On January 13, 2025, Mexico’s President Claudia Sheinbaum introduced the highly anticipated "Plan Mexico", an initiative focused on addressing economic stability, national security and public safety.
Plan Mexico seeks to introduce multiple legal reforms, highlighting a boost to foreign investment, improvement of infrastructure, and fostering sustainable growth.
Plan Mexico aims to:
Place the country among the top ten global economies.
Raise the ratio of investment to GDP to over 25% by 2025 and 28% by 2030.
Create 1.5 million jobs in specialized manufacturing.
Increase the domestic content in global value chains in the automotive, aerospace, electronics, semiconductor, pharmaceutical, chemicals, and biotechnology industries.
The main actions through which the Mexican government plans to encourage investments are:
Substantial funding towards infrastructure development.
Digital transformation, technology innovation, data analytics and cybersecurity.
Modernization of the transportation, telecommunications, and energy sectors.
Tax incentives for businesses investing in underserved regions and strategic industries.
Expansion of social security benefits and healthcare services.
Reduction of investment process timelines from 2.6 to 1 year, with 50% less paperwork and requirements.
Promote corporate environmental sustainability, including water and clean energy.
Enablers as the IMMEX Program 4.0, the Nearshoring Decree, the National Simplification and Digitalization Law, and a Development Bank.
IMMEX Program 4.0
The IMMEX program refers to the Maquiladora Export Program. It is a government initiative designed for companies to set up manufacturing operations in Mexico, particularly for export purposes. It works under foreign investment, duty-free importation, employment and economic benefits.
Plan Mexico approaches IMMEX for the consolidated processing of the current Value Added Tax (or its acronym in Spanish, IVA) Certification and Special Tax on Production and Services (IEPS) Certification -both of which are incentives that favor operational cash flow- with a new Export Manufacturing 4.0 Program within the Ministry of Finance, that will reduce the start-up time of a new company by 50%.
Nearshoring Decree
Pursuant to the Plan’s timeline, this decree was published on January 21 and sets policies and regulations to attract foreign companies incentivizing them to relocate their production or supply chains to Mexico. The decree aims at maximizing the competitive advantages in the country.
Plan Mexico envisions immediate deduction of new investments in incremental fixed assets, applying the highest percentages to investments in high technology sectors, research and development; not distinguishing between foreign and Mexican companies, industry or sector. And an additional deduction of 25% of the incremental expense to train its workers in connection with education and research institutions.
Development Banks
The country’s development banking institutions will seek innovation by supporting supply chains of scale and specialization, as well as reverse factoring flow estimating the risk of the anchor company -with sales between $100 and $500 million dollars annually- and not of the Micro, Small and Medium Businesses.
Companies will need to closely monitor any legal changes under Plan Mexico that could impact corporate operations as tax, labor, environmental, and health regulations. This project will be published through different stages over a period of four months ending in April 2025 and expecting a consolidation of the goals for the year 2030.
We encourage investors to stay informed regarding new laws and regulations, or announcements of public investment projects or incentives, emerging from Plan Mexico. Engaging with local legal counsel can proactively adjust the operational frameworks to remain compliant with the Mexican law and take full advantage of the benefits that this initiative offers.
Should you have any questions or inquiries regarding Plan Mexico and the related legal framework, do not hesitate to reach out.
Luis Armendariz
Jehiel Rosales
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