Why International Businesses Are Establishing Their North American Base of Operations in the Dallas

Updated: Jul 19



Low state taxes are an important and often discussed part of the story, and certainly in comparison to areas like New York and San Francisco, but there are several other important advantages to DFW.


Real estate is no longer cheap but is still readily available and less expensive than most other major metropolitan areas in the US.


Human capital is hard to find and more expensive than ever, though again the trend of DFW and Texas being more competitive than New York or California continues, and talent continues both to developed here and to immigrate in from less competitive regions of the US and from abroad.


Importantly for international and global businesses it is relatively easy to find people who speak a second language in Dallas, in particular Spanish. The international community is quite broad and much larger than typically recognized outside of Dallas.


A primary advantage of both DFW and Greater Houston is the logistical advantage, due to the shared border Texas shares with Mexico and the conduit that flows north and south through Texas to Canada.


The Dallas area airports offer fairly short flying times to both the East and West coasts of the US, as well as quite short flights to Mexico City, Monterrey, and other Mexican industry hubs.


Though Dallas and Houston share many of the same advantages versus other US cities, in part due to being in Texas, one facet that is noticeably better in Dallas is the weather. It gets very hot, but extreme humidity is atypical whereas Houston is extremely humid.


Additionally, Dallas does have zoning laws and regulations and so is a well laid out and organized metro area, whereas Houston is not. There is also less crime in Dallas. In summary DFW continues to be in the top of cities in the US in terms of Quality of Life – Metroplex cities Plano, McKinney, Allen, Frisco etc. consistently rank in the Top 10 on analyses of Quality of Life in the US. Dallas is also very well regarded for its restaurant scene. In particular for families the Quality of Life in DFW is very hard to beat.


There are sales taxes in Texas, similar to VAT in other parts of the world and there are franchise and use taxes which are different from income taxes. Still the tax regime in Texas is among the most competitive of all the US. Real estate taxes are rising rapidly and are no longer low though there is no expensive “notary” fee as there infamously still is in Mexico for example.


Many companies are quietly setting up their competitive base of operations in DFW, including companies from Mexico, China, and Europe to capitalize on the advantages offered here.


We relocated here from Mexico City and love it. If you would like to have a conversation about how we can assist you please reach out to: info@MiddleMarketAdvisory.com



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