Mexico isn’t only a popular destination for American tourists but also a place worth considering for a long-term stay. If you are already working remotely or have some online income, relocating to Mexico won’t be difficult at all!
You can work remotely for a US company from Mexico. Remote workers can also avoid paying taxes in Mexico by working for a foreign company and having all their income sources come from abroad. Additionally, they must receive payments to either a US bank account or another foreign account.
Some governments including Mexico are adapting to a wave of new remote workers. Especially for American workers working remotely, leaving the US may be very appealing. So how can you work remotely for a US company and live in Mexico? Is that even an option?
Remote workers in Mexico
Mexico is a true paradise for digital nomads, remote workers, and anyone willing to escape their country. Indeed, the country had already been a choice for location-independent professionals for many years.
Some cities like Playa Del Carmen and Mexico City became hubs for remote workers due to their affordable cost of living and international communities. Why spend $2,000 on an apartment in the US when you can live a comfortable life on just $1,000 a month in Mexico? And with Mexico’s beautiful beaches and quaint seaside towns, it can be much more fun to spend free time in Mexico than in the US.
During the pandemic, many professionals from around the world got the opportunity to work remotely, allowing them to be more flexible and move to other countries.
Besides that Mexico even offers long-term residence options to tourists and other foreigners like remote workers, expats, and digital nomads, making your relocation an easier experience.
The main advantages of working remotely in Mexico include:
- A lower cost of living
- All-year-round summer weather
- A great lifestyle
- Being in US business hours
Working remotely in Mexico for a US company
Assuming that you are US citizens working for a US-based company from Mexico, it’s possible to live in Mexico and work remotely. In fact, this is the most common way of people moving to this sunny country.
The best thing about working for a US company in Mexico is that you don’t have to pay taxes to Mexico. As a US citizen, you will continue to pay your taxes to the US as usual, assuming you are doing everything right (Read more about paying taxes while working remotely in Mexico later in the article).
Nonetheless, some US employers might not authorize remote work from another country for employees. Big companies are often very restrictive about work being performed outside the USA. They don’t want to have complications with taxes or social security benefits for their workers.
Hence the only problem in working for a US company in Mexico might lie in the company itself and not in Mexico and its regulations. Some firms simply don’t want to take risk of you breaking any foreign jurisdictions by working remotely. Nevertheless, working remotely during the tourist visa period (180 days) shouldn’t cause any trouble to you and your employer.
If you are looking for a remote job, apply with us! We currently have many employees working in Mexico and other countries such as Serbia, Thailand, and South Africa.
Overall, working for a US company and living in Mexico is easy. In fact, you can go to Mexico as a tourist for up to 180-days and work remotely. You don’t have to deal with Mexican authorities regarding taxes or banking issues if you receive all work-related payments through a US banking account.
The best way to work remotely for a US company from Mexico
A U.S. company employing you remotely would legally become an employer in the jurisdiction (Mexico) where you are performing work. Most likely they would not want that liability and regulatory compliance cost.
The best way to solve this issue is to become an independent contractor. As an independent contractor, you are responsible for your own tax payments and tax compliance.
Being self employed means you have to be registered as a business or sole proprietor in Mexico or the US. Then the US company will hire you as a consultant, where your duties are the exact same as a full-time position and you used to do before moving to Mexico.
If you are a US citizen you will pay taxes in the US or Mexico (if registering as self-employed there). Before organizing anything, talk to your US employer and ask if they support this kind of arrangement.
This option is intended for long-term plans if you are moving to Mexico for a year or longer.
Residence and work permit for remote workers in Mexico
To live and work remotely from Mexico in the long term you will need to apply for a residence permit. Luckily, this can be done quite easily in Mexico. The country has special residency options available for foreign remote workers.
You don’t even need to apply for a work permit, as long as the company is based abroad and you receive income to a non-Mexican banking account.
However, a work permit will be necessary for the following conditions:
- Performing some paid activity for a Mexican company.
- Registering as self-employed in Mexico.
- Having Mexican clients.
- Getting paid in Mexico with a paycheck drawn from a Mexican bank.
A stay for up to 180 days is possible in Mexico, and anything longer will require one to do a border run or apply for a residency.
Tourist visa or visitor permit?
Depending on your nationality, you may have to apply for a Mexican visa beforehand to enter the country. US citizens are among others who don’t need a visa for a stay up to 180 days.
You can see the exact list of people who have to apply for a Mexican visitor visa before arrival and who don’t need it at all. Generally, speaking, citizens of the US, European Union, EFTA, Canada, Australia can visit Mexico visa-free.
With a tourist visa or without (if eligible), you can stay and work remotely in the country for up to 180 days. It’s one of the longest tourist visas in the world!
You don’t need to leave the country during these 6 months and it cannot be extended or renewed. Upon its expiry, you will need to leave the country. Despite this fact, some people just do border runs and extend their stay in Mexico by exiting and reentering the country.
At the end of the tourist visa period (180 days) you could either:
- cross a land border to the U.S., Guatemala, or Belize and return with a new visa
- fly to any country and return with a new 180-day visa
- apply within Mexico for another tourist visa (temporarily available because of the pandemic)
- just overstay the visa and potentially pay a small fine
Temporary residence in Mexico for remote workers
Mexico offers a temporary resident visa intended for people who wish to stay anywhere as long as six months to four years. This type of visa is renewable and gives you a temporary residency status for at least one year. After five years of temporary residency, foreigners can apply for naturalization and citizenship.
Temporary resident visas are then further divided into:
With a temporary resident visa, you can also apply for a work permit if needed. It as well allows for unlimited entries to and exits from Mexico. You are also entitled to have a Mexican bank account, driver’s license, and many similar benefits that a Mexican national has. This residence permit is preferred by long-term remote workers, expats, and digital nomads in Mexico.
Residence permit application process
When applying for a residence permit, the Mexican government wants to see adequate funds or recurring income from a non-Mexican bank account. Hence, if you are working for a remote company, it shouldn’t be a problem.
The government wants to make sure that you’re able to support yourself without seeking local employment. Remote workers can just show their pay stubs from their current employer.
Income sources can range from employment, self-employment, pension, investments, savings, etc. This is why so many people move to Mexico, even retirees with enough financial means from savings could do so.
The main point is that the income must originate from outside of Mexico. The specific financial requirement for a temporary resident visa is to have a monthly income of $2,237 or proof of savings of a minimum of $37,289.
Keep in mind you’re not allowed to seek employment from any Mexican company with a temporary resident visa. You can however earn income from businesses based overseas. With a few exceptions, the temporary resident visa cannot be issued in Mexico, thus you must apply at a Mexican consulate outside of the country.
Documents for a Mexican temporary residence application include:
- Visa application form.
- Original valid passport or comparable travel and identity document, as well as a photocopy of the page with the photo and personal data.
- One photo, typically passport-size.
- Cash payment for visa fees.
- Financial proof including a total bank balance of more than $37,289 over the past 12 months, or a monthly income of more than $2,237 over the last six months.
How will you pay taxes while working for the US in Mexico?
US remote workers can easily avoid paying taxes in a legal way while living and working from Mexico. All American citizens are required to file a tax return in the U.S. regardless of where they live and work, no matter how long they have resided abroad.
The main rule is this:
- A remote worker, expat, or digital nomad doesn’t owe taxes to Mexico as long as the performed work is not related to any Mexican citizen or company, and income is deposited into a non-Mexican bank account.
Therefore, your banking setup is an important variable when it comes to taxes. Expats and remote workers might have to pay taxes to Mexico when getting their pay via the local bank, so try to avoid using the Mexican banking system.
As a US citizen working remotely in Mexico, we highly recommend having all of your work outside of Mexico and request all payments sent to your U.S. bank. That way, you will stay away from potential legal issues.
If you need more information on taxes while working remotely in Mexico you can get advice from SAT (the Mexican IRS).
How to get a remote job and work from Mexico?
If you want to work remotely from Mexico but don’t have a suitable job, apply for one with us! Here, at Support Adventure, we hire talented people from around the world to allow them to work from anywhere.
Support Adventure is known as the expat outsourcing company as we hire people from around the world who want to work online from anywhere. Our company is based in the UK. We mostly have positions open for help desk IT support, so if you have experience or interest in IT, don’t wait and apply for a remote job with us here!
FAQs
Can a US employee work remotely in Mexico? ›
Mexico is always a favorite destination for digital nomads for its amazing weather, beautiful vistas, and affordable living costs. The nation also has favorable policies which allow citizens from other countries to visit and work remotely from almost anywhere they like inside of the country.
Do I have to pay taxes in Mexico if I work remotely? ›Understand Your Remote Work Taxes
Individuals working in Mexico under an FMM do not have to report taxes, but those working with a Temporary Residency Visa are taxed for all Mexican-sourced income and should report it accordingly.
While Mexico does not have a digital nomad visa or a visa specifically for remote work, there are a couple of options for Digital Nomads to navigate Mexico's immigration framework. There are two viable alternatives for people that want to do that: normal tourist visa. temporary resident visa.
Can a US company have employees in Mexico? ›Can foreign businesses pay employees in Mexico directly? Companies outside Mexico can only pay workers in Mexico directly if those workers are independent contractors. Full-time employees in Mexico must be employed by a local legal entity and must have an appropriate Mexican work permit to work in the country.
Can I work remotely for a US company and live abroad? ›Can Non-US Citizens Work for US Companies and Live Abroad as Digital Nomads? Non-US citizens can work remotely for a US company from their home country or anywhere in the world as long as they have consent from their employer, follow local laws regarding visas, and file taxes with their country of tax residence.
Do I have to pay US taxes if I live in Mexico? ›Filing and Paying Taxes as a US Citizen in Mexico
If you are a U.S. citizen living in Mexico, make sure to fill out and file the usual IRS Form 1040, U.S. Individual Income Tax Return, just as if you were still in the United States.
This applies if you have made a temporary move to Mexico and are not planning on staying beyond the 180 days that are allowed without a Visa. In these circumstances, you are not classed as part of the Mexican economy and so no taxes are due in the country.
Can a US company hire an independent contractor in Mexico? ›Independent Contractors in Mexico. A common practice for many US companies with activities in Mexico is to pay Mexican residents as independent contractors. US companies do this so they are not liable for Mexican labor obligations, such as payroll taxes and employee benefits.
How long can you work remotely outside of the US? ›However, if you are a freelancer or you plan to be outside of the US for more than 330 days of the year, you can save money on taxes by escaping some of them. Most countries will allow foreign remote workers to stay and work remotely for up to 183 days in a year without becoming tax liable.
Where can I work remotely in Mexico? ›- Mexico City (CDMX) Mexico City is the top pick for me and many other digital nomads. ...
- Playa del Carmen. Coming in at a close second is Playa del Carmen, often referred to simply as Playa or PDC. ...
- Puerto Escondido.
Can I work remotely for a US company without a visa? ›
Foreign employees who work for a US company remotely from their own country do not need a visa or work permit, as long as they work outside of the US. However, they would need a business visa if the US company wanted to bring them to the US for an extended stay or training purposes.
Can a US company do business in Mexico? ›As a general rule, all sectors of the economy are open to foreign investors unless Mexico's Foreign Investment Law provides restrictions.
Can I live in Mexico and work in the US? ›Since the U.S. shares a border with Mexico, it isn't uncommon for Americans to work in the U.S. and live in Mexico, or vice versa. For example, if you live in Rosarito, Mexicio and work in San Diego (or the reverse) you would still have to file a U.S. tax return, and you may also have to file a Mexican tax return.
Where do I pay taxes if I work remotely? ›A permanent remote worker will file their personal income taxes in their state of residence, whether they are a W-2 employee or a 1099-NEC independent contractor.
How long can you work remotely in another country without paying taxes? ›Do You Have to Pay Remote Work Taxes in Another Country? Yes. Most countries have tax-residency rules that dictate how long you can stay in their country before becoming a tax resident. In most cases, you must file as a tax resident and pay income tax if you stay for more than six consecutive months in a year.
Is there double taxation between US and Mexico? ›The United States – Mexico Tax Treaty covers double taxation with regards to income tax and capital gains tax, however due to a Saving Clause, the benefits are limited for Americans expats in Mexico.
How long can you live in Mexico without paying taxes? ›Do You Have To Pay Taxes? Mexico taxes expat residents on their worldwide income. In most cases, you're a resident for tax purposes if Mexico is your primary home (your home base) and you spend more than 183 days in the country.
Where do most Americans move to in Mexico? ›Lake Chapala: Mexico's Largest Expat Hotspot
Lake Chapala is Mexico's largest lake, and the surrounding area is also home to the largest concentration of U.S. expats in the world.
As with most destinations, you cannot work while you are in the country as a tourist. If you are confident of your plans, you can pursue temporary residency or permanent residency, often in combination with a retirement visa. The visa application begins at the nearest Mexican embassy or consulate in your home country.
How do I hire an employee from Mexico to work in the US? ›- Apply for certification from the United States Department of Labor.
- Interview prospective foreign workers.
- Apply for a work visa from U.S. Citizenship and Immigration Services.
- Verify the tax laws applicable to your company and the foreign worker.
Can I as a non US citizen work for my US company from my home country? ›
Yes, US companies can hire foreign workers either as full-time employees or independent contractors, with the option of either working remotely in their home country or relocating to the US with the relevant labor certification and visa.
Can US company pay foreign independent contractor? ›U.S. companies cannot simply pay an individual in a foreign country to perform work for them without establishing an employment relationship. Misclassifying an individual as an independent contractor in a foreign country could result in foreign tax liability.
Can you really work remotely while Travelling the world? ›One of the biggest benefits of remote work is that it allows you to work from anywhere. For some remote workers, this can mean from the comfort of their own home or a local co-working space. But others take advantage of flexible work by working from -- and traveling to -- different locations around the world.
Is working remotely on a tourist visa illegal? ›Although many digital nomads have been working abroad on tourist visas, it's technically illegal to do so. But that's not the case with a digital nomad visa, which legally allows techpats to work in most countries on their bucket list.
Which countries are US companies not allowed to do business with? ›- Afghanistan.
- Belarus.
- Bolivia.
- Cambodia.
- China.
- Crimea.
- Cuba.
- Eritrea.
- Medtronic.
- Molex.
- General Motors.
- Curtiss-Wright.
- Honeywell.
All corporate entities, including associations of a civil nature, branches, etc., are subject to the tax rules applicable to Mexican corporations (unless specifically ruled out, such as not-for-profit organisations).
› Can-I-work-for-a-US-company-... ›Can I work for a US company and live in Mexico?
If you are a citizen of the United States working remotely from another country, you may need to fill out some forms, but in most cases, you only owe taxes in the country where you live and work. U.S. citizen high earners (above $100,000 per year) may owe U.S. taxes even while working abroad, though.
How long can you work remotely in another country without paying taxes? ›Do You Have to Pay Remote Work Taxes in Another Country? Yes. Most countries have tax-residency rules that dictate how long you can stay in their country before becoming a tax resident. In most cases, you must file as a tax resident and pay income tax if you stay for more than six consecutive months in a year.
Do temporary residents pay tax in Mexico? ›
Only domiciled residents are liable for Mexican taxation on their worldwide income. Most people on temporary residency visas and tourist visas are only liable to Mexican tax on their Mexican sourced income.
Do workers pay taxes in Mexico? ›Most Mexican states levy a relatively low rate of tax on salaries (but not on income in general), which is payable by the employer. Mexico City imposes a 3% payroll tax. It is payable by the employer and constitutes a tax-deductible expense.
What is the 183 day rule? ›Understanding the 183-Day Rule
Generally, this means that if you spent 183 days or more in the country during a given year, you are considered a tax resident for that year. Each nation subject to the 183-day rule has its own criteria for considering someone a tax resident.
Set Up Local Entities and Use Multi-Country Payroll
Generally, a company must establish an entity in a country if it wishes to hire and pay employees there. A company that has set up an entity in one or more foreign countries can outsource a multi-country payroll provider to pay its international employees.
Foreign employees who work for a US company remotely from their own country do not need a visa or work permit, as long as they work outside of the US. However, they would need a business visa if the US company wanted to bring them to the US for an extended stay or training purposes.
How can I avoid US taxes working abroad? ›The Foreign Earned Income Exclusion – The FEIE is the most common and broadest aid to prevent double-taxation. You qualify if you live and work overseas and pass either the Bona Fide Residency test or the Physical Presence Test. If you qualify, you can exclude up to $108,700 for tax year 2021, and $112,000 for 2022.
Can I keep my remote job if I move to another country? ›Fortunately, it is possible to keep your job remotely, even if you're moving to another country. All that's required is buy-in from the company you work for and some planning to ensure you make the right legal and practical preparations.
Can I work remotely for an international company? ›It's still possible to work remotely for a company overseas while avoiding double taxation. Some tax experts recommend changing your employment contract with a foreign company to become an independent contractor.
Where do most Americans move to in Mexico? ›Lake Chapala: Mexico's Largest Expat Hotspot
Lake Chapala is Mexico's largest lake, and the surrounding area is also home to the largest concentration of U.S. expats in the world.
You may obtain a temporary resident visa in Mexico, if you prove that during the last year you had an overall bank balance of over US$27,000 or during the last 6 months you had a monthly income of over US$1,620.
How long can you stay in Mexico without being a resident? ›
Mexico's visitor permit
If you're planning to be in Mexico for 180 days or less —and don't intend to participate in any remunerative activities— then you might not need to apply for a resident permit: the visitor's permit (FMM) can be valid for up to 180 days.
Mexico's general minimum wage (Salario Minimo) was raised on January 1, 2022 to $172.87 pesos per work day, a 23% rise on the 2021 level of $141.70. The rate for 2022 along the 'Northern Border Zone' was raised to $260.34 pesos per work day, a rise of 23% on the 2021 rate of $213.39.
Does Mexico tax U.S. Social Security? ›U.S. – Mexico Social Security Totalization Agreement
As of this time, Mexico has not entered into a Totalization Agreement with the United States thus there is no opportunity to avoid double taxation of social security income for US expat tax in Mexico.
Foreigners can own property in Mexico. It's perfectly legal. Outside the restricted zones—50 kilometers (about 31 miles) from shorelines and 100 kilometers (about 62 miles) from international borders—foreigners can hold direct deed to property with the same rights and responsibilities as Mexican nationals.
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