The State of Mexico has approved a property tax exemption for businesses that meet specific requirements. Companies must own property in the state, provide proof of recent operations, and show compliance with tax obligations. The exemption was published in the state’s official gazette on 11 April 2025.

Businesses must submit applications, which will be reviewed within 15 business days. Incomplete applications must be corrected within 10 days. Companies that relocate during 2025 will no longer qualify and must pay the full tax amount. The exemption cannot be combined with other tax benefits.

Property tax is a recurring fee, typically charged once or twice a year, by a local government on real estate located within its area. The tax amount is based on the value of the property, meaning it is calculated as a percentage of its assessed worth.

The measure will remain in effect until 31 December 2025. Businesses must submit applications before the deadline to be considered. The state government expects the exemption to encourage new business activity.