# Bank



## byresch (Mar 4, 2016)

We want to open an account in a Mexican bank but are not sure which is the best choice. We would appreciate comments about your experiences with a Mexican bank, plus the pros and cons of what to look for.


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## chuck846 (Jan 15, 2016)

My experience is it all comes down to the people at the bank. We have a great relationship with a woman at HSBC Premier Mexico (requires 500,000 pesos). At one point we had a Select account at Santander. They thought they were being nice by having an expreso machine for clients - but they were sooo slow and had such strict procedures we had to plan on spending a half day there to get something done. We had a Patrimonial account at Banamex. The girl we worked with was very nice and intelligent. But when we called the office often times no one answered - all day - not the girl, her assistant, the girl at the front desk. Perhaps they had phone problems in the office - but it happened more than once.

Wherever you open an account, if you are a US citizen, be sure you give the bank a completed W-9 form in English and Spanish.


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## byresch (Mar 4, 2016)

chuck846 said:


> My experience is it all comes down to the people at the bank. We have a great relationship with a woman at HSBC Premier Mexico (requires 500,000 pesos). At one point we had a Select account at Santander. They thought they were being nice by having an expreso machine for clients - but they were sooo slow and had such strict procedures we had to plan on spending a half day there to get something done. We had a Patrimonial account at Banamex. The girl we worked with was very nice and intelligent. But when we called the office often times no one answered - all day - not the girl, her assistant, the girl at the front desk. Perhaps they had phone problems in the office - but it happened more than once.
> 
> Wherever you open an account, if you are a US citizen, be sure you give the bank a completed W-9 form in English and Spanish.


Do I need $550,00 pesos to open an account?


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## RVGRINGO (May 16, 2007)

We lived for 13 years in Mexico without a Mexican bank. We purchased two homes and one new car over those years, using transfers or plastic for the big items and cash for daily needs. I do suggest that you use a US bank with low, or no ATM fees (or reimbursement) and online banking will make your life much easier than using a Mexican bank. Your US bank will raise your daily limit at your request.
We look forward to hearing more of your move and adjustment to Rosarito, as our recent move to Tucson from Chapala is not making me a happy camper; yet, I do need a lower elevation than Chapala, so Rosarito-Ensenada looks like a possibility. So, please keep posting.


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## tcreek (Sep 13, 2010)

chuck846 said:


> .
> 
> Wherever you open an account, if you are a US citizen, be sure you give the bank a completed W-9 form in English and Spanish.



Why would one need a W-9, a US IRS Form, in Mexico?


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## dwwhiteside (Apr 17, 2013)

tcreek said:


> Why would one need a W-9, a US IRS Form, in Mexico?


Good question. I've opened accounts here at three separate banks and never was asked for one nor provided one.


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## tcreek (Sep 13, 2010)

byresch said:


> We want to open an account in a Mexican bank but are not sure which is the best choice. We would appreciate comments about your experiences with a Mexican bank, plus the pros and cons of what to look for.


Banorte is a possible choice. They bought out some US banks in recent years which makes cross country banking easier. That is the reason for them doing this.


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## chuck846 (Jan 15, 2016)

tcreek said:


> Why would one need a W-9, a US IRS Form, in Mexico?


The W-9 allows the Mexican bank to provide the IRS with information about you. You really want to make sure your Mexican bank has it on file for you. It is one way to assure your funds are not frozen at some point in the future.


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## chuck846 (Jan 15, 2016)

dwwhiteside said:


> Good question. I've opened accounts here at three separate banks and never was asked for one nor provided one.


I don't believe it is possible today to even purchase a pagare without signing a W9. Perhaps you have already signed one without knowing it.


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## tcreek (Sep 13, 2010)

chuck846 said:


> The W-9 allows the Mexican bank to provide the IRS with information about you. You really want to make sure your Mexican bank has it on file for you. It is one way to assure your funds are not frozen at some point in the future.


Still really does not answer it. In Mexico why would we want them to give the IRS information about us? We are in Mexico, not in the USA.


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## chuck846 (Jan 15, 2016)

tcreek said:


> Still really does not answer it. In Mexico why would we want them to give the IRS information about us? We are in Mexico, not in the USA.


As a US taxpayer living in Mexico you need to comply with FATCA.

https://en.wikipedia.org/wiki/Foreign_Account_Tax_Compliance_Act

There are all sorts of forms you / and your bank need to complete. Different rules / thresholds require different forms. If you have a financial account in Mexico - your bank is required to pass information related to your account to SAT. SAT then compiles all this information and sends it off to the IRS. Non-compliance can be very costly.


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## chuck846 (Jan 15, 2016)

byresch said:


> Do I need $550,00 pesos to open an account?


You need 500,000 pesos for an HSBC premier account - you get better service. I'm sure you can open up a regular account for less.


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## ClinSpan (Feb 26, 2016)

As a US Citizen / Lawful Permanent Resident (whichever is your USA immigration status), or better said - as a "US person" (as deemed by the IRS) you need to comply with IRS rules. You must report all foreign bank accounts, investments, etc.

Same goes for income made abroad. You must report it to the IRS. There is a Foreign Income Tax Exclusion provision, if you qualify for it by permanently living abroad. There are some specific rules that I'm not aware of. Contact your tax professional or the IRS for more information.


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## dwwhiteside (Apr 17, 2013)

ThomasLagos said:


> As a US Citizen / Lawful Permanent Resident (whichever is your USA immigration status), or better said - as a "US person" (as deemed by the IRS) you need to comply with IRS rules. You must report all foreign bank accounts, investments, etc.
> 
> Same goes for income made abroad. You must report it to the IRS. There is a Foreign Income Tax Exclusion provision, if you qualify for it by permanently living abroad. There are some specific rules that I'm not aware of. Contact your tax professional or the IRS for more information.


This is somewhat misleading. You only have to report foreign bank accounts if you have an aggregate of $10,000 USD (or local currency equivalent) at any time in a calendar year. And this reporting is completely separate from you tax return; separate form, different due date, etc. 

You are correct about reporting all income. The good 'ol USA is the only country on planet Earth that taxes it's citizens on their world wide income. Having said all that, I am not an accountant nor a tax professional. However; I do have a good one "back home" that helps keep me out of trouble.


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## tcreek (Sep 13, 2010)

chuck846 said:


> As a US taxpayer living in Mexico you need to comply with FATCA.
> 
> https://en.wikipedia.org/wiki/Foreign_Account_Tax_Compliance_Act
> 
> There are all sorts of forms you / and your bank need to complete. Different rules / thresholds require different forms. If you have a financial account in Mexico - your bank is required to pass information related to your account to SAT. SAT then compiles all this information and sends it off to the IRS. Non-compliance can be very costly.


I would disagree. Not sure how US law has any jurisdiction on what I do when I am not within the legal boundaries of the US.


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## chuck846 (Jan 15, 2016)

tcreek said:


> Still really does not answer it. In Mexico why would we want them to give the IRS information about us? We are in Mexico, not in the USA.


Friend - I'll tell you what - see that little edit box at the top of the page that says google custom search - enter the word taxes in that box - and go to the first result. It will take you to an excellent forum on this site where there a tax experts, Buenos Suerte.


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## Lawgrrl (Apr 24, 2015)

tcreek said:


> Still really does not answer it. In Mexico why would we want them to give the IRS information about us? We are in Mexico, not in the USA.


Why? FATCA (Foreign Account Tax Compliance Act) is why! If Mexican banks don't provide information about their U.S. customers, the U.S. will penalize the banks' operations in the U.S. And since Mexico is America's 2nd or 3rd biggest trading partner (after Canada, I believe) this is a real threat. To the IRS, your Mexican account is an "overseas" account, even if it is local to you, and you are presumed to be evading your continuing obligation to file U.S. returns and pay U.S. taxes on all income from whatever source. If you haven't been asked yet for this information, *you will be*!


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## chuck846 (Jan 15, 2016)

Lawgrrl said:


> Why? FATCA (Foreign Account Tax Compliance Act) is why! If Mexican banks don't provide information about their U.S. customers, the U.S. will penalize the banks' operations in the U.S. And since Mexico is America's 2nd or 3rd biggest trading partner (after Canada, I believe) this is a real threat. To the IRS, your Mexican account is an "overseas" account, even if it is local to you, and you are presumed to be evading your continuing obligation to file U.S. returns and pay U.S. taxes on all income from whatever source. If you haven't been asked yet for this information, *you will be*!


Actually - I believe it is not simply the US looking for foreign holdings. It is like this giant web. The US is supposed to be supplying Mexico with data - but last I heard they are dragging their feet.


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## Lawgrrl (Apr 24, 2015)

chuck846 said:


> Actually - The US is supposed to be supplying Mexico with data - but last I heard they are dragging their feet.


And this is surprising how?:confused2:


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## chuck846 (Jan 15, 2016)

Lawgrrl said:


> And this is surprising how?:confused2:


Probably just a funding thing. They need another trillion dollar to fund the work.


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## mattoleriver (Oct 21, 2011)

One needs not look too far to find an expat whose U.S. bank account has been permanently closed with little, or no, explanation or forewarning. There were several examples discussed on various boards a year+/- ago and at least one current one.


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## tcreek (Sep 13, 2010)

chuck846 said:


> Friend - I'll tell you what - see that little edit box at the top of the page that says google custom search - enter the word taxes in that box - and go to the first result. It will take you to an excellent forum on this site where there a tax experts, Buenos Suerte.




Accountants deal with what they are told do do, and follow the law precisely. They are not attorneys, nor challenge any laws out of fear of losing their professional licenses. 

As a US Citizen it is my duty to make sure the US government is following the US Constitution. Just because they pass a law don't make it legal. 

The common language of the US Constitution does not give them powers over citizens outside the the legal area outside the USA.


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## chuck846 (Jan 15, 2016)

mattoleriver said:


> One needs not look too far to find an expat whose U.S. bank account has been permanently closed with little, or no, explanation or forewarning. There were several examples discussed on various boards a year+/- ago and at least one current one.


You mean Mexican bank ? All the more reason to make sure you have supplied them with W9 forms. Also - if you have a minimum account balance I can appreciate how they would shut you down - not worth it to them.


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## chuck846 (Jan 15, 2016)

tcreek said:


> Accountants deal with what they are told do do, and follow the law precisely. They are not attorneys, nor challenge any laws out of fear of losing their professional licenses.
> 
> As a US Citizen it is my duty to make sure the US government is following the US Constitution. Just because they pass a law don't make it legal.
> 
> The common language of the US Constitution does not give them powers over citizens outside the the legal area outside the USA.


Ok.


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## TundraGreen (Jul 15, 2010)

tcreek said:


> Accountants deal with what they are told do do, and follow the law precisely. They are not attorneys, nor challenge any laws out of fear of losing their professional licenses.
> 
> As a US Citizen it is my duty to make sure the US government is following the US Constitution. Just because they pass a law don't make it legal.
> 
> The common language of the US Constitution does not give them powers over citizens outside the the legal area outside the USA.


Good luck with that approach. I think you will need it.


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## mattoleriver (Oct 21, 2011)

chuck846 said:


> You mean Mexican bank ?


No, I mean accounts at U.S. banks held by expats living in Mexico. Some described their closed accounts as long-held accounts with respectable balances. Expats are then finding it impossible to open a new U.S. bank account from within Mexico.


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## chuck846 (Jan 15, 2016)

mattoleriver said:


> No, I mean accounts at U.S. banks held by expats living in Mexico. Some described their closed accounts as long-held accounts with respectable balances. Expats are then finding it impossible to open a new U.S. bank account from within Mexico.


Schwab.


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## Isla Verde (Oct 19, 2011)

chuck846 said:


> Schwab.


What sort of balance do you need to open an account with Schwab?


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## coondawg (May 1, 2014)

Isla Verde said:


> What sort of balance do you need to open an account with Schwab?


Just deposit something. Your choice. I put $100.00 to start. Then I transfer from my other banks NOB to Schwab when I need to withdraw pesos, about 4 days ahead. Easy. The lowest that I have had for 2-3 months was $12 when I was NOB. No charges. You do need to notify them monthly that you will be in Mexico. Easy.


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## ExpatEmigre (Nov 22, 2015)

tcreek said:


> Accountants deal with what they are told do do, and follow the law precisely. They are not attorneys, nor challenge any laws out of fear of losing their professional licenses.
> 
> As a US Citizen it is my duty to make sure the US government is following the US Constitution. Just because they pass a law don't make it legal.
> 
> The common language of the US Constitution does not give them powers over citizens outside the the legal area outside the USA.


I try not to throw the "as an attorney" preface around much, but...
As an attorney, I can tell you that you are 100% incorrect.


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## chuck846 (Jan 15, 2016)

coondawg said:


> Just deposit something. Your choice. I put $100.00 to start. Then I transfer from my other banks NOB to Schwab when I need to withdraw pesos, about 4 days ahead. Easy. The lowest that I have had for 2-3 months was $12 when I was NOB. No charges. You do need to notify them monthly that you will be in Mexico. Easy.


The only address Schwab has for us is in Mexico. Our's is a Schwab One International account. I believe there is a minimum balance requirement.


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## joaquinx (Jul 3, 2010)

mattoleriver said:


> No, I mean accounts at U.S. banks held by expats living in Mexico. Some described their closed accounts as long-held accounts with respectable balances. Expats are then finding it impossible to open a new U.S. bank account from within Mexico.


You might be thinking about Banamex USA that got caught up in a money laundering scam. They dropped clients who lived in Mexico faster than a hot knife cutting butter. There are some US banking laws preventing this. I've been with my US bank for the 16 years that I've lived in Mexico.


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## joaquinx (Jul 3, 2010)

chuck846 said:


> You mean Mexican bank ? All the more reason to make sure you have supplied them with W9 forms. Also - if you have a minimum account balance I can appreciate how they would shut you down - not worth it to them.


A few weeks ago one of the agents from my bank, HSBC, came knocking on my door wanting me to come down to the bank and submit a W-9 and at the same time update their files on my legal status. Took 20 minutes.


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