Finance

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Mexico Is Tightening Supervision of Foreigners’ Visas and Local Income

Several people have sent me a link to the recent Yucalandia article about how Mexico is tightening supervision of foreigners’ visas and local income.

Nothing in this article is new or a surprise to me. It just says what I’ve been saying since I first came to Mexico — the old timers need to get with the times and the new timers need to learn the new rules and stop relying on and trusting old advice. Mexico is modernising at a rapid pace and keeps better records that can be accessed from anywhere in the country thanks to new computer databases. Foreigners need to stop treating Mexico like their playground and start treating it with respect.

In particular, this article deals with how many foreigners/expats are cheating the tax system by not declaring their income in Mexico. Read the article for more all the details.

I’m not sure why people keep feeling a need to send me this link. Maybe because I’ve talked a few times about starting an Airbnb business here? Well, let me reassure you all that after years of not being able to follow Canadian laws (while still doing the very best to fulfil my tax obligations), I am super happy to be in a country where I can live the life I want and I have every intention of complying with the laws to the best of my ability. That means no Airbnb business until I gain “lucrativo” status, which would allow me to start a business here and earn income. I am going to ask at residente temporal visa renewal time if that would be possible or, worst case, I’ll wait until I’m granted permanent residency, at which point I’ll automatically get the right to work and earn money in Mexico.

But wait, some of you say. Aren’t you working in Mexico? Technically yes.

I don’t like to talk about financial matters in great details because everyone’s situation is so different, but I will say that there is no question at all that I am complying with Mexican law at this time. In Mexico’s eyes, I am not working in Mexico. I am physically in Mexico, yes, but doing work for a Canadian company for non-Mexican clients. All my money comes from outside of Mexico and only comes to Mexico after first going through US and Canadian banks. For them, my job is just like retirement income. I fully declared what I do to get my money and all my documents were examined at the consulate in Montreal and accepted. When I came here, I put on my paperwork that I’m a freelance transcriptionist and both the immigration offices in Progreso and Mexico City accepted that as well.

It is an inevitability that I will eventually start a company here since doing so would reduce my tax burden in Canada. I just need to let my immigration status settle a little and do a bit more research about how to do what I want to do. I will consult with a lawyer and accountant when that time comes.

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Looking Ahead

This weekend wound up being a good time to catch up on my bookkeeping, set up a budget for the next quarter, and start to work on my projected budget for the start of 2018. There is no doubt that I’ll be able to afford a comfortable life here, but I’m trying to pay down some debt and step up my retirement savings so I wanted to see if there was some fat I could start trimming right now. Absolutely. I have a few calls to make for that tomorrow.

It will be good for me to have a stable (ish) budget for a couple of years to catch up on some things. I’m doing absolutely fine for someone pushing 40 who just spent a decade gallivanting over about a quarter the planet’s land mass and I want to make sure I’m in at least as good a position 10 years from now.

I really didn’t go into this without a lot of thought. Setting up a home again is going to be a big expense and I had to be sure that it’s something I’m ready for again and that this is the right location for it. I definitely am certain on both counts. So that’s one of the reasons I chose to go with more house than I really need — I wanted a place to grow into.

I didn’t want to find myself wanting to move again in a few years, especially since I know I’m going to be in Mérida for at least four years. I really wanted a proper home base where I can receive people, pursue hobbies, and continue to grow my business. If I had continued to snowbird, I would have definitely gone with a much smaller place as I would have had to maintain two homes, but this will be a year-round home for me, something I had started to doubt I would ever have.

While there are a few things I’m not thrilled about with the house, especially the location of my office, there is so much more that I’m looking forward to and I’ve spent probably too much time in the last couple of weeks dreaming of how I’m going to set it up and doing some online window shopping.

The room I’m probably most excited about is the kitchen, which is huge and has great light from two windows. I am going to be able to really get back into cooking here, something that I’ve missed since I’ve stopped living in Miranda full-time and had access to a pantry.

I also know that I’m going to spend a lot of time in the rear courtyard off the dining room. I saw so many homes with uncovered exterior spaces that would have been difficult to make comfortable in the middle of the day.

The laundry room that I discovered on the second visit is such a bonus. I’ll be able to do laundry without there being noise in the house and there is so much space to hang everything outside.

My bedroom is going to be so airy and I’m ridiculously excited to have a closet almost as big as Miranda after squeezing into her tiny wardrobe all these years.

I’m thinking of turning the upstairs landing into my art studio, but I suspect a comfy chair might end up there to turn it into a reading nook. Regardless, it’s so bright and well ventilated that I’m sure it won’t be wasted space.

I really hope that I get keys with my lease on Wednesday so I can take you on a tour of my new digs. In the meantime, here’s a sneak peak! This photo is taken from the centre of the living room (which you enter directly into from the front door). Looking ahead is the staircase to the master suite. To the right, you can see the dining room and the door to the courtyard. Both spaces that you can see here come with really nice furniture!

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Compromised!

I wasn’t too concerned today at the grocery store when my Visa got declined. Well, I just called CIBC and learned that my card was compromised! Someone used my number at Wind Mobile (interesting because that would put the breach in Canada…) and when that got approved, they went on a mad shopping spree to the tune of several thousand dollars!

Since I balanced the books the other day, I was able to confirm that everything that’s posted is mine and that I haven’t put through anything since then. So I’m not responsible for any of the charges that did go through before the fraud system froze the card and the representative says that he doubts I’ll hear anything more about this.

The rep immediately canceled my card and is rush shipping me one here to Maluk Izvor. Hopefully, the mail works as well as I was promised it does! Imagine if this had happened in Mexico, where the mail system is unreliable and there is no mail on Isla!

I don’t use my card a lot, favouring cash since that’s easier in these small communities, so I’m not in any sort of pickle as long as the card does come and I don’t have to start all over again.

It was fun giving the rep the address since everything sounded so “alien.” It helped when I said, “This line is the address, street first, then house number. This next line is the town. Now, we’re at the province and postal code.” No, mail in Bulgaria does not have to be addressed in Cyrillic.

The only way that I might wish I had my card is if I go away next weekend and need to book a hotel, but I’m not sure that’s going to happen. The work week is starting very slowly, so I may not want to take off at the end of it.

CIBC does a great job in situations like these of reassuring me that all is fine. I’m not distressed, but a whole hell of a lot curious as to how my card got compromised!

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Back At Work!

I was thinking of attempting the walk to Yablanitsa today, but then remembered that I’m waiting on a PayPal transfer to my travel account so I might as well wait to go to town so I can make a cash withdrawal at the same time. I have other money I could transfer to my travel account if I was desperate for groceries, but I’m not. So I’m okay with waiting a day. I’m just bored with the food I have left and look forward to having the time to do a proper shop at my own pace. 🙂

Thankfully, there was work available to me when I got up this morning. I did a tiny job sitting at the kitchen table on a stool, but that’s as much as I could manage. Now, I’m sitting in the IKEA chair with my laptop in my lap. It’s actually pretty comfortable and surprisingly functional, but it’s hard to be focused and in “work mode” sitting like this!

The time zone difference with my clients is rather trippy (they are seven to ten hours behind me, so I wake up as they are going to bed) and I have to keep reminding myself that I am ahead. So I won’t be missing anything, just getting emails in the afternoon. I may have to adjust my schedule to working later in the day and not be as much of a morning person as I’ve been the last several years.

I do have to say I rather like having almost no emails waiting in the morning as it makes it so much easier to go out with the dogs and get some fresh air and exercise before getting to work. I had all these intentions of walking first thing in the morning when I was on Isla, but then I’d wake to pressing emails I felt I had to answer right away and before I knew it, morning was well underway and the chance for a quiet walk had passed. I think my three months here will do me a world of good, both physically and mentally. They are going to fly by!

Back to work I go. I love how quiet it is here!