Build a Nearshoring Hub in Mexico: Tax Benefits for Exporting Services

As global companies continue to optimize operations through nearshoring, Mexico stands out not just for its strategic location and skilled talent—but also for its significant tax advantages when exporting services. For businesses providing administrative, IT, or financial services to international affiliates, Mexico offers a compelling opportunity to reduce tax burdens through a combination of VAT incentives and the IMMEX program.

Let’s break down why Mexico is becoming a prime location for nearshoring service hubs—and how companies can take full advantage of it.

The Service Industry
in Mexico

The service industry in Mexico is extremely important to the country. Services represented over 60% of Mexico's total GDP and employed nearly 25% of the workforce in 2024. 

There has been a strong expansion in shared services in Mexico, Business Process Services (BPO) and IT Services - especially in cities like Guadalajara, Monterrey, Querétaro, and Mexico City. Global companies are establishing service centers in Mexico to handle functions such as accounting, HR, marketing, and tech support.

Trade Balance

Exports to United States

Additional research into Mexico's service industry can be found below:

• The Nearshoring Tech Boom
• The Growth in Nearshoring Shared Services in Mexico
• Software Development in Mexico: an e-book
• The Research & Development Sector in Mexico

Understanding Taxes
in Mexico

There are a number of taxes that are applicable to businesses operating in Mexico, including value-added tax, income tax, payroll tax, and other special programs designed to attract foreign investment.

Understanding how these taxes interact-and how to qualify for exemptions or reduced rates-is crucial to optimizing your operating model. 

There are multiple trade programs and incentives that allow companies to reduce their VAT tax burden in Mexico. Some of them are:

• The IMMEX Program - focused on the export sector, goods and services 
• Border Zone Incentives - providing reduced VAT and other taxes
• Zero-Rated Activities - like exports and government infrastructure, for example

The VAT Advantage:

Exporting Services at 0%

One of the most attractive tax incentives for companies exporting services from Mexico is the 0% Value Added Tax (VAT) rate available under Article 29, Section IV of Mexico’s VAT Law. These include activities such as essential items like medicines and land, or exported goods and services.

What the Law Says

Ordinarily, services rendered in Mexico are subject to a 16% VAT. However, when those services are considered exported—meaning they are used or “enjoyed” abroad—they may qualify for the 0% rate, eliminating VAT as a sunk cost for international clients or affiliates.

But the legal standard for “use abroad” (aprovechamiento en el extranjero) has evolved. Recent decisions by Mexican courts, including the Supreme Court, have clarified that:

• It’s not enough to show that the service was contracted or paid for by a foreign entity.

• The taxpayer must prove that the benefits and effects of the service were materialized outside of Mexico.

• Simply meeting formal regulatory requirements—like receiving payment from a foreign bank account—is not sufficient on its own.

Key takeaway: A case-by-case analysis is essential, supported by robust documentation (e.g. service agreements, work deliverables, emails, performance metrics) that shows where the value of the service was truly realized.

Leverage the IMMEX Program

for Service Operations

Mexico’s IMMEX (Industria Manufacturera, Maquiladora y de Servicios de Exportación) program is widely known for its benefits to manufacturing operations, but its Service IMMEX module also presents a significant opportunity for companies looking to establish service centers that provide export services to other countries. By leveraging IMMEX for service-based operations, nearshoring businesses can optimize costs, streamline processes, and enhance their competitiveness in the global market.

Eligible Services Under IMMEX Service Modality

• Information Technology and software development

• Finance and accounting

• Administrative or shared services

• Customer and technical support

• Data analytics, engineering, and design

When provided to non-resident clients or affiliates—and when the services are demonstrably used abroad—these activities can qualify as exports under the VAT law, making them eligible for the 0% rate.

Why IMMEX Matters

• VAT Relief: Exports under IMMEX may qualify for 0% VAT treatment, avoiding unrecoverable tax.

• Customs Simplification: While not always relevant for pure service exports, IMMEX registration may ease administrative processes for hybrid operations involving physical goods.

• Government Recognition: IMMEX status signals compliance and helps in dealings with SAT (Mexico’s tax authority).

Nearshoring Makes Sense

for Service Hubs

Nearshoring is reshaping supply chains and business ties across North America. Beyond manufacturing, services like digital deliverables and knowledge workflow seamlessly across borders. 

Mexico is an increasingly popular destination for service-based nearshoring due to:

• Proximity to the U.S. and Latin America
• Skilled bilingual talent
• Time zone alignment with North and South America
• Cultural and operational compatibility with Spanish-speaking markets

By consolidating services in Mexico and exporting them to affiliated companies or third parties abroad, businesses can reduce costs, improve response times, and unlock tax efficiencies.

Key Takeaway: nearshoring is not just advantageous for manufacturing companies; service functions can also obtain important tax benefits for exports. Explore the shared service industry in Mexico.

Turn Nearshoring into a Strategic Tax Advantage

Nearshoring is no longer a short-term solution—it’s a strategic shift. Companies that move quickly to structure compliant, export-ready service centers in Mexico can achieve major advantages in cost, speed, and tax efficiency.

With the right strategy and structure, Mexico offers one of the most favorable environments in the Americas for building a global service delivery hub.

Mindfacturing®
in Mexico

Mindfacturing® is the solution at the intersection of manufacturing and technology. It’s an EOR designed for the evolving manufacturing landscape in North America, one that is increasingly aligned with technical and service functions.

Mindfacturing®  empowers manufacturers to build service teams alongside their operations in Mexico, while ensuring compliance with strict labor regulations and IMMEX in Mexico. 

Mindfacturing® is the future of manufacturing in Mexico. 

Marcela Cantú is the Vice President of Finance at Prodensa, where she has demonstrated her expertise across finance, accounting, legal and human resources management for over 28 years. 

With a comprehensive background in corporate finance, administration, and risk management, Marcela has been pivotal in implementing financial strategies and overseeing investment initiatives that drive the company's growth and operational efficiency. Since October 2021, she has led the finance division, managing financial planning, valuations, and fiscal compliance in alignment of the company's strategic objectives. 

Marcela holds a degree in Public Accounting from the University of Monterrey, a Master's in Business Administration from Universidad Regiomontana, and has completed an advanced program at IPADE Business School. She is an active member of the Mexican Institute of Finance Executives (IMEF) and collaborates with the Nuevo León Institute of Public Accountants and the Executive Specialization Institute.

Her professional journey began in 1996 in various accounting firms, and she joined Prodensa in 2001 as an Accounting Leader, advancing through multiple leadership roles.