Etsy is open to sellers in Mexico and in much of Latin America, but the path depends on your country: Mexican shops are paid in Mexican pesos to a local bank account, while shops in Argentina, Chile and Peru are paid through a Payoneer account. Mexican sellers also have tax withheld from each sale. This guide lists what Etsy itself states for these countries, works through one order in each setup, and marks clearly what Etsy does not state.

Can you sell on Etsy from Mexico or Latin America?

Etsy's help article Countries Eligible for Etsy Payments lists Mexico without an asterisk, which means Mexican shops use Etsy Payments directly with a Mexican bank account. Argentina, Chile and Peru are listed with an asterisk: sellers there accept Etsy Payments with a Payoneer Payment Account, so a Payoneer account is part of opening the shop. Brazil is on the list in the same way.

Colombia does not appear on that list, and neither do most other Latin American countries. A shop with a bank account in a country that is not listed cannot use Etsy Payments, and none of the fees below apply to it.

What you need before you open the shop

  • In Mexico: a Mexican bank account in your name, and your RFC ID (Registro Federal de Contribuyentes) to add in your Legal and tax information. The RFC is different from your CURP.

  • In Argentina, Chile and Peru: a Payoneer account in your own name, opened during or before Etsy's shop setup.

  • Your shop name, first listings and shop policies, the same as in any other country.

Every Etsy fee for a Mexican or Latin American seller

These are the fees Etsy's own policies list, checked on 2 November 2026.

  • Listing fee: 0.20 USD for each listing and for each renewal. Listings last four months, and a listing with several items renews at 0.20 USD each time one sells.

  • Transaction fee: 6.5% of the item price plus shipping and gift wrapping. Outside the US it is calculated on the price including any tax you put in it.

  • Payment processing: 4.5% + 8.00 MXN per order in Mexico; 6.5% + 0.30 USD per order in Argentina, Chile and Peru. It is charged on the order total including shipping and tax (Etsy Payments Policy).

  • Deposit fee in Mexico: 40.00 MXN when a payout is under 2,000.00 MXN.

  • Regulatory Operating Fee: none for Mexico, Argentina, Chile or Peru (Etsy's list).

  • Offsite Ads: 15% on orders that come from Etsy's ads on other sites, or 12% for life once your shop passes 10,000 USD in sales over 365 days; never more than 100 USD per order. Below 10,000 USD you can opt out.

  • Currency conversion: 2.5% of the sale if you list in a currency other than your payment account currency.

A worked example: one order in Mexico

Assume one item at 500 MXN with 100 MXN shipping, no tax in the price, and no Offsite Ads. The order total is 600 MXN, and your shop lists in MXN.

  • Transaction fee: 6.5% of 600 MXN = 39.00 MXN.

  • Payment processing: 4.5% of 600 MXN + 8.00 MXN = 35.00 MXN.

  • Listing fee: 0.20 USD.

Etsy fees come to 74.00 MXN plus the 0.20 USD listing fee, so 526.00 MXN remains before the listing fee, VAT on those fees and the tax Etsy withholds. The withheld tax is not a fee: Etsy pays it to the SAT on your behalf, and it shows in your Payment account and on the CFDI Etsy emails you each month.

A worked example: one 38 USD order through Payoneer

Assume one item at 30 USD with 8 USD shipping, no tax in the price, and no Offsite Ads, for a seller in Argentina, Chile or Peru. The order total is 38 USD.

  • Transaction fee: 6.5% of 38 USD = 2.47 USD.

  • Payment processing: 6.5% of 38 USD + 0.30 USD = 2.77 USD.

  • Listing fee: 0.20 USD.

Total Etsy fees: 5.44 USD, so 32.56 USD remains before any VAT on those fees and before Payoneer's own fees.

Your material, packaging and shipping costs come out of what remains. To run your own numbers, the free profit calculator includes Mexico, Argentina, Chile and Peru.

Tax Etsy withholds in Mexico

Etsy's article What Does Etsy Withhold and Remit to Mexican Tax Authorities? sets out the rates. With a valid RFC ID on file, as an individual or a business, Etsy withholds 2.5% income tax (ISR) on every sale and 8% VAT (IVA) on orders shipped to an address in Mexico. Without a valid RFC ID it withholds 20% ISR and 16% IVA. The ISR rate for individual sellers rose from 1% to 2.5% on 1 January 2026.

If you add your RFC ID partway through a month, Etsy recalculates that month's withholding and credits the difference; earlier months cannot be recalculated. Make sure your name, address and postal code on Etsy match your SAT records. This is not tax advice; ask an accountant (contador) about your own case.

VAT on Etsy's fees

Etsy's article How VAT Is Collected on Seller Fees lists Chile and Peru among the countries where Etsy adds VAT to its seller fees unless you have added a VAT number to your Etsy account. For Mexico, it says Etsy charges VAT on applicable fees whether or not you have submitted a VAT ID. Etsy does not state the rate it applies, so we do not give one here.

Payoneer's own fees

Payoneer charges its own fees, for example when you withdraw to a local bank account or convert currency. Etsy's Payments Policy describes Payoneer withdrawal fees as typically up to 3% of the amount. They are set by Payoneer, not Etsy, and they are not part of the numbers above.

How to keep more of each sale

  • In Mexico, add your RFC ID before your first sale: it is the difference between 20% and 2.5% ISR withheld.

  • List in the same currency as your payment account (MXN in Mexico, USD with Payoneer) so the 2.5% currency conversion fee never applies.

  • Put shipping into your price planning: the transaction fee and payment processing are both charged on shipping too.

  • Decide on Offsite Ads while you are under 10,000 USD in sales; after that, the 12% fee is mandatory for the life of the shop.

Frequently asked questions

Can I sell on Etsy from Colombia?

Not with Etsy Payments. Colombia is not on Etsy's list of countries eligible for Etsy Payments.

Do I need a Payoneer account in Mexico?

No. Mexico is listed without an asterisk, so Mexican shops use Etsy Payments with a Mexican bank account. Payoneer is required in Argentina, Chile and Peru.

Why does Etsy keep part of my sales in Mexico?

Etsy is required to withhold income tax (ISR) and, for orders shipped within Mexico, VAT (IVA), and to pay it to the SAT. With a valid RFC ID the rates are 2.5% and 8%; without one they are 20% and 16%.

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