How to Register Foreign Employees with the Mexican Tax Authority (SAT)
Updated for 2026
Hiring foreign employees in Mexico involves not only immigration compliance but also strict tax registration procedures before the Mexican Tax Authority (Servicio de Administración Tributaria, or SAT). Properly registering foreign workers ensures that both employer and employee comply with income tax (ISR) and social security obligations.
This article provides a step-by-step guide on how companies can register foreign employees with SAT, the documents required, and common compliance challenges.
1. Why SAT Registration Is Mandatory for Foreign Employees
All employees working in Mexico—whether Mexican nationals or foreign nationals—must have a Federal Taxpayer Registry (Registro Federal de Contribuyentes or RFC).
The RFC allows SAT to monitor tax withholding, income reporting, and social security payments.
Failure to register foreign employees may result in:
- Invalidation of payroll CFDIs (digital tax receipts)
- Administrative fines
- Complications during immigration renewals
- SAT audits for undeclared compensation
This process is particularly relevant for companies hiring through an Employer of Record (EOR) model or sponsoring work visas such as the Temporary Resident Visa with Work Authorization.
2. Requirements Before Registering a Foreign Employee
Before proceeding with the SAT registration, the company must ensure the following conditions are met:
- Valid Immigration Status:
The foreign employee must possess a valid Temporary Resident Card with Work Permission issued by the Instituto Nacional de Migración (INM).
Learn more about the process in the article Complete Guide to Work Permits for Foreign Employees in Mexico (2026 Edition). - CURP (Unique Population Registry Code):
The employee must have a CURP number, which is automatically generated once INM approves the residency card. - Employer Registration Certificate (Constancia de Empleador):
The company must already hold a valid Employer Registration Certificate (CIE) with INM.
See detailed requirements in Requirements for Companies to Obtain an Employer Registration Certificate (Constancia de Empleador) with INM. - Proof of Address in Mexico:
SAT requires proof of domicile for both employer and employee.
3. Step-by-Step Process to Register a Foreign Employee with SAT
Step 1: Schedule an Appointment
The employer or employee must schedule an appointment at a SAT office through https://www.sat.gob.mx.
Select the option “Inscripción de personas físicas en el RFC”.
Step 2: Gather Required Documentation
The following documents must be presented in original and copy:
- Valid passport
- Temporary Resident Card with Work Authorization
- CURP
- Proof of address (utility bill, lease, or bank statement)
- Job offer or employment contract
- Employer’s RFC and identification
Step 3: Registration and Tax ID Issuance
SAT will issue an RFC number for the foreign employee.
This number will be used for:
- Payroll CFDI issuance
- Social security (IMSS) registration
- Filing of annual income tax returns (if applicable)
Step 4: CFDI Payroll Integration
Once the RFC is active, the employer must integrate the employee’s information into the CFDI de Nómina (electronic payroll receipt).
For compliance guidance, refer to Guía Completa sobre el CFDI de Nómina en México y su Cumplimiento con el SAT.
4. Key Considerations for Foreign Employees Without CURP
Foreign employees who have not yet received a CURP may still begin the SAT process using their passport and temporary immigration permit. However, they must update their information once the CURP and resident card are available.
Failure to update within 30 days may cause discrepancies in CFDI validation and SAT’s payroll systems.
5. Common Challenges and How to Avoid Them
| Issue | Impact | Solution |
|---|---|---|
| Employee lacks CURP | Registration delay | Obtain CURP through INM or RENAPO |
| Mismatch between SAT and IMSS data | Payroll rejection | Ensure identical data entry across systems |
| Expired residency card | Nullifies tax registration | Renew visa before expiration; see How to Renew a Mexican Work Visa Before It Expires |
| Incorrect employer registration | Risk of audit | Verify Constancia de Empleador validity |
6. How EOR Providers Simplify SAT Registration
Companies that employ foreigners via an Employer of Record (EOR) avoid direct registration with SAT, as the EOR acts as the legal employer. The EOR manages:
- RFC registration
- Payroll tax withholdings
- CFDI issuance
- Social security compliance
For a detailed explanation of this model, see The Role of Employer of Record (EOR) Services in Supporting TN Visa Employees.
7. External Resources
- Official SAT portal: https://www.sat.gob.mx
- CURP verification: https://www.gob.mx/curp/
- INM foreign employer registration: https://www.gob.mx/inm
8. Final Thoughts
Registering foreign employees with the SAT is a critical compliance step for companies operating in Mexico. Proper registration ensures lawful payroll operations, avoids fiscal penalties, and facilitates the smooth renewal of work permits and residency statuses.
Organizations employing international talent should integrate tax, immigration, and HR functions to maintain alignment with both SAT and INM requirements. Leveraging professional EOR or immigration partners can help foreign companies navigate these obligations efficiently.
