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Mexico income tax on Canadian pension payments

Hola, i am in the planning stage and looking at moving to the Lake Chapala or Colima/Manzanillo area.
My questions are about having to file an income tax in Mexico on pension payments from a Canadian source if i establish my permanent residence in Mexico.
Becoming a Canadian non resident has advantage and we will only pay 15% tax in Canada:
https://www.canada.ca/en/revenue-agency … aimer.html
but i can not find infos about Mexico income tax, what if any tax in this particular situation.
Can somebody gives me infos about this?
Thanks

That’s a great question and could be a difference maker on whether we are able to move from the US also.  I’ll be anxiously waiting on that answer! Thanks

Ok, my wife and I have move to Mexico fulltime late August 2017 with permanent residency status for Mexico but still Canadian citizens. We have researched the subject of income tax a year before moving.

1-Canada and Mexico have a fiscal agreement that quotes pensions are taxable to a maximum of 15%, article 17. But you can apply for article 217 (full year residency and >90% of income is pensions) and reduce the tax rate, but your tax report is manually done and has to reach Revenue Canada offices by June 30th. Note that your RRIF withdrawals above the minimum will be taxed at 23% not 15% part XIII 
http://www.fin.gc.ca/treaties-conventio … _1-eng.asp
2-for mexican tax "impuesto sobre la renta", you don't need to register with the RFC if you don't have mexican income (work,business, rental, interest, etc...), don't own property, don't have a mexican bank account. If so, you will need to  This is based on my telephone conversation with the RFC ombudsman.
http://www.prodecon.gob.mx

So, Revenu Canada allow you to keep your Canadian bank account / credit debit cards but can't keep stocks nor property nor a chalet. The best is to contact (probably 5 times in our case) Revenue Canada international services for non residents and ask questions.

Personally, we sold everything put the rest of our personal belongings in 4 suitcases, took the plane to Mexico and we're now happy and relaxed in La Peñita de Jaltemba. We use our TD debit card to get pesos the TD fees are 3$ cnd and some ATMs allow up to 14000$ pesos withdrawals Banorte.

Here's a link to the agreement USA IRS and Mexico
https://www.irs.gov/businesses/internat … -documents

La esperanza de esta información será práctica.

Buenos dias a todos, GyC.

The Mexican bank account depends on how much is in that account.

Thank you, great infos. :top:

Good posts by all the posters. My partner is in exactly the same situation as a non-resident of Canada and she just pays the flat 15% which is taken off at source in Canada. Mexico does not and can not take any more as you are already paying in Canada. If you make it down to Lake Chapala, give us a shout and we will be happy to sit down and talk about it.

travellight :

The Mexican bank account depends on how much is in that account.

Hi "travellight", were could I find info on the subject. Also, what would be the advantage of having a bank account over using our canadian debit card to get pesos?

How do you get money "pesos" in the bank account unless asking my pension provider to deposit direct my pension in the mexican bank account?

The only bank in our town is Bancomer but ATMs of HSBC, BANAMEX and BANCOMER not counting the private ATMs. I think, I will go to the bank after the holidays and ask questions.

Personally, I created a Worlremit account "https://www.worldremit.com" to be able to transfer money from Canada to Azteca/Elektra bank for pickup but since my canadian bank account carry my mexican address they refused the transfer and closed the account same reply from XE "http://xe.com/xemoneytransfer/ca/"

Adios y buen dia a todos, GyC.

Followup to Mexicogc, what is the best Canadian bank (subsidary?) for monthly transfer to a Mexico bank account (pension payment)?
As i want to establish an account with one in Canada before leaving.
Presently my account is with National bank of Canada but they have no subsidary in Mexico.
Thinking of Scotia ,TD or Royal but not sure which is best.
What about internet bank like Tangerine?
Wondering if any Cdn living in Mx are willing to share general infos/experience on this.

Hi "Captnflex" , I am not an expert but seems that Scotia has options.

As far as TD they have only one branch in Playa del Carmen so a bit far from my area "west coast".

Adios y buen dia a todos, GyC.

Captnflex :

Followup to Mexicogc, what is the best Canadian bank (subsidary?) for monthly transfer to a Mexico bank account (pension payment)?
As i want to establish an account with one in Canada before leaving.
Presently my account is with National bank of Canada but they have no subsidary in Mexico.
Thinking of Scotia ,TD or Royal but not sure which is best.
What about internet bank like Tangerine?
Wondering if any Cdn living in Mx are willing to share general infos/experience on this.

I have to do business with scotia here because my car loan it with them. My experiences with them have not been good, tedious rules, poor service, and very slow bank lines. plus they are the only bank that will not accept my atm card. I would never have an account with them. They seem to not want to connect with other banks, and won't make payments easier to do unless I open an account with them. Which is not happening. Have you looked at HSBC ?

No worries.
Mexico tax is only an issue on Mexican source income.
No Mexican reporting required on your Canadian source income.
Michael

Pretty sure Scotia Bank in Mexico is just an investment by the parent Canadian  Bank of Nova Scotia - I think there is no communication between Mexico bank and Canadian bank.  However, you CAN use the ATM with your BNS card with no fee.
Michael

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