Expat Advice: Financial Issues in Queretaro, Mexico

What is the name of the city or town that you are reporting on?

Queretaro

Which banks do you use? If you have a local account, which bank do you use? How do you like it? Do you also have an account in your home country? Which bank? Do they charge for ATM withdrawals? Do they charge a lot for international wire transfers? How has it been working with them from abroad? Do you use a special international wire transfer service? Do you use an online bank? If so, tell us about them.

Mexican banks offer no special services for expats as far as I know. They are not service oriented. For example, no one at my bank could tell me how to transfer money from my account in the States to my account in Mexico in a timely way at reasonable cost. They were not at all interested in doing any extra research on this topic.

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What advice would you offer others about banking as an expat in your country? What do you wish you had known about banking when you first arrived?

At least in Mexico, keep it simple. This is basically a cash society. There are checking accounts, but it isn't safe or reliable to mail checks. Since you have to visit each company to pay bills, you might as well pay in cash and save the extra fees.

What sort of challenges or frustrations have you encountered as an investor living overseas? Please describe.

Actually an investment company called Lloyd offers excellent service and advice, treating the small investor as equal to the large investor.

What advice was particularly helpful to you in managing your finances? What advice would you give? Any other thoughts?

Keep dollars and pesos as separate as possible and avoid unnecessary exchanges. When in Mexico, live off the pesos you make in Mexico. When in the States, use your dollars.

Do you do your own taxes, use a local firm, an expat-oriented firm or does your employer handle this for you (i.e. via an corporate tax firm)?

I am a self-employed English teacher with a good command of Spanish. Nevertheless, it can be very difficult to understand Mexican tax law which changes at least once a year. For example, my first year I only had to file an annual return. My second, it was quarterly. This year it's monthly! I make an effort to understand, but I also rely on a good private accountant whom I trust to do things on time and legally.

What advice could you offer others about doing your taxes as an expat?

See above. Also, the conventional advice of "When in doubt, throw it out," doesn't apply hear. Mexico is drowning in paper, and it's best to retain anything you think they might possibly ask for in the future. Also, they sometimes change the requirements and make the changes retroactive. Be prepared for this. Also, don't expect your accountant to understand the differences between US and Mexican tax laws. He or she may assume that you understand something that is routine in Mexico but unheard of in the States. Ask a lot of questions.