On 22 May 2025, Mexican President Claudia Sheinbaum signed a new decree establishing economic development zones known as PODEBIs. These zones are specifically designed to attract investment in selected regions, with the aim of reducing economic disparities and drawing in foreign businesses.
Tax incentives for companies
At the heart of the decree are tax concessions for companies that set up and do business in a PODEBI zone. This primarily includes the direct, full deduction of investments such as machinery, plant and equipment from corporation tax. In addition, a deduction of 25 per cent is granted for increased expenditure if companies invest in employee training or innovative projects. The measures apply to all economic activities within the zones in the period from 2025 to 2030. However, it is important to note that the capital goods must be used for at least two years after the deduction.
Requirements for eligibility
Both domestic and foreign businesses with a permanent establishment in Mexico can benefit from these incentives, provided they meet their tax obligations. Companies wishing to claim the additional 25% deduction for innovation or training must also enter into a cooperation agreement with the Mexican Ministry of Education or present an approved innovation project.
However, there is a strict condition: a breach of the decree’s provisions will result in the immediate loss of all benefits granted, including the obligation to repay the amounts saved, along with statutory surcharges.
Organization of the zones and next steps
The implementation and coordination of the PODEBI zones is overseen by an interministerial committee chaired by the Mexican Ministry of Economy. This committee will also establish the criteria for selecting, monitoring and supervising the companies eligible for support. The exact geographical boundaries of the new zones have yet to be defined.
Through the PODEBIs, Mexico aims to create an investment-friendly environment where economic growth, innovation and social development go hand in hand.
Source: GTAI (in German)
