International surety bonds: How to respond to contracts in Mexico when your company is foreign

Does your company have a contract in Mexico? We help you issue the bond you need, even if you don't have local tax residency. At We Link, we connect global businesses with Mexican legal guarantees.

When a foreign company participates in a project in Mexico—whether as a supplier, contractor, or investor—it's common for the contracting party to request a surety bond . The problem arises when the legal or financial team doesn't know how surety bonds are issued in the country, what the conditions are for non-Mexican companies, or what alternatives exist. In this blog, we explain how an international surety bond operates in Mexico, what challenges foreign companies typically face, and how We Link helps you overcome them quickly and securely.

What is an international surety bond?

An international surety bond is a financial guarantee issued by a Mexican surety company, but in favor of a company or contract involving a foreign party. This situation is common in infrastructure, energy, specialized services, logistics, or supply contracts.

Typical examples:

• A Spanish company is building a stretch of highway and must guarantee compliance with the contract with a Mexican federal entity.

• An American company supplies medical equipment to a public agency and must post a deposit bond.

• A Canadian company signs an industrial lease and the landlord requires a bond to ensure compliance.

What challenges do foreign companies face when issuing a surety bond in Mexico?

Issuing a surety bond in Mexico as a foreign company entails some challenges that are important to anticipate:

1. Tax Residency: Most Mexican surety bond companies require the guarantor to be a Mexican resident or legal entity. This can be achieved through a subsidiary, a legal representative with sufficient authority, or through joint venture structures.

2. Legal and Financial Documentation: Official documents with an apostille or legalization will be requested, such as articles of incorporation, powers of attorney, financial statements, and signed contracts. These must be in Spanish or translated by an authorized expert.

3. Additional Guarantees Since we are not a national company with a track record with the surety company, additional guarantees may be required: pledge deposits, letters of credit, endorsements, or real estate in Mexico.

4. Timescale and legal coordination Unlike local bonds, the international process can take longer if you don't have expert advice to anticipate requirements.

How does We Link help you if you are a foreign company?

At We Link, we specialize in structuring surety bonds for foreign companies operating in Mexico . We offer comprehensive support:

• We evaluate your company's profile and design a strategy to comply with Mexican legal requirements.

• We coordinate with partner insurers (such as Aserta, Chubb, and Dorama) to determine the best way to document and secure the transaction.

• We streamline procedures with expert translators, notaries, and authorities when specific documentation is required.

• We negotiate fair and clear terms so you can operate frictionlessly and without tying up more resources than necessary.

Common use cases where you might want to work with us:

• Performance bond for public works

• Advance payment or good quality guarantee in contracts with Pemex, CFE or state governments

• Judicial bonds for companies in commercial litigation in Mexico

• Tax bonds for administrative processes before the SAT

Your company doesn't have to halt operations or reject an attractive contract in Mexico just because you don't know how to issue a local surety bond. At We Link, we're the bridge you need between your country and Mexican legal requirements. We guide you step by step so you can comply on time and in the correct manner, and secure your business opportunities with confidence.