Mexico’s New 30% Film Tax Incentive Promises to Support Local Cinema

Mexico’s President Claudia Shienbaum Pardo and Secretary of Culture, Claudia Curiel de Icaza, alongside Mexican actress Salma Hayek Pinault unveiled the country’s plan to support the local Mexican film industry this past February. This plan is a modernization of the 1992 Film Plan as film producers have sought out fiscal support while filming in Mexican states. The ultimate goal of the plan is to attracting major film productions to Mexico, establishing Mexico as a benchmark in the Latin American film industry. The crown jewel of this plan is a thirty percent tax incentive promised to projects that are shot in Mexico.

In order to qualify for the Mexican film tax incentive there are a variety of minimum spending requirements based on the kind of productions being made. Both live action and animated feature films and television programs qualify for the tax incentive program as long as they spend at least 40 million pesos, or $2.3 million U.S. dollars. Documentaries and docuseries qualify for the incentive as long as they spend a minimum of 20 million pesos, or $1.2 million U.S. dollars. Post-production processes, animation, or visual effects have a much smaller minimum spending requirement at 5 million pesos, or $290,000 U.S. dollars.

Along with the minimum spending requirements, there are specific qualifications on who can redeem these tax incentives. Primarily, Mexican residents and legal entities qualify for the tax incentive. Foreign individuals and legal entities may qualify if they have a “permanent establishment in the country” or produce through a Mexican individual or Mexican legal entity.

Mexico would be joining a plethora of countries with film tax incentives, including but not limited to the United Kingdom, Spain, and Australia. Production companies are taking advantage of these tax incentives, as Wicked and Gladiator II were both filmed in countries with film tax incentives.

The domestic film industry is suffering, with increased production costs in the United States, Mexico’s tax incentives may entice producers to consider moving south of the border.

In the wake of President Trump’s increased fiscal pressure on the film industry, larger productions may be incentivized to move production overseas. In May of 2025, President Trump announced on social media that he would introduce tariffs on films produced outside of the United States. Film executives feel that this is the wrong move, urging law makers to entice production through an incentive-based model, not a punishment-based one. Netflix’s co-CEO Ted Sarandos stated in an interview with Politico, “Healthy incentive programs attract a lot of production, and you’ve seen a lot of them move from California to Georgia to New Jersey…Having the incentives versus tariffs is much better.”

This challenges the international film industry, as foreign countries now have to create more incentives in order for film productions to produce outside of the United States. Despite these challenges, Mexico is motivated to do this because it represents something much greater. Secretary of Culture, Claudia Curiel has stated that “… the plan represents progress by recognizing cinema as a cultural right.”

Article Written by Imari Roque

Sources:

Steve Solot, Mexico Takes the Lead in the Latin American Film Industry with a New Production Incentive, LATIN AMERICAN TRAINING CENTER (Feb. 18, 2026), available at https://latamtrainingcenter.com/new-article-by-steve-solot-highlights-the-tax-incentive-program-launched-by-claudia-sheinbaum-to-strengthen-mexicos-audiovisual-sector/ (last visited Mar. 19, 2026).

Scott Roxborough, Salma Hayek, Mexican President Back New 30 Percent Film Tax Incentive, THE HOLLYWOOD REPORTER (Feb. 16, 2026), available at https://www.hollywoodreporter.com/movies/movie-news/salma-hayek-mexican-president-back-film-tax-incentive-1236506673/ (last visited Mar. 19, 2026).

John Hazelton, Mexico launches production incentive for homegrown and international projects, SCREEN DAILY (Feb. 16, 2026) available at https://www.screendaily.com/news/mexico-launches-production-incentive-for-homegrown-and-international-projects/5213976.article (last visited Mar. 19, 2026).

Joseph Chianese, Global Production Incentives to Watch: A Look Back at 2024 and What’s Ahead in 2025, ENTERTAINMENT PARTNERS (Jan. 14, 2025) available at https://www.ep.com/blog/global-production-incentives-to-watch-a-look-back-at-2024-and-whats-ahead-in 2025/#:~:text=Neighboring%20Spain%20continues%20to%20attract,an%20effective%20rate%20of%2037.75%25. (last visited Mar. 19, 2026).

Dan Whateley, Netflix’s Ted Sarandos says he asked Trump not to pursue movie tariffs. Here’s what he proposed instead, BUSINESS INSIDER (Mar. 17, 2026) available at https://www.businessinsider.com/ted-sarandos-netflix-asked-trump-to-back-off-movie-tariffs-2026-3 (last visited Mar. 19. 2026).