【Mexico】SAT: What is the limit on cash that can be kept at home?

The Tax Administration Service (SAT) monitors cash handling to ensure compliance with tax laws and prevent evasion. In Mexico, many people prefer to keep cash at home. However, it is vital to understand the tax implications that this practice entails, especially when it involves large sums of undeclared money.

While it is not illegal to keep cash at home, the SAT requires the declaration of any significant income to verify its origin and ensure compliance with tax obligations. There are specific limits for the use of cash in various transactions, designed to combat money laundering and other illicit activities. These restrictions, backed by the Anti-Money Laundering Law, apply to the purchase of movable and immovable property, precious metals, jewelry, vehicles, and more.

For example, the purchase of vehicles and properties is limited to 3,210 Units of Measurement and Update (UMAs), which is approximately equivalent to 346,326.90 Mexican pesos.

The SAT encourages electronic transactions, which are easier to track and are fiscally controlled. Furthermore, banks are obligated to report to the SAT any cash deposit exceeding 15,000 pesos. This measure is important for tracking potential cases of money laundering or tax evasion linked to large sums of undeclared cash.

Exceeding the established limits can lead to serious legal and tax problems, including audits and sanctions. Therefore, it is essential for citizens to declare and prove the origin of large sums of cash to fulfill their tax obligations and avoid issues with the authorities.

Transparency and compliance with these regulations not only help prevent tax discrepancies between income and expenses but also guarantee the integrity of the Mexican financial system. Thus, it is essential to be informed about SAT regulations to properly handle cash at home.