How to Transfer Money from USA to Mexico
USA to Mexico Guide
Summary
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.
Visas, work permits and residency
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 property in Mexico
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.
Taxation
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.
Voting
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 studying in Mexico
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.
Healthcare
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.
Importing from the US to Mexico
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.
Frequently Asked Questions
Are the money transfer companies shown above safe to use?
Yes, all the companies are safe and fully-regulated money transfer services.
Each are authorised and regulated by the relevant authority such as the Financial
Conduct Authority(FCA) in the UK, FinCEN in the US, FinTRAC in Canada or ASIC in Australia.
How long does an international money transfer take?
The speed of delivery will depend on where the money is being from and to and how
you are sending and receiving the money. Transfers sent using bank to bank transfers
can depend take anywhere from minutes to days and you should check the time estimates
from the relevant provider. Debit and credit card payments sometimes allow for faster
transfers for smaller amounts.
How do I use FXcompared?
First review the comparison results (such as for a table above) for a given amount
of money sending from USA to Mexico. Then select a provider based on
factors such as price, speed, their rating and click the green button to be taken to
their website. From there, you can register and sign up for an account. Once you have
done that and the provider has verified your identity to ensure the money can be send
safely, you will be ready to transfer money.
What payments methods can I use to send money overseas?
The results shown above are typically for bank to bank transfers. It is possible
via some providers to pay in your funds for the transfer via cash, debit or credit
cards as well but this is usually reserved for smaller amounts. Some providers also
give you different options for how the money will be received - to a bank account
(most common), to a debit card, to cash or to a digital or mobile wallet.
What if the price shown above isn’t exactly what I am offered when I try to transfer money?
There can be a number of reasons why the final price you are offered may be different
to that shown in the table above. Exchange rates between two currencies change all
the time and is the most common reason. Additionally, some providers offer different
pricing depending what method you are using to send funds or how the funds will be
received. Others may offer you a premium service for faster payments. In some cases
FXcompared has a special rate with a provider and this is reserved for first time
customers who sign up to the provider starting from FXcompared’s website.
As prices do change often, be sure to confirm the total cost with the provider
before transferring money.
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