Compare · Mexico vs Thailand
Mexico vs Thailand for Australians leaving home
Mexico:Worldwide taxAU tax treatyThailand:Remittance basisAU tax treaty
The regimes are genuinely different: Mexico is a worldwide tax system while Thailand runs remittance-basis tax, which of your income streams each one actually touches matters more than any headline rate.
Both have a tax treaty with Australia, so either way you get a tie-breaker if the ATO contests your departure, and capped withholding (15%/10% vs 15%/10% on unfranked dividends/interest).
On day-to-day costs there is little between them, roughly 55% and 50% of Sydney's basket (indicative, ex-rent), so the money question is decided by tax and rent, not groceries.
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 | ThailandThailand |
|---|---|---|
| Tax | ||
| Regime | worldwide, taxes worldwide income | remittance, worldwide income not taxed |
| 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 0, 35% on Thai-source salary. A THB 2m (~A$87k) salary pays roughly 18% effective after standard allowances. |
| 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) | Gains on SET-listed Thai shares are exempt. Foreign share gains earned from 2024 are taxable at progressive rates in the year remitted. (15% 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. | Thai dividends: 10% final withholding. Foreign dividends: progressive rates when remitted, with a treaty credit for Australian tax already paid. |
| Interest | Taxed locally around 35% | Taxed locally around 15% |
| 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 gains are assessable income at progressive rates, with 15% withholding on some disposals. Trades on SEC-licensed Thai exchanges have enjoyed temporary exemptions. Foreign-exchange crypto gains follow the remittance rules, taxable when brought in. |
| Australia tax treaty | Yes, AU withholding capped at 15% dividends / 10% interest, tie-breaker available | Yes, AU withholding capped at 15% dividends / 10% interest, tie-breaker available |
| 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 a capped social security contribution (max THB 750/month), negligible for planning. |
| 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 | ~1 month on the quickest pathway |
| Money | ||
| Rent (family home, monthly) | $3,800/mo | $2,800/mo |
| Rent (couple, monthly) | $2,200/mo | $1,500/mo |
| International school (per child/yr) | $20,000 | $22,000 |
| Health cover (family/yr) | $6,000 | $5,500 |
| Cost of living vs Sydney | 55% of Sydney (ex-rent) | 50% of Sydney (ex-rent) |
| Relocation one-off | ~$18,000 | ~$15,000 |
| Flights home (return, pp) | $2,500 | $1,300 |
| Life | ||
| Timezone vs AEST | 16h behind | 3h behind |
| Flight from Sydney | ~16 hours | ~9.5 hours |
| English | 5/10 | 5/10 |
| Safety | 5/10 | 6/10 |
| Healthcare | 7/10 | 8/10 |
| 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. | Tropical: hot season to 40°C, monsoon June, October, pleasant November, February. |
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.
Thailand
- The 2024 remittance change turned Thailand from "de facto tax-free" into a real tax system overnight, and the rules are still settling, which is exactly the uncertainty you moved to avoid.
- Visa policy churns: rules on extensions, insurance and financial proof change frequently and vary by immigration office.
- Air quality in Bangkok and especially Chiang Mai (burning season, Feb, April) is a genuine health issue.
- You will never be more than a guest: property freehold is off-limits for land, and permanent residency/citizenship are rare in practice.
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.