Taxes on US stocks for investors in Mexico

Before we start: this guide is general information for individuals resident in Mexico who invest through a Mexican brokerage. It does not replace advice from an accountant, and tax rules change. Always check the current information from Mexico's tax authority (SAT) and your yearly statement. Last reviewed: October 2026.

Gains from selling SIC stocks

When you sell stocks or ETFs listed on the International Quotation System (SIC) through a Mexican brokerage, the gain pays a 10 % income tax (ISR), based on article 129 of Mexico's Income Tax Law. Key points:

• You only pay on the gain, not on everything you sell. If you bought for $10,000 pesos and sold for $13,000, the gain is $3,000 and the tax would be about $300.
• The gain is calculated in pesos, with the purchase cost adjusted for inflation. That is why the exchange rate matters: if the dollar rose, your gain in pesos is larger.
• No tax on the gain while you do not sell. If you keep your shares for years, the tax is paid only when you sell.
• Losses can offset gains. If you sold at a loss during the year, that loss reduces your gains of the same year and, if there is some left, those of later years, within the limits set by law.
• It is a final tax, but it is reported. Even though the 10 % is final, gains and losses must be included in your annual return. The brokerage gives you a yearly statement with the numbers; the SAT also receives that information.

Dividends from foreign companies

Dividends from US stocks usually arrive with US withholding. For residents of Mexico, thanks to the tax treaty between both countries, that withholding is usually lower than the general rate if your brokerage has your information right (form W-8BEN or equivalent). In Mexico, foreign dividends also have their own rules, and the brokerage sometimes withholds an additional amount. Since the treatment depends on each case, check your yearly statement and ask an accountant how to report them and whether you can credit the tax paid abroad.

What to do in practice

1. Keep your monthly account statements and your brokerage's yearly statement.
2. Before the annual return (April), check that the gains, losses and dividends on the statement match your records.
3. If you sold at a loss, make sure it is being offset.
4. If in doubt, an accountant can save you more than they charge.

What does not change

• Buying does not create taxes; selling at a gain does.
• Investing long term and selling little greatly simplifies your taxes.
• The exchange rate affects your gain in pesos.

Sources to dig deeper: the SAT website (sat.gob.mx), Mexico's Income Tax Law (article 129) and your brokerage's tax information.