Compare · Mexico vs Portugal
Mexico vs Portugal for Australians leaving home
Mexico:Worldwide taxAU tax treatyPortugal:Worldwide taxNo AU treaty
Mexico and Portugal run the same headline regime, worldwide tax, so the decision turns on the details underneath: what each one does to capital gains, dividends and the Australian income you keep.
The treaty position splits them: Mexico has a full Australian tax treaty (tie-breaker plus withholding capped at 15% on unfranked dividends), while Portugal has none, no safety net if both countries claim you.
Mexico is the cheaper place to live day to day, roughly 55% of Sydney's basket against Portugal's 65% (indicative, ex-rent), which can outweigh a thinner tax saving over a full household budget.
Personalise this, enter your numbers once and every figure below becomes yours: “your estimated income tax: $14,200”, not “0, 22%”. Open the Country Comparison tool →
| 2 destinations | MexicoMexico | PortugalPortugal |
|---|---|---|
| Tax | ||
| Regime | worldwide, taxes worldwide income | worldwide, taxes worldwide income |
| Income tax on salary | Progressive 1.92% to 35% (top rate from roughly MXN 4.5m ≈ A$390k). Employees are withheld at source; everyone else deals with SAT directly. | Progressive 13, 48% plus solidarity surcharge above €80k. A €100k salary pays roughly 37% effective, Portugal is not a low-tax country for salaries. |
| Capital gains | Flat 10% on gains from shares sold through a recognised stock exchange. Off-exchange sales (private companies, real estate) are taxed at progressive rates with cost-base indexation for inflation. (10% typical) | 28% flat on share gains (option to aggregate at progressive rates). Short-term gains on assets held <365 days must be aggregated at progressive rates for high earners. (28% typical) |
| Dividends | Mexican dividends: 10% withholding on the net dividend, on top of 30% corporate tax already paid. Foreign dividends and interest are taxed at your progressive marginal rate, Australian franking credits mean nothing to SAT. | 28% flat on dividends and interest, wherever sourced, with no AU treaty relief. |
| Interest | Taxed locally around 35% | Taxed locally around 28% |
| Crypto | No dedicated crypto regime: SAT treats disposals as ordinary income or alienation-of-goods gains at progressive rates up to 35%, the 10% exchange rate does not apply to crypto. Guidance is thin; get Mexican advice before realising anything large. | Crypto held under 365 days is taxed at 28% on disposal; gains on crypto held longer than 365 days are exempt for individuals. Crypto-to-crypto swaps are generally not taxing events. Professional trading is business income at progressive rates. |
| Australia tax treaty | Yes, AU withholding capped at 15% dividends / 10% interest, tie-breaker available | No, full 30% / 10% withholding, no tie-breaker |
| Social security | IMSS social security applies to Mexican employment (employer-heavy contributions); self-employed expats generally sit outside it and buy private cover instead. | Employees pay 11% social security; the self-employed pay ~21.4% on a discounted base. Not included in the calculation above, budget for it. |
| Visa | ||
| Best pathways |
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| Visa ease | 8/10 | 7/10 |
| Family on visas | Dependants covered on main pathways | Dependants covered on main pathways |
| Fastest timeline | ~2 months on the quickest pathway | ~4 months on the quickest pathway |
| Money | ||
| Rent (family home, monthly) | $3,800/mo | $4,200/mo |
| Rent (couple, monthly) | $2,200/mo | $2,600/mo |
| International school (per child/yr) | $20,000 | $18,000 |
| Health cover (family/yr) | $6,000 | $4,500 |
| Cost of living vs Sydney | 55% of Sydney (ex-rent) | 65% of Sydney (ex-rent) |
| Relocation one-off | ~$18,000 | ~$22,000 |
| Flights home (return, pp) | $2,500 | $2,600 |
| Life | ||
| Timezone vs AEST | 16h behind | 9h behind |
| Flight from Sydney | ~16 hours | ~26 hours |
| English | 5/10 | 6/10 |
| Safety | 5/10 | 9/10 |
| Healthcare | 7/10 | 7/10 |
| Schooling | 7/10 | 7/10 |
| Climate | Mexico City sits at 2,240m: mild "eternal spring" year-round, a wet season May, October, and air quality that varies. Coastal Mexico is a different, hotter story. | Mild Atlantic climate, warm dry summers, wet 15°C winters in poorly heated homes. |
Costs, rates and visa figures are country-module data marked indicative until individually verified; FX and rental markets move constantly.
Honest downsides, side by side
Every destination hub on this site carries its downsides in the open. Here are both lists together, because the right question is rarely “which is better?” and usually “which set of problems would you rather live with?”
Mexico
- Security is genuinely region-dependent: Mexico City neighbourhoods, Mérida and Querétaro feel safer than their reputation; other states are on the DFAT do-not-travel list. Where you live matters more than the country average.
- Bureaucracy runs in Spanish, SAT registration, CFE electricity accounts, banking, INM renewals. Without workable Spanish or a good gestor/accountant, routine admin becomes a part-time job.
- It is about as far from Australia as you can get: ~16 hours flying, a 15, 17 hour time-zone gap that inverts your working day against AEST, and A$2,500 flights making "quick trips home" neither quick nor cheap.
- The cost of living is roughly half of Sydney, but so are local salaries; this is a destination for imported income, not for building a local career.
Portugal
- No Australia tax treaty: a contested residency year can leave the same income fully taxed in both countries with only messy unilateral credits between you and double tax.
- NHR is gone for new arrivals, the 20% IFICI successor is narrow, and most Australians will face full progressive rates up to 48% plus 28% on investments.
- Salaries and bureaucracy are Southern European: local pay is low, AIMA appointment backlogs are real, and everything official takes months.
- It is the single worst time zone on this list for keeping Australian clients, 9, 10 hours behind AEST means your overlap is their evening.
- Winter housing is genuinely cold and damp; central heating is the exception, not the rule.
Make this comparison yours
The table above shows the general figures. Enter your income and family once and the tax rows become your numbers, “your estimated income tax in Mexico City: $14,200”, not a range.