Tax guidelines and regulations for large money transfers into Mexico

Your recipient won't have to pay taxes on the money — but you'll have to tell the IRS.

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The IRS requires you to report any transfer over $10,000, and filing to file can mean hefty penalties — and in some cases even jail time.

How Mexico regulates large remittances

Mexico doesn’t levy specific inheritance, estate or gift taxes on large amounts of money transferred into the country, but your recipient may have to report the transfer as income when they file their yearly taxes.

Gifts to spouses, children and parents are exempt, but gifts to siblings are not — and if the government finds out that the stated recipient gave the money to someone else, it won’t be exempt.

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    Compare providers for your next large transfer to Mexico

    Max. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
    USD 500,000 1 - 2 days USD 0.00 19.033 MXN 285,501 Offering no maximum and no minimum limit transfers with $0 fees. Go to site Show details
    No limit 1 - 2 days USD 0.00 19.039 MXN 285,587 Exclusive: Minimum transfer of $1,000 for Finder readers (normally $5,000).
    For larger transfers, get no transaction fees and no maximum send limits.
    Go to site Show details
    No limit 1 day USD 0.00 19.039 MXN 285,587 Venstar will support you through the entire process of your international transactions, from start to finish. Go to site Show details
    No limit 1 day USD 0.00 19.039 MXN 285,587 No-maximum limit transfers with competitive exchange rates for 100+ currencies. Go to site Show details

    Compare up to 4 providers

    What are the penalties in Mexico if my recipient fails to file?

    If your recipient doesn’t list the transfer on their income taxes, they could be charged with tax evasion in Mexico. If they can prove that the failure to list the transfer was accidental, they’ll have to pay any taxes due, along with a penalty. If the failure to file was intentional, they can be criminally charged.

    Do I have to report large transfers out of the US?

    Possibly. If you’re sending more than $15,000 as a gift, sending to a foreign account in your name that holds over $10,000 or sending over $10,000 as a business, you’ll need to let the IRS know.

    By law, banks report cash transactions into and out of the country. Money transfer companies are sometimes held to reporting thresholds as low as $1,000. With so much attention paid to money entering and leaving the country, the government will likely discover if you fail to report large sums out of the US.

    Sending a lot of money out of the country? Know what the IRS expects of you.

    How much money can I send to Mexico?

    There is no legal limit on the amount of money you can send to Mexico, though transfer providers may impose their own limits. If you’re sending a large transfer, consider using XE, which doesn’t have a cap on how much you can send.

    How can my recipient in Mexico get the money?

    How your friends and family receive your money transfer depends on the provider and method you’ve used to deliver it. Available options include direct bank transfers, cash pickup and mobile wallet deposits. If you’re sending cash, your recipient may need to show ID or a transaction number to pick up the funds.

    As with all international money transfers, be wary of potential fraud and only send money to people you know. Using a reputable provider can safeguard you from potential scams.
    How to send money to Mexico

    Bottom line

    When it comes to tax regulations, Mexico is an easy country to send money to. Your recipient won’t have to fill out any extra forms, and depending on how much you’re sending and who you’re sending it to, you might not have to, either.

    Before you start your transfer, compare international money transfer providers to make sure you’re getting the best deal on fees and exchange rates.

    Frequently asked questions

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    6 Responses

    1. Default Gravatar
      MichaelFebruary 7, 2019

      Is it better to make a transfer of greater than $10,000 or separate transfers of less than $10,000?

      • Avatarfinder Customer Care
        MaiFebruary 13, 2019Staff

        Hi Michael,

        Thanks for your question.

        If you are sending the money to one person only it will not matter if you’ll send it in one go or if you will separate the transfer to below $10,000. Your recipient may still have to report the transfer as income when they file their yearly taxes anyways. On the other hand, IRS requires you to report any transfer that you will do if it will go $10,000.

        You can compare providers for your large money transfer to Mexico from this page. Feel free to use the calculator so you can identify which money transfer agency will best suit you. Just click the ‘Go To Site’ button so you can be routed to their page where you can sign up and bein the transfer process.

        Hope this helps. ​Please feel free to contact us back should you require further assistance.

        Kind Regard,
        Mai

    2. Default Gravatar
      JamesDecember 26, 2018

      Has President Obrador imposed a new border adjustment tax fr money being transferred from Mexico to the U.S. or money from the U.S. to Mexico.

      • Avatarfinder Customer Care
        ValDecember 29, 2018Staff

        Hi James,

        Thank you for leaving a question. There is still no update on the new border tax for money transfers. Our page indicates that in 2017, Congress submitted a bill proposing a 2% tax on remittances to Latin American countries that include Mexico, Brazil, Honduras and El Salvador — a tax that’s a significant key to funding the wall. We’ll update this page as details are finalized.

        Hope this helps! Would you have further questions, please don’t hesitate to visit us again.

        Regards,
        Val

    3. Default Gravatar
      PedroSeptember 28, 2018

      Hi. I need INF.

      • Avatarfinder Customer Care
        JhezSeptember 28, 2018Staff

        Hello Pedro,

        Thank you for your comment.

        If you’re referring to Internet Fund Transfer, you may refer to our guide here wherein you can also compare different international money transfer companies with its corresponding costs and fees. I hope this helps.

        Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.

        Regards,
        Jhezelyn

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