Tag Archives: Living in Mexico

U.S. Ex Pats taxes in Mexico

I honestly had no idea there was so much, and so little about U.S. Ex Pats and their taxable consequences both to the U.S. and to the country they now live.

I found a wonderful article, and author, who appears to have fulfilled quite a niche as far as Mexico is concerned.

They basically cover questions such as bank accounts, Mexican Customs, and sales tax, or IVA (16%) as it is called in Mexico. No wonder so many Mexican citizens “flee” to the border cities of the U.S. (El Paso, Laredo, Brownsville, etc.) to shop.

The Frontera (frontier or border) use to impose a 11% tax, now the country has implemented a level sales tax rate of 16% sales tax. WOW, remarkably high! There is possibly 5-7 million people who live on the Mexico/U.S. border and who knows how many have a Tourist Visa to avoid this tax by shopping in the U.S.?

The name of the article that contains great information about the Mexican Tax code as well as other important and timely information is “New 2014 Tax Laws for Mexico that Affect Expats and Foreigners”.

IRS Tax Issues for Americans Living and Working Abroad in Mexico – Master Article

You can find more information about the above at:
YucaLandia/Surviving Yucatan.© Steven M. Fry

Hope this might help you if you are considering moving to Mexico.

Remember, for all of your Mexico Tourist Auto, Homeowners, Motorcycles, Boats and International Health Insurance needs, please call us at 1-800-434-3966 OR Email us at ici@mxici.com or visit us at mxici.com to issue your own policy. We appreciate your business!