Buying Bitcoin in Mexico doesn’t mean you’re tax-free. Even though the government doesn’t have a special law just for crypto, your gains still count as income-and you owe taxes on them. If you sold Ethereum for pesos, traded Dogecoin for Solana, or used Bitcoin to pay for groceries, you triggered a taxable event. There’s no gray area here: the Mexican tax system sees crypto as intangible movable property, not money. That changes everything.
When You Owe Tax on Crypto
You don’t pay tax just because your Bitcoin went up in value. Taxes kick in only when you dispose of it. That means:
- Selling crypto for Mexican pesos
- Trading one crypto for another (like BTC for ETH)
- Using crypto to buy goods or services
- Gifting or transferring ownership
Even buying coffee with Litecoin counts. The moment you spend it, the IRS-style rule applies: you’re selling that Litecoin at its market value at the time of the transaction. If you bought it for 2,000 pesos and spent it when it was worth 5,000 pesos, you just made a 3,000-peso gain-and that’s taxable.
Staking rewards, airdrops, and mining income? Those count too. When you receive them, they’re treated as income at their fair market value in pesos on the day you get them. Later, if you sell or trade those rewards, you’ll owe capital gains on any increase since you received them.
How Much Tax You Pay
There’s no separate capital gains rate in Mexico. All income-whether from a salary, freelance work, or crypto-is taxed under the same progressive system.
For individuals: Rates range from 1.92% to 35%, depending on your total annual income. But here’s the catch: you get a yearly exemption of up to 90,000 pesos (about $4,000 USD) on capital gains from movable property, including crypto. That means if your total crypto profits for the year are under that amount, you pay nothing. If you made 120,000 pesos in gains, you only pay tax on 30,000 pesos.
For companies: It’s simpler. All crypto profits are taxed at a flat 30%, no matter how long you held the asset. Short-term trades? Long-term holds? Doesn’t matter. 30% is the number.
There’s no distinction between short-term and long-term gains like in the U.S. Holding Bitcoin for five years doesn’t lower your tax bill. The only thing that matters is whether you sold it-and how much you made.
What You Must Track
The Mexican tax authority (SAT) doesn’t give you a checklist. But if you’re audited, you’ll need proof. That means keeping records for every single transaction:
- Date and time of purchase
- Amount of crypto bought
- Cost in pesos (based on exchange rate at the time)
- Source of funds (bank transfer, wallet, etc.)
- Date and time of sale or trade
- Amount received in pesos or other crypto
- Market value in pesos at time of disposal
- Name of counterparty (exchange, person, merchant)
Most people use multiple wallets and exchanges. That makes tracking messy. The standard method for calculating cost basis is First-In-First-Out (FIFO). So if you bought 1 BTC in January for 200,000 pesos and another in June for 250,000 pesos, and you sell 1 BTC in December, the tax system assumes you sold the first one you bought.
Exchange rates matter. You can’t just use the price on CoinMarketCap. You need to use the rate from the exchange where you traded, or a reliable public source like the Bank of Mexico’s daily rate. If you used Binance to trade ETH for USDT, use Binance’s rate at the exact time of the trade.
Reporting Requirements
There’s no crypto-specific tax form. You report crypto gains on your annual income tax return under “other income” or “capital gains from movable assets.”
But there’s another layer: anti-money laundering rules. If you transact more than 65,000 pesos (roughly $3,500 USD) in crypto in a single transaction or cumulatively in a month, the exchange or service provider must report it to the Ministry of Finance. That doesn’t mean you’re under suspicion-it’s just standard procedure. But if you’re doing small trades across multiple wallets to avoid reporting, that’s risky. The system is designed to catch patterns, not just single transactions.
Non-residents don’t pay Mexican tax on crypto sales-even if they traded with a Mexican exchange. But if you’re a Mexican citizen or resident, you owe tax on worldwide crypto gains. That includes trades made while traveling abroad.
What’s Not Covered
There’s no official guidance on many real-world crypto activities:
- How to value tokens from DeFi protocols
- Whether a hard fork creates taxable income
- How to handle lost private keys or hacked wallets
- Whether NFT sales are treated as capital gains or business income
Tax professionals in Mexico say the safest approach is to treat everything as taxable unless you have clear proof otherwise. If you received a new token from a hard fork, record its value on the day you gained control. If you lost crypto, don’t assume you can deduct it-Mexico doesn’t allow loss deductions for lost or stolen crypto unless it’s part of a formal legal claim, which is rare.
How Mexico Compares to Other Countries
Compared to Latin America, Mexico’s rules are middle-of-the-road. El Salvador made Bitcoin legal tender in 2021 but removed that status in January 2025-now it’s taxed like any other asset. Argentina offered a one-time amnesty for crypto holdings declared before March 31, 2025, to bring hidden assets into the system. Brazil taxes crypto at 15% for gains over 35,000 BRL per month.
Mexico’s 35% top rate is high, but the 90,000-peso exemption helps small traders. The lack of a long-term discount hurts investors who hold for years. The real burden? The reporting complexity. Unlike countries with dedicated crypto tax software integration, Mexico forces you to manually track every trade across platforms.
What to Do Now
Don’t wait for a tax notice. If you’ve traded crypto in Mexico since 2024:
- Export all transaction history from every exchange and wallet you used
- Convert every buy/sell to pesos using the exchange rate at the time
- Calculate your total gains for 2025 using FIFO
- Subtract the 90,000-peso exemption if you’re an individual
- Include crypto income in your 2025 annual tax return due by April 30, 2026
Use a spreadsheet or free crypto tax tool (like Koinly or CoinTracker) to help organize data. Don’t rely on exchange summaries-they often don’t include transfers between wallets or DeFi interactions.
If you’re unsure, hire a tax advisor who’s handled crypto cases before. Most accountants in Mexico still treat crypto as a mystery. Find one who’s read the Fintech Law and understands Article 758 of the Federal Civil Code.
The government isn’t going to send you a crypto tax guide. You’re responsible for figuring it out. But if you keep clean records and report honestly, you’re doing more than most. And in Mexico’s evolving crypto landscape, that’s the best protection you can have.
Do I pay tax if I just hold crypto in Mexico?
No. Holding crypto without selling, trading, or spending it doesn’t create a taxable event. Taxes only apply when you dispose of it-whether you sell it for pesos, trade it for another coin, or use it to buy something. Price changes while you hold it are irrelevant until you act.
Is trading Bitcoin for Ethereum taxable in Mexico?
Yes. Trading one cryptocurrency for another is treated as selling the first asset and buying the second. You must calculate the gain or loss on the Bitcoin you traded based on its value in pesos at the time of the swap. That gain is taxable, even if you didn’t convert to fiat currency.
What’s the tax exemption for crypto gains in Mexico?
Individuals can exclude up to 90,000 Mexican pesos (about $4,000 USD) in annual capital gains from movable property, including crypto. If your total crypto profits for the year are below this amount, you pay zero tax. This exemption applies to all types of crypto sales and trades combined, not per transaction.
Do I need to report crypto transactions under $3,500?
You don’t have to report small transactions to the government directly, but you still must include them in your annual tax return. The $3,500 USD threshold is for anti-money laundering reporting by exchanges and platforms-not for your personal tax filing. Even a $10 crypto purchase must be tracked for your own records.
Can I deduct crypto losses in Mexico?
No. Mexico does not allow deductions for crypto losses, even if you sold at a loss or lost access to your wallet. Losses cannot be carried forward to offset future gains. The only relief is the 90,000-peso exemption on gains, which can absorb small losses if your total gains are low.
Are mining rewards taxable in Mexico?
Yes. When you receive mining rewards, they’re treated as income at their fair market value in pesos on the day you receive them. Later, if you sell or trade those rewards, you’ll owe capital gains tax on any increase in value since you received them. Record the date, amount, and peso value at receipt.
What happens if I don’t report my crypto gains?
The Mexican tax authority (SAT) can audit your bank accounts and cross-reference them with exchange reports. If you’ve made transactions over 65,000 pesos and didn’t report them, you could face penalties of up to 75% of the unpaid tax, plus interest. The risk is higher now because exchanges are legally required to report large transactions to the Ministry of Finance.
Jon Martín
9 01 26 / 14:16 PMBro just hold your crypto and don't touch it lol why are we even stressing about this? I bought BTC in 2021 and never sold a single satoshi and I'm still richer than most of my friends who traded like maniacs. Taxes? Nah I'm just vibin' with my bags 🤙
Mujibur Rahman
10 01 26 / 05:52 AMFIFO is the only acceptable method for cost basis under Mexican tax law and any accountant telling you otherwise is either misinformed or trying to save you from paperwork you legally owe. The SAT explicitly references Article 758 of the Federal Civil Code which codifies movable property accounting. You need to track every swap, every airdrop, every DeFi yield farm - if you're using CoinTracker without manual overrides, you're already in violation. No exemptions for 'I didn't know'.
Danyelle Ostrye
10 01 26 / 07:17 AMI just use Binance and never moved anything off. Why do I need to track all this? They already have my history. Why is this so complicated?
Katrina Recto
11 01 26 / 22:54 PMI get that it's the law but it's insane that you can't deduct losses. I lost 80k in 2022 and made 20k in 2025 - I still pay tax on the 20k? That's not fair. This system punishes people who try to recover.
Tre Smith
12 01 26 / 12:13 PMThe premise of this post is dangerously misleading. There is no 'exemption' for capital gains - the 90,000 peso threshold is a non-taxable income bracket under the progressive scale, not a capital gains deduction. Misrepresenting this encourages underreporting. Also, the term 'IRS-style rule' is inaccurate. Mexico does not have an IRS. The SAT is not analogous. Stop using American analogies. They create false expectations.
greg greg
14 01 26 / 10:18 AMI've been tracking every single transaction since 2020 using a custom Python script that pulls data from Binance, Kraken, and my hardware wallet via JSON-RPC, converts all values using Bank of Mexico's API at exact timestamps, applies FIFO with timestamp prioritization, and exports to CSV with SAT-compliant headers. I've also cross-referenced every airdrop with blockchain explorers to confirm receipt timestamps and fair market value based on the most liquid trading pair at the time. I even documented the gas fees as part of cost basis since they're non-refundable and directly tied to acquisition. I'm now filing for 2025 and realized I made 117,000 pesos in gains - so after the exemption, I owe tax on 27,000. But here's the kicker: I also had a 32,000 peso loss from a hacked wallet in 2023 that I can't deduct. That's not just unfair, it's economically irrational. Why penalize victims of theft while rewarding people who hold? The system is designed to extract revenue, not reflect economic reality.
LeeAnn Herker
16 01 26 / 05:49 AMSo the government wants us to report every tiny trade but won't let us deduct losses? 🤡 And they say they're 'modernizing' finance? I bet they're just trying to get more money from people who actually use crypto instead of just holding USD under the mattress. Also, why does every country think they can tax digital assets like they're physical goods? If I lose my keys, that's not a sale - it's a burglary. But nope, no deduction. Just pay up, peasant. 😘
Calen Adams
18 01 26 / 05:28 AMIf you're doing DeFi or staking, you're already in the top 1% of crypto users who care about compliance. Most people don't even know what FIFO means. The real issue isn't the tax - it's the lack of tools. No Mexican exchange integrates with SAT. No app auto-generates reports. You're on your own. But hey, if you track it right, you're ahead of 95% of the country. That’s not a burden - that’s power.
Sarbjit Nahl
18 01 26 / 20:26 PMThe Mexican tax system is a reflection of its institutional weakness. They cannot regulate crypto because they do not understand it. They impose rules based on analogies to stocks and real estate - but crypto is neither. It is a new form of value. To tax it as movable property is to misunderstand its essence. The real solution is not more tracking - it is legal recognition as a currency. Until then, we are all playing a rigged game.
Paul Johnson
19 01 26 / 18:05 PMI just use metamask and send everything to my buddy in canada and he sells it for me and sends me pesos. nobody knows. you think the sat is gonna find me? lol i got 3 wallets and 2 fake names and i use tor. if you report you're a sucker
Meenakshi Singh
21 01 26 / 10:46 AMJust got my 2025 tax summary from Koinly. 142 transactions. 87 were swaps. 12 were airdrops. 3 were lost wallets. 1 was a DeFi reward I didn't even know I got. 🤯 The exemption saved me but I'm still paying tax on 18k. Also... why does every exchange have different timestamps? Binance says 14:02, Kraken says 14:03. Who do I believe? 😭