Compare · Mexico vs United Kingdom
Mexico vs United Kingdom for Australians leaving home
Mexico:Worldwide taxAU tax treatyUnited Kingdom:Worldwide taxAU tax treaty
Mexico and United Kingdom 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.
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).
Mexico is the cheaper place to live day to day, roughly 55% of Sydney's basket against United Kingdom's 105% (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 | United KingdomUnited Kingdom |
|---|---|---|
| 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 20/40/45% plus employee NI (8% then 2%). The £100k, £125k allowance taper creates a 60% effective band. A £120k salary pays roughly 36% effective with NI. |
| 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) | 18% basic / 24% higher rate on shares and crypto, £3,000 annual exemption. FIG-regime arrivals: foreign gains tax-free for 4 years. (24% 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. | 8.75/33.75/39.35% above a £500 allowance. Australian franking credits are not recognised, but for FIG-regime arrivals, Australian dividends are simply outside UK tax for 4 years. |
| Interest | Taxed locally around 35% | Taxed locally around 40% |
| 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 disposals are CGT events at 18/24% with a small annual exempt amount (£3,000). Swaps and spending count. HMRC receives exchange data; FIG-regime arrivals can realise foreign crypto gains UK-tax-free in years 1, 4. |
| 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. | Employee National Insurance (8% to ~£50k, 2% above) is excluded from the calculation above, add it for employment income. |
| Visa | ||
| Best pathways |
|
|
| Visa ease | 8/10 | 6/10 |
| Family on visas | Dependants covered on main pathways | Dependants covered on main pathways |
| Fastest timeline | ~2 months on the quickest pathway | ~2 months on the quickest pathway |
| Money | ||
| Rent (family home, monthly) | $3,800/mo | $6,500/mo |
| Rent (couple, monthly) | $2,200/mo | $4,200/mo |
| International school (per child/yr) | $20,000 | Free / local system viable |
| Health cover (family/yr) | $6,000 | $4,000 |
| Cost of living vs Sydney | 55% of Sydney (ex-rent) | 105% of Sydney (ex-rent) |
| Relocation one-off | ~$18,000 | ~$25,000 |
| Flights home (return, pp) | $2,500 | $2,400 |
| Life | ||
| Timezone vs AEST | 16h behind | 9h behind |
| Flight from Sydney | ~16 hours | ~22 hours |
| English | 5/10 | 10/10 |
| Safety | 5/10 | 8/10 |
| Healthcare | 7/10 | 8/10 |
| Schooling | 7/10 | 9/10 |
| 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, grey and damp, the winters are dark more than cold, and Australians feel it. |
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.
United Kingdom
- This is a higher-tax country than Australia for most: 40% starts around A$100k equivalent, NI stacks on top, and the £100k, £125k taper creates a 60% zone with childcare cliff-edges.
- London costs Sydney money without Sydney weather, and the FIG honeymoon is exactly 4 years, after which worldwide taxation lands in full.
- Visa costs are the world's highest: fees plus the health surcharge can run £15, 20k for a family before anyone earns a pound.
- Winter darkness (8-hour days, weeks of grey) is the quiet reason many Australians go home.
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.