Transferring Money from US to Mexico Bank Account

mejms wrote:

To those who make use of a Mexican bank account, are you aware of any issues with Hacienda or potential taxes if making deposits into the bank account?  Is there a monthly limit that I should stay under?  Will deposits possibly be flagged as income?

I want to transfer about $15,000 USD into my Bancomer bank account for the purchase of a car from a private party, but I'm concerned about being flagged for taxes or the money being frozen.

After this transfer, I'd like to transfer about $5,000 USD into Bancomer every month.

FYI that I hold dual US/Mexico citizenship.

Any experiences doing this?

Yep, 15,000 would do that. I would suggest 10,000 or less in total U.S. wise. Of course, you probably have money in Bancomer already. I would suggest you figure that in also. I had a hassle with just transferring 5,000.

If you flew into Mexico you should have seen the declaration form on the plane. It asks you how much money you are bringing into Mexico.  The bottom line on that form is 10,000. Given that you have dual citizenship seeing an attorney would be a good idea.

I am also interested in the answer to this question as we will be purchasing a car and some other items when we move there.
With respect to the customs declaration - that relates to how much cash you are carrying on your person at the time, does it not?  You would not declare funds that you will be transferring between banks in some future date.  Please correct me if I am mistaken.

salata2010 wrote:

I am also interested in the answer to this question as we will be purchasing a car and some other items when we move there.
With respect to the customs declaration - that relates to how much cash you are carrying on your person at the time, does it not?  You would not declare funds that you will be transferring between banks in some future date.  Please correct me if I am mistaken.

Being a Canadian, is your intention to move permanently thus becoming a non resident of Canada (you always keep your Canadian citizenship).
My wife and I are Canadians now living fulltime in Mexico with the Permanent Residency status from INM (immigration) since August 2017.
We have spoken to the RFC ombudsman office  (Revenue Canada equivalent) and they gave the following advices:
1- registering to the RFC is like having a SSN for Canada so no need if the following:
2- if all your revenues are from Canada then no need to register the fiscal agreement between Canada and Mexico will apply
3- if you have a Mexican bank account then you need to register, bank heve to withheld 30% of all interests made
4- if you have a bank account and money is transferred in the bank and RFC might requesf proof of provenance
5- if you own/buy property in Mexico you need to register with RFC mainly for Capital gain and rental revenues
6- if you asked the INM a working permit then you need to register with RFC
http://www.prodecon.gob.mxhttps://www.sat.gob.mx/personas

No banks will allow you to open an account without your CURP, RFC, Residency status at least in my area.
You can bring as much as you care in Mexico but above the equivalent of $10000USD you have to declare it at Customs. The same applies if going from Canada to the USA.

My wife and I are retired, don't own property, don't work so all we do used our ATM cards withdraw pesos at the best bank/fee ratio. For all 2018, the average international exchange rate was 14,71 pesos/CAD$ and calculating our cost including Canadian bank fees we had an average exchange of 14,42 peses/CAD$ this was very good for us.

Adios y buen dia a todos, GyC.

"Consumers who have interest in or signature authority over foreign financial accounts must report them to the Treasury if the aggregate balance exceeds $10,000 at any time in the year." https://www.cnbc.com/2018/02/27/foreign … lties.html

This Would be your answer Salata2010.

There are two separate matters here: reporting for US tax requirements and reporting for Mexico tax requirements.

The customs declaration upon entering Mexico is for cash.  You need to declare if you are carrying over $10,000 USD in cash.  At this point, you wouldn't declare if you are intending to make an electronic transfer.  That's a different topic.

The link shared above is US tax requirements.  I am asking about the Mexican side.

In any case, I have done more research and will continue to do so.  I'm not sure if anyone on the site understands how the Mexican tax authority considers transfers into Mexican bank accounts.  It seems like most of the questions and responses on this website are regarding US tax considerations.

I suggest that you meet with a Mexican accountant or your bank's financial adviser to determine how the Mexican government monitors deposits into Mexican bank accounts.  I do not own a Mexican bank account but based on my personal dealings with Sellers of private real estate or property, it seems that bank deposits that involve a certain amount are scrutinized by the government.  What that amount is, I have no clue.  But, an Accountant or your bank's financial adviser will surely have the answer you seek.

Hi "mejmns", I am not an expert and so are the majority on the forum members.

If I may suggest you contact directly your bank and ask them what they do and to what you have to comply.

Personally, since you are a US citizen, you must comply to FATCA, here is a link both Spanish and English from BBVA (Bancomer) on the subject.
https://www.bbvacontinental.pe/meta/inf … res/fatca/https://www.bbva.com/en/corporate-information/#fatca

Adios y buen dia a todos, GyC.

Reply to travellight:  just a clarification - although there are no tax implications to this reporting requirement (even if that balance exceeds $10,000 for one single day), there are penalties possible for failure to report it.