blankletmusic Posted December 3, 2023 Report Share Posted December 3, 2023 I may be moving to MX early 2025 probably with a residente temporal visa. I receive VA disability and social security from the US along with some interest income. As a full time resident of Mexico, would I be required to pay Mexican income taxes? And if so, at what rate? Quote Link to comment Share on other sites More sharing options...
Usvetsinmexico Posted December 3, 2023 Report Share Posted December 3, 2023 We have a tax treaty with mexico. We only pay mexico tax on income we make in mexico. And we cannot be double taxed. So usa income tax on usa income mexico income tax on mexico income. I know me and my wife both get VA disability and I get SSDI which are tax free income. Now the money I make from 12% 3 month CD in mexico is pay taxes here on. 1 Quote Link to comment Share on other sites More sharing options...
blankletmusic Posted December 3, 2023 Author Report Share Posted December 3, 2023 That's good to know. I had read that you must pay taxes to Mexico as a full time resident and then claim the foreign tax credit when you file your US tax return to prevent being taxed in both countries (as there is a tax treaty as you stated). That was apparently wrong information or I misunderstood it. Mexican cds pay 12%? That's a LOT better than what I currently receive. Quote Link to comment Share on other sites More sharing options...
Usvetsinmexico Posted December 3, 2023 Report Share Posted December 3, 2023 5 minutes ago, blankletmusic said: That's good to know. I had read that you must pay taxes to Mexico as a full time resident and then claim the foreign tax credit when you file your US tax return to prevent being taxed in both countries (as there is a tax treaty as you stated). That was apparently wrong information or I misunderstood it. Mexican cds pay 12%? That's a LOT better than what I currently receive. yes at least at hsbc where I bank... lol my savings account gives.... 5%!!!! Quote Link to comment Share on other sites More sharing options...
blankletmusic Posted December 3, 2023 Author Report Share Posted December 3, 2023 1 hour ago, Usvetsinmexico said: yes at least at hsbc where I bank... lol my savings account gives.... 5%!!!! Great, but do they have anything similar to the FDIC? Quote Link to comment Share on other sites More sharing options...
Usvetsinmexico Posted December 3, 2023 Report Share Posted December 3, 2023 29 minutes ago, blankletmusic said: Great, but do they have anything similar to the FDIC? yes around 150k usd but of course its peso so it changes dollar amount. Pretty easy if you have a spouse to get 2 bank accounts per bank and open multiple banks to keep it under and safe. Quote Link to comment Share on other sites More sharing options...
blankletmusic Posted December 4, 2023 Author Report Share Posted December 4, 2023 22 hours ago, Usvetsinmexico said: yes around 150k usd but of course its peso so it changes dollar amount. Pretty easy if you have a spouse to get 2 bank accounts per bank and open multiple banks to keep it under and safe. Is that amount (which is very roughly 2.7 million pesos rounding to 18 pesos to the USD) per depositor? Are you saying that the Mexican gov't. will federally insure each depositor for up to 150,000 USD in the current peso equivalent like the FDIC in the US if the bank fails? 2 Quote Link to comment Share on other sites More sharing options...
Mostlylost Posted December 4, 2023 Report Share Posted December 4, 2023 The Mexican government thru IBAP insures deposits in qualified institutions for up to 400,000 UDI's At his time a UDI is just under 8 pesos. A variety of financial institutions operate in Mexico offering deposit accounts and investment vehicles that, while perfectly legal, are not covered by the IPAB public insurance scheme. In the event of any problems that may arise, depositors may lose part or all of their deposits or investments as happened in this case with Monex https://www.gob.mx/ipab https://www.banxico.org.mx/SieInternet/consultarDirectorioInternetAction.do?accion=consultarCuadro&idCuadro=CP150&locale=en 1 1 Quote Link to comment Share on other sites More sharing options...
Kiko Posted December 4, 2023 Report Share Posted December 4, 2023 https://sanmigueltimes.com/2019/09/the-monex-scam-7-million-usd-vanished-from-expat-bank-accounts/ Yep I remember that. If it sounds too good to be true, then it probably is too good to be true. Quote Link to comment Share on other sites More sharing options...
Usvetsinmexico Posted December 5, 2023 Report Share Posted December 5, 2023 17 hours ago, Kiko said: https://sanmigueltimes.com/2019/09/the-monex-scam-7-million-usd-vanished-from-expat-bank-accounts/ Yep I remember that. If it sounds too good to be true, then it probably is too good to be true. They gave him access to the accounts. I stick with national advertisement's at the well known banks web page. IE hsbc. This article is about a scam from a local banker. Cds controlled by your national brand banks are secure and backed by the govt insurance. I know you all thrive trying to say what I do is wrong. But you can't pull a straw man argument that is that bad. I would never have got involved in the laguna mall investment. A banks CD is safe and right now pays up to 12%. So stop talking BS and stick to the facts. Cds are safe and have govt protection. And the only other investment I talked about is 5% in my savings account. So your saying a savings account isn't backed? Hey mancoon you wonder why involved in this site is low? Easy you let these types come into well informed conversations and just speew white noise BS that wasn't being talked about only because one off the group they talk with said something so its time to attack. 1 3 Quote Link to comment Share on other sites More sharing options...
Kiko Posted December 5, 2023 Report Share Posted December 5, 2023 @Usvetsinmexico, My post was not in reference to you so no need to take offense. The post provided some historical reference to the scam in San Miguel de Allende. But never mind, carry on. 7 Quote Link to comment Share on other sites More sharing options...
RickS Posted December 5, 2023 Report Share Posted December 5, 2023 Kiko is a well-respected member of this forum. IMO, your personal attack on him/her calling him "these types" was not warranted but does speak to your mindset I guess. 6 Quote Link to comment Share on other sites More sharing options...
Kiko Posted December 5, 2023 Report Share Posted December 5, 2023 Speaking of tax liability in Mexico, I'm looking for a new local contador who can file my Mexican tax returns. Any recommendations appreciated. Quote Link to comment Share on other sites More sharing options...
Mostlylost Posted December 5, 2023 Report Share Posted December 5, 2023 3 hours ago, Usvetsinmexico said: They gave him access to the accounts. I stick with national advertisement's at the well known banks web page. IE hsbc. This article is about a scam from a local banker. Cds controlled by your national brand banks are secure and backed by the govt insurance. I know you all thrive trying to say what I do is wrong. But you can't pull a straw man argument that is that bad. I would never have got involved in the laguna mall investment. A banks CD is safe and right now pays up to 12%. So stop talking BS and stick to the facts. Cds are safe and have govt protection. And the only other investment I talked about is 5% in my savings account. So your saying a savings account isn't backed? Hey mancoon you wonder why involved in this site is low? Easy you let these types come into well informed conversations and just speew white noise BS that wasn't being talked about only because one off the group they talk with said something so its time to attack. My comment and Kiko's comments were not "white noise" but relevant to the OP's question. The article and information is relevant because that financial institution was not covered by the IBAP which at that time was Fobaproa Precisely why I commented "qualified institutions" in my post, As to who attacked who I will leave that up to the reader.... 3 Quote Link to comment Share on other sites More sharing options...
traderspoc Posted December 12, 2023 Report Share Posted December 12, 2023 On 12/3/2023 at 9:10 AM, blankletmusic said: I may be moving to MX early 2025 probably with a residente temporal visa. I receive VA disability and social security from the US along with some interest income. As a full time resident of Mexico, would I be required to pay Mexican income taxes? And if so, at what rate? No mexico at this time not does tax foreign pension income. They do tax earned income from working. USA will tax your source of income. Please make sure you have medical insurance or money to pay for medical care. Quote Link to comment Share on other sites More sharing options...
RickS Posted December 12, 2023 Report Share Posted December 12, 2023 Think you need to add a NOT in the first sentence.... 2 Quote Link to comment Share on other sites More sharing options...
Mainecoons Posted December 13, 2023 Report Share Posted December 13, 2023 Keep it civil, Usvets. We stick to Cetes through Actinver as well. Yields have been not so hot until this year but the principal is safe. Thanks. Quote Link to comment Share on other sites More sharing options...
Usvetsinmexico Posted December 13, 2023 Report Share Posted December 13, 2023 49 minutes ago, Mainecoons said: Keep it civil, Usvets. We stick to Cetes through Actinver as well. Yields have been not so hot until this year but the principal is safe. Thanks. I was talking safe investment and they come in talking about some fool letting a bank manager have your bank info. I personally don't know 1 person who would do that. Mexico has a fdic type protection and its good for each account at different banks. Or you and your spouses account at the same bank. So easy to have more just have to spread it around. Quote Link to comment Share on other sites More sharing options...
Mostlylost Posted December 13, 2023 Report Share Posted December 13, 2023 1 hour ago, Usvetsinmexico said: I was talking safe investment and they come in talking about some fool letting a bank manager have your bank info. I personally don't know 1 person who would do that. Mexico has a fdic type protection and its good for each account at different banks. Or you and your spouses account at the same bank. So easy to have more just have to spread it around. The "fool" you speak of (and there were more than one) would have protected if they had used a bank covered by the IBAP. I posted that people should use "qualified" institutions covered by IBAP. Kiko posted they remembered that incident. In all respect It was you who called that information and Kiko's post "white noise" And for your information Bank employees all over the world get account holders information, with or without the help of the account holder. Those people are certainly not "fools" they are victims. Quote Link to comment Share on other sites More sharing options...
traderspoc Posted December 23, 2023 Report Share Posted December 23, 2023 On 12/12/2023 at 9:39 AM, RickS said: Think you need to add a NOT in the first sentence.... Fixed thank you Quote Link to comment Share on other sites More sharing options...
mexijims1 Posted December 24, 2023 Report Share Posted December 24, 2023 I would not trust Mexico's version of an FDIC. I had invested in a GEO bond, one of the largest low income builders in MX. I was told they were very safe. That is until Pena Nieto came into office and canned GEO for a different low income builder. I lost everything in that GEO bond since they subsequently went bankrupt.. The good news is you can currently earn about 11% on your money here. They automatically take out the MX Federal tax from that income. I am not sure what the current tax rate is. I believe it is set by the Banco de Mexico ( their version of the U.S. Federal Reserve) Does anyone know what the current MX Federal tax rate is on those savings accounts? Quote Link to comment Share on other sites More sharing options...
Usvetsinmexico Posted December 25, 2023 Report Share Posted December 25, 2023 I trust hsbc. Quote Link to comment Share on other sites More sharing options...
Mostlylost Posted December 30, 2023 Report Share Posted December 30, 2023 On 12/24/2023 at 1:45 PM, mexijims1 said: I would not trust Mexico's version of an FDIC. I had invested in a GEO bond, one of the largest low income builders in MX. I was told they were very safe. That is until Pena Nieto came into office and canned GEO for a different low income builder. I lost everything in that GEO bond since they subsequently went bankrupt.. The good news is you can currently earn about 11% on your money here. They automatically take out the MX Federal tax from that income. I am not sure what the current tax rate is. I believe it is set by the Banco de Mexico ( their version of the U.S. Federal Reserve) Does anyone know what the current MX Federal tax rate is on those savings accounts? Bonds are like stocks. They are a risk investment. Bond holders are not protected from companies going bankrupt by any govertment agency in any country that I am aware of. Mexico's version of the FDIC which is IBAP protects most banks same as FDIC does in the USA. Quote Link to comment Share on other sites More sharing options...
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