Tax Incentives & Grants - Mexico

Mexico offers a range of incentives to support film, television, animation, and digital media productions, aiming to attract both domestic and international projects. These incentives include tax exemptions, rebates, and funding programs designed to foster growth in the Mexican film industry.

These incentives, combined with Mexico's diverse locations, skilled workforce, and competitive production costs, make it an appealing destination for a wide range of productions, supporting the growth and sustainability of its creative industries.

Cultural Value: Projects must demonstrate cultural, artistic, and industrial value, utilizing local human resources, both technical and creative.

Compliance: Engaging with local production companies and adhering to Mexican tax regulations is essential to fully benefit from these incentives.

  • Overview: Productions shot in Mexico intended primarily for exploitation outside the country are considered "export products" and are exempt from the 16% Value Added Tax (VAT).

    Application: To benefit from the 0% VAT rate, all expenses must be billed by a single company authorized by the Mexican Tax Administration Service (SAT) prior to invoicing the project.

  • Overview: EFICINE 189 is a tax incentive that allows Mexican taxpayers to receive a fiscal credit equivalent to their contributions to national cinematographic investment projects.

    Credit Limit: The incentive may not exceed 10% of the income tax payable for the fiscal year immediately preceding its application.

    Eligibility: Available to individuals and corporations investing in domestic film production.

  • Overview: Various states and cities in Mexico offer additional incentives, particularly for feature film projects shot within their jurisdictions.

    Types of Support: These incentives may include lodging and transportation during location scouting, special discounts on services, and other forms of assistance.

    Availability: Such incentives are not always available and should be reviewed on a case-by-case basis.

  • Overview: In 2024, Mexican legislators proposed a tax incentive to attract foreign film productions.

    Mechanism: The proposal involves issuing certificates equivalent to 20% of total investments and expenditures made within Mexico, directly related to production.

    Transferability: These certificates can be transferred to Mexican nationals, who can use them to offset their Income Tax (ISR) liabilities.

    Requirements: Foreign investors must register with the National Registry of Foreign Investments and partner with a local company to provide production or co-production services.

  • FONCA (National Fund for Culture and Arts)

    Supports independent Mexican filmmakers through grants for creative projects.

    Emphasizes projects that reflect Mexican culture and heritage.

    IMCINE (Mexican Institute of Cinematography)

    Provides direct funding for development, production, and distribution phases of Mexican films. Also offers support for co-productions with foreign producers.

    Producers’ Guild Collaboration

    Mexico's Producers’ Guild works with the private sector to secure funding and sponsorships for films with cultural and commercial potential.