Investing in Mexico

Hello everyone,

During your expatriation in Mexico, you might have been made aware of interesting investment schemes (local or international). Whether one wants to make money grow, protect oneself or prepare for retirement, investment is always an attractive option. It is, however, never free of risk. Would you, therefore, like to share some practical information for other expats and expats to be?

Is the Mexican economy open to foreign investment? Do local authorities encourage investment (through formalities, tax etc.)?

What are the promising sectors to invest and do business in Mexico?

Who do you turn to for information before investing your money? (organisation, professional, lawyer, consultant)

According to the sectors of activity and the projects, what budget should be foreseen for an investment in Mexico?

What do you think are the pitfalls to avoid and what advice would you give someone who wants to invest?

Thanks in advance for your feedback,
Diksha

Do you mean investing in someone else's business, or investing in your own business?

Hi Ant PJ,

Investment in general. If someone wants to invest, would you rather suggest to invest by creating his own business or invest in some kind of partnership ?

The topic is actually an open one for members to freely share their opinion/information they have.

Regards,
Bhavna

You really want to be careful with this. For every proposed Idea there appear to be at least 6 deals to make money by getting your money. I have invested in only one idea for a business and that was with someone who is a good friend  I have known for 4 years.

He wanted to have an organic ranch near here. he has a local established businessman who I also know as a partner. The ranch has had many financial downs and a few ups, Currently, a major overhead cost has been people coming to the ranch and stealing sheep.  These are serious thieves, they shot one of my friend's dogs. After a year I have only gotten organic local eggs and lamb as a return. He is now branching out into selling organic and natural products from the Yucatan to northern areas. This seems to be a better chance for a return on my investment.
Stealing and cartel activity is a major downside to investments. Look very closely and know who you are dealing with, and accept that there is a lot of work and no goldmines. Be prepared to figure security and slippage into your costs.

travellight :

You really want to be careful with this. For every proposed Idea there appear to be at least 6 deals to make money by getting your money. I have invested in only one idea for a business and that was with someone who is a good friend  I have known for 4 years.

He wanted to have an organic ranch near here. he has a local established businessman who I also know as a partner. The ranch has had many financial downs and a few ups, Currently, a major overhead cost has been people coming to the ranch and stealing sheep.  These are serious thieves, they shot one of my friend's dogs. After a year I have only gotten organic local eggs and lamb as a return. He is now branching out into selling organic and natural products from the Yucatan to northern areas. This seems to be a better chance for a return on my investment.
Stealing and cartel activity is a major downside to investments. Look very closely and know who you are dealing with, and accept that there is a lot of work and no goldmines. Be prepared to figure security and slippage into your costs.

Yeh, I would be worried that I was too naive - a turkey for the plucking by the less than honest, who may be adept at confidence tricks. I suppose a very trustworthy lawyer or very trustworthy local business partner/shareholder would be essential. Someone who can add value, knows how things work, and can steer you around these kinds of issues. But finding someone like that may easier said than done.

Exactly

When I first went too Mexico 14 yrs ago I started p painting business. Went to a natiero (lawyer) and
had him file in Mexicali. Done a good job. But soon realized it was not that great. Mexicans would work for practically nothing. As far as investments just invested in other Mexican people who needed
help. That was my reward.

What about investments in major Mexican corporations? Is it feasible or even possible?

I would think twice about any investment opportunities where you are investing cash as an expat.  I was dealing with a Mexican manufacturer who was shipping into the United States to a distributor.  The distributor had all kinds of headaches with production schedules, shipping, customs, inventory, you name it.

I learned quickly not to believe anything unless there was inspected inventory into the United States.

As you can imagine any number of worst case scenarios with your money (and time as well).......................... that is probably your best tact.

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