# Collecting Rent in Mexico/Paying billing in US



## GBPhipps (Feb 12, 2011)

We are buying a house in Chapala and we plan to rent it until we are ready to move there. In the meantime we need to collect the rent and use it to pay bills in the US. Does anyone know the most economical way to accomplish this? Thank you in advance for any advice you may provide.


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## chicois8 (Aug 8, 2009)

maybe you could open a Banamex account, they own Banamex USA and you could transfer money to the USA account just like you can transfer from the USA account to Banamex in Mexico...this can be done by Citibank who owns both...then you could use a bill pay system through Citi like I do...easy

Plus with the Banamex USA ATM card there are no fee withdrawls if using a Banamex ATM in Mexico


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## GBPhipps (Feb 12, 2011)

chicois8 said:


> maybe you could open a Banamex account, they own Banamex USA and you could transfer money to the USA account just like you can transfer from the USA account to Banamex in Mexico...this can be done by Citibank who owns both...then you could use a bill pay system through Citi like I do...easy
> 
> Plus with the Banamex USA ATM card there are no fee withdrawls if using a Banamex ATM in Mexico


Thanks Chico. I will look into that. I have checked out Bank of America since they have a relationship with Santander. We were told that there was no way to move money between Mexico and the US via Santander/BofA without incurring hefty wire transfer fees. I will see if Citibank has a better relationship. Thanks!

We are also checking out HSBC, but have not had a definitive answer as yet.


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## joaquinx (Jul 3, 2010)

Wasn't there a thread discussing collecting rent while on a non-working FM-3 type visa? Someone said that you needed a working visa in order to collect rent. I searched this forum and another one, but couldn't find it. Anyone remember it?


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## circle110 (Jul 20, 2009)

Since your house is in Chapala, there is a reasonable chance you could rent to an American or a US couple who could pay you in dollars directly. The money would never leave the US nor convert to pesos, which would eliminate part of the problem. There are a myriad of ways to arrange payments from one US dollar account to another.


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## GBPhipps (Feb 12, 2011)

joaquinx said:


> Wasn't there a thread discussing collecting rent while on a non-working FM-3 type visa? Someone said that you needed a working visa in order to collect rent. I searched this forum and another one, but couldn't find it. Anyone remember it?


We'll have a rental agent to physically collect the rent. Hopefully that will work because we will be out of the country while the house is rented.


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## GBPhipps (Feb 12, 2011)

circle110 said:


> Since your house is in Chapala, there is a reasonable chance you could rent to an American or a US couple who could pay you in dollars directly. The money would never leave the US nor convert to pesos, which would eliminate part of the problem. There are a myriad of ways to arrange payments from one US dollar account to another.


Oh yes, that is a really good thought.


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## pameladelafield (Mar 10, 2008)

joaquinx said:


> Wasn't there a thread discussing collecting rent while on a non-working FM-3 type visa? Someone said that you needed a working visa in order to collect rent. I searched this forum and another one, but couldn't find it. Anyone remember it?


There was a thread discussing that one needs permission from the Hacienda to rent out property in Mexico and must pay taxes to the Hacienda. Not having permission is a good way to be thrown out of the country and lose the property.


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## sparks (Jun 17, 2007)

Most banks have a 'bill pay' feature that can make payment on demand or automatic. Just rent to someone with a US account and knows how to do it online. I sent money from my US account to a friend's US account while we're both in Mexico ... then he uses an ATM.

Then you could pay your bills online as well


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## GBPhipps (Feb 12, 2011)

pameladelafield said:


> There was a thread discussing that one needs permission from the Hacienda to rent out property in Mexico and must pay taxes to the Hacienda. Not having permission is a good way to be thrown out of the country and lose the property.


Thanks for mentioning this. I did a search, but unfortunately didn't come up with it.


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## GBPhipps (Feb 12, 2011)

sparks said:


> Most banks have a 'bill pay' feature that can make payment on demand or automatic. Just rent to someone with a US account and knows how to do it online. I sent money from my US account to a friend's US account while we're both in Mexico ... then he uses an ATM.
> 
> Then you could pay your bills online as well


That would be great if it worked out like that!


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## pameladelafield (Mar 10, 2008)

GBPhipps said:


> Thanks for mentioning this. I did a search, but unfortunately didn't come up with it.


It might have been on another site. Many people rent property without getting permission from the Hacienda (MX IRS). In the past in some cities they have cracked down. SMA was such an area. Your FM3 will state that you have permission and permission is not easy to get. The taxes on rent can be 17% IVA tax up to 40% depending on your location. You never know when the Hacienda decides it needs more money and cracks down. Just giving you a heads up. Most real estate companies ignore this and almost all private landlords do. A Mexican landlord caught owing will be in less trouble than a foreigner who owes taxes. You take a chance on being deported and losing your property.


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## GBPhipps (Feb 12, 2011)

pameladelafield said:


> It might have been on another site. Many people rent property without getting permission from the Hacienda (MX IRS). In the past in some cities they have cracked down. SMA was such an area. Your FM3 will state that you have permission and permission is not easy to get. The taxes on rent can be 17% IVA tax up to 40% depending on your location. You never know when the Hacienda decides it needs more money and cracks down. Just giving you a heads up. Most real estate companies ignore this and almost all private landlords do. A Mexican landlord caught owing will be in less trouble than a foreigner who owes taxes. You take a chance on being deported and losing your property.


Thank you so much for giving us a heads-up about that! That would be a scary prospect.


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## kcowan (Jul 24, 2010)

One of our local property managers started collecting and remitting the IVA 2 years ago on all rentals. It is a serious matter with The Hacienda. Tax evasion can land you in jail.

(snipped by moderator)


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## kcowan (Jul 24, 2010)

Yes it seems that ignorance is bliss. When people ask us why we do not rent out our condo in the summer, we ask them if they really understand all the implications of doing that in Mexico? Most of them give us a blank stare.


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