Enrique Pastor
Managing Partner at Kreston FLS, Mexico
Plan Mexico: The major economic and fiscal overhaul
April 30, 2025
The Mexican government has launched Plan Mexico, an ambitious economic strategy aimed at attracting foreign investment, modernising infrastructure, and promoting sustainable business practices. Published in the Official Gazette of the Federation, the plan introduces significant fiscal incentives and regulatory reforms designed to drive economic growth and enhance Mexico’s competitiveness on the global stage.
Plan Mexico targets global investors with infrastructure overhaul
A key focus of the plan is to make Mexico more attractive to international investors by streamlining bureaucratic procedures and removing barriers to entry. At the same time, the government is committing substantial resources to infrastructure projects in sectors such as energy, transportation, and telecommunications. By improving these critical areas, officials hope to create a more efficient business environment that will encourage long-term investment and economic expansion.
Fiscal incentives under Plan Mexico aim to boost business growth
To support this growth, the plan also introduces several fiscal measures designed to reduce the tax burden on businesses and stimulate investment. Companies investing in priority sectors will be able to claim additional tax deductions of up to 30% for infrastructure, machinery, and equipment costs. Additionally, businesses that establish operations in newly designated Special Economic Zones (ZEEs) will benefit from a reduced corporate tax rate of 20% for their first ten years, a significant decrease from the general 30% rate. Other tax benefits include accelerated asset depreciation for firms in clean energy and technology sectors, as well as exemptions from local payroll and property taxes for up to five years in select regions.
Plan Mexico embeds sustainability into economic strategy
Sustainability is also a central pillar of Plan Mexico. The government has introduced a range of incentives to encourage businesses to adopt environmentally friendly practices. Companies investing in renewable energy projects, such as solar, wind, or geothermal power, will be eligible for tax credits covering up to 25% of their total investment. Businesses purchasing clean technologies, including electric vehicles and energy-efficient equipment, will be able to deduct these expenses immediately. Meanwhile, firms that successfully reduce their carbon emissions will receive tradable carbon certificates, which can be used to offset tax liabilities or sold on international markets. The plan also includes financial incentives for businesses implementing circular economy practices, such as recycling and material reuse, through reduced environmental duties.
Special Economic Zones
A key element of the strategy is the creation of four Special Economic Zones (ZEEs) aimed at driving regional development and attracting industry-specific investment. The Southeast ZEE, covering states such as Tabasco and Chiapas, will focus on renewable energy, agribusiness, and sustainable tourism. The Northern ZEE, which includes regions like Nuevo León and Coahuila, will prioritise advanced manufacturing, logistics, and information technology. The Pacific ZEE, spanning Guerrero, Oaxaca, and Michoacán, will concentrate on port infrastructure, sustainable fishing, and clean energy initiatives. Meanwhile, the Central ZEE, covering Hidalgo, Puebla, and Tlaxcala, will support the growth of the automotive, textile, and agribusiness sectors.
Strategic considerations for businesses engaging with Plan Mexico
The implementation of Plan Mexico is expected to create significant opportunities for businesses, but it also brings challenges. Experts recommend that companies assess whether relocating or expanding into Special Economic Zones could provide financial advantages. Businesses should also review their tax strategies to ensure they maximise available deductions and reduced rates. Additionally, adopting sustainable practices could unlock further incentives while aligning operations with global environmental standards. Given the complexity of the new tax regulations, firms are advised to seek expert guidance to ensure compliance and avoid potential penalties.
With Plan Mexico, the government is positioning Mexico as a leading destination for international business while driving domestic economic expansion. The combination of tax incentives, infrastructure development, and sustainability measures is expected to attract significant investment. However, businesses will need to navigate the evolving regulatory landscape carefully to take full advantage of the opportunities presented by this sweeping economic reform.
