Crypto Taxation in Mexico: How Income and Capital Gains Are Treated

When you buy, sell, or trade cryptocurrency in Mexico, you’re not just making a digital move-you’re triggering a tax event. Unlike countries with clear crypto tax rules, Mexico doesn’t have a separate law for cryptocurrency. Instead, your crypto transactions are treated like any other property sale under existing tax codes. That means if you trade Bitcoin for Ethereum, use ETH to buy groceries, or mine new coins, the Mexican tax authority expects you to report it. And the penalties for not doing so can be steep.

How Mexico Classifies Cryptocurrency

Cryptocurrency isn’t money in Mexico. It’s not legal tender. It’s not even considered a financial instrument. Under Article 758 and 763 of the Federal Civil Code, crypto is classified as an intangible movable asset. Think of it like selling a piece of art or a rare collectible. You don’t pay tax just because its value goes up. You pay when you actually sell it, trade it, or spend it.

This matters because it changes everything. If you hold Bitcoin for three years and it doubles in value, you owe nothing until you cash out. But if you trade that Bitcoin for Litecoin on a decentralized exchange? That’s a taxable sale. The moment you transfer ownership, the tax clock starts ticking.

Capital Gains: The $4,000 Exemption That Changes Everything

For individuals, Mexico offers a rare break: an annual exemption of up to 90,000 Mexican pesos (roughly $4,000 USD) on capital gains from movable property-including crypto. This exemption applies to all types of asset sales, not just crypto, but it’s often the only thing keeping small investors out of the tax net.

Here’s how it works: If you bought $1,500 worth of Ethereum and sold it for $3,000, your gain is $1,500. That’s below the exemption. No tax due. But if you made three such trades in a year totaling $100,000 in gains? You’re taxed on the full amount above $4,000.

The catch? Mexico doesn’t distinguish between short-term and long-term gains. A day trade and a three-year hold are treated the same. Your total income determines your tax rate, which ranges from 1.92% to 35% under Mexico’s progressive income tax system. High earners pay top rates, even on crypto.

Corporate Crypto: Flat 30% No Matter What

Businesses don’t get exemptions. If your company buys and sells crypto, every profit is taxed at a flat 30%. No holding period discounts. No loss carryforwards. Just 30% of your net gain.

This applies whether you’re a startup accepting Bitcoin for services or a trading firm running automated crypto arbitrage. Even if you reinvest all profits into more crypto, you still owe tax on the realized gain from each sale. There’s no deferral. No special treatment. Just corporate income tax, plain and simple.

When Exactly Do You Owe Tax?

It’s not just about selling crypto for pesos. Any transfer of ownership counts:

• Selling BTC for USD or MXN
• Trading ETH for SOL
• Using LTC to pay for a hotel stay
• Receiving crypto as payment for freelance work

Even buying a coffee with crypto triggers a tax event. The IRS in the U.S. treats this the same way-but Mexico doesn’t have public guidance to help you calculate it. You’re expected to know the fair market value in pesos at the exact moment of the transaction. That means tracking exchange rates down to the second.

Staking rewards, airdrops, and mining income? All treated as income when received. If you earn 0.5 ETH from staking, you owe tax on its peso value that day. Later, when you sell it, you’ll pay capital gains on any increase since you received it.

Record Keeping: The Hidden Burden

There’s no official app or tool from the Mexican tax authority. You’re on your own to track every transaction. You need:

• Date and time of each acquisition
• Amount of crypto bought and its peso value at purchase
• Source of funds (bank transfer, another wallet, etc.)
• Date and time of each sale or trade
• Amount received and its peso value at time of disposal
• Name of counterparty (if known)

Most people use multiple wallets and exchanges. One trade on Binance, another on a decentralized protocol, a third via a peer-to-peer app. You must reconcile all of them. The Mexican tax authority accepts FIFO (First-In, First-Out) as the default method for calculating cost basis-but they don’t confirm it in writing. So if you get audited, you better have clean records.

AML Reporting: The Other Tax Trap

Even if your crypto gains are under $4,000 and you owe no income tax, you might still have to report the transaction. Under Mexico’s anti-money laundering law, any virtual asset transaction over $3,500 USD (or its peso equivalent) must be reported to the Ministry of Finance.

This applies to everyone-individuals and businesses alike. If you send $4,000 worth of Bitcoin to a friend, or buy $5,000 in crypto from a peer, that’s a reportable transaction. Fintech companies and banks must report too, but they’re required to do so automatically. Individuals? You’re responsible for self-reporting if you’re involved in a high-value transaction.

Failure to report can lead to fines, asset freezes, or even criminal investigation. Many people don’t realize this isn’t just a tax issue-it’s a compliance issue with teeth.

What About Mining and DeFi?

There’s no official guidance, but tax professionals agree on the likely treatment:

• Mining: The coins you mine are income at their market value when received. Later sales trigger capital gains.
• Staking rewards: Treated as income on receipt. Same as mining.
• DeFi yield farming: Rewards from liquidity pools are income. If you swap those rewards, it’s another taxable event.
• Airdrops: Income when received. Even if you didn’t ask for it.
• Hard forks: New coins from a fork are income at fair market value on the day they appear in your wallet.

There’s no special exemption for DeFi. No “no-tax zone” for decentralized protocols. If you earn from it, it’s taxable. If you trade it, it’s taxable. Simple as that.

How Mexico Compares to Other Latin American Countries

Mexico’s approach is middle-of-the-road. Not as strict as Brazil, where crypto is treated as financial assets with complex reporting. Not as loose as Argentina, which offered a 2025 tax amnesty for undeclared holdings.

El Salvador made Bitcoin legal tender in 2021-but as of January 2025, that status was revoked. Now, Bitcoin gains are taxed like any other asset. Colombia taxes crypto as income with no exemption. Chile has no clear rules but treats it as property.

Mexico’s $4,000 exemption gives small investors breathing room. But its 35% top rate and lack of long-term discounts make it less attractive than places like Portugal or Singapore, which offer crypto tax holidays.

What You Should Do Now

If you’re trading crypto in Mexico:

• Track every transaction-date, amount, value in pesos, and counterparty.
• Calculate your annual gains. If under $4,000 USD, you likely owe nothing.
• If over $4,000, add your crypto gains to your other income to find your tax bracket.
• Report any transaction over $3,500 USD to avoid AML penalties.
• Keep records for at least five years. The tax authority can audit back that far.
• Consult a tax advisor who understands both Mexican tax law and crypto.

There’s no official crypto tax guide from the SAT (Mexico’s tax agency). That means you’re interpreting the law yourself. But the penalties for getting it wrong aren’t theoretical. They’re real-and they’re rising.

The government isn’t planning major changes soon. President Sheinbaum’s administration has shown no interest in overhauling crypto policy. That means the current patchwork of rules-based on civil code, VAT laws, and AML regulations-is here to stay. Your responsibility? Stay organized. Stay informed. And don’t assume silence from the government means freedom from tax.