Living in Mexico, working in a border town in the USA

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yenom34 Member

Member since 31 January 2012

yenom34Member31 January 2012 10:03:44

If I work in San Diego, but cross the border to live in Mexico, and can demonstrate that i pay rent and live in Mexico...do I receive tax benefits?聽 Do I have to pay taxes in Mexico for livingin Mexico?聽 Am I exempt from paying state taxes as well?

Standing by....Thanks

thebluedeer Member

Member since 13 January 2012

thebluedeerMember17 February 2012 03:08:36

Hello. You will certainly have to pay for the VAT tax all the time, since you would be a legal resident of the country (some airports offer foreigners the devolution of their taxes as long as they're tourists). The income tax must be paid by those who register as having a business activity (like owning a store or having a company). If you own property in Mexico you also have to pay the yearly tax for the property you own. Now, if you're going to live in a border town, avoid dangerous areas.

alleycat1 Serial expat

Member since 26 April 2011

alleycat1Serial expat28 February 2012 15:40:00

350

yenom34 wrote:
If I work in San Diego, but cross the border to live in Mexico, and can demonstrate that i pay rent and live in Mexico...do I receive tax benefits?聽 Do I have to pay taxes in Mexico for livingin Mexico?聽 Am I exempt from paying state taxes as well?

Standing by....Thanks

As far as I understand it you will be paying IRS and the high rate Calif. state taxes as if you lived in S.D. There is no tax benefits. The Mexican side doesn't care either and you will just pay your rent and that is it.

alleycat1 Serial expat

Member since 26 April 2011

alleycat1Serial expat12 March 2012 17:43:02

350

thebluedeer wrote:
Hello. You will certainly have to pay for the VAT tax all the time, since you would be a legal resident of the country (some airports offer foreigners the devolution of their taxes as long as they're tourists). The income tax must be paid by those who register as having a business activity (like owning a store or having a company). If you own property in Mexico you also have to pay the yearly tax for the property you own. Now, if you're going to live in a border town, avoid dangerous areas.

If he does decide to live in TJ the one dangerous area I have heard of is in East TJ off of Blvd. Agua Caliente before you get to the right turn at the overpass heading to Otay to go to the Ensenada Libre on Blvd. Lazaro Cardenas. I worked with some people from TJ in San Diego who rented their houses in that area and bought in Otay for the very reason it was not a place they wanted their school aged children to go to school. Otherwise I have not heard of TJ having too many problems with gangs being so concentrated in other colonias.

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