Index Fund Taxes in Mexico
Investors in Mexico face a headline capital gains rate of 10% on index funds and ETFs. Capital gains tax rate.
- Headline rate
- 10%
- Tax on a $100,000.00 gain
- $10,000.00
- LATAM average
- 11.4%
What this means for your returns
Tax applies to your gain, not your whole balance. If you invest and your portfolio grows by $100,000.00, a 10% rate leaves you with $90,000.00 of that growth before allowances.
Because the tax is usually triggered when you sell, holding for longer defers it and lets the untaxed amount keep compounding. That deferral is one of the structural advantages of buy-and-hold index investing over frequent trading.
How Mexico compares in LATAM
| Country | Capital gains rate |
|---|---|
| Ecuador | 0% |
| Peru | 5% |
| Paraguay | 8% |
| Chile | 10% |
| Colombia | 10% |
| Dominican Republic | 10% |
| El Salvador | 10% |
| Guatemala | 10% |
Frequently Asked Questions
Headline statutory rates as of 2025-01-01, collected from national tax authority publications. Rates exclude allowances, exemptions, tax-advantaged accounts, local surcharges and treaty relief, and change frequently. Confirm your position with a tax professional in Mexico.