It is well known that nowadays setting up a business in Mexico is the convenient decision for companies. Ever since the maquiladora program was created, it has had a big impact on the country and on many investors around the world. Getting to know all the things this scheme provides is important before taking that big step.
Do you want to know what are the government incentives for manufacturing in Mexico? We chose Tijuana to tell you which incentives are offered at a local, state and federal level, so that you have all the necessary information to make a wise choice.
Manufacturing in Mexico
Maquiladoras are the best program to invest in Mexico. When a foreign company wants to manufacture its products in another country, it should analyze the benefits it would get. In Mexico, the joint collaboration between industry and government creates solutions that benefit investors.
The main attraction of maquiladoras in Mexico is that companies do not pay the general import tax for raw material brought to the country.
Incentives in Mexico
These are some of the federal incentives for maquiladoras in any state of the country:
- Exemption from the payment of the general import tax and the value added tax
- Agreements with the Mexican Secretariat of Economy
- Possibility of modification of program and modality
- Total control over the operations of the maquiladora
- No tariff rates
But, what about Tijuana? Let’s talk about the incentives in this city.
- Reduction of municipal services payment fees (from 25 to 75%)
- Support from the local government for public infrastructure projects that allow the operation of maquiladora companies
- Support in the creation, establishment and maintenance of business activities, advice on solving problems and links with government programs aimed at companies
- Subsidies for employee training
- Exemption from payroll tax (25% -100%) from 1-5 years to new projects or large extensions
- Waiver of water connection payment (20% -50%)
- Access to funds for infrastructure (Strategy companies)
Remember that getting this benefits depends on your type of company and the processes it carries out to be properly set up. To know more about incentives and the benefits of Tijuana, contact the economic development experts at Tijuana EDC.