Actress Salma Hayek Pinault stood alongside President Claudia Sheinbaum Pardo on Sunday to announce a sweeping new tax incentive for film and audiovisual production in Mexico — a 30% income tax break designed to keep domestic productions at home and lure international shoots south of the border.
The incentive, coordinated with the Ministry of Finance and Public Credit (Secretaría de Hacienda y Crédito Público), officially took effect Sunday. It applies to productions that meet minimum spending thresholds in Mexico: 40 million pesos (about $2.3 million) for live-action or animated feature films and series episodes, 20 million pesos (about $1.2 million) for documentary features and series, and 5 million pesos (about $290,000) for animation, visual effects or post-production work.
Each project can receive up to 40 million pesos in tax relief. To qualify, at least 70% of a project’s suppliers must be Mexican.
Minister of Culture Claudia Curiel de Icaza said the incentive aims to attract big-budget international productions while making sure Mexican films stay in Mexico. The goal, she said, is to strengthen the country’s creative economy and cultural sovereignty.
Hayek Pinault, who got her start in Mexican telenovelas before becoming one of Hollywood’s biggest stars, praised the initiative. The Oscar-nominated actress and producer from Coatzacoalcos, Veracruz, said she owed her career to Mexico’s film community.
The announcement is part of a broader government push to support the country’s film industry. In its first year, the Sheinbaum administration increased funding for EFICINE, Mexico’s longstanding tax incentive for national film production and distribution, by 18%. The budget for the Mexican Film Institute (IMCINE) grew 25% for 2026. A new Federal Film and Audiovisual Law was introduced in Congress last Friday.
The government also expanded the country’s main film school, the Centro de Capacitación Cinematográfica (CCC), opening a new campus at Chapultepec with capacity for about 2,000 students. Enrollment fees were eliminated.
Mexico has been building momentum as a production hub. In February 2025, Netflix co-CEO Ted Sarandos joined Sheinbaum to announce a $1 billion investment in Mexican production over four years. The state of Jalisco launched a 20% cash rebate program in 2022 through its Filma Jalisco agency, which now oversees up to $150 million per year in rebates.
The country’s audiovisual industry accounts for about 1.25% of national GDP and a much bigger share — 11.6% — in Mexico City alone, according to 2023 data. The capital reported $583 million in production investment that year.
Sunday’s announcement also arrives against the backdrop of U.S. President Donald Trump’s repeated threats to impose a 100% tariff on films produced outside the United States. Trump first floated the idea in May 2025, then repeated it in September, arguing that foreign incentives were hurting Hollywood. No clear mechanism for implementing such tariffs has been established, and industry experts have questioned how they would work for non-material goods. Many in the U.S. industry have pushed instead for a federal tax credit to bring production home.
Mexico’s new incentive is open to Mexican citizens and companies, foreign entities with a permanent presence in the country, and foreign producers working through a Mexican resident or company.
The country is no stranger to serving as a backdrop for major productions. Yucatán’s Hacienda Temozón Sur, a restored henequén-era estate, was featured prominently in Zoë Kravitz’s directorial debut Blink Twice, starring Channing Tatum. Netflix has produced dozens of original titles in Mexico over the past decade, and Lionsgate shot “Saw X” in Mexico City in 2022-2023.
Several prominent Mexican actors and filmmakers attended Sunday’s event, including Jesús Ochoa, Irene Azuela, Darío Yazbek, Arcelia Ramírez, Julieta Egurrola, Chema Yazpik, Mercedes Hernández and María Rojo. Mexico City Mayor Clara Brugada was also present.
Mexico’s New Film Incentive: Key Facts
- Tax break: Up to 30% of income tax on qualifying production spending in Mexico
- Cap: 40 million pesos (about $2.3 million) per project
- Minimum spend: 40 million pesos for fiction features/series; 20 million pesos for documentaries; 5 million pesos for VFX/post-production
- Domestic sourcing: At least 70% of suppliers must be Mexican
- Who qualifies: Mexican individuals and companies, foreign entities with a permanent establishment in Mexico, and foreign producers working through a Mexican partner
- IMCINE budget: Up 25% for 2026
- EFICINE increase: Up 18% in the administration’s first year
- New legislation: A Federal Film and Audiovisual Law was introduced in Congress on Feb. 13