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7 years ago

income taxes

7 years ago
My husband and I are very interested in retiring to Mexico. Recently we have been disappointed to learn that Mexico taxes its residents on worldwide income, and that a resident is defined as anyone (including foreigners) who establishes an abode in Mexico. We have also learned that the Mexican income tax rate can be very high: starting at about $47,000, the tax rate for 2016 is a whopping 34% (in 2015 it was 30%). Sure, double taxation is not an issue, but even so, that tax rate is a lot higher than the U.S’s.

It seems like this would discourage a lot of Americans from moving to Mexico. I’ve been browsing forums for a while, and have never heard any complaints about retirees having to pay taxes to Mexico, or their high tax rate. I do realize that social security income can not be taxed by Mexico, but what about retirees who have investment income from the US? Am I missing some major piece of information, or is it perhaps the case that Mexico simply does not enforce its tax laws on foreigners who are retired, i.e. not working in Mexico? I would really appreciate some honest feedback on this question, since it is a major stumbling block for me and my husband. Thank you!

If you prefer, please email me privately.

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William Russell
William Russell

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William RussellWilliam Russell

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