Why do foreigners have to pay a foreigners Tax when buying a house in Mexico?

Question

I sold my house and then bought a hovel and resrored it. When buying and paying the lawyer for the Deed I had to pay an extra discrimination tax, 'foreigners' tax. This seems so unfair when Mexicans get schooling for the children and hospital deliveries free, from us, in USA whether legal or illegal. Our high taxes in US pay for them. When we in Mexico of foreign countries pay all kinds of discriminatory taxes. My maid left without telling me that she had another job higher paying, and now I am having to pay for "leaving taxes" and a lawyer to represent me to negotiate a reasonable fee, then I pay the lawyers fee. It is never ending, but it is definite discrimination to us legal immigrants in Mexico.

Answer 1

Welcome to the world of hypocracy. The mexican gov't will give maps and directions to illegals coming to America but if we try to stop them they scream foul. Just look at there southern border. If we had one like theirs illegal immigration would not be a topic.

Answer 2

Arturo, A lot depends on what we don't know. We don't know your nationality, tax status, experience, and what kind of property. There could be several options for you to consider. Your first issue is that both governments have instituted controls on money transfers because of money laundrying by the drug cartels. So you will have restrictions no matter what you do. But don't dispair... there are always ways around such restrictions. The IRS wants all your money. Your job is to keep them from getting it and wasting it! Attorneys are not usually the best sources of information anywhere, but particularly in Mexico. You will no doubt be doing business with a Notario Publico... and this person is key to your transaction. Any cash transaction or transfer over $10,000 will be problematic. However, consider opening a savings account at a Mexican bank that you can access with an ATM card anywhere in the world. Then you can deposit your funds there and transact business through the bank, and withdraw your money in smaller amounts via your ATM card. Your other questions may need an accountant to answer. A lot will have to do with the "cost basis" of the property you inherit, and capital gains. Just remember that since you are trying to skirt the law, you will be dealing with people who skirt the law. If you and they are willing to "bend" the law to avoid taxes, they may be willing to bend it in other ways... that can be costly and dangerous as well. Selecting a good Notario Publico who will represent your interests is critical. Good luck/Suerte!

Answer 3

It's not just in Mexico, it's everywhere.
Anytime a foreign national buys property in another country we are taxed so heavily we wonder why we came in the first place.

As far as paying a "leaving fee" to the maid, that's one on me. If someone leaves a job by choice, why should the previous employer pay?

As foreigners we will always find discrimination while in another country. It's not right, unfortunately, it just is.

Answer 4

Its really a nuisance. However,it's the Mexican government that made this law which doesn't discriminate against any one nation.

Americans paying education etc to Mexican illegals has nothing to do with any laws in Mexico. It is the American government that does this on its own accord.

I kinda wonder why you want to move to Mexico. Maybe you are running away from something or because you can afford so much more living there.

Answer 5

I know nothing about Mexican real estate law, but there are some faulty assumptions in your argument. First, Mexicans do pay taxes when they are in the U.S. illegally. If they buy anything in a store, they pay sales taxes. If they live somewhere, like an apartment, they pay property taxes through their rent.

If they break the law and steal someone else's SSN so they can work, they have Social Security taxes and income taxes taken out of their checks, that they can never benefit from or collect social security. So even if the are working under the radar in a cash-only business and avoiding income taxes they still pay taxes, but their illegal status prevents them from benefiting from most of what they pay for. So in someways, illegal immigrants pay more than their fair share. They are making important contributions to our economy providing cheap labor for agriculture and beef production, but they are given health insurance. If they go to a clinic to get a bone set, they are likely to have to pay in cash up front, the full price, not the negotiated price that my health insurance charges through volume discount. In that sense, they pay more for the same things becuase they are illegal. That doesn't condone their legal entry, but its just plain incorrect to say they pay no taxes or do not make positive contributions.

I was listening to an NPR story of the day recently, and they told the story of an illegal immigrant who started out working as a farm-laborer, but went to school and is now one of the top brain surgeons in California. The thing that he said that stuck with me was, when he came here, all he cared about was finding a way to feed himself. He had no job in Mexico, no skills, and the only hope he had for survival was to come here and try to make enough money to feed himself. Staying alive was his only motivation.

Answer 6

Yea, but try tellingthe Mexican govt that it is discriminatory.

Answer 7

so they can make some more money off you, why else? and because you are not a resident/citizen, and so you do not get the same deals as a resident/citizen.

Answer 8

Guess what...you are getting scammed...U.S. citizens cannot own property in Mexico.
You can rent it but you will never own it.