2026 Economic Package: Incentives to Attract Capital, Improve Tax Compliance, and Expand Access to Culture
The Mexican Congress approved the 2026 Economic Package featuring a range of tax incentives and reductions in government fees aimed at regularizing taxpayers, attracting investment, and promoting cultural activities. These measures come in a context of moderate growth, inflation trending towards target, and ongoing efforts to harness the relocation of value chains to Mexico, seeking to broaden the tax base without resorting to widespread tax increases.
The most notable development is a program for the repatriation of legally sourced capital held abroad until September 8, 2025. This program allows such funds to return to Mexico by paying a fixed 15% income tax rate, with no deductions allowed. To qualify, repatriated capital must be invested in Mexico no later than December 31, 2026, and remain in the country for at least three years. Eligible investments include the purchase of new fixed assets, land, and constructions linked to projects under the “Plan Mexico” strategy or Development Poles. A similar measure was implemented in 2017, bringing in about 380 billion pesos at a preferential rate of 8%, generating between 20 and 25 billion pesos in tax revenue. This new edition, at a higher rate, is less focused on immediate revenue and more on channeling productive investment during a key period for nearshoring.
The Tax Regularization Program is also being expanded and updated. In 2025, it granted a 100% waiver on fines, surcharges, and enforcement costs for taxpayers with incomes under 35 million pesos. For 2026, the income threshold rises to include taxpayers earning up to 300 million pesos in the 2024 fiscal year, as long as they have established or accepted tax liabilities and file any missing tax returns and pay in full by the end of 2026. For formal obligations not tied to payments, a 90% waiver applies. Applications must be submitted before October 2026. The objective is to expand compliance and provide certainty, in line with the tax authority’s strategy to improve collection efficiency.
On the social consumption front, the zero VAT rate is being extended to more menstrual management products: beginning in 2026, menstrual underwear and cups will be zero-rated, joining pads and tampons, which have been tax-exempt since 2021. According to the Finance Ministry, the associated forgone revenue is estimated at 6.717 billion pesos for 2025 and 7.131 billion for 2026—about 0.0187% of GDP—a limited cost compared to the potential relief for household spending and the gender equity component.
Regarding the Special Tax on Production and Services (IEPS), while increases are planned for cigarettes and tobacco, products containing nicotine intended for replacement therapies will be exempted, provided they are registered as pharmaceuticals. This aligns with harm reduction policies and has minimal fiscal impact relative to tobacco revenue, while maintaining incentives for users to quit smoking.
For the publishing sector and print distributors, a stimulus was approved for individuals and companies residing in Mexico whose income did not exceed six million pesos in the previous fiscal year and who earn at least 90% of their income from the sale of books, newspapers, or magazines. The benefit consists of an additional deduction of 8% of total income costs for income tax purposes. In a market under pressure from digitalization and logistics costs, this measure may bolster small bookstores, points of sale, and publishing houses that sustain the book chain and access to informational content.
In the area of cultural rights, discounts will apply for Mexican citizens and residents on entry to monuments, sites, and archaeological zones: 50% for Category I, and 45% for Categories II and III. Additionally, entry to the National Museum of Architecture at the Palace of Fine Arts will be free starting January 1, 2026, under the “Cultural and Reading Republic” plan. The goal is to broaden audiences and link cultural policy with educational and tourism objectives, with minimal fiscal impact.
The suite of incentives coincides with planned fiscal consolidation for 2026 and a focus on public investment in strategic infrastructure. For the private sector, the signal is one of continuity: greater compliance, avenues to formalize debts, and a path for foreign capital to participate in productive projects. Effectiveness will depend on regulatory clarity—for instance, the operational definition of “Plan Mexico” and the eligibility of projects—the administrative efficiency of the tax authority, and global financial conditions, including U.S. interest rate trends and investment appetite.
Looking ahead, analysts will track three key indicators: the total capital effectively repatriated and its investment destination; participation in the regularization program and associated revenue; and the sectoral impact of the cultural and publishing incentives. Overall, these measures are moderate in scale but consistent with the strategy to strengthen compliance and capitalize on the attraction of manufacturing and service investments linked to nearshoring, without significantly undermining public finances.
In summary, the 2026 Economic Package combines targeted incentives for investment and compliance with measures to expand access to culture. Its success will rest on execution, regulatory certainty, and the ability to channel capital into productive projects, maintaining the balance between revenue collection and economic growth.
