Hiring Foreign Nationals and Work Visas in Mexico

Foreign companies often send executives, engineers or specialists to Mexico, or hire expatriates locally. Immigration, labor and tax rules apply together. This guide explains the main points: the 90% Mexican workforce rule, work authorization, employer obligations and payroll implications.

The 90% Mexican workforce rule

The Federal Labor Law requires that at least 90% of the employees in each company be Mexican. In technical and professional roles, foreigners may be hired only if there are no Mexican workers in the specialty, and then only temporarily. Directors, administrators and general managers are generally allowed to be foreign. Confirm the exact rule for your staffing plan with counsel.

Immigration status and work permits

Foreigners need an immigration status that authorizes paid work. Typically the process starts with a job offer and the employer's registration with the National Migration Institute (INM), followed by a visa application at a Mexican consulate and a residence card once in the country. Rules, forms and timelines change, so use an immigration specialist.

• Employer must be registered with INM and in good standing
• The employee obtains a visa with permission to work
• After arrival, the residence card is issued with the work authorization
• Dependents follow separate procedures

Employment contract and payroll

Foreign employees are covered by the same labor law as Mexican employees if they work in Mexico: written Spanish contract, mandatory benefits, IMSS registration, income tax withholding and CFDI payroll receipts. Each person needs a Mexican tax ID (RFC) and a social security number, which can be obtained with the right immigration documents.

Tax and social security

Income tax depends on tax residency and the source of income. Employers must withhold Mexican income tax on wages for work performed in Mexico. Totalization agreements on social security are limited, so employees may remain subject to contributions in their home country as well. Coordinate with a cross-border tax adviser, especially for assignees on a secondment.

Expatriate packages

Common elements include housing support, relocation allowance, schooling, tax equalization and home-leave travel. Document each benefit and verify its tax treatment, because some are taxable income and may also integrate into social security salary.

Practical checklist

Confirm that you comply with the 90% rule, register with INM, prepare the offer and Spanish contract, start immigration filings early, register the employee in payroll and IMSS, and plan for taxes and benefits. Delays in immigration are the most common reason expatriate start dates slip.

This article is general information, not legal, tax or accounting advice. Mexican law and tax rules change often: confirm current requirements with a qualified Mexican advisor before making decisions.