Mexico to USA Investment Guide
No capital controls, close proximity, and strong tax treaty benefits
Mexico Investment Advantages
Cash Reporting
Transfer Limit
Treaty Dividend Rate
Free Capital Movement
Mexico has a floating exchange rate and no restrictions on converting pesos to dollars or transferring funds abroad. This makes USA investment straightforward.
What You Can Do Freely
- Convert MXN to USD unlimited
- Wire any amount to USA
- Hold foreign bank accounts
- Own foreign real estate
- Invest in foreign securities
Documentation Required
- RFC (tax ID) for bank transfers
- Source of funds for large amounts
- Bank may report to SAT
- Annual tax declaration
Cash Reporting Requirements
While there are no limits on transfers, both Mexico and USA require reporting of cash movements and large transactions.
| Requirement | Mexico | USA |
|---|---|---|
| Cash declaration at border | $10,000+ USD | $10,000+ USD |
| Bank reports large transactions | $10,000+ USD equivalent | $10,000+ |
| Suspicious activity reporting | Any amount | Any amount |
SAT Reporting Requirements
Tax Authority (SAT) Compliance
The Servicio de Administracion Tributaria (SAT) requires Mexican tax residents to report worldwide income and foreign assets.
Annual Declaration
- Due April 30 (individuals)
- Report worldwide income
- Report foreign investments
- Report foreign bank accounts
- Report foreign real estate
Informativa sobre Inversiones
- Required if foreign investments exceed threshold
- Details of foreign accounts
- Stock and bond holdings
- Real estate details
Deposits in Cash (Depositos en Efectivo)
Mexican banks must report cash deposits exceeding MXN 15,000 monthly. This is reported to SAT via the IDE (Impuesto a los Depositos en Efectivo) system.
What Triggers Reporting
- Cash deposits over MXN 15,000/month
- Wire transfers over MXN 50,000
- Unusual transaction patterns
- Discrepancies with declared income
Best Practices
- Use bank transfers, not cash
- Document source of funds
- Keep transaction records
- Ensure tax compliance
Cross-Border Banking
US Bank Accounts for Mexicans
Mexican nationals can open US bank accounts relatively easily, especially in border states.
Major Banks with Mexico Programs
- Bank of America (matricula consular accepted)
- Wells Fargo
- BBVA USA (owned by BBVA Mexico)
- Texas-based regional banks
Required Documents
- Valid passport
- Proof of address (Mexico accepted)
- ITIN or SSN (some banks flexible)
- Initial deposit
Wiring Funds
Mexican banks can wire funds to USA efficiently. Cross-border transfers are routine.
Wire Options
- SWIFT transfer (international)
- Same-bank transfer (BBVA, Citi)
- Correspondent banking
- Wise, Remitly for smaller amounts
Typical Costs
- Wire fee: $25-50 USD
- Exchange spread: 1-3%
- Processing: 1-2 days
- Compare rates before sending
Mexico-USA Tax Treaty
Treaty Benefits
The Mexico-USA tax treaty provides favorable withholding rates and mechanisms to avoid double taxation.
| Income Type | Standard Rate | Treaty Rate |
|---|---|---|
| Dividends (10%+ ownership) | 30% | 5% |
| Dividends (under 10%) | 30% | 10% |
| Interest | 30% | 10% (or 4.9% for banks) |
| Royalties | 30% | 10% |
| Capital Gains (securities) | 0% | 0% (non-USRPI) |
Mexican Taxation of US Income
Mexico taxes residents on worldwide income. US investment income must be reported and is taxable in Mexico.
Reporting Requirements
- Declaracion Anual
- Include foreign income
- Report foreign assets
- Claim foreign tax credit
Tax Rates
- Rental income: Marginal rate (up to 35%)
- Capital gains: 10-35% (or 10% flat)
- Dividends: Included in income
- Credit for US taxes paid
Recommended Entity Structures
For US Real Estate
Simple Structure
- US LLC (Texas or property state)
- Mexican individual as member
- EIN for US banking
- FIRPTA on sale (15%)
Considerations
- US estate tax exposure
- $60,000 exemption only
- Report in Mexican declaration
- Consider state-specific rules
For Business Investment
E-2 Visa Available
- Mexico is E-2 treaty country
- Substantial investment required
- Active business operation
- Renewable indefinitely
TN Visa Alternative
- USMCA professional visa
- No investment required
- Must be in qualifying profession
- Work for US employer
Texas Real Estate
Why Mexicans Choose Texas
Texas is the natural destination for Mexican investment in the US due to proximity, cultural ties, and strong markets.
Popular Markets
- San Antonio (closest major city)
- Houston (major metro)
- Austin (tech hub)
- Dallas-Fort Worth
- McAllen/Rio Grande Valley
Texas Advantages
- No state income tax
- Strong appreciation
- Growing population
- Business-friendly
- Easy cross-border access
Cross-Border Living Considerations
Many Mexican investors maintain homes on both sides of the border, creating unique tax and legal considerations.
Tax Residency
- Determine primary tax residence
- Substantial presence test (183 days)
- Treaty tie-breaker rules
- Impact on worldwide taxation
Practical Considerations
- SENTRI/Global Entry for fast crossing
- B1/B2 visa sufficient for property visits
- US driver license possible
- Health insurance planning
Scam Protection
Mexican investors are targeted by scams promising easy real estate investment or fraudulent business opportunities. Be cautious.
OFAC and Sanctions Compliance
Mexico is not subject to US sanctions. However, certain individuals connected to cartels may be on OFAC lists. Standard screening applies to all transfers.