Mexico News and Mexico Tax Tips
Welcome to our Fourth Edition of Tax Tips and Mexico News. In this edition, prominent U.S. Tax Attorney outlines items that can cause IRS audits. Since the rental tax item in the last edition prompted such great interest, it is being repeated. Two major take aways are: a) Taxes paid on your Mexico income can...
Ask an Expert – What are trust administration fees?
What exactly is the annual “administration” of the Mexican Bank Trust? Does the bank actually do anything on an annual basis besides sending me an invoice? [The bank that administers my trust] just sent me an invoice for $616.52 U.S. for the “annual administration” of the trust. Last year it was $603.66 U.S. I have...
Do I have to pay taxes on my Mexico rental in the US?
Do I need to pay income taxes on my Mexico rental property if I only rent it a few times a year? YES! Mexican newspapers are full of headlines about the growing problem of foreigners who are renting their homes or condominiums and failing to pay Mexican taxes. Not only is this a...
Ask an Expert – Do foreigners have to pay taxes in Mexico?
If I do not earn any income in Mexico, nor have any investments in Mexico, as a permanent resident do I need to file a Mexican income tax return? Question 1: I sold my principal residence (not a rental) in PV in June and paid Capital Gains tax. I know I have to go to SAT...
Changes in Mexican Migratory Law, part two
This is part two of my series on the new Mexican Migratory Law; it deals with the classification of TEMPORARY RESIDENT. The previous article dealt with the classification of VISITOR as explained in the first part of Article 52 of the new Mexican Migratory Law and the following article will deal with the classification of...
New Changes to Mexican Immigration Law
On May 25th, 2011, Mexico published its new migratory law (Ley de Migración) in response to glaring human rights violations, but as well as the human rights protections, the new law also includes some changes that affect expat foreigners. This is part one of a series of articles explaining the changes in the new migratory...
Owning Property In Mexico
Ley De Fideicomiso
http://youtu.be/lKGgxj4OZkk How many times have you heard, you can’t own property in Mexico, you can only get a long term lease! Real property ownership is not the same in Mexico article 27 of the Mexican constitution of 1917 decrees that no foreign person may be registered as the owner of any real property...
Ask An Expert
SAT on Timeshare sales
Question: I have been contacted about selling my timeshare in Mexico. The firm claims that I must pay 12.5% tax on this sale. Can you confirm that? Answer #1 Rory King: The answer to the question is a little complicated because it depends on the type of timeshare. Most timeshares or fractional ownership packages...
Buying on the Beach
Defining Mexico’s Federal Maritime Zone
Defining and measuring the Federal Maritime Zone The Federal Maritime Zone is legally described as the 20 meter wide strip of land that is transitable and next to the beach (playa mar). Let’s break this down to make sure we are clear on what we are talking about: 1. The Federal Maritime Zone is...
Mexico Rental Income
Paying Tax Is Now Easier Than Ever and with Stateside Benefits!
http://youtu.be/UJUrtLMJByw Those who have rental properties in Mexico can now rest easy. SAT, Mexico’s Uncle Sam, has provided a straightforward and relatively simple way to declare and pay taxes on rental income for those foreigners who have long wished to be in compliance but did not know the way to do so. As of February...
The Fideicomiso Controversy
and Forms 3520 and 3520A
Per Internal Revenue Code Section 6048, any trust established in a foreign country by a United States citizen requires filing certain forms with the U.S. Department of the Treasury (Internal Revenue Service) each year. Forms 3520 and 3520A must be filed by anyone who holds an interest in a foreign trust as a beneficiary. These...
Avoid Dual Agency
Consider a Buyer’s Agent
Dual agency arises when a real estate broker or salesperson represents adverse parties (e.g., a buyer and seller) in the same transaction. In real estate the party that represents a buyer and or a seller in the purchase or sale of a property, is called an agent. In Mexico, as in other countries of the...
