Mexico fiscal reforms and Tijuana construction disputes

Proposed fiscal changes for 2027 in Mexico are raising concerns among business leaders and industry experts. Ramón Ortega, president of the IMEF in Veracruz, warned that companies with annual revenues exceeding 50 million pesos could see their Income Tax (ISR) obligations triple due to proposed limits on authorized deductions. While these changes may impact sectors like automotive and gas stations, some experts suggest the reforms could also incentivize green energy investments, such as solar panel installations, through specific tax regimes.

In Tijuana, residents of the Madero Sur neighborhood are facing housing crises due to construction activities by the developer Desarrollos SM8 for the Sideways Living project. Neighbors report structural damage, including cracks in walls and floors, caused by unauthorized excavations and illegal anchoring on private property. Some homes have been labeled high-risk by Civil Protection, forcing families to evacuate. Despite previous municipal closures, residents claim the developer has failed to install necessary retaining walls to prevent landslides, especially during rainy periods.

Additionally, the construction sector in Mexico is preparing for upcoming labor reforms. Experts note that the gradual reduction of the workweek from 48 to 40 hours, combined with potential minimum wage increases, is expected to raise operational costs for construction firms.