Questions about living in Mexico

Bkasson wrote:

Can someone give me some idea on the following:

1- If your living in mexico do you still file u.s. taxes every year?

2- do you pay u.s. taxes on your social security income?

3- if you receive monthly annuity income is that taxed by the u.s.?

4- how often do you travel back into the u.s. to keep your u.s. citizenship?

Thanks,
BobK

Yes, you have to file yearly IRS only tax returns, if you do not own property in any state in the US regardless of income [or lack thereof]. Owning property whether added to your income [rented] or not will warrant a state tax return from that state possibly. U.S. citizens do not need to return to the US on any schedule to maintain citizenship when living abroad. A FM-3 visa is needed to travel with a US registered car past the border tourist zones or to buy property in Mexico, about $1100 per month provable income from the US is all you really need to get one.

todos larry wrote:

You do not need an FM-3 to buy property, thats false!
You can travel anywhere in Mexico with your car as long as you get the tourist car stickers around $40 US i believe, again no FM-3 needed. You will have some issues if you try to sell it unless its to another American
If you live outside the US you automatically can file the foreign income tax exclusion, which means you can earn around $96,800 tax free a year and right off 100% of your living expenses while living abroad.
Please go to gringosinparadise.com.mx  for these and many other answers.
I run an expat  service here to american & Canadians

"The Mexican Perspective
The need for FM3 visa: Real Estate transactions in Mexico are considered as doing business by immigration authorities

By Patrick Osio, Jr.

What are the Mexican immigration or visa requirements for American citizens when buying property in Mexico? With so much real estate buying activity taking place along the coast from Tijuana to Ensenada by Americans throughout Southern California, plus a fair number from Arizona and Nevada the question of immigration to Mexico was bound to come up and it has.

Mexico has a variety of visas. Most Americans entering Mexico traveling into the interior of the country obtain the FMT visa, which is a “tourist” visa. The FMT only allows that which it implies – be a tourist – no business, so that buying or even leasing real estate property is part of “business,” not tourism.

When leasing or buying real estate in Mexico (or doing any sort of business), the FM3 visa is needed. It can be applied for in conjunction with the real estate transaction so there is no need to obtain that first, but obtaining it is a must. Not obtaining the FM3 visa negates any rights one may have in the event of any dispute requiring court interdiction in turn placing the purchased property in jeopardy and the person into an "illegal alien" status."

Hello Larry.

I HAD to get an FM-3 to transfer title to my name for the house I own in Mexicali. I had traveled with a car for more than 6 months on a FMM which expired in 180 days and I went and got another and another and another at the Mexicali airport from an Immigration Officer, tourist visa, because of the restrictions in San Luis Potosi when Immigration officials suggested I get one FM-3, although they do recognized tourist visas as being legit, when I applied to them for a "Permission for a foreigner to marry a Mexican citizen visa" in Mexico a couple years later.

As far as taxes, I will be living in the US part of the year and will not have a problem with filing a tax return as possibly only a permanent resident alien has to file yearly when having permission to stay out of the country for more than 6 months, not a citizen, I am a citizen.

todos larry wrote:

Not sure why you had to do that, don't want to get into a debate. I've own property for over 7 years until last year when i  got my FM-3.

I feel the realitor from Baja explains why an FM-3 is advisable when leasing or purchasing and also know when the Mexican Immigration gets involved they have rules and laws which are federal and also they want things done their way. I have gone through the Immigration process without a hitch and for comparatively little money.

As you know, depending on the municipality or state things with regard to building permits and zoning are getting less and less slack as before. It is not a free for all in San Luis Potosi as it is in Mexicali still. Lately Mexicali is getting stricter every year. The old philosophy of "Any improvement is better than no improvement" is not as well used as before. I have owned 2 houses there for 25 and 30 years now. I sold one of them 5 years ago and it was a major hassle. The grant deed in the state registrars office was not signed by the principal from the developer who built the 400+ houses in the tract after I paid it off in less than a year as per an agreement [1/2 now and 1/2 when signed over]. It took a year to get him to sign it off as I mistakenly hired a female lawyer and he being a "good old boy." When I changed to a male lawyer he signed it right away.