02 / 23 / 26
New Tax Incentive for Film and Audiovisual Production in Mexico: Strategic Opportunities and Key Considerations
MEXICO CITY, MEXICO, February 23rd, 2026 – The Federal Government has enacted a decree granting a 30% income tax (ISR) credit for film and audiovisual production projects carried out in Mexico. This new incentive aims to promote investment in the creative industry and strengthen the competitiveness of Mexico’s audiovisual sector.
This measure opens a significant window of opportunity for production companies, investors, and international platforms. However, its proper implementation requires careful structuring and technical compliance.
What does the incentive provide?
The decree allows taxpayers to apply a tax credit against income tax, subject to specific eligibility requirements, annual caps, and a prior authorization process before the competent authority.
Key aspects include:
- Definition of eligible projects
- Annual limits applicable to the incentive
- Formal and documentary compliance requirements
- Coordination with other available tax benefits
The tax credit may amount to up to 30% of the total project cost, subject to a cap of MXN 40 million per project and per beneficiary, as follows:
| Narrative or animated feature films, and per episode of narrative or animated series | Minimum investment of MXN 40 million |
| Documentary feature films or documentary series | Minimum investment of MXN 20 million |
| Animation, visual effects, and post-production processes for film or audiovisual projects | Minimum investment of MXN 5 million per process |
Who may benefit?
The incentive is particularly relevant for:
- Film and audiovisual production companies
- Streaming platforms producing content in Mexico
- International studios filming in Mexican territory
- Entertainment-focused investment funds
- Companies structuring audiovisual investments as part of their tax planning strategy
Tax implications for producers and industry participants
To qualify for the incentive, companies must:
- Structure their projects to meet the 70% national supplier requirement
- Properly document all expenses incurred in Mexico
- Ensure compliance with the minimum investment thresholds per project category
- Assess the tax efficiency of producing directly or through a Mexican corporate structure
- Consider the MXN 40 million cap when planning large-scale productions
The new tax incentive represents a strategic opportunity to strengthen Mexico’s audiovisual industry and attract foreign investment. Nevertheless, maximizing its benefits will depend on proper structuring, technical compliance, and careful tax planning.
Our tax team is available to assess the feasibility of the incentive for specific projects and to design strategies that maximize its benefits while mitigating risk.