Great information Paul, While I knew about this reporting requirement (CPA told me) it is not something that is generally known and if one is living overseas easy to fall into non-compliance. Like if you transfer money into a bank account for a few days/weeks as you are buying a home
I don’t remember how I was made aware of this, but I’ve been filing the FBAR for several years now. You don’t need to provide much detail other than you do have foreign accounts that exceed the threshold. If I remember correctly, you can check a box on the electronic form stating that the total amount is unknown.
Thanks 😊, I think it's the best because I split the earnings of my sale between two banks, then within the same year, I transferred to one bank only, the one that offered me the best mortgage loan.
I'm a Mexican citizen, I don't know if this changes the interest rates and requirements because last June 2020 I got one mortgage loan with 10% interest rate at 10years and no penalty for early payment which I almost finished paying (within few months) ...
We arrived to Acapulco when we recently retired, there we got taken to the cleaners by EVERYONE, so we lost all our retirement savings, and forced to sale our small condo, so mortgage loan was our only option away from Acapulco and what we used to consider family and friends; now we have a hard time trusting anyone with cash transactions. All we have now is our monthly pension.
Good video, and yes, you made it entertaining which I appreciate. The US treasury has quite a reach around our planet. I wonder if even China has something like this yet. And those penalties are quite draconian. But from seeing how the IRS has operated over the decades, it comes as no surprise.
@@craiggallup5706 Yes, I know it's the Treasury Department, but both have similar ways of doing things. Therefore it comes as no surprise as to what the Treasury Department is doing.
@@craiggallup5706 Right because the IRS doesnt have the reach or authority the Treasury Dept. has for this, but the Treasury then hands this info over to the IRS.
Come across this video as I am searching around to better understand about the FBAR. Very concise, informative and fun to watch. Also very helpful with the provided link. Thank you!
Keep your money in a bank in the USA and withdraw it via ATMs in Mexico as needed. If you have a Charles Schwab checking account, they will reimburse you the ATM fees.
Great info. I like this video because it applies to any foreign country you live in. This is one great reason I like all your videos, they don't only apply to expats in Mexico but anywhere.
Thank you for the information! We've been in Mexico since December 2012... Didn't know anything about this new joke. I'm glad you are kind enough to let us know; I am looking for the information of whether or not we require to file base on : We transfer all the funds of the sale of our home in USA, later in 2018 I sold a condo which I purchased long before 2012 (as a single Mexican citizen) , kept the earnings and in 2020 I purchased a new house with those earnings and a bank loan... Sounds like I will have a lots of fun navigating though this mess. I sincerely hope someone can help me with the corresponding information that I must follow.
Well done! Loved this vid!! And ty for ALL of the info you share on your channel!! Because of you and two other RUclipsr’s channels (but mainly your channel) I have got my partner to consider moving to Mexico. I’ve lived there before, almost 20 years ago… just me and my kids (they were both little at the time- under 5 y/o) it was beautiful and I absolutely did not want to come back but I dis not have the money to pay for and send them to a good school where they would have learned in English.. so I came back to the USA and waited until their schooling finished, now I am chomping at the bit to get back but my partner (of 6 years) thought I was crazy for even suggesting it. So I started showing him your videos first and that got him hooked! Now we have honest open discussions about it trying to.. Idk plan I guess and work out the kinks.. (he’s a planner, I’m a caution to the wind on steroids) and now he’s even asking other people opinions and to my surprise 4 of the 5 people he has talked to are planning/wanting to do the same thing lol.. so I just wanted to thank you!!! Your gonna be the ones that helped me get back to Mexico ~namaste😊
We moved to Cabo a couple years ago to determine if it was a place we would move to permanently as we live in San Diego (a quick plane ride back to visit family) ~alas it was not for us ~one of the biggest reasons was one you had mentioned previously ~1 reason why you went to the Caribbean side~ Cabo’s water temperature got below 70° in the winter basically unswimable for me~ many other reasons as well ~ although we did enjoy the adventure~ PS did you know that stop signs in Cabo are only a suggestion????!! 😂
You're a freakin' hero, Paul. You bring fact and awareness in a fun way. So many other travel vloggers are trying to be cute influencers and self promoters. I like how you just seem to want to guide people in proper and lawful directions. I've always heard that the cops aren't your friends. You sure seem to be. I'll just confess my secrets, now. ;-D
Thanks, Bouldergeek. I enjoy helping people and RUclips provides a good platform to do that. Prior to making videos, I spent 5+ years writing articles about the legalities and logistics of moving to Mexico. Oh, and cops are your friends. Haven't you ever heard of Officer Friendly? lol. Take care.
@@qroo Super cool. While I have traveled through Mexico more than many gringos, I have never been to the tipping point of looking for long term stay. The one time I tried being friendly to a cop and talking about stuff, I got cuffed and stuffed (since i had a BAC of 0.1 I was clearly in the wrong). :-( It was a learning experience.
FinCEN’s BSA E-Filing System: bsaefiling.fincen.treas.gov/main.html The instructions and requirements are available in PDF form via this link: www.fincen.gov/sites/default/files/shared/FBAR%20Line%20Item%20Filing%20Instructions.pdf Join our Patreon page to attend our live online Q&A sessions and ask us questions directly: www.patreon.com/qroo
As a US citizen, it's easier to keep money in the US until you need it. Keep the pesos account below US$10k, and save the trouble of filling out annoying forms. Unless your Mexican expenses are really high, you should be able to time transfers (to get the best exchange rates) and still keep below the US$10k cap.
Great creative & informative video! We did not know any of this. So, this started the research on opening a U.S. bank account before leaving the country. What we are finding out is that the US banks will CLOSE your account if they find out you are living abroad. Is there a bank that you recommend that will NOT close our account if you live outside the U.S.? Thank you !
You need a US address, a PO Box won’t work. If you have close family that are willing to allow you to use their address, that is one possible option. I’ve lived outside the US for several years and still have a US bank account and an AMEX card in good standing as well as foreign bank accounts. There are services that you can have your mail forwarded to that provide a real physical address and not just a PO box. You will need to research the service that best fits your needs. A google voice account that is setup in the US before you leave the States also is very valuable because often a US phone number is required.
So this is why it's best to transfer money from an American account to a Mexican account on a monthly basis so you won't exceed the 10k? (assuming you don't need 10k a month to live)
Sure if you want to avoid the FBAR filing requirement. But the truth is that filing FBARs is quite easy to do. So it's hardly tragic if you need to file them.
Hi Paul I am thinking of buying CETES in Mexico if I understood this correctly, you’re saying that I have to pay taxes on any money earned through my CETES
I went through the comments section, and I don't think this question was asked DIRECTLY...but if you have property in a fidecomiso does that EXEMPT you from the FBAR reporting?? BEST!!!
The short answer is that the fideicomiso is not part of FBAR or mandatory foreign trust reporting. Here is the longer, more technical answer: ruclips.net/video/bUS_-0b7aEU/видео.html
Paul if I make transfers from my bank in the US to a Mexican account. What is the tax Mexican treatment. Also If I have my Ssa benefits deposited in Mexico same question. Thanks
I just found this video. Yikes. I’ve had an account since 2017. Never heard about this. 100% of the money in the account was transferred from US banks. They have counted/seen/taxed it before it ever left. Does it need to be reported again?
Can you clarify FBAR threshold I live in Mexico and every month my SS and small pension gets deposited to my USA bank which is about 2000 USD I then get it sent to my Mexican bank account but that money is spent every month do I have to file FBAR *THESE ARE NOT ACTUAL NUMBERS JUST FOR PURPOSES OF GETTING UNDERSTANDING OF FBAR* thank you on any clarification you can give on FBAR threshold
You only have to file FBAR if the total value of your accounts exceeds $10,000 USD at any one time. If you are transferring and spending money, but the account never gets over $10,000 USD, you do not have to file.
I have read that you can file up to 6 years late without penalty? Can you verify this Paul? I found out about the FBAR a year ago but have not got the banks information until recently. Thank you
I did not see a time frame on the IRS website. It does say: "The IRS will not impose a penalty for the failure to file the delinquent FBARs if you properly reported on your U.S. tax returns, and paid all tax on, the income from the foreign financial accounts reported on the delinquent FBARs, and you have not previously been contacted regarding an income tax examination or a request for delinquent returns for the years for which the delinquent FBARs are submitted." www.irs.gov/individuals/international-taxpayers/delinquent-fbar-submission-procedures
If you have $10k+ in Mexico, the US is going to take a cut, aren't they? I'm getting more and more worried about money the closer I get to moving. My financial advisor says that once I move I can't move my money around at all (can't withdraw , transfer, etc.) with his agency, that I will have to move my investments to a firm in Mexico. But, if I move my money to Mexico (I'd still have my bank account in USA), then I'll have to pay fees/taxes (not sure how it is classified) for having/sending more than $10k abroad. I would appreciate any help on this topic!!!
They won't take a cut unless you don't report the income. They can fine you for that. If the income was earned from the U.S. or some other reported source, there won't be any issue at all.
Well said, Paul ! BTW, since my wife is a Mexican citizen and then became a US citizen, and her accounts are in Mexico as a Mexican citizen, does she need to be concerned with this?
Yes, it does apply to her as well. Unfortunately that U.S. citizenship comes with some strong financial ties -- some call them chains -- to the U.S. government.
I heard even green card holders. I recommend avoiding green cards and US citizenship. There are other countries that only have taxation based on residency.
Can you please let me know if I need to file delinquent FBARs? I have a foreign bank account and have a little over $10k in it since 2018. I just started learning about FBAR. 🥺 Or do I just file for 2021?
Great, informative video. Question: My partner and I just opened a Mexican bank account (I bought a condo). We have tourist visas. We both put 6,000 USD into the account for a total of 12,000 USD. We are both on the account. We are not married. Do we (or I) need to file US tax paperwork?
So even if you are just transferring money from a US bank account to a Mexican bank account and you already pay taxes on the money in the US bank you have to file this report?
Dual nationality here; I'm working remotely (in Mexico) since 2019, I do my taxes like my residence is in US, Do I need to file special taxes and tell to the governmet that i'm living in mexico ?
That's why some people renaunce their citizenship , so you don't have to pay taxes on what ever money they make overseas , and you don't have to file taxes ever again , it just costs $2.300 to do
That is good if you are not planning on going back to the US, because otherwise, they can deny you entering the country since you are not longer a US citizen.
What if you’re not a USA citizen, just a permanent US resident with a green card and you open an account in your native country. Are you still affected by this law?
Explain "aggregate amount" . I'm being told that if you transfer 7k from a savings to a checking at the same bank... it now shows 14k in the same day. Although this is bogus, and only 7k exists... the bank now reports 14k to uncle sam. It is now impossible to actually know if and what is being reported...and foreign banks such as banistmo in Panama charges 90 bucks for your bank statements...
Hi Paul, I enjoy watching your RUclips videos and I’m really interested in moving to Mexico but I’ve a lot of questions about it is there a way I can contact you pm? Thanks and thanks for all your videos.
Not exactly. If you have two foreign accounts and if the sum of the balances hit 10K usd for even one day in a year then you must report BOTH accounts. But yes if only one account and its always under 10K then no report.
So you mentioned mutual funds... now you need to do a video warning about failing to file the PFIC paperwork. That's another potential $10K penalty *per* ETF or Mutual Fund, *per* year.
What do they mean by "maximum account value" ...? The highest value of any given day, month, total of year? Example: the day I received the mortgage loan, it was first deposited on my account where my earnest money from my previous property was sold was, which the same day was transferred to the seller of my new property... Or should I click on maximum account value unknown? Thanks for your help....
I contacted them, and they gave me the response with links on everything I need to do the filing. THANKS SO MUCH FOR YOU INCREDIBLE VALUE OF INFORMATION... We were living in Acapulco, but sold there and moved to Morelos... Not very pleased here, so we are preparing to sale here and move to Chapala, so your information is something to keep it in mind with the selling and buying over there.
Thanks 😊, we're going to move to Chapala because my husband doesn't speak Spanish and we finally realized that we're alone in Mexico, if something happens to me, he needs to be able to function on his own... Not being melodramatic, but we've learned that we must prepared for the worse and hope for the best. Acapulco thought us a very hard lesson. I think your plans are very nice, that was our plans when we arrived in Mexico: purchased a Harley and Davidson bike and traveling throughout Mexico, but life gets in your way and f***s up your dreams and plans... Now we only concern with our security and Chapala have nice assistance living and nursing homes for our later days in the future.
Paul I think it more like fubar than fbar though I'm sure I could find choice bad words for either acronyms lol Got any more gems like that? Ooh please share lol Seriously though thanks for doing what you doing.
The U.S. Is one of only a few countries which taxes based on citizenship and not residency. Many people who have lived their whole lives overseas are now finding out they owe large amounts of money and fines to the U.S. Because of this. Unfortunately, the only way out of this is to renounce your U.S. Citizenship. It would make much more sense in my opinion if the U.S. Taxed based on residency instead. I do wish they would reconsider this policy.
ONLY US and Eritrea. Eritrea requires all its citizens living abroad to pay a flat tax rate of 2%. Known as the 'diaspora tax', the system has received condemnation from the international community due to the methods in which the Eritrean government ensure the payment of the citizenship tax.
Hi Paul, great video, love the devil persona. Ha.... Sounds like Uncle Sam only wants to know the foreign income made.. But don't you report that on your regular income tax form as foreign income or foreign investment. We have similar in Canada, only need to report.
US expats living in Canada do have to file FBARs, no different than in Mexico. and if you own Canadian ETFs or Mutual Funds outside of an RRSP, you also have to file PFIC paperwork.
Our govt loves us and wants to take care of us and our health. The least we can do is give up any disposable income or funds we have. Or even not disposable.
The other thing to note is you are supposed to go back and report the years you missed and pay fines, it's a nightmare. I had to refile a few years of tax returns. Most other people I know in similar situations had no idea this requirement even existed some even had to go and hire attorneys. It was nothing illegal they just owned foreign property and were terrified the IRS was going to plunder their savings. Seems like this was done to catch the super wealthy offshore swiss bank holders but it encompassed all the expats and dual citizens who live and work in the US. They're not tax dodgers as they pay tax here and in their countries but they get treated like criminals.
@@Heltonsdesigns the tax on your regular job somewhere in the 40% if u work remotely . 20 something % on business for FAKE freedom ,yes I live in the USA. And yes you could come back and visit. Social Security maybe will not be around for me to get me full benefits. Health Care really .. Colombia has better healthcare and free(FREEDOM) University . Open ur mind mannnnnnnnnnnn.
What is it about the laid-back style of a career LEO who threw it all away to live in Mexico to do what I have been trying to do. That is, explaining FBAR and FATCA to people from the USA now living in Canada. These same rules apply to USA folk moving to Canada. Our government agreed to the information exchange with the USA. You can forgive Mexico, but for Canada, we sold off a big chunk of our sovereignty when we agreed to show Canadian banking records to Uncle Sam. Bottom line, penalties for not complying are quite severe so you really do need to have a trusted financial advisor in your life.
Oh my goodness gracious me - lol . Your Uncle Sam is being a little hard on American citizens. Funny thing, I pay American tax on my published book - and I’m Canadian. Go figure. I would be classified as a poor tourist, so I never have reached that kind of money. However, owning a condo in Mexico, I’m curious how the taxes would work then 🤔 Once again, thank you Paul. Great info to be aware of.
I need help opening a US dollar bank account under my husbands name. I have dual citizenship US/MX and travel back and forth from the US to Mexico because of medical reasons. My husband is a Mexican citizen and a missionary in Mexico. He just got hired by a nonprofit from the US, he will continue to work in Mexico and will be paid in dollars. It’s a great opportunity and accomplishment in his career. Is there a bank, where we could open the account online or via Zoom without him traveling to the US? We want to keep his earnings in dollars. Do you know of a Mexican bank that offers US dollar checking & savings accounts? We are afraid of putting my husbands earning, in a pesos bank account, and waking up on day to the news that we have lost our savings.
I don't know any fat cat rich folks but I'll ask them if I come across any. By the way, no one I have ever met is trying to avoid the law -- they are unaware of it. They are people who retired to Mexico and send their retirement and/or social security check to their new foreign bank account. These are retired teachers, factory workers etc.
They don't. They pay lawyers to follow the laws on their behalf. This is a reporting requirement, not a tax. Fat cat rich guys don't care about papers that their lawyers needed to file. They only care if they have to pay actual money. Which in this case they don't.
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Ready to Move to Mexico? Check out the COMPLETE Mexico Relocation Guide bit.ly/3SICdD0
Boost Your Spanish ruclips.net/video/Nzc1oRSAPQ0/видео.html
Loved the dry, deadpan presentation also, loved your sidekick. Without the sidekick, I still thoroughly appreciated the data.
Thanks!
Who was that sidekick, he looked a little familiar?
Maybe I saw his picture with some numbers under it at the post office. :)
"USA, land of the free". Hahahahahahahahahahahahaha, cough cough vomit. Not a surprise that many renounce US citizenship.
Great information Paul, While I knew about this reporting requirement (CPA told me) it is not something that is generally known and if one is living overseas easy to fall into non-compliance. Like if you transfer money into a bank account for a few days/weeks as you are buying a home
Thanks. You're right about the big transfers to foreign accounts to buy homes. That is one of the most common scenarios that I have seen.
I don’t remember how I was made aware of this, but I’ve been filing the FBAR for several years now.
You don’t need to provide much detail other than you do have foreign accounts that exceed the threshold.
If I remember correctly, you can check a box on the electronic form stating that the total amount is unknown.
Thanks 😊, I think it's the best because I split the earnings of my sale between two banks, then within the same year, I transferred to one bank only, the one that offered me the best mortgage loan.
@@Dragon-kf5sb … you want a mortgage from a Mexican bank? Ouch…..mostly all cash here because of the skyhigh mortgage rates
I'm a Mexican citizen, I don't know if this changes the interest rates and requirements because last June 2020 I got one mortgage loan with 10% interest rate at 10years and no penalty for early payment which I almost finished paying (within few months) ...
@@Dragon-kf5sb … Yeah the 10% rate is what I was referring to.
We arrived to Acapulco when we recently retired, there we got taken to the cleaners by EVERYONE, so we lost all our retirement savings, and forced to sale our small condo, so mortgage loan was our only option away from Acapulco and what we used to consider family and friends; now we have a hard time trusting anyone with cash transactions. All we have now is our monthly pension.
Good video, and yes, you made it entertaining which I appreciate. The US treasury has quite a reach around our planet. I wonder if even China has something like this yet. And those penalties are quite draconian. But from seeing how the IRS has operated over the decades, it comes as no surprise.
This isn't IRS. It's the Treasury Department.
@@craiggallup5706 Yes, I know it's the Treasury Department, but both have similar ways of doing things. Therefore it comes as no surprise as to what the Treasury Department is doing.
@@craiggallup5706 Right because the IRS doesnt have the reach or authority the Treasury Dept. has for this, but the Treasury then hands this info over to the IRS.
A quick note - The IRS is a bureau of the Treasury. www.treasury.gov/about/history/pages/irs.aspx
@@patricktraichal9287 Thank you. I wasn't aware the IRS is a bureau of the Treasury. It makes sense.
Come across this video as I am searching around to better understand about the FBAR. Very concise, informative and fun to watch. Also very helpful with the provided link. Thank you!
Keep your money in a bank in the USA and withdraw it via ATMs in Mexico as needed. If you have a Charles Schwab checking account, they will reimburse you the ATM fees.
Great info Paul, I've never heard of this before and will keep it in mind when we retire to Playa in 2023.
Yes. Do. Its very easy to comply. Nothing to worry about really unless you don’t comply. Then it could be a ruinous nightmare.
Glad it was helpful!
I’m not even from the USA but enjoyed the video just for the awesome editing! Very cool 😎
Haha, thanks.
Great info. I like this video because it applies to any foreign country you live in. This is one great reason I like all your videos, they don't only apply to expats in Mexico but anywhere.
Thanks, Luis.
Thanks!
Thank you very much, Jenny!
Thank you for the information! We've been in Mexico since December 2012... Didn't know anything about this new joke. I'm glad you are kind enough to let us know; I am looking for the information of whether or not we require to file base on :
We transfer all the funds of the sale of our home in USA, later in 2018 I sold a condo which I purchased long before 2012 (as a single Mexican citizen) , kept the earnings and in 2020 I purchased a new house with those earnings and a bank loan...
Sounds like I will have a lots of fun navigating though this mess. I sincerely hope someone can help me with the corresponding information that I must follow.
As far as I am concerned, If I am outside of the US, the US Government has ZERO juriidction
Thank you so much, once again! You are like the classic Robin Hood 😹😹😹 always there to assist the underdog.
Well done! Loved this vid!! And ty for ALL of the info you share on your channel!! Because of you and two other RUclipsr’s channels (but mainly your channel) I have got my partner to consider moving to Mexico. I’ve lived there before, almost 20 years ago… just me and my kids (they were both little at the time- under 5 y/o) it was beautiful and I absolutely did not want to come back but I dis not have the money to pay for and send them to a good school where they would have learned in English.. so I came back to the USA and waited until their schooling finished, now I am chomping at the bit to get back but my partner (of 6 years) thought I was crazy for even suggesting it. So I started showing him your videos first and that got him hooked! Now we have honest open discussions about it trying to.. Idk plan I guess and work out the kinks.. (he’s a planner, I’m a caution to the wind on steroids) and now he’s even asking other people opinions and to my surprise 4 of the 5 people he has talked to are planning/wanting to do the same thing lol.. so I just wanted to thank you!!! Your gonna be the ones that helped me get back to Mexico ~namaste😊
That's so awesome! Thanks for sharing that and good luck!
Very informative~ thank you~ love the back and forth with yourself🤣
Thank you. It's a boring subject but a necessary one to cover for folks who are moving abroad.
We moved to Cabo a couple years ago to determine if it was a place we would move to permanently as we live in San Diego (a quick plane ride back to visit family) ~alas it was not for us ~one of the biggest reasons was one you had mentioned previously ~1 reason why you went to the Caribbean side~ Cabo’s water temperature got below 70° in the winter basically unswimable for me~ many other reasons as well ~ although we did enjoy the adventure~
PS did you know that stop signs in Cabo are only a suggestion????!! 😂
You're a freakin' hero, Paul. You bring fact and awareness in a fun way. So many other travel vloggers are trying to be cute influencers and self promoters. I like how you just seem to want to guide people in proper and lawful directions. I've always heard that the cops aren't your friends. You sure seem to be. I'll just confess my secrets, now. ;-D
I would venture to say that there are more like Paul than not. Give yourself and them a chance and you may be surprised.
Thanks, Bouldergeek. I enjoy helping people and RUclips provides a good platform to do that. Prior to making videos, I spent 5+ years writing articles about the legalities and logistics of moving to Mexico. Oh, and cops are your friends. Haven't you ever heard of Officer Friendly? lol. Take care.
@@qroo Super cool. While I have traveled through Mexico more than many gringos, I have never been to the tipping point of looking for long term stay.
The one time I tried being friendly to a cop and talking about stuff, I got cuffed and stuffed (since i had a BAC of 0.1 I was clearly in the wrong). :-( It was a learning experience.
Thank you for posting this video! I filed my form in time. Whew!
Thank you also for the other video about the tax ID on the CFE invoice. Good to know.
If you have less than 10mil you don't have to?
FinCEN’s BSA E-Filing System: bsaefiling.fincen.treas.gov/main.html
The instructions and requirements are available in PDF form via this link:
www.fincen.gov/sites/default/files/shared/FBAR%20Line%20Item%20Filing%20Instructions.pdf
Join our Patreon page to attend our live online Q&A sessions and ask us questions directly: www.patreon.com/qroo
Newbie expat in cdmx sends a big GRACIAS! Would have blown it, but for your video. Thx
Thanks, Lee!
😂 love this conversation between the two of you and yourself 😂
Thanks! I thought I would try something new. :)
Thank you for this information, I had no idea this existed. So at least now I know what to prepare for when the time comes to retire down south!
Awesome video! I loved the humor and your editing!!! Great work.
Thanks so much!!
Thank you, I had never heard of this. It does apply to me.
Glad it was helpful!
@@qroo Hugely
As a US citizen, it's easier to keep money in the US until you need it. Keep the pesos account below US$10k, and save the trouble of filling out annoying forms. Unless your Mexican expenses are really high, you should be able to time transfers (to get the best exchange rates) and still keep below the US$10k cap.
Hi Paul. Thanks for the info. That was a fun video.
Jejeje, cool video. And this is only half the story. Many more details
So one doesn't file it on the Taxes it is a separate form?
Another excellent and informative video. Thank you!
Thanks!
hahaha love backwards Hat Paul!! Keep up the good work, and thanks for this great info.
Thanks for watching!
Great creative & informative video! We did not know any of this. So, this started the research on opening a U.S. bank account before leaving the country. What we are finding out is that the US banks will CLOSE your account if they find out you are living abroad. Is there a bank that you recommend that will NOT close our account if you live outside the U.S.? Thank you !
You need a US address, a PO Box won’t work. If you have close family that are willing to allow you to use their address, that is one possible option.
I’ve lived outside the US for several years and still have a US bank account and an AMEX card in good standing as well as foreign bank accounts.
There are services that you can have your mail forwarded to that provide a real physical address and not just a PO box. You will need to research the service that best fits your needs.
A google voice account that is setup in the US before you leave the States also is very valuable because often a US phone number is required.
Just get a cross border mail box service. Plenty of them in the border cities.
So this is why it's best to transfer money from an American account to a Mexican account on a monthly basis so you won't exceed the 10k? (assuming you don't need 10k a month to live)
Sure if you want to avoid the FBAR filing requirement. But the truth is that filing FBARs is quite easy to do. So it's hardly tragic if you need to file them.
Hi Paul I am thinking of buying CETES in Mexico if I understood this correctly, you’re saying that I have to pay taxes on any money earned through my CETES
I went through the comments section, and I don't think this question was asked DIRECTLY...but if you have property in a fidecomiso does that EXEMPT you from the FBAR reporting?? BEST!!!
The short answer is that the fideicomiso is not part of FBAR or mandatory foreign trust reporting. Here is the longer, more technical answer: ruclips.net/video/bUS_-0b7aEU/видео.html
This is why I like cash and heavy safes.
Paul if I make transfers from my bank in the US to a Mexican account. What is the tax Mexican treatment. Also If I have my Ssa benefits deposited in Mexico same question. Thanks
Fun video, great job!
Thank you 🤗 This one was fun to make.
I just found this video. Yikes. I’ve had an account since 2017. Never heard about this. 100% of the money in the account was transferred from US banks. They have counted/seen/taxed it before it ever left. Does it need to be reported again?
I have a US LLC but I am a Non US Resident and I do not perform any operations in the US. Do I have to file the FBAR?
Does buying a home trigger the $10K reporting requirement?
No, that is not considered a foreign account.
Can you clarify FBAR threshold I live in Mexico and every month my SS and small pension gets deposited to my USA bank which is about 2000 USD I then get it sent to my Mexican bank account but that money is spent every month do I have to file FBAR *THESE ARE NOT ACTUAL NUMBERS JUST FOR PURPOSES OF GETTING UNDERSTANDING OF FBAR* thank you on any clarification you can give on FBAR threshold
You only have to file FBAR if the total value of your accounts exceeds $10,000 USD at any one time. If you are transferring and spending money, but the account never gets over $10,000 USD, you do not have to file.
Great video, thanks for the info. Does owning property here in Mexico count as investment?
Great question! No, not for the purposes of FBAR reporting.
I have read that you can file up to 6 years late without penalty? Can you verify this Paul? I found out about the FBAR a year ago but have not got the banks information until recently. Thank you
I did not see a time frame on the IRS website. It does say:
"The IRS will not impose a penalty for the failure to file the delinquent FBARs if you properly reported on your U.S. tax returns, and paid all tax on, the income from the foreign financial accounts reported on the delinquent FBARs, and you have not previously been contacted regarding an income tax examination or a request for delinquent returns for the years for which the delinquent FBARs are submitted."
www.irs.gov/individuals/international-taxpayers/delinquent-fbar-submission-procedures
Good to Know!
Dang! Thanks a heap for this info!
You're welcome! :)
Thank you, Paul.
Very welcome!
If you have $10k+ in Mexico, the US is going to take a cut, aren't they? I'm getting more and more worried about money the closer I get to moving. My financial advisor says that once I move I can't move my money around at all (can't withdraw , transfer, etc.) with his agency, that I will have to move my investments to a firm in Mexico. But, if I move my money to Mexico (I'd still have my bank account in USA), then I'll have to pay fees/taxes (not sure how it is classified) for having/sending more than $10k abroad. I would appreciate any help on this topic!!!
They won't take a cut unless you don't report the income. They can fine you for that. If the income was earned from the U.S. or some other reported source, there won't be any issue at all.
@@qroo Phew!! I was starting to panic.
Well said, Paul ! BTW, since my wife is a Mexican citizen and then became a US citizen, and her accounts are in Mexico as a Mexican citizen, does she need to be concerned with this?
Yes, it does apply to her as well. Unfortunately that U.S. citizenship comes with some strong financial ties -- some call them chains -- to the U.S. government.
I heard even green card holders. I recommend avoiding green cards and US citizenship. There are other countries that only have taxation based on residency.
Can you please let me know if I need to file delinquent FBARs? I have a foreign bank account and have a little over $10k in it since 2018. I just started learning about FBAR. 🥺 Or do I just file for 2021?
Great, informative video. Question: My partner and I just opened a Mexican bank account (I bought a condo). We have tourist visas. We both put 6,000 USD into the account for a total of 12,000 USD. We are both on the account. We are not married. Do we (or I) need to file US tax paperwork?
Yes, because you are both on the account and the value exceeded $10K. The form is not a bog deal really. It typically takes me about 10 minutes to do.
So even if you are just transferring money from a US bank account to a Mexican bank account and you already pay taxes on the money in the US bank you have to file this report?
Yes.
@@qroo we've never had a mexican bank account but have recently considered it so good to know!
Dual nationality here; I'm working remotely (in Mexico) since 2019, I do my taxes like my residence is in US, Do I need to file special taxes and tell to the governmet that i'm living in mexico ?
I have a mexican bank accounts that generated interests from 2009 to 2021, I don't have most of my bank information.
That's why some people renaunce their citizenship , so you don't have to pay taxes on what ever money they make overseas , and you don't have to file taxes ever again , it just costs $2.300 to do
That is good if you are not planning on going back to the US, because otherwise, they can deny you entering the country since you are not longer a US citizen.
I think it is a hassle to file taxes overseas and nobody can help you. Besides that if you find someone to help you it can be a lot money to file.
What if you’re not a USA citizen, just a permanent US resident with a green card and you open an account in your native country. Are you still affected by this law?
Yes, it applies to you as well.
Thank you
So If I had a Schwab Account and took money from the ATM would I have to file this report?
No.
No. That's not a foreign financial account.
Explain "aggregate amount" . I'm being told that if you transfer 7k from a savings to a checking at the same bank... it now shows 14k in the same day. Although this is bogus, and only 7k exists... the bank now reports 14k to uncle sam. It is now impossible to actually know if and what is being reported...and foreign banks such as banistmo in Panama charges 90 bucks for your bank statements...
How does the law apply to Swiss accounts?
It applies to all foreign financial accounts, including Swiss accounts.
Hi Paul, I enjoy watching your RUclips videos and I’m really interested in moving to Mexico but I’ve a lot of questions about it is there a way I can contact you pm? Thanks and thanks for all your videos.
Interesting. So if a Mexican bank account does not exceed an equivalent of $10K US, there is no filing requirement?
Not exactly. If you have two foreign accounts and if the sum of the balances hit 10K usd for even one day in a year then you must report BOTH accounts. But yes if only one account and its always under 10K then no report.
Any knowledge of Canadian similarities?
None that anyone has reported to me.
Nice comic touch Thanks !
Thanks. The topic was so boring that I had to do something.
So you mentioned mutual funds... now you need to do a video warning about failing to file the PFIC paperwork. That's another potential $10K penalty *per* ETF or Mutual Fund, *per* year.
Great video topic idea. Thanks.
Hi Paul. I've a question! So, if I open an account with less than $10, 000. USDS I do not have to let them know?
Correct. Unless you have other foreign financial accounts. The $10,000 is the aggregate value of all of them.
What do they mean by "maximum account value" ...? The highest value of any given day, month, total of year? Example: the day I received the mortgage loan, it was first deposited on my account where my earnest money from my previous property was sold was, which the same day was transferred to the seller of my new property...
Or should I click on maximum account value unknown?
Thanks for your help....
The highest value at any given moment during the year. I usually round it up to play it safe.
Thanks 😊
I contacted them, and they gave me the response with links on everything I need to do the filing. THANKS SO MUCH FOR YOU INCREDIBLE VALUE OF INFORMATION... We were living in Acapulco, but sold there and moved to Morelos... Not very pleased here, so we are preparing to sale here and move to Chapala, so your information is something to keep it in mind with the selling and buying over there.
I hope you like Chapala better. We plan to move around and explore more areas of Mexico next year.
Thanks 😊, we're going to move to Chapala because my husband doesn't speak Spanish and we finally realized that we're alone in Mexico, if something happens to me, he needs to be able to function on his own... Not being melodramatic, but we've learned that we must prepared for the worse and hope for the best. Acapulco thought us a very hard lesson.
I think your plans are very nice, that was our plans when we arrived in Mexico: purchased a Harley and Davidson bike and traveling throughout Mexico, but life gets in your way and f***s up your dreams and plans... Now we only concern with our security and Chapala have nice assistance living and nursing homes for our later days in the future.
Any Canadians here? is there something similar here in Canada?
Like always nice video
Thank you so much 😀
Sure it's called Fbar? Sure there's not another vowel between the first two consonants?
Paul I think it more like fubar than fbar though I'm sure I could find choice bad words for either acronyms lol
Got any more gems like that? Ooh please share lol
Seriously though thanks for doing what you doing.
That's a pretty good. I wish I had used that one in the video..lol.
The U.S. Is one of only a few countries which taxes based on citizenship and not residency. Many people who have lived their whole lives overseas are now finding out they owe large amounts of money and fines to the U.S. Because of this. Unfortunately, the only way out of this is to renounce your U.S. Citizenship. It would make much more sense in my opinion if the U.S. Taxed based on residency instead. I do wish they would reconsider this policy.
ONLY US and Eritrea. Eritrea requires all its citizens living abroad to pay a flat tax rate of 2%. Known as the 'diaspora tax', the system has received condemnation from the international community due to the methods in which the Eritrean government ensure the payment of the citizenship tax.
Hi Paul, great video, love the devil persona. Ha.... Sounds like Uncle Sam only wants to know the foreign income made.. But don't you report that on your regular income tax form as foreign income or foreign investment. We have similar in Canada, only need to report.
FBAR reporting isn't about income.
US expats living in Canada do have to file FBARs, no different than in Mexico. and if you own Canadian ETFs or Mutual Funds outside of an RRSP, you also have to file PFIC paperwork.
Our govt loves us and wants to take care of us and our health. The least we can do is give up any disposable income or funds we have. Or even not disposable.
The other thing to note is you are supposed to go back and report the years you missed and pay fines, it's a nightmare. I had to refile a few years of tax returns. Most other people I know in similar situations had no idea this requirement even existed some even had to go and hire attorneys. It was nothing illegal they just owned foreign property and were terrified the IRS was going to plunder their savings. Seems like this was done to catch the super wealthy offshore swiss bank holders but it encompassed all the expats and dual citizens who live and work in the US. They're not tax dodgers as they pay tax here and in their countries but they get treated like criminals.
That reporting violates 5th and 13th Amendments
Yes being honest is criminal
I’m totally confused -
Yup. Makes being a US Person a pain in the back side.
Great info, Thanks! Additionally, I learned if one retires early, substantial income earned could reduce one's social security income.
Just give up your USA citizenship . give up the 48% tax. Uncle Sam MAD
@@Heltonsdesigns the tax on your regular job somewhere in the 40% if u work remotely . 20 something % on business for FAKE freedom ,yes I live in the USA. And yes you could come back and visit. Social Security maybe will not be around for me to get me full benefits. Health Care really .. Colombia has better healthcare and free(FREEDOM) University . Open ur mind mannnnnnnnnnnn.
@rman bike i said i live in the US. I have two bussiness Im ready to move out the US to KEEP more money so i will not pay as much taxes.
Sounds to me that never open a bank acct in a foreign country...................................just spend the money and enjoy life !
Or juist report if you have a foreign account. Even 1k a month would put you at 12k a year and put you over.
Hello, my husband and I just move from USA to Mexico and I wander if we can contact you vía email for a couple questions.
What is it about the laid-back style of a career LEO who threw it all away to live in Mexico to do what I have been trying to do. That is, explaining FBAR and FATCA to people from the USA now living in Canada.
These same rules apply to USA folk moving to Canada. Our government agreed to the information exchange with the USA. You can forgive Mexico, but for Canada, we sold off a big chunk of our sovereignty when we agreed to show Canadian banking records to Uncle Sam.
Bottom line, penalties for not complying are quite severe so you really do need to have a trusted financial advisor in your life.
FBAR sounds like FUBAR.
It's the "U" part that that adds the flavor because it's not U it's "You" that is getting the "F".
While most of uncle Sam aren't filing their ethics Acknowledgment forms and haven't read the ethics manual.
Uncle Sam has us pretty much any way you look at it.
Yep.
Oh my goodness gracious me - lol . Your Uncle Sam is being a little hard on American citizens. Funny thing, I pay American tax on my published book - and I’m Canadian. Go figure. I would be classified as a poor tourist, so I never have reached that kind of money. However, owning a condo in Mexico, I’m curious how the taxes would work then 🤔 Once again, thank you Paul. Great info to be aware of.
You and your evil twin are funny. Great information!
Thanks for watching. :)
The attitude of Mexican banks towards cryptocurrencies.... and cryptocurrency exchanges... is relevant here.
Uncle Sam has really long arms….
More like claws!
🤣🤣🤣 love it!
Our government loves to trip us up and take our money
I need help opening a US dollar bank account under my husbands name. I have dual citizenship US/MX and travel back and forth from the US to Mexico because of medical reasons.
My husband is a Mexican citizen and a missionary in Mexico. He just got hired by a nonprofit from the US, he will continue to work in Mexico and will be paid in dollars. It’s a great opportunity and accomplishment in his career.
Is there a bank, where we could open the account online or via Zoom without him traveling to the US? We want to keep his earnings in dollars.
Do you know of a Mexican bank that offers US dollar checking & savings accounts?
We are afraid of putting my husbands earning, in a pesos bank account, and waking up on day to the news that we have lost our savings.
Thanks for the good information! The volume level of the music at the beginning was pretty loud since I had headphones on.
Sorry about that. I will correct that in future videos.
@@qroo You are up early, it's 3:20 here in Vegas.
I typically wake up before 5 am.
The Plan (Great Reset), CBDC will track every financial transaction.
No. This requirement has been in effect for many years. Nothing to do with current events.
@Gabe ThatWeedFarmer I have nothing to do with such dangerous garbage.
👍😎🍻🇨🇦
Ear bud users beware 0:15 😱
😂❤️
Sorry about that. I fixed the volume issue in later videos. I'm still pretty new to this whole video editing thing...lol.
So how do Fat cat rich guys avoid this law?? Please balance your voice intro to music intro, the music can really break ear drums
I don't know any fat cat rich folks but I'll ask them if I come across any. By the way, no one I have ever met is trying to avoid the law -- they are unaware of it. They are people who retired to Mexico and send their retirement and/or social security check to their new foreign bank account. These are retired teachers, factory workers etc.
Thanks for the tip on the sound. I'm new to video editing. I've spent the last 5+ years writimg articles about Mexico. Take care.
They don't. They pay lawyers to follow the laws on their behalf. This is a reporting requirement, not a tax. Fat cat rich guys don't care about papers that their lawyers needed to file. They only care if they have to pay actual money. Which in this case they don't.
Good job
Lousy news
＼(◎o◎)／
If Uncle Sam would be a manager it would fall sooner or later to the cancel culture 😂
mess up info. Uncle sam always want their piece of pie. damn
I haven't had a bank account in 35 years
Worst institution ever invented
To avoid the hassle it is better never to have a green card or US citizenship. If natural US citizen renunciation is another option.
Eff oboso for fatca.🤬
So how FAT CATS.