Bank Accounts in Mexico
- Thread starter CyprusCorporateGuy
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I'm a Canadian living here and don't think it's a great place to start a business or family. I consider it a hazardous place in many ways and there's a pattern of neglect, corruption, and carelessness that permeates everything here. The cheap cost of living and lax taxation can save you money, however, you will be paying indirectly through things like your health and security.
The only group I would somewhat recommend Mexico is for︀ retirees on a budget that are just running out the clock. They likely won't mind︁ the health, security and corruption issues plaguing the country. However, younger people with aspirations will︂ care that the air pollution will lower their life expectancy and will care about things︃ like infrastructure, law enforcement, crime, health standards, opportunities, etc. Perhaps that is why you don't︄ see many young foreigners here starting a life. I'm in my early 30's, married to︅ a Mexican and have a baby on the way. I will happily pay more taxes︆ to give my family a better life. We are planning to leave Mexico by the︇ end of the year and only coming back for short visits to see my wife's︈ family.
The major young 'foreigner' population I often see are American citizens of Mexican descent︉ who are culturally more Mexican than American. I feel like they make up the bulk︊ of the American citizens here and may outnumber the retirees. I know of more than︋ a dozen people in my wife's family alone who have American passports that live in︌ Mexico and can barely speak English. I have yet to meet a young Canadian like︍ myself living here starting a life. The majority of the Canadians I met are retired︎ and either live full-time in an expat enclave like PV or are snowbirds who visit️ during Canadian winters.
I'm currently living in a smaller city in a gated community full of German and Japanese expats who are working for car manufacturers. They all have families and are the only community I can somewhat relate to here. They echo the same complaints I have regarding Mexico and pretty much everyone I spoke to doesn't have long-term plans here. It's nice to finally live amongst people who care about their future and well being. Previously, I lived in the bigger Mexican cities surrounded by locals.
For larger or multinational companies it makes sense being here since Mexico is a lucrative market and︀ they can manage the risks. However, for small businesses, I think there is too much︁ risk and fraud distracting you to run a business properly. In developed countries, you can︂ count on crucial services that banks and the police provide. However, here, they can be︃ your adversaries. You also have to get used to the idea of paying protection money︄ to gangs to operate here. If you become successful and your competition doesn't like it,︅ you may need to be prepared for retaliation. You think that calling the police would︆ help but that can make things worse. When I moved here I admit that I︇ was naive and trusted the police. However, after a few experiences of my own and︈ hearing many stories, I avoid them like I avoid the narcos.
Bank fraud is very︉ common and all the paperwork and manager sign offs for new account openings or account︊ changes exists to fight that fraud. I have heard enough stories from locals about how︋ bank employees themselves are often the thieves and there is nothing you can really do︌ to avoid it. The advice from the bank is to keep your funds in savings︍ or investment accounts that are not linked to your debit card. However, that doesn't really︎ help if the thief was working for the bank.
On most expat forums, people recommend️ keeping their funds in their banks back home (open a Schwab account is the most common advice). Expats that open local accounts usually don't keep a lot of funds stored. After the Monex scandal rocked the expat community, people are more cautious about keeping funds here. I keep all of my assets outside Mexico and have local accounts for paying bills and making local transfers.
The only group I would somewhat recommend Mexico is for︀ retirees on a budget that are just running out the clock. They likely won't mind︁ the health, security and corruption issues plaguing the country. However, younger people with aspirations will︂ care that the air pollution will lower their life expectancy and will care about things︃ like infrastructure, law enforcement, crime, health standards, opportunities, etc. Perhaps that is why you don't︄ see many young foreigners here starting a life. I'm in my early 30's, married to︅ a Mexican and have a baby on the way. I will happily pay more taxes︆ to give my family a better life. We are planning to leave Mexico by the︇ end of the year and only coming back for short visits to see my wife's︈ family.
The major young 'foreigner' population I often see are American citizens of Mexican descent︉ who are culturally more Mexican than American. I feel like they make up the bulk︊ of the American citizens here and may outnumber the retirees. I know of more than︋ a dozen people in my wife's family alone who have American passports that live in︌ Mexico and can barely speak English. I have yet to meet a young Canadian like︍ myself living here starting a life. The majority of the Canadians I met are retired︎ and either live full-time in an expat enclave like PV or are snowbirds who visit️ during Canadian winters.
I'm currently living in a smaller city in a gated community full of German and Japanese expats who are working for car manufacturers. They all have families and are the only community I can somewhat relate to here. They echo the same complaints I have regarding Mexico and pretty much everyone I spoke to doesn't have long-term plans here. It's nice to finally live amongst people who care about their future and well being. Previously, I lived in the bigger Mexican cities surrounded by locals.
For larger or multinational companies it makes sense being here since Mexico is a lucrative market and︀ they can manage the risks. However, for small businesses, I think there is too much︁ risk and fraud distracting you to run a business properly. In developed countries, you can︂ count on crucial services that banks and the police provide. However, here, they can be︃ your adversaries. You also have to get used to the idea of paying protection money︄ to gangs to operate here. If you become successful and your competition doesn't like it,︅ you may need to be prepared for retaliation. You think that calling the police would︆ help but that can make things worse. When I moved here I admit that I︇ was naive and trusted the police. However, after a few experiences of my own and︈ hearing many stories, I avoid them like I avoid the narcos.
Bank fraud is very︉ common and all the paperwork and manager sign offs for new account openings or account︊ changes exists to fight that fraud. I have heard enough stories from locals about how︋ bank employees themselves are often the thieves and there is nothing you can really do︌ to avoid it. The advice from the bank is to keep your funds in savings︍ or investment accounts that are not linked to your debit card. However, that doesn't really︎ help if the thief was working for the bank.
On most expat forums, people recommend️ keeping their funds in their banks back home (open a Schwab account is the most common advice). Expats that open local accounts usually don't keep a lot of funds stored. After the Monex scandal rocked the expat community, people are more cautious about keeping funds here. I keep all of my assets outside Mexico and have local accounts for paying bills and making local transfers.
As a Latam expat living in a developed country, I can relate to many of the experiences described by @botero.
Having a bank account in many countries of Latam is a risk by itself and many people are always looking to keep their money safe on accounts that can't be accessed easily (e.g moving funds to very low-risk mutual funds) and/or limiting their possible losses (e.g using prepaid cards or credit cards that are insured by franchises). Debit cards are avoided like plague.
Many banks employees are corrupt and sell your personal information to fraudsters, is totally normal receiving fraud calls from "banks" or︀ "card franchise" providing you all your personal information and asking you to "confirm the full︁ information of the Visa card finished in XXXX" to "waive the fees of your card"︂ or to "avoid getting your card blocked"
On a personal note about Mexico, I got︃ my debit card cloned during my first visit there. Fortunately, I was using a debit︄ card from a US bank and they helped me and restored the funds, most of︅ the banks from Latam won't help you in this situation because they prefer to lose︆ you as a client instead of giving you a peso back.
Having a bank account in many countries of Latam is a risk by itself and many people are always looking to keep their money safe on accounts that can't be accessed easily (e.g moving funds to very low-risk mutual funds) and/or limiting their possible losses (e.g using prepaid cards or credit cards that are insured by franchises). Debit cards are avoided like plague.
Many banks employees are corrupt and sell your personal information to fraudsters, is totally normal receiving fraud calls from "banks" or︀ "card franchise" providing you all your personal information and asking you to "confirm the full︁ information of the Visa card finished in XXXX" to "waive the fees of your card"︂ or to "avoid getting your card blocked"
On a personal note about Mexico, I got︃ my debit card cloned during my first visit there. Fortunately, I was using a debit︄ card from a US bank and they helped me and restored the funds, most of︅ the banks from Latam won't help you in this situation because they prefer to lose︆ you as a client instead of giving you a peso back.
I have been spending for more than 20 yrs the bigger part of the year in mx and have seen it all here. First hand, no hear say... And i dont watch paranoid US natgeo documentaries
There is an amnesty now in effect in Mexico for those who overstayed or visited as tourists 2015-2020 and hold expired FMM card to gain 4 year temporary residency (without financial qualifications) that leads to permanent residency, that leads to citizenship in 5 years. Also for others, if creative or with help of a fixer.
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