Mexico

Mexico does not have a dedicated cryptocurrency tax framework. The Servicio de Administración Tributaria (SAT) applies the general Impuesto Sobre la Renta (ISR) income tax law to crypto transactions, treating cryptocurrency as an intangible movable asset. A small movable property exemption of approximately 227,700 MXN (roughly $4,000 USD) applies to annual gains. The Comisión Nacional Bancaria y de Valores (CNBV) oversees Institutions of Electronic Payment Funds (IEPFs) under the 2018 Fintech Law, which provides a licensing framework for some crypto-related services but does not resolve the full range of tax questions. The overall framework is functional but incomplete.

Core Tax Treatment

Gains from the disposal of cryptocurrency by individuals are treated as income from the sale of movable property and subject to ISR at progressive rates of 1.92–35% depending on total annual income. Crypto-to-crypto swaps are taxable disposals — exchanging one token for another triggers a gain or loss calculated on the disposed asset's MXN value at the time of the swap. The FIFO method applies where multiple lots were acquired at different prices.

A small exemption applies to gains from the sale of movable property: the first approximately 227,700 MXN of annual gain is exempt from ISR. This is not a crypto-specific exemption and applies to all movable asset sales. For investors with modest gains it may eliminate the tax liability entirely; for larger disposals it provides only a marginal benefit.

ISR on Crypto Gains

The taxable gain is disposal proceeds minus the documented acquisition cost, adjusted for inflation using official INPC indices where the acquisition predates the disposal by a significant period. The inflation adjustment can meaningfully reduce the taxable gain for assets held over several years during periods of high Mexican inflation. Losses from crypto disposals can offset gains from other movable property sales but cannot offset ordinary employment income.

Individuals must self-assess and report crypto gains in their annual ISR return. Mexico does not yet have automatic exchange reporting in place — SAT relies primarily on voluntary compliance and selective audit. Compliance rates in the crypto sector are believed to be low, though SAT has indicated it is increasing focus on digital asset transactions.

VAT Considerations

Transactions involving crypto that occur within Mexico may attract a 16% IVA (VAT). The application of IVA to crypto is not fully settled, and the SAT's position depends on whether the transaction is characterised as a service, a goods sale, or a financial transaction. Crypto-to-fiat conversions through Mexican exchanges may in principle attract IVA, though in practice enforcement of VAT on individual crypto transactions has been limited. Businesses operating crypto exchanges or services in Mexico should obtain specific advice on their IVA obligations.

Mining and Staking

Mining income is taxable as business income at the time of receipt, valued at the MXN market rate. Mining constitutes a taxable business activity subject to ISR at the applicable rate (up to 35% for individuals, 30% for corporations) and may attract IVA obligations. Staking rewards are treated as income at receipt by analogy with mining, though the SAT has not published dedicated staking guidance.

Fintech Law and Licensed Platforms

Mexico's 2018 Fintech Law established a licensing framework for Institutions of Electronic Payment Funds (IEPFs), which covers certain payment-related crypto services but not all exchange activity. The CNBV has licensed a small number of platforms. Unlicensed exchanges continue to operate, and the regulatory perimeter is not comprehensively enforced. For tax purposes, the licensing status of the exchange used does not alter the individual's ISR obligations — gains are taxable regardless of where the transaction occurred.

Reporting

Crypto gains are declared in the annual ISR return filed with the SAT, typically due by 30 April for the prior calendar year. SAT's Declaración Anual requires disclosure of all taxable income including movable property gains. There are no crypto-specific forms; gains are reported under existing income categories. Mexico has committed to implementing CARF by 2027.