MX long term resident boater?

[ksanders]

What about banking, transfers, how do you pay your bills, do you have bank accounts in both countries, how do you pay taxes?

I do not have a mexican bank account and everything works great. I have two ATM cards at different banks as well as regular credit cards including amex.

I do not pay mexican taxes, and my US taxes are the same as they always were.

But... my income is US based.

For mail I have a UPS store box in my old home town in Alaska. For package delivery I use Planet Express as a consolidation/forwarding service for things I cannot find in Mexico. Amazon also ships many ítems to Mexico directly though.

For large items that would normally go truck freight I use Deko Marine in San Diego, and they bring my stuff right to the marina.

 

[mvweebles]

Very similar to Larry M. Schwab does not have ATM fees and decent foreign exchange rates so it's our go-to. We prefer carrying local currency so use ATMs to exchange (HINT: at the ATM, decline the banks offer for exchange rate with commission - this will automatically send the request to your bank (Schwab in our case)).

The one thing I'd add to Larry's solid advice is look into Wise online bank. We've been using them for years to pay for large projects in pesos (and recently Costa Rica Colones). Their exchange rates are excellent, and their Visa card is essentially a prepaid ATM card. We use this instead of a US banking card as we can quickly modulate the amount of money in the account and reduce risk of being ripped off via skimming scams (which is unfortunately not uncommon on Central America).

Getting a Mexican bank account is difficult for non-residents. We recently managed to get one, but honestly, it's not really needed.

Not sure what you mean by taxes.

Peter

 

[LeoKa]

Not sure what you mean by taxes.

Peter

I've was referring to paying taxes in the USA, when you are a resident in MX. I think it is answered now.
There is a way to submit your return online now, but only with simple tax forms. So, this could work, while abroad, too.

At my last trip, I used my local credit union cc. They don't have foreign transaction fees, so it is useful. On cash, I had some already, but any ATM I tried was talking about some fees, so I did not proceed. There was no English version, so I could not understand the text. I tried 3 different banks and I gave up. I barely needed cash anyway. Ended up changing currency at the bus terminal, which offered the best rate.

To my knowledge, you need to pay MX tax, if you become a permanent resident.

 

[mvweebles]

I've was referring to paying taxes in the USA, when you are a resident in MX. I think it is answered now.
There is a way to submit your return online now, but only with simple tax forms. So, this could work, while abroad, too.

At my last trip, I used my local credit union cc. They don't have foreign transaction fees, so it is useful. On cash, I had some already, but any ATM I tried was talking about some fees, so I did not proceed. There was no English version, so I could not understand the text. I tried 3 different banks and I gave up. I barely needed cash anyway. Ended up changing currency at the bus terminal, which offered the best rate.

To my knowledge, you need to pay MX tax, if you become a permanent resident.

The trick at Mexican ATMs is when you get the screen that gives the stupid fees and commissions, select "Decline" and the transaction will simply revert to your banks foreign exchange rate and terms. I only go to bank branded ATMs, Banorte is my favorite because their withdrawal limit is high (I've taken out $15,000 pesos a few times). Santander is also pretty good. I've used ATMs all over Mexico, including Cancun/Playa del Carmen/Tulum.

I was in Costa Rica when I filed my US taxes online this year. We keep meaning to get our MX residency but just haven't put it at the top of the list yet. It's a bit of a process - there are some pluses and a couple minuses. I know nothing about filing MX taxes but it's a good question.

Peter

 

[Larry M]

I never worried about the ATM fees at the machine. Schwab always reimbursed me then as they do now in the states.

We had an issue with a Bancomer ATM in La Paz early 2000s. I went to get pesos, put in my pin and requested the amount. A few seconds later they’d say, “sorry, unable to complete your transaction, try again later”. Which I did and got the same response. A few days later, I tried again at the same ATM, twice, and got the same response. I went on line and there were 4-$400 withdrawals from our Schwab account. WTF? I called Schwab and 4 days later I had the $1600 back in my account. I did have to promise Schwab that I wouldn’t use Bancomer anymore. US consumer protection is great.

I wouldn’t worry about becoming a Mexican resident. For your initial stay, with the occasional trip to the US, 180 day visas are easy. For residency, you have to go through temporary before you can apply for permanent residency and there is a means test; bank/investment statements, retirement income, health, etc. Get an immigration lawyer as Kevin mentioned previously for advice once you decide you want to stay.

Mexico’s great.

 

[Capt Pappy]

Definitely ready to get to Mexico after reading this thread and all the useful information

that info regarding the banking / money is especially helpful — like to travel and pay with cash whenever possible. Seems like we always get hit with foreign transaction fees whenever in Mexico, but perhaps not so practical carrying significant cash on the vessel?

 

[mvweebles]

Definitely ready to get to Mexico after reading this thread and all the useful information

that info regarding the banking / money is especially helpful — like to travel and pay with cash whenever possible. Seems like we always get hit with foreign transaction fees whenever in Mexico, but perhaps not so practical carrying significant cash on the vessel?

Post previous to yours from Larry M describes ATM Skimming where a bad actor inserts some sort of device into the ATM that captures your PIN and declines the transaction. It's been a few years since I've heard of this - the current president ("AMLO") seems to have reduced some of the petty corruption. More serious corruption is on the rise though.

We carry at least a months supply of local currency aboard Weebles stashed in a decently hidden place. Mostly, just to reduce work of exchanging money. We also carry a limited supply of USD, but mostly that's because we've done other cruiser a favor and sold them pesos (many folks are very cautious and just don't plan well, so we help them out).

Over the last 7-years or so, we've probably done close to $100k in local transactions, including paying contractors for various work. We use common sense and a few favorite financial tools like Schwab ATM card, Wise for transfers and prepaid credit card, and judicious use of US Credit Card (Costco branded is our current). It's been relatively smooth sailing as far as financials.

Peter

 

[Larry M]

If you have a joint account, have your debit/atm/credit cards expire on different dates. We use a Capital One cc for our travel credit card. They have no foreign transaction fees which are typically ~3%. Notify your cc company before you leave the US the so you don’t get stopped at the fuel dock.

 

[SeaStarDF50]

We have our 2nd trawler in LaPaz, have been at 3 marinas, and for a decade, have spent several months each year at our condo on the Mogote. I agree that visiting any town via land is recommended prior to committing, but that is one advantage of having a boat as your home. Regarding LaPaz, I will add:

• Marinas: Permanent berths are very hard to get, are more expensive than the PacNW, and marinas are of widely varied quality. Getting on a waiting list, bugging the office, and paying a year of slip fees in US$ helps secure a spot, and somewhat protects from the 2x/year price increases. I agree with Kevin that Marina de LaPaz is the best choice - most consistently run, only one with potable water (their own desal plant), convenient to the Malecon and services, more secure in hurricanes, good facilities, lots of gringos; morning coffee gatherings at the Club Cruceres. Costa Baja is secure in hurricanes but a long way from town; it does provide the only fuel, (with an additional $100 docking fee). Palmira is inconsistent in quality of facility; they were without power for an extended time after Hurricane Norma then had a big fire on the dock (lost 10 boats), followed by more weeks of loss of power. Dock carts and parking are lousy, and it's a long way from town. Marina Cortez is nice and smack in the middle of town, but very expensive, and has "floating" docks so is vulnerable in hurricanes. There are other small marinas as part of some of the boat yards with better prices but no facilities or amenities.)
• Expat boaters have been in LaPaz since the 1960s (my inlaws were there in their DeFever all thru the 70s) so there is a good marine culture, and for the most part, not a touristy vibe. Universities, regional hospitals, state offices, and all shipping from the mainland make it a middleclass city, with a growing mainland tourist population. Marine services are available but it can still be very hard (especially if you're not fluent in Spanish) and require shipping (or full suitcases on return trips) for specialty parts. Services are more affordable; having a reliable English & Spanish-speaking caretaker for your boat is advisable.
• Groceries and good restaurants are plentiful, and US foods are getting easier to find. But prices have climbed significantly this year, especially with the recent changes in national labor laws. I get sick very easily there so limit what I eat and drink; definitely takes away the fun of enjoying the food culture.
• As others said, "manana" is any time other than now. Culturally, the very kind locals tell you what they think you want to hear, so you often don't get a clear answer. It can be very frustrating to get anything accomplished.
• We get pesos from the ATM and bring US$ to pay marina fees and drivers to/from the Cabo airport.
• Residency requirements were changed during covid and have been extended indefinitely. As I understand it, one needs to be in the country longer that 180 days to start the process. The biggest benefits are for gringo property owners when selling.
• We have had very good luck with local medical services for minor issues, at reasonable cash costs. Yes, it is nice to have the back surgeon's private number and see him on a day's notice. Some prescription meds, however, aren't avaialble in Mx, while others are OTC.
• Regarding cruising: I'm a fair weather boater and really struggle with the unpredictable winds in the LaPaz area. Winter winds often close the harbor, making it impossible to leave the inner bay. The regional anchorages are gorgeous in nice weather but quickly turn ugly when the spring coromuels kick up - from glass to 8ft seas in a blink. Weather reports aren't able to pinpoint when and where to expect coromuels. Cruising Espiritu requires a park permit for everyone on board. And, yes, it can get beastly hot.
• Best wishes with your choices!