Tax breaks / incentives
Mexico offers a fiscal incentive to any foreign production, regardless of their spend in Mexico, in the form of a tax rebate (Value Added Tax or VAT). The incentive is known as VAT 0% and productions are entitled to claim it back at the end of their shoot, provided they have registered the project with the Ministry of Finance through a Mexican company legally established in Mexico, and up-to-date with their tax payments.
Programme for the High Impact Film and Audiovisual Industry (ProAV Fund).
Mexico does have a programme to support the audiovisual industry that complements the existing public policy of supporting the industry. This scheme offers an incentive of up to 17.5% of the production disbursements made in Mexico. It consists of a cash reimbursement applied on the documented expenses and the refund of the Value Added Tax (VAT) incurred by them in the country.
Finally, because Mexico is a federation, the governments of the entities forming it have autonomy in their management and budgets, allowing them to be active participants in the promotion of film investments within their territory.