US citizen stock trader using US based brokers considering Mexico residency. Any pointers on what tax rates one may expect to pay Mexican authorities (SAT = Servicio de Administración Tributaria)? 1) Is it just the normal personal income tax rates https://taxsummaries.pwc.com/mexico/individual/taxes-on-personal-income or 2) A flat rate of 10%, 25%, etc?
I don't know what the Mexican capital taxes will be, but I wanted to remind you that you will still need to pay US Capital Gains taxes even if you become a Mexican resident. You may want to consider Puerto Rico, where you would pay neither Puerto Rican nor IRS Capital Gains taxes.
No. You will have to be living in peurtorico for 3 years and only save on peurtorican source of capital gains. If you engage in normal trading you will owe us capital gains. Considering peurtorican debt state these benefits won't last. Us citizens will always owe us income tax from global sources.
Thank you, ph1l. The flat 10% to MX sounds good, as would be easily offset with a Foreign Tax Credit against what I pay in the US.. except in my original link https://taxsummaries.pwc.com/mexico/individual/taxes-on-personal-income it might be referring to a specific scenario I'm not in: "Sales of shares in the Mexican stock exchange are subject to a flat 10% tax withholding."
Well you then need a CPA to explain to you why what you think is not correct. Tax laws are pretty complex to distinguish myth vs reality.
Others, can we please stick to "Mexico resident capital gains taxes" in this thread? There are other places to discuss unrelated (PR tax, etc) topics in..
Plenty of traders living in Puerto Rico seem to say otherwise. In fact that's the only reason they're there.