US Tax Consultant for Expats

You might want to look under the classified tab at ex-pat tax services.

Thanks. Just took a look and there was nothing at all.

Mejms

there was this
https://expattax.services/?gclid=Cj0KCQ … dtEALw_wcB

Thanks for that link.

There are plenty of advertisements for services offered.

As I mentioned in the initial post, looking for feedback from anyone who has firsthand experience.

Appreciate your reply though.

I have done a lot of research and am nearing a solution. For those who are also concerned about the Mexican tax situation for those of us who only have US income, this is the best article that I have come across:

http://pinnacleadvisoryinternational.com/mexico-taxes/

This guy has written a couple of other articles as well and seems to be the only one online who actually addresses this topic!

The gist of the article is:

Yes, you are supposed to file and may need to pay taxes. The vast majority of expats don't file and they get away with it.

File in Mexico because you live in Mexico ? or because you have a Mexican income? If you do not make an income in Mexico you do not pay taxes to Mexico because of the treaty regarding double taxation.

Most countries expect you to pay taxes where you live but not the U.S. hence no matter where you live you pay taxes to the U.S.

"The U.S. and Mexico signed the Convention Between the Government of the United States of America and the Government of the United Mexican States for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income2 (the Treaty), with accompanying Protocol3 (the Protocol), on ..."
https://scholar.smu.edu/cgi/viewcontent … ntext=lbra

That is not the correct interpretation of what double taxation means. Yes, you cannot be taxed on the same dollar earned. That is also why the foreign tax credit exists for IRS filing, so that you will be credited any tax paid overseas. It depends on where your tax home is established, which is entirely separate from whether you are paid in dollars or by a US company or client.

I have looked over the US/Mexico tax treaty agreement and Mexico's law on federal taxes (Ley del Impuesto de Sobre La Renta). I have spoken with US and Mexican accountants and read tons of stuff online. There is A TON OF MISINFORMATION and most people just make assumptions without referencing source material such as the tax treaty and laws.

If you are a resident in Mexico, you should read the following line from the beginning of  "Ley del Impuesto de Sobre La Renta" very carefully:

"Las residentes en México, respecto de todos sus ingresos, cualquiera que sea la ubicación de la fuente de riqueza de donde procedan."

The US/Mexico tax treaty will ensure that you don't pay double tax, but to say that you do not need to file (and possibly pay) in Mexico is wrong.

Of course, you pay Mexican taxes on pesos earned in Mexico. That is the most straightforward case.

To say that you don't pay Mexican taxes on income coming from any other country while a resident in Mexico is really misguided. You need to dig deeper on understanding what the tax treaty and other legal tax documents say on the matter.

No need to take my word for it though. I'd point you to the source documents and have you read for yourself.

Took me many hours to get to the bottom of this and even still there is gray area on the filing logistics, but yes, you're legally on the hook for filing with Hacienda on any worldwide income earned while a resident in Mexico.

I think you are confusing a legal resident and a resident by visa they are not the same thing, What I posted was a legal interpretation. I have also talked with my bank which is a Mexican bank, not a Mexican/ U.S. bank.
Originally a legal rep. came by my house every three months to review my status and see if I had a Mexican income. Their position was that if I had an income generated in Mexico. I would have to file.  You are aware that people without incomes don't file in the U.S. right?
Money from outside Mexico is not Mexican income unless you are Mexican. the treaty is mostly about property and businesses, but individuals are mentioned.

they can't all be wrong.

How did you come up with that distinction for the purpose of taxes? Where are you getting your ideas from?

I could point you to the Mexican tax law or the US/Mexico tax treaty, but I will point you to the article I already linked above. I wouldn't quote just any random article online. The source is important and you can determine the quality of the author's credentials yourself.

"Note that tax residence is not the same as legal residence. Tax residence is defined in international tax treaties and local tax laws, while legal residence is based in immigration and nationality laws. Under certain circumstances, you may have the legal ability to live in a country and not be a tax resident of that country. On the other hand, you could be living in the same country with expired or no legal documentation and still be subject to payment of income taxes. Generally, you can only be a tax resident of one country at a time, so it’s important to know who is a tax resident and who isn’t.

In Mexico, tax residence is first understood in light of the tax treaties the country has signed with other nations (the U.S. and Canada, for example). Article 4 of those treaties defines a tax resident as a person who has established an abode in the country. That is, if you have a permanent home in Mexico you are, in the first instance, a Mexican tax resident and subject to pay Mexican income taxes on worldwide income."


Think about what you're saying for a moment. If you were figuring out a question about taxes in the US, would you contact your local bank for tax advice? Contact Hacienda or a qualified, international tax accountant.


First, filing taxes in Mexico has nothing do with nationality. I have no idea where you are getting that idea from. Can you point to something in tax documentation?

Second, the tax treaty discusses  property, businesses, independent personal services, government services, students, and much more. The vast majority of IRS documentation does not apply to a single person. That doesn't mean you just disregard all documentation. You find what applies to you. Here is the table of contents for the tax treaty.

Article 1-----------------------------General Scope
Article 2-----------------------------Taxes Covered by the Convention
Article 3-----------------------------General Definitions:
Article 4-----------------------------Residence
Article 5-----------------------------Permanent Establishment
Article 6-----------------------------Income from Immovable Property (Real Property) Article 7-----------------------------Business Profits
Article 8-----------------------------Shipping and Air Transport
Article 9-----------------------------Associated Enterprises
Article 10----------------------------Dividends
Article 11----------------------------Interest
Article 11A--------------------------Branch Tax
Article 12----------------------------Royalties
Article 13----------------------------Capital Gains
Article 14---------------------------Independent Personal Services
Article 15-----------------------------Dependent Personal Services
Article 16----------------------------Directors Fees
Article 17----------------------------Limitation on Benefits

I'd also encourage you to look over the Ley del Impuesto de Sobre La Renta.

In my experience, that isn't a winning argument.

Again, I am pointing to source documents and at least one fairly authoritative expert who wrote an article on the topic. If you want to make your decisions based on anecdotal experiences and the fact that someone said something to you, you can do that. However, you shouldn't offer tax advice and tell people that they do not need to file in Mexico while living here if their income is not Mexican-sourced.

I'm not going to continue the back and forth here because it will be too time-consuming and it's clear to me that you really haven't done due diligence on this topic.

I know that the question of filing taxes in Mexico has come up a few times on this forum. If anyone would like some initial help in getting their feet planted, feel free to send me a message. Like most things in life, doing something right takes more time and effort, but will give you great peace of mind.

"feel free to send me a message. Like most things in life, doing something right takes more time and effort, but will give you great peace of mind."

So your purpose is to offer your services and your opinion. You are not, and were not seeking references and advice. I suspected as much when I pointed you toward a source and you said you saw nothing. Please offer your services in the classified section.

Ok, now I really am not continuing with this discussion after this post. ***

Do you think that I could potentially make some money on referring people to tax documentation and connecting the dots? That would be a great side gig!

I am not an accountant. If I were, I wouldn't have started this thread by asking for personal recommendations on accountants with international tax experience. To say that I did so as part of an elaborate plan to advertise my services as an accountant is pretty far-fetched. But I guess you've got to come up with something outlandish to say when you're just making up stuff about tax responsibilities on the fly.

I have spent time researching this topic and am open to hearing other interpretations when they are based actual tax code or legal documents. ***

At least, current and future readers of this thread will now have more information to go on.

In the case of an expat who has a permanent residence in another country, I.e. the US or Canada, your residence status is determined by the location of your “center of vital interests.” The “center of vital interests” is considered to be in Mexico when the following is true:

More than 50% of worldwide income throughout the calendar year is earned in Mexico
The core of an individual’s professional activities is located in Mexico.

As long as you maintain an address in the US or Canada and your money comes from that country, you are not a Mexican “Tax” Resident.  Non-Tax residents, including Mexican nationals who have residency for tax purposes in a foreign country, are only taxed on their income that is Mexico-sourced.  Note that the source of the income is considered to be in Mexico when the service is provided in Mexican territory, regardless of where the agreement is negotiated or where the payment was made.

If you are considered a Mexican Tax resident, you will be subject to tax on your worldwide income ranging progressively from 1.92% – 35% depending on income level.