Mexico Film Tax Incentive

How Does Mexico's Film Tax Incentive Work?

Mexico launched a landmark film tax incentive program in February 2026, establishing for the first time a direct production tax credit. The decree, published in the Official Gazette on February 16, 2026, provides a transferable tax credit that positions Mexico to compete with Colombia and Canada for international productions.

Credit Structure

The incentive provides a tax credit of up to 30% of total production costs incurred within Mexico. The per-production cap is MXN 40 million (~$2 million), with a total annual program budget of MXN 400 million.

The credit is transferable to domestic suppliers directly related to the production (up to 30% of the credit amount) or to any Mexican income tax payer.

Eligibility

The incentive is open to national and international feature films, television series, and streaming content. Productions that have already claimed EFICINE (Mexico's separate cinema investment program) are not eligible for this new incentive.

Why Productions Choose Mexico

Proximity to the US. Short travel times from Los Angeles, direct flights from major US cities.

Diverse locations. Beach resorts, colonial cities, jungle, desert, modern metropolises.

Cost advantage. Significantly lower crew rates and local costs compared to the US.

Growing infrastructure. Studios in Mexico City, Baja California, and Guadalajara.

Mexico Film Tax Incentive: Key Facts

• Credit rate: Up to 30% of Mexican production costs
• Per-production cap: MXN 40M (~$2M)
• Annual fund: MXN 400M total
• Transferable: Yes, to suppliers or other taxpayers
• Launch date: February 16, 2026
• Official resource: Film in Mexico