Are you thinking of living in Mexico but are not sure how it will work with your taxes? Here is all you need to know about Mexico taxes for foreigners
Mexico Taxes for Foreigners
Pension and investment income generated from your home country and paid to you while you are an overseas resident will need significant tax information from tax authorities in your home country. It is needful to verify the present tax policy. There is a danger of experiencing double taxation, meaning you will taxed in your home country or where the income originated and you will also be taxed while staying as a foreign retiree in Mexico.
Mexico’s Double Taxation Agreement
There are agreements which you can take advantage of and are actually important for you to pay tax only in only one country. Mexico has “Double Taxation Agreements” with several countries including Canada, the USA, Ireland, UK and other European countries. Taxation has complex and changing natures and individual situations vary so it is necessary to have a tax efficiency plan before choosing retirement in Mexico.
Contact your local tax authority
Contacting local tax authorities is the first step. There should be someone who would provide the needed tax-related information and advice which should be given to you free of charge. Even if you pay several amounts for the fees, these actually pay dividends at the end. It is still wise to seek the services of a professional tax planner, qualified financial adviser, or an accountancy firm.
Maximizing your earning’s tax efficiency is actually one of the advantages of relocating to a foreign country. Consulting a professional who can provide the latest information and news is a great asset. Laws change every year and Mexico’s tax system and the tax system in your specific area of residence and a different country’s tax system where your income is generated are to be understood and these tasks can be done by a tax professional for your advantage.
Get a Mexican accountant
Like in most countries, Mexico’s tax system is involved and complex. The help of a local accountant will go a long way, even beyond filing your tax return. There are numerous local accountants who charge with reasonable fees. You may waive your need for an accountant if you are well-versed with the Spanish paperwork and bureaucratic procedures. There are also online advice and information but one-on-one professional advice and assistance are better.
Before deciding to move to Mexico for your retirement, a carefully-planned and well-advised tax efficiency is an essential step to undertake. Qualified tax experts, accountants, and financial advisers will be your key persons in this regard.
For more information you can visit Mexico’s Treasury department is known as “Hacienda” or its full title, Secretaria de Hacienda y Credito Publico; the web site is http://www.gob.mx/hacienda.