Progressive Rates

Capital gains on real estate are taxed under a special rule. The gain is computed after adjusting the cost basis for inflation using the INPC index. The resulting gain may be:

• Taxed at 20% if the taxpayer elects the special rate (only available for property held more than 2 years)
• Taxed at progressive ISR rates (1.92–35%) if aggregated with other income
• Non-resident sellers face a 25% withholding on the gross sale price (or 35% on net gain if proper documentation is provided)
• Primary residence exemption: gain is exempt if the sale price does not exceed approximately MXN 1.5 million (or MXN 750,000 for subsequent sales within 3 years)

The inflation adjustment is a significant benefit, as it reduces the taxable gain substantially in a high-inflation environment.

Other Assets

For other capital assets, the following rules apply:

• Private company shares: Gain is aggregated with ordinary income and taxed at progressive rates. Inflation adjustment applies to the cost basis. A partial exemption may apply for shares held more than 2 years (50% of gain exempt, capped).
• Bonds and fixed-income securities: Interest and gains are generally taxed as ordinary income. Government bonds may have preferential treatment (0% withholding for residents).
• Collectibles (art, antiques, etc.): Gains are taxed as ordinary income. No specific exemption or special rate.
• Cryptocurrency: Gains from crypto transactions are treated as ordinary income subject to ISR progressive rates. The SAT has issued guidance requiring reporting of crypto transactions.
• Derivatives and futures: Taxed as ordinary income, with specific rules for hedging vs. speculative transactions.

Inflation Adjustment

Mexico's tax system incorporates an inflation adjustment for capital gains purposes. The cost basis of assets is adjusted for inflation from the acquisition date to the sale date using the INPC (Índice Nacional de Precios al Consumidor). This adjustment ensures that only real (inflation-adjusted) gains are taxed, not nominal gains due to inflation. The adjustment factor is published monthly by INEGI. For assets held for many years, this can substantially reduce the taxable gain.

Loss Offsetting

Capital losses may be offset against capital gains in the same tax year. If losses exceed gains, the net loss may be carried forward for up to 10 years. However, there are restrictions:

• Losses from listed shares can only offset gains from listed shares (not other income)
• Losses from real estate can offset gains from real estate or other capital assets
• Losses cannot be used to offset salary or business income
• Wash sale rules: losses on shares repurchased within 30 days may be disallowed

FAQs

Is there a minimum holding period for the 10% share rate?

Yes, to qualify for the optional 10% rate on listed shares, the shares must be held for at least 12 months. If sold before 12 months, the gain is taxed at ordinary progressive rates.

How do I calculate inflation adjustment for property?

The INPC factor is published monthly by INEGI. The formula is: adjusted cost = original cost × (INPC at sale date / INPC at acquisition date). The gain = sale price − adjusted cost. A tax advisor or specialised software can compute this.

Are capital gains on foreign assets taxable?

Yes, Mexican tax residents are subject to ISR on worldwide capital gains. Foreign tax credits may be available for taxes paid abroad on the same gain.

Do I need to report small gains?

All capital gains must be reported to the SAT, even if no tax is due. Failure to report can result in penalties. The SAT receives information from financial institutions, the stock exchange, and notaries regarding asset transactions.

Disclaimer

This guide provides general information about Mexican capital gains tax for the 2026 tax year. Tax laws and rates may change. The information is based on published SAT data and may not reflect individual circumstances. Always consult with a qualified Mexican tax advisor (contador) or the SAT directly for advice specific to your situation. InvestmentKit does not provide tax advice.