Dear clients and friends,

On February 27, 2025, the Initiative with a Decree Project to amend Article 131 of the Fiscal Code of Mexico City (“CFCDMX”) regarding tax incentives for hiring private security services was published in the Parliamentary Gazette of Mexico City.

In general terms, the reform seeks to incentivize the hiring of private security services, in accordance with the Private Security Law for the Federal District, by granting an 8% annual reduction in property tax.

This initiative is still in the process of discussion and approval in the Congress of Mexico City. Therefore, as of today, the specific requirements and additional considerations to apply for this benefit are unknown. It will be necessary to stay updated on any developments regarding this matter.

If you have any questions or require advice on this issue, our team of experts is available to assist you at the following contact addresses:

Paul Kavanagh: paul@k-g.com.mx

Luis Kanchi: Lkanchi@k-g.com.mx

Miguel Alonso: malonso@k-g.com.mx