Corporate Immigration 2023 Comparisons

Mexico is a significant transit and destination country for migrants, both from Central America and from other parts of the world. In recent years, Mexico has faced an influx of migrants from countries such as Venezuela, Cuba, Haiti, Honduras, El Salvador and Guatemala, often seeking to reach the United States. These migration flows have prompted the Mexican government to work on shaping its immigration policy to address the challenges and opportunities associated with migration flows, implementing various policies and measures to manage the situation. The government is committed to respecting the human rights of migrants and providing them with protection, while also co-operating with the countries of origin and transit to address the root causes of migration.

In terms of welcoming immigration, Mexico has historically been a country that has received migrants from different parts of the world, and for many different purposes. One such purpose is the work and economic opportunities that Mexico provides; it is an excellent country for corporate migration, offering numerous advantages and opportunities for businesses looking to expand or relocate. Key reasons why Mexico is an attractive destination for corporate migration include the following.

• Strategic geographical location: Mexico's location serves as a bridge between North and South America, providing easy access to markets in both regions. Its proximity to the United States, one of the world's largest economies, makes it an ideal base for companies seeking to establish a presence in the North American market.
• Free trade agreements: Mexico has an extensive network of free trade agreements, including the United States-Mexico-Canada Agreement (USMCA), the European Union-Mexico Free Trade Agreement and numerous agreements with countries in Latin America and Asia. These agreements offer companies preferential access to a wide range of markets, reducing trade barriers and facilitating business operations.
• Growing economy: Mexico has a robust and diverse economy, characterised by a skilled labour force, a large consumer market and a thriving manufacturing sector. The country's GDP has been steadily increasing over the years, and it offers ample opportunities for businesses across various industries, including automotive, aerospace, electronics and information technology.
• Competitive cost structure: Mexico offers a cost-effective business environment compared to many other countries. The cost of labour, real estate and utilities is generally lower in Mexico, allowing businesses to reduce operational expenses and enhance profitability. The country also offers various tax incentives and investment programmes that further contribute to its cost competitiveness.
• Skilled workforce: Mexico has a well-educated and skilled workforce, particularly in technical fields. The country produces a significant number of engineers, IT professionals and business graduates each year, providing companies with access to a talent pool that can support their operations and innovation efforts.
• Favourable business environment: Mexico has implemented reforms to improve its business climate, such as streamlining bureaucracy, enhancing legal protections and promoting foreign investment. The government has also established specialised economic zones and industrial parks, offering businesses infrastructure, logistics support and attractive incentives to facilitate their establishment and growth.
• Infrastructure and connectivity: Mexico has invested significantly in its infrastructure, including transportation networks, telecommunications and energy systems. Major cities are well connected with modern airports, ports and road networks, enabling efficient logistics and facilitating trade.
• Cultural and linguistic affinity: Mexico shares cultural and linguistic ties with many countries, especially those in North and South America. This cultural affinity can be advantageous for companies expanding their operations, as it facilitates communication, understanding and the development of business relationships.
• Quality of life: Mexico offers a high quality of life, with a rich cultural heritage, vibrant cities and diverse natural landscapes. The country's pleasant climate, affordable cost of living and recreational opportunities make it an attractive destination for employees and their families.

While Mexico presents numerous opportunities for corporate migration, it is essential for businesses to conduct thorough research, seek expert advice and comply with legal requirements and regulations before making any decisions.

No project to reform the Migration Law or significant modifications to the immigration policies in Mexico have been presented. Although the issue of migration has been a subject of discussion and debate in the country, no legal or political changes that substantially alter the existing regulatory framework have been implemented to date. The current Migration Law establishes the guidelines and procedures for the entry, stay and departure of foreigners in Mexico, as well as the rights and obligations of both migrants and the authorities responsible for their control. However, it is important to note that immigration policy is dynamic and subject to change, so proposals for reform or adjustments to the existing policies could emerge in the future.

The current existing options for sponsor-based employment visas are as follows.

• Visitor Visa with a Work Permit: this type of visa authorises the foreigner to present themselves at any location designated for the international transit of individuals and request entry into national territory, with the purpose of staying for an uninterrupted period not exceeding 180 days, counted from the date of entry, and engaging in remunerated activities.
• Temporary Resident Visa with Work Permit: this visa allows foreign nationals to work for a Mexican company or organisation for a specified period. This allows a foreign person to live in Mexico for more than 180 days and up to four years in Mexico, engaging in remunerated activities.
• Permanent Resident Visa: any individual that gets the permanent resident visa, on whatever basis, has the right to work in Mexico with a company that is allowed to hire foreign people.

There are two possible ways to come to Mexico and work or invest without sponsorship from a Mexican company.

• Intra-Company Transfer Visa: this visa is designed for employees of multinational companies who are being transferred to a branch, subsidiary or affiliate in Mexico. The applicant must demonstrate its labour relationship with its employer.
• Investor Visa: this visa is suitable for individuals who plan to invest a significant amount of capital in Mexico. An investor has the following options to get residence in Mexico by investing:
1. by submitting the original and a copy of the deed or policy of the Mexican legal entity granted before a Public Notary, or a document duly certified by the governing body or competent official thereof, stating that the foreign individual participates in the share capital of said Mexican legal entity, and that the amount of the investment actually disbursed for the foreign individual's participation in the Mexican legal entity exceeds 20,000 days of the current general minimum wage in Mexico City (approximately EUR202,875.30) – this can be evidenced by, but not limited to, a share purchase agreement, a transfer of assets or rights in favour of the Mexican legal entity, or a document issued by the latter verifying the amount contributed for the participation in the share capital; and
2. by submitting the original and a copy of the document certifying the ownership of movable property or fixed assets in favour of the foreign legal entity, used for economic or business purposes, with a value exceeding 20,000 days of the current general minimum wage in Mexico City (approximately EUR202,875.30); or
3. by submitting the original and a copy of the documentation evidencing the development of economic or business activities within national territory – this can be evidenced by, but not limited to, contracts, service orders, invoices, receipts, business plans, licences or permits, and a certificate issued by the Mexican Social Security Institute confirming that the foreign legal entity employs at least three workers.

When visitors travel to Mexico, they are allowed to participate in recreational and business activities, such as sightseeing, attending meetings or conferences, or exploring potential business opportunities. However, it is crucial to understand that working or engaging in any paid activities is strictly prohibited for visitors without the appropriate visa; engaging in remunerated work, even temporarily, is considered a violation of Mexican immigration laws and regulations. This means that visitors are not allowed to accept a job, provide services in exchange for payment, or perform any other income-generating activities.

If a visitor is caught working or undertaking any remunerated activities without the necessary visa, they will face sanctions and penalties, which are intended to enforce compliance with Mexican immigration laws. The specific penalties and sanctions for unauthorised work may vary depending on the circumstances and the discretion of immigration authorities. Typically, the visitor will be required to pay a penalty fee, which serves as a financial consequence for their violation. The amount of the penalty fee can vary, and is determined by the immigration authorities based on the severity of the offence.

To avoid any legal issues or penalties, it is essential for visitors to Mexico to adhere to the purpose of their visit, whether that is tourism or business-related activities that do not involve paid work. If someone intends to work in Mexico or engage in any remunerated activities, they should comply with the appropriate visa requirements and obtain the necessary permits beforehand, to ensure compliance with Mexican immigration laws.

In 2021, Mexico recognised and regulated remote work through amendments to the Federal Labour Law. This means that remote work is now officially acknowledged and governed by labour regulations in the country.

However, it is important to note that foreign individuals seeking to work in Mexico and obtain a temporary resident card must fulfil certain requirements, including that they must intend to live in Mexico for a period exceeding 180 days. This requirement ensures that individuals genuinely plan to establish their temporary residence in Mexico rather than just briefly visiting for work purposes.

It is crucial to comply with these regulations to ensure that foreign individuals seeking temporary residence and remote work opportunities in Mexico are operating in accordance with the country's immigration policies.

In Mexico, language proficiency is not a prerequisite for obtaining a visa, including work permit visas. The Mexican government does not require applicants to demonstrate any specific language skills as part of the visa application process for a tourist visa, student visa, work permit visa or any other type of visa. However, it is recommended that individuals attend the consular interview in a country where they can duly communicate with the consular officer, to facilitate correct and proper communication that allows the foreign person to express the real reasons why they are applying for such a visa.

It is also important to note that, while language skills may not be a requirement for obtaining a visa, they can still play a significant role in the foreign person's overall experience in Mexico. Depending on the purpose of the visit and the nature of the work, having a basic understanding of Spanish can be beneficial for daily interactions, navigating the local environment and engaging with the local community. It can also enhance employment prospects and cultural integration.

Mexico does not currently require a medical certificate or vaccination card to allow people to enter the country.

In the application process for a work permit visa, there are no specific minimum thresholds or requirements regarding qualifications to occupy the job. However, it is important to note that, during the interview phase, a consular officer may request the foreign applicant to provide evidence of their expertise in the relevant field. This can include educational qualifications such as a bachelor's degree, as well as supporting documents like a curriculum vitae (CV) or resume.

A bachelor's degree is often considered a standard qualification that demonstrates a certain level of proficiency and foundational knowledge in a particular subject. However, it is worth noting that the specific requirements may vary depending on the country where the interview takes place. In addition to the degree, a CV or resume is a comprehensive document that outlines an individual's educational background, work experience, skills and achievements. It provides a detailed overview of the applicant's professional history, including any relevant certifications, research projects, publications or presentations they may have undertaken.

By evaluating these documents and conducting an interview, the consular officer can assess the applicant's level of knowledge, skills and experience in their chosen field and gain a better understanding of the applicant's suitability for the work permit visa. This helps to maintain the integrity of the work permit visa process and ensures that foreign workers are suitable for the job opportunities they are seeking.

It is important for applicants to prepare and present their educational credentials and professional achievements effectively during the interview process. This includes providing accurate and updated information, organising supporting documents neatly, and being able to articulate their expertise and relevant experience in a clear and concise manner. Once again, the interview has no specific requirements in terms of expertise or level of education, but they may help to sustain an application.

When it was initially published in 1970, the Federal Labour Law contained an article stipulating that employers must hire 90% Mexicans and up to 10% foreign employees. However, the social, political and business landscape in Mexico has changed significantly since then, leading to a shift in perspective regarding labour practices and the inclusion of foreign workers.

The Secretaría del Trabajo y Previsión Social (Ministry of Labour and Social Welfare) is the competent authority in labour matters, and no longer enforces this specific article. This change in approach is a result of Mexico's commitment to various international agreements that uphold human rights and aim to eliminate any form of discrimination, including racism. Mexico has taken significant steps to promote diversity, inclusivity and non-discrimination in its labour practices. While some provisions that impose certain restrictions on the hiring of foreign workers may still exist, these limitations are not strictly enforced and are not considered to be in effect under the current legal framework.

The emphasis now lies on creating a fair and competitive job market where individuals are evaluated based on their qualifications, skills and experience rather than their nationality. Employers have the freedom to hire the most suitable candidates for their organisations without being subject to strict quotas or limitations regarding the nationality of their workforce.

The Immigration Law stipulates that the immigration authority must resolve any request related to an immigration process, including work permit visa processes, within 20 business days. However, the Instituto Nacional de Migración (National Immigration Institute) is currently demonstrating exceptional efficiency by resolving these processes within a much shorter timeframe, usually within one to five business days.

This significant reduction in processing time highlights the institute's commitment to expediting immigration procedures and streamlining the overall immigration system. By addressing requests in such a prompt manner, the Instituto Nacional de Migración not only ensures the swift resolution of immigration processes but also enables individuals to commence their intended activities, such as work, study or other endeavours, without unnecessary delays.

The Instituto Nacional de Migración's ability to handle immigration processes swiftly could be attributed to various factors, including improved internal processes, increased resources or enhanced technological systems. Whatever the cause, this positive development is a significant step towards a more efficient and accommodating immigration system.

When a work permit visa request is submitted to the immigration authority in Mexico, it means that a foreign person is seeking permission to work in Mexico legally. In this context, the requirement states that the foreign person must be outside of Mexico when the request is submitted.

The rationale behind this requirement is that the work permit visa is intended for individuals who are not currently residing in Mexico. By requiring the applicant to be outside of Mexico during the submission of the request, it ensures that the proper immigration procedures are followed and that the person's status in the country is regulated from the beginning. It also allows the immigration authorities to properly process the application, verify the necessary documentation, conduct background checks and determine whether the applicant meets the requirements for a work permit visa. It further ensures that the immigration authorities have control over the entry and stay of foreign workers in Mexico.

Once the work permit visa is granted, the foreign person can then enter Mexico legally and begin their employment.

In Mexico, the process of obtaining a work permit visa cannot be expedited because the legislation does not contemplate or provide an option to do so. The visa application process in Mexico is governed by specific laws, regulations and administrative procedures established by the Mexican government.

When applying for a work permit visa in Mexico, applicants are required to follow the prescribed steps and meet the necessary requirements outlined by the National Institute of Migration or the Mexican consulate or embassy in their home country. These requirements typically include submitting the required documents, such as a job offer letter from a Mexican employer, proof of educational qualifications, financial statements and other supporting documents.

Once the application is submitted, the National Institute of Migration or the Mexican consulate or embassy will review the application and assess the eligibility of the applicant based on the established criteria. The processing time for a work permit visa can vary, depending on factors such as the workload of the immigration authorities and the completeness of the application.

While some countries may offer expedited processing options for certain visa categories, such as paying an additional fee for faster processing, this is not the case for work permit visas in Mexico. It is important that individuals planning to work in Mexico allow sufficient time for the visa application process and ensure that they meet all the requirements specified by the Mexican authorities.

When a foreign person receives a visa stamp in their passport, it grants them permission to travel to Mexico. Upon arrival at the point of entry in Mexico, they must present their passport with the visa stamp to the immigration officer, who can then verify the purpose of the person's entry into Mexico.

Once the immigration officer has confirmed the information and approved the entry, they will instruct the foreign person to generate an electronic document called the Forma Migratoria Múltiple Digital (Digital Multiple Migratory Form or FMMD), which serves as a temporary authorisation to stay in Mexico and is valid for 30 calendar days. During those 30 calendar days, the foreign person must begin the process of obtaining a temporary resident card, which involves contacting the National Institute of Migration and submitting the required documentation. The temporary resident card serves as the official identification for the foreign person while they are in Mexico.

If the foreign person fails to initiate the process of obtaining a temporary resident card within the 30 calendar days, they will not be able to obtain the card and will have to leave Mexico. In such a case, they would need to start the entire visa application process again if they wish to return to Mexico in the future.

The work permit visa process in Mexico involves the following three different governmental fees that need to be covered.

• Work Permit Visa Application Fee: the first fee, amounting to MXN219 (approximately USD13), is paid by the sponsor company in Mexico when it applies for the work permit visa authorisation in Mexico. The sponsor company is the organisation or employer who is sponsoring the foreign person's work permit. This fee is their responsibility and covers the initial processing of the work permit application.
• Consular Interview Fee: the second fee is approximately USD50 and is paid by the foreign person attending the consular interview. The purpose of the interview is to assess the applicant's eligibility for the work permit and gather any necessary documentation or information.
• Exchange Process Fee: the third fee is paid by the foreign person when they are already in Mexico and applying for the exchange process. This fee is MXN5,108 (around USD293). The exchange process involves converting the initial work permit into a definitive permit that allows the foreign individual to legally work in Mexico. This fee covers the administrative costs associated with the exchange process.

The fee amounts mentioned here are approximate values based on the conversion rates provided. The exact fee amounts may vary depending on the current exchange rates and any updates in the Mexican government's fee structure. They are updated every year.

When applying for a visa in Mexico, there are typically three different fees that need to be paid throughout the entire process for an applicant to complete their relocation to Mexico. These fees are associated with different stages of the visa application process. See 5.1 Typical Cost of a Sponsored Employment for more details.

Enforcement actions taken by authorities in Mexico regarding immigration can vary depending on the specific circumstances and the applicable immigration laws. Consequences for individuals or sponsor companies breaching the immigration law include the following.

• Unauthorised entry or overstaying: if an individual enters Mexico without proper documentation or overstays their authorised period of stay, they may be subject to enforcement action, which can include fines, detention, deportation or restrictions on future entry into the country.
• Violation of visa conditions: individuals who violate the conditions of their visa, such as engaging in unauthorised employment or activities not permitted by their visa category, may face enforcement actions, including fines, visa cancellation, deportation or other penalties.
• Sponsorship violations: sponsors, such as employers or family members who have provided support for an individual's visa or residency application, may face enforcement actions if they are found to have provided false information or engaged in fraudulent practices during the sponsorship process.
• Criminal activities: individuals involved in criminal activities, such as human trafficking, drug smuggling or other serious offences, may face enforcement actions, including arrest, prosecution and deportation.
• National security concerns: individuals who pose a threat to national security or are involved in activities that jeopardise public safety may be subject to enforcement actions, which can include deportation or other measures deemed necessary by the authorities.

The specific enforcement actions taken can depend on the discretion of the Mexican immigration authorities and the severity of the violation.

In Mexico, companies are required to obtain a document called Constancia de Inscripción de Empleador (Employer Registration Certificate) from the National Institute of Migration in order to extend work permit visa offers and hire foreign personnel. This certificate serves as proof that the company is registered as an employer and has met the necessary requirements.

The Constancia de Inscripción de Empleador is valid for one year, and it needs to be updated annually by submitting proof of payment of federal taxes for that year. It is important for companies to keep this certificate updated to ensure they can continue to process work permit visas for foreign employees and keep them on the company's payroll.

If a company fails to update the Constancia de Inscripción de Empleador on time, the National Institute of Migration will “freeze” the certificate, which means that the company will not be able to initiate new work permit visa processes or keep their foreign personnel on the payroll. Essentially, it puts a hold on any activities related to employing foreign workers.

While there is no direct financial penalty imposed on the company for not updating the certificate, it is crucial for the company to fulfil this obligation in a timely manner if they wish to retain their foreign personnel. Failing to do so can lead to complications and disruptions in their ability to hire and maintain a workforce consisting of foreign employees.

In Mexico, the concept of “Right to Work” refers to the constitutional right of individuals to freely choose their employment and engage in any lawful occupation of their choice. Unlike some countries where employers are required to verify an individual's right to work before hiring them, Mexico does not have a specific legal requirement for employers to check their employees' right to work. However, employers in Mexico still need to comply with other labour laws and regulations governing various aspects of the employment relationship, including minimum wage, working hours, social security contributions and benefits.

In Mexico, employers are generally required to register their employees with the Mexican Social Security Institute and make corresponding social security contributions on their behalf. This registration process helps to ensure that employees are entitled to social security benefits, such as healthcare and retirement benefits.

Employers are also required to have a written employment contract with their employees, specifying the terms and conditions of the employment relationship, and including details such as job title, salary, working hours and any other relevant provisions. It is crucial for both parties to have a clear understanding of their rights and obligations.

While there may not be a specific requirement to check the right to work, employers in Mexico should still exercise due diligence when hiring employees, by verifying the educational background, employment history and other qualifications of the candidates to ensure they are suitable for the position.

Also, the lack of a specific requirement to check the right to work does not absolve employers from potential legal consequences if they knowingly hire individuals who are not authorised to work in Mexico. Employers should be cautious and avoid hiring individuals without proper documentation, as it could lead to penalties and legal issues in case of non-compliance with immigration laws.

Historically, Mexico has recognised the following family relationships for the Dependant visa category:

• spouse or concubine –: the legal partner in a concubinage or marriage recognised by Mexican law;
• children – dependent children who are under 18 years old, and unmarried; and
• parents – any regular resident in Mexico can request a visa for family unit purpose for their parents, provided they can demonstrate dependency on their child.

The parents can request or extend a visa for family unit purposes to their other children, in order to keep the family unit of the main applicant together.

In Mexico, when a dependant receives a family unit visa, they are not automatically entitled to work. However, they have the option to apply for a work permit as an independent worker or to work for a company. The dependant's legal status in Mexico is always tied to the main applicant.

If the main applicant, who is typically the primary visa holder, loses their legal status in Mexico for any reason, such as the expiration of their visa or violation of immigration regulations, it will have consequences for the dependent as well. Since the dependant's status is dependent on the main applicant, any changes or issues affecting the main applicant will directly impact the dependant's legal standing.

If the main applicant's legal condition in Mexico is compromised, both the main applicant and the dependant may face the risk of losing their legal status, including the right to work. It is essential for both parties to maintain compliance with Mexican immigration regulations in order to avoid any negative consequences.

Therefore, it is crucial for the dependent to keep track of the main applicant's immigration status and ensure that they maintain their own legal status as well.