# Remote worker: employer nixed relocating to MX



## chrisser (8 mo ago)

I work from home full time. With my currently salary, I meet the threshold to get a temporary residency visa.

So our plan was to do just that.

But I finally heard from my employer that accommodating me would require a rebuild of our payroll system to tweak it to allow employees to work outside US. So essentially it's a "no".

I'm trying to piece together our options for plan B. I'm going through my boss, who then talks to HR, who then regurgitates it and sends answers back down the chain.

My plan B would be to keep our US residency in our current state - perhaps purchase a smaller bit of land and house, and then spend X amount of time in the US to preserve that residency (and pay those taxes) and then spend the rest in MX working remotely. My initial research seems to indicate that anything over 183 days in my state makes me a resident - if true I could theoretically spend 5+ months in MX and just 6+ here. Not ideal, but better than plan C which is to find a new employer. Plan B2 might be to relocate to a US state closer to the Mexican border.

Just wondering if anyone has done this and if there are any other issues lurking I haven't considered.

I'm expecting I'd have to maintain a rental/lease in MX for six months we're not there. Not sure if it would be contiguous or not.


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## eastwind (Jun 18, 2016)

Even if you move to Mexico full-time, you still have 'domicile' in the state you were a resident of, and still have to pay state income taxes in that state, until you establish domicile in some other US state. There is a legal presumption that someday you will return to the US, and the state you intend to return to, still 'owns' you for tax purposes.

If you reside in Mexico more than 183 days a year, you are _also _considered a resident of Mexico for tax purposes and are thus liable for US Federal income taxes, US state income taxes and Mexico income taxes - though there are double-taxation treaties that mean you won't owe as much as all that - but you still have to file.

What I would look into doing is moving to a no-income-tax state like Florida, Texas or particularly South Dakota (as it is easy to establish residency in SD). Buy a little plot of land or an RV camping spot and an old used RV to be your 'residence'. Move there, stay there for a while, then work your half & half thing. You might find out the company can just treat you as a SD resident for the full year, regardless of the number of days actually in Mexico. SD wouldn't care if it ended up being less than 183 days in SD. 

Texas is more trouble to establish residency, and more expensive to buy an RV spot, but closer to the border if you're going to be driving back and forth much.


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## Bobbyb (Mar 9, 2014)

I do not think all the digital nomads are filing any Mexican tax forms. They are incognito. Ghosting. Probably illegal.


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## dwwhiteside (Apr 17, 2013)

First, if you are not a Mexican citizen, even if you have a residency visa in Mexico, and your work is not done for any Mexican entity, you do not owe Mexican taxes. Now, I am not an accountant nor a tax attorney in either Mexico or the U.S. But as a permanent resident of Mexico, and digital nomad, I have verified this with SAT on more than one occasion.

Second, I believe your employer is, how to put this delicately, misinforming you. From a U.S. perspective, you would still be a U.S. citizen, and citizen of the state where you last resided. As such, you are still subject to all U.S. state and federal income taxes. While that is less than optimal for a lot of expats, what it means to you, and more importantly your employer, is that they don't have to do squat to their payroll system.

As long as you maintain the same U.S. bank for their payroll deposits, they should treat you exactly the same as when you resided within whatever state you live in now. And if they do that, I don't see how it would impact their payroll system in the least. 

There are lots and lots of digital nomads living in Mexico. And for the most part, their employers did not have to do anything whatsoever to accommodate them. I believe your employer is either making up a story to try to keep you from moving, or just telling you something they haven't even researched because they don't want to take the time to do that research.

Having said all of that, I strongly recommend you come to Mexico and spend a month or two living and working here, without saying anything to your employer. It will help you fully understand if living here will work for you, and also demonstrate to your employer that they don't have to make any changes to any of their systems simply because you've added a new address.


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