Why Being Self-Employed Under RESICO in Mexico Is a Smart Choice Compared to the U.S. and Canada
If you’re considering self-employment or starting a small business, Mexico’s Régimen Simplificado de Confianza (RESICO) offers one of the most attractive tax environments in North America. Designed to support small business owners and independent workers, RESICO allows individuals earning up to 3.5 million pesos per year (approx. $200,000 USD) to pay income tax rates between just 1% and 2.5% on their gross income.
Tax Savings vs. U.S. and Canada
In contrast, self-employed individuals in the United States can pay up to 15.3% in self-employment tax (Social Security and Medicare) before even considering federal or state income taxes. In Canada, self-employed individuals not only face progressive federal and provincial income taxes, but also must pay the entire Canada Pension Plan (CPP) contribution, which can amount to over 10% of income.
Why RESICO Stands Out
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Ultra-low income tax: Starting at 1%, capped at 2.5%, depending on income.
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Simple compliance: No complex accounting or costly tax filing — RESICO uses monthly declarations based on actual payments received.
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No annual return required (for many): If you’re within the RESICO thresholds and meet your monthly obligations, you may not even need to file an annual return.
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Ideal for freelancers, consultants, small vendors, and digital nomads operating in Mexico.
Employment & Business Flexibility
In a world where remote work and entrepreneurial freedom are growing, RESICO offers a unique path to formalize your income and retain more of your earnings, without the heavy tax burden found in the U.S. or Canada. Whether you’re consulting, freelancing, running a local shop, or selling online, RESICO helps you stay legal, compliant, and financially efficient.
Bottom line: If you’re seeking independence and want to maximize your income, being self-employed under RESICO in Mexico is a tax-smart, low-hassle alternative that can outperform traditional employment models in North America.
If you enjoyed this blog, read the blog about The Benefits of Starting or Buying a Business in Mexico
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