The Financial Requirements for Mexican Residency are Increasing in 2020

Jan 30, 2020 by Financial

On January 1st, Mexico’s minimum daily wage increases from $102.68 MXN to $123.22 MXN, which means that that the financial requirements for Mexican residency are increasing too. That’s because the requirements are based on mathematical formulas based on the minimum wage.

The specific financial requirements will vary depending on which residency option you’re applying for and if you have any special circumstances (e.g. family ties in Mexico).

For the purpose of this story, let’s assume that you’re the average retiree from the U.S. or Canada who wants to retire in Mexico.

Temporary Resident Card

You have a few options with this one. You only have to meet one of the following:

Foreign Source Income (e.g. Pensions and/or Employment):

An average monthly income (after taxes) of at least 300 days of the Mexican minimum wage: 300 X $123.22 = $36,966 pesos, or about $1,945 USD*.

You must show proof (original documents and copies of each) for the previous 6 months.

Savings / Investments:

Investments or bank accounts with an average monthly balance of at least 5,000 days worth of minimum wage: 5,000 X $123.22 = $616,100 pesos, or about $32,426 USD*.

You must show proof (original documents and copies of each) for the previous 12 months.

Own Real Estate:

You own real estate in Mexico valued at over 40,000 days of minimum wage: 40,000 X $123.22 = $4,928,800 pesos, or about $259,410 USD*.

* Exchange rate used 19 MXN to 1 USD

Permanent Resident Card

Generally speaking, people who immigrate to Mexico are required to complete four years as a temporary resident, after which they can obtain their permanent residency; however, Mexico made an exception for foreign retirees/pensioners. They can apply for permanent residency right away – provided they meet all the qualifications.

You only have to meet one of the following:

Retirement Benefit (e.g Pension):

An average monthly retirement income (after taxes) greater than 500 days of the Mexican minimum wage: 500 X $123.22 = $61,610 pesos, or about $3,242 USD*

You must show proof (original documents and copies of each) for the previous 6 months.

Savings / Investments:

Investments or bank accounts with an average monthly balance of at least 20,000 days worth of minimum wage: 20,000 X $123.22 = $2,464,400 pesos, or about $129,705 USD*.

You must show proof (original documents and copies of each) for the previous 12 months.

* Exchange rate used 19 MXN to 1 USD

Spouses and Dependents

You’ll have to add 100 days of the minimum wage to the figures above per dependent. 100 x $123.22 = $12,322 pesos or about $648 USD*.

The process to apply for a temporary or permanent resident card will begin outside of Mexico at a Mexican consulate. They will review your application, conduct an interview and assess whether or not you meet all the requirements.

The financial requirements that the Mexican consulate gives you may not exactly reflect the listed U.S. dollar amounts above. They should be close but they may vary a little because the financial requirements are originally set in pesos and each Mexican consulate has to determine what the equivalent value would be in the local currency (e.g. U.S. dollars).

Setting those limits can be challenging because exchange rates are in a constant state of flux. To make things easier, the consulates simply choose an exchange rate to use for the year and then round the figures up or down to come up with their official requirements.

For example, a particular consulate might choose an exchange rate of 19:1 and come up with a figure like $1,945.57. That number is likely to be rounded up to something like $1,950 USD or even $2,000 USD.

Since these final values are set by the individual consulate, the numbers do vary from one consulate to the next. That’s why you should always reach out to the specific consulate where you intend to apply to determine the currency values they’re using.

This article is brought to you by the Sonoran Resorts Sales Team, www.sonoranresorts.mx, Jim Ringquist, Director of Sales and Marketing. Sign up for Jim’s Monthly Newsletter: http://www.tinyurl.com/JimNewsletter

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