Earning Income In Mexico

[Sonia]

Earning Income in Mexico

When one wants to earn income in Mexico they need to be registered with SAT (equivalent to IRS or Revenue Canada) and INM (Inmigracion).

Earning income includes being a landlord, operating a small business, performing as a musician, selling your art, massage therapist, hair dresser, hired by a small employer such as a hair salon or store. In other words, income from any source derived in Mexico.

If a person is, for example, working for a foreign employer while working remotely via the Internet and paid in a foreign country you are allowed to do so and no need to follow the process I have noted here. I confirmed this with INM this week.

For those who are a Permanent Resident they need to simply inform INM and register with SAT. Your PR visa carries with it the right to work. If you change employer or nature of work, you inform INM within 90 days.

For those who are a Temporary Resident one applies for a Permiso para Trabajar, (what we previously called a lucrative visa and others called a work visa). The process is similar to obtaining a visa renewal and includes pre-registering with SAT, then applying at INM and when visa is issued, finalize with SAT. The total time is 4 to 5 weeks.

If one is not yet in Mexico or is in Mexico as a tourist, you must apply for a pre-approved visa at a Mexican consulate outside of Mexico. As a self-employed person in Mexico, you can not be pre-approved to work in this country. The pre-approval from a MX consulate will be as a Temporary or Permanent resident. Once in Mexico you have 30 days to apply at your local Inmigracion office. If a PR visa is issued you follow as per paragraph 4. If a TR visa is issued once it is issued you follow process as per paragraph 5 .

In summary, do not ask for a visa allowing you to earn income at a MX consulate as you are required to have enough income to be financially self-sufficient. You will be denied a visa. Once in Mexico and your visa is issued you may then follow process above allowing you to earn income.

Failure to comply with proper visa and earning income when caught is usually followed by a notice from INM to leave Mexico within 20 days.

How you initially obtain a TR or PR visa is covered on my FB page which anyone can read.

If, you are being hired by a large employer this is a totally different process and not covered here.

Buen Fin

Sonia

PS Here are some notes I have from elsewhere.

Tenants have a lot of control and they are by law to get a receipt each month with landlord's tax ID number from SAT. If no such receipt the tenant could withhold rent and if an expat report to INM and SAT or if landlord a Mexican report to SAT.

• One of my clients very recently had a letter to leave country in 20 days when INM discovered he earned $400 16 months ago, hundreds of miles away. I was able to solve it thanks to a good relationship with INM staff. He will be starting over and loose credit for all past years of visas and a large fine.
• If for example, one goes on seminars for selling timeshares and gets paid, the time share owners may register you with SAT as they get a a tax break on your pay. Meanwhile, if you have no permission to work and want to request such permission from INM later they will discover you had income. And, you may not know they registered you with SAT. This has happened.

[RVGRINGO]

Very informative post. Thanks. It will help lots of new folks, as well as some old timers.