Research And Links And Activities

MEXICO: NO LONGER A DISTANT NEIGHBOR

More than 600,000 Americans call Mexico home. Some work there, some raise families there, and there are some who no one would ever guess are American citizens. Most retirees opt for Guadalajara, Lake Chapala some thirty miles south, San Miguel de Allende, or Cuernavaca, but there are small American colonies just about everywhere.

‘Gringos’ (an informal non-pejorative term applied to those speaking what must sound like Greek to Spanish-speakers) have long been part of Mexican culture. Immediately after World War II, many rediscovered Mexico as a relaxing and economical place to study on the GI Bill.

Mexico’s appeal remains strong through its close ties and easy proximity to its northern neighbor. Mexico grants Americans annually renewable residency permits upon a showing of monthly income of about $1,500. Half that figure again is required for each dependent, but the total amount is reduced by 50 percent for those who own homes.

Along with the residency permit comes a one-time opportunity to import household goods and personal effects duty-free and the right to import a U.S.-plated automobile during the tenure of the permit. Another higher level of residency permit requires a monthly income of almost $2,000, leading to permanent residency status.

Work permits are somewhat harder to obtain than a retiree residency permit, requiring a showing that the work cannot be performed by a Mexican national, that the work is in the interest of Mexico, or that the applicant make a financial investment in a business. Still, even those teaching English for $5 an hour are able to obtain those permits.

The Mexican national health care system, IMSS, www.imss.gob.mx/, is available to any foreigner regardless of immigration status, for an annual fee of about $390. While it’s definitely an HMO arrangement, many opt for IMSS coverage for major medical coverage while paying out-of-pocket for routine expenses. Private medical care remains another option, and there are a number of insurance plans that provide for Mexico-only or full international coverage.

Commerce Bank of California (www.ccbusa.com) and Banamex (www.banamex.com) have a cooperative relationship permitting easy transfer of dollars to pesos from one account to another. The Lloyd Group www.lloyd.com.mx/en/ is not a bank, but it does offer financial services in offices located throughout the country and is a favorite of American retirees.

The Mexican Constitution forbids foreign ownership of real property within 100 kilometers of its border and 50 kilometers of its coasts, but establishing a bank trust (fideicomiso) creates an easy workaround. In all areas except those forbidden zones, there is no restriction against foreign ownership.

After permanent residency is established – the Mexican equivalent of a green card – foreigners can enjoy all rights of a Mexican national except the right to hold political office, vote, operate a brothel, and a handful of other rights that seldom interest most retirees anyway. At that point, the right to import an American-plated vehicle ends as well.

Mexico Connect www.mexconnect.com and its web forums are one of the leading gathering points for expatriates and those contemplating lives south of the Rio Grande.

We provide these links to enable you to understand the process but, regardless of what you read in these pages, we prefer to field all questions in writing.

The United States Consulate is very helpful to expatriates throughout Mexico. You will find they are a big help in most any situation.