OFX provides secure and speedy international money transfers to over 300,000 people in 55 currencies at better-than-bank rates.
Average of the top US Banks costs as compiled by our own FXC Intelligence group. For more details on the how the bank price comparisons are calculated that include Bank of America, CIBC, Capital One, Citigroup, HSBC Bank USA, JP Morgan Chase, PNC Financial Services, Santander USA, The Northern Trust Company, Toronto Dominion Bank USA, Wells Fargo, see our IMTI page.
Mexico continues to be one of the largest recipients of foreign direct investment among emerging market countries, due in part to its proximity to the US and its overall economic stability. Mexico’s government continues to focus on restructuring its economy to make it more competitive and open for foreign investment. Trade agreements and government-sponsored educational initiatives with its closest neighbour, the US, have helped to bolster Mexico’s economy. Currently, there are no restrictions to transfer money from the US to Mexico, and it is common for Mexican citizens living in the US to send money back to Mexico in the form of remittances or repatriation of profits.
The Mexican government offers two types of visas for non-residents who wish to stay in the country for longer stays: the temporary visa (for stays of one to four years) and the permanent visa (for stays of longer than four years). For shorter visits, American citizens do not need to obtain a visa. As long as they can provide a valid, up-to-date passport or other form of valid identification, Americans are free to visit Mexico without restriction for up to 180 days. However, they must obtain a tourist card if they are planning to go beyond the border zone or if they are entering Mexico by air. The tourist card, called the FM-T, is available at Mexican border crossing points, airports, and Mexican tourism offices. There are currently no guarantees that travelling over the border will remain as easy once the border wall has been completed. While it will not have an impact on the hard borders already in place, there is a possibility that it will cause a deterioration in relations between the US and Mexico, which could lead to more stringent visa checks.
Buying real estate in Mexico is generally open and with few restrictions to prospective American buyers. However, to purchase property in Mexico, you must first obtain a permit from the Ministry of Foreign Affairs and are required by law to be over 18 years of age.
Once a property has been found, it is common to make either a verbal offer or an offer in writing, and to accompany the offer with a down payment equal to 20% of the purchase price. The offer must include the details of the sale, including the purchase price and the details of the payment. Once an agreement has been reached between the parties, the purchase agreement, the contrato de promesa de compraventa, can be signed. The contrato does not complete the transfer of the property. However, it is a binding agreement. If either party decides to back out once the contrato has been signed, then they will have to pay a penalty.
American buyers should find a local real estate mortgage broker to help them secure a mortgage, as the Mexican mortgage market can be complicated and difficult to navigate.
US citizens are required to file tax forms with the American government declaring any earnings they make while living in Mexico. US citizens must pay taxes on this income, though the tax treaty between the US and Mexico helps citizens from both countries to avoid double taxation, as it allows them to receive credit on any taxes they pay via a foreign income tax offset.
Americans living in Mexico are not permitted to vote in Mexican national elections. American citizens who wish to vote remotely in US federal elections must first register with their local US consulate or embassy. It’s a good idea to re-register with the consulate each year to ensure that the voter registration remains active and up to date. Online voting can sometimes be temperamental, so it is important to make sure that there is good cell coverage or reliable Wi-Fi.
American students planning to study in Mexico must first apply for and be accepted to the school or university in Mexico. Once they have received proof of acceptance, they must take this to a Mexican consulate or embassy, along with a letter attesting to their ability to financially support themselves during their studies in Mexico. Once these requirements are met, the student will be issued a student visa, which they must take to the National Institute of Immigration for validation within 30 calendar days of arrival within the country. If the student’s course of study is longer than one year, then the visa will need to be renewed for each year of study.
The Mexican student visa allows the holder to work throughout their term of study in Mexico, but authorisation must first be obtained from the National Institute of Immigration.
Mexico’s healthcare system is a combination of public and private services, and each state offers its own health services, which are overseen at a federal level by the Ministry of Health. All Mexican residents are entitled to a certain level of healthcare services, though it is common for residents to purchase private insurance to supplement their coverage. There is no reciprocal healthcare agreement between Mexico and the US. Americans who plan to visit Mexico are strongly advised to take out travel insurance or a private medical plan to cover medical costs.
Foreign direct investment (FDI) into Mexico continues to increase, with money transfers and FDI from the US accounting for a large percentage of this growth. In 2013, the majority of foreign investment was channelled into Mexico’s manufacturing industry (almost 56%), retail (20%), and the construction sector (12%). In 2012, Mexico joined the Trans-Pacific Partnership, which should help to attract additional FDI into the country. As the US is one of its closest neighbours and trading partners, American businesses and investors generally receive national and most-favoured-nation treatment when investing within Mexico. Mexico is currently the third biggest export partner for the US. This is partly due to it currently being a growing economy and also because it is so close to the US in terms of proximity. It is important to remember that a Mexican customs broker is required when importing in Mexico.
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