The Federal Tax Code provides that a person is a resident for Mexican tax purposes when that person establishes a home in Mexico. If the individual has a home in another country, then the individual is a resident of the country where the individual’s centre of vital interests is located. Under Mexican domestic tax law, a person’s centre of vital interests is considered located in Mexico if either (i) more than 50% of the person's income comes from Mexican sources in a calendar year or (ii) Mexico is the primary place of the person's professional activities.
Taxpayers are required to file a notice of suspension of activities for termination of tax residency in Mexico. The notice should be filed during the 15 days prior to the date on which the change of tax residency will take place. When individuals (or corporations) omit to submit such notice, they will not lose their status as Mexican residents.
A Mexican citizen who moves to a country that is considered a tax haven by Mexico will remain a tax resident of Mexico for the year in which the change of tax residency suspension notice is filed and the following five years, unless Mexico has in effect an information exchange agreement with the country or a tax treaty with an information exchange clause or an international treaty that enables mutual administrative assistance in the notification and collection of contributions.