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markmason

Dec 30, 2004, 6:46 AM

Post #1 of 30 (2567 views)

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Bringing money into Mexico

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I believe that the current limit for bringing foreign currency into Mexico is $10,000 USD. Does anyone know if there is a limit on bringing Mexican currency into Mexico? For example, could one bring in gold Mexican pesos worth $20,000 USD value (or more for that matter)? Thanks for any information that can be provided.

Rolly

Dec 30, 2004, 6:58 AM

Post #2 of 30 (2545 views)

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Re: [markmason] Bringing money into Mexico

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There is no limit on the amount of money one can bring into Mexico. If the amount exceeds US$10,000, it must be declared, but it is allowed. You should also note that if you are taking more than $10,000 out of the USA, it must be declared on the US side as well. Talk with your US bank; they will have the necessary forms for the US declaration.

Rolly Pirate

Kip

Dec 30, 2004, 9:25 AM

Post #3 of 30 (2511 views)

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Re: [markmason] Bringing money into Mexico

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I'm not planning on bringing great gobs of cash over the border , but I was just curious how anyone would know how much money you have? They've never asked me..or checked my purse.
kip

jennifer rose

Dec 30, 2004, 9:45 AM

Post #4 of 30 (2507 views)

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Re: [Kip] Bringing money into Mexico

On the S.A.T. customs declaration is a question about the amount of currency you're bringing. The question is in English and in Spanish. You must check either "yes" or "no." And do so truthfully.

Now, if you're planning on lying on that question in the customs declaration, you should bear in mind that your belongings, and that includes your purse and other cavities, are subject to personal inspection. And that consequences do apply to those who fail to disclose.

Kip

Dec 30, 2004, 9:52 AM

Post #5 of 30 (2505 views)

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Re: [Kip] Bringing money into Mexico

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Since I don't have great gobs of cash to take down the question was not a "how to" it was merely curiosity. It's "The need to know".....it's a sickness I suffer from.
kip

Bubba

Dec 30, 2004, 1:10 PM

Post #6 of 30 (2478 views)

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Re: [jennifer rose] Bringing money into Mexico

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Why would anyone save Scott Peterson want to carry $10,000 or more USD in cash when coming down here? If the border guards don't conduct a cavity search at the border, there are plenty of guys along the way to your destination who would love to produce new body cavities for you in exchange for your dough.

donwilliston

Dec 31, 2004, 5:32 AM

Post #7 of 30 (2417 views)

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Re: [Bubba] Bringing money into Mexico

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Walking around with that amount of money would be rather silly north of the border too. This is not an issue limited to Mexico.

---
"It's good enough to be true" Gracie Maurahan 1970
---

jennifer rose

Dec 31, 2004, 7:33 AM

Post #8 of 30 (2399 views)

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Re: [Bubba] Bringing money into Mexico

Lots of law-abiding citizens who aren't on the lam have been known to carry large amounts of currency en route to Mexico. I know one man who closed on a real estate purchase, and the seller demanded payment in greenbacks. So he carried the money sewn in his underwear, declared it, and went on his way. In the old days, previous to the abundance of ATMs, when fax machines weren't around, and when the only way to transfer money involved a wire transfer or a long wait, it wasn't all that unusual for foreigners to carry cash and in large amounts.

About a decade ago, a teacher strike in Morelia closed all of the banks, leaving many high and dry without ready access to cash. There have been other times when having a stash of greenbacks came in very handy for foreigners, who didn't have the ease of transferring money that you all enjoy today.

Uncle Jack

Dec 31, 2004, 7:51 AM

Post #9 of 30 (2395 views)

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Re: [jennifer rose] Bringing money into Mexico

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My personal opinion is that anyone who doesn't have a few K in cash stashed away as a hedge against unforeseen events is foolish. Maybe that's because I spent too many years in a profession where the successful were the ones who were always prepared to deal with the unexpected.

Opinions vary.

uj

Bubba

Dec 31, 2004, 12:28 PM

Post #10 of 30 (2356 views)

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Re: [Uncle Jack] Bringing money into Mexico

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Ah, foolish me. I will remind you all that:

(1) one can always deposit the cash from a real estate deal in one's bank account before crossing the border. If one does not have a bank account then a local bank or investment house will always be happy to open one for you and even pay you interest for gracing them with the money.

(2) It is probably even more dangerous to carry that amount of cash en route to the border than after you cross it. In Mexico, bandits will normally just take the money away from you. In The United States they will take your money and shoot you dead because of the three strikes laws and draconian prison sentences.

(3) One does not need to keep large amounts of cash stowed away and at risk. A couple of cases of Vienna Sausages and Saltine Crackers along with a month's supply of XX Lager will see you through. That would be the case equivalent of about 300 beers. By the way, keeping large stashes of cash tucked away for unforeseen crises doesn't always help. Just ask my Great, Great, Great Uncle Greely from Bugtussle, Alabama. Iv'e got a stash of his left over Confederate bills I'm still trying to unload.

(4) If one insists on carrying cash into Mexico and has $10,000 USD. Stop in San Ysidro at Burger King and splurge on a Cheese Whopper and a big Coke. Then you will be importing only $9,995.50 which needn't be declared.

(This post was edited by Bubba on Dec 31, 2004, 12:35 PM)

johnv

Jan 1, 2005, 4:49 AM

Post #11 of 30 (2305 views)

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Re: [markmason] Bringing money into Mexico

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There is a way to bring alot more than 10000 out of the US legally without declaring it.
American Gold Eagles are 1 oz. gold coins with a face value (legal tender) of US$50.
Thus 200 of these coins can be taken out of the country legally without declaration. However the gold value would be 200 X
the current gold price ($437.00). 200 X $437 = $87,400.00

donwilliston

Jan 1, 2005, 7:10 AM

Post #12 of 30 (2288 views)

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Re: [Bubba] Bringing money into Mexico

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Bubba,

Thank you so very much for your posts. They always mix good information with reading enjoyment.

don

---
"It's good enough to be true" Gracie Maurahan 1970
---

Uncle Jack

Jan 1, 2005, 8:08 AM

Post #13 of 30 (2272 views)

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Re: [Bubba] Bringing money into Mexico

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Bubba;

Unless you were like a few folks here who just can't keep their bug mouths shut, how would any banditos north or south of the border know that you were carrying a sizeable amount of cash.

Now, that said, I seldom carry more than $10,000.00 in cash with me. It makes such an embarrassing bulge in my trousers pocket.

uj

talosian

Jan 2, 2005, 7:00 PM

Post #14 of 30 (2183 views)

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May I have your Social Security number, Please?

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Remember, if you are going to open a bank account in Mexico and you are on a US passport (and maybe Candaian??), the Mexican bank will requrie your SS#.

But you can open a Lloyd's account with US dollars which is converted into pesos and is not reported to the IRS.

Big Brother IS watching you amigo.

Spock.
"When all logical explanations have failed, we must look to the illogical for the answer.

jennifer rose

Jan 2, 2005, 7:08 PM

Post #15 of 30 (2181 views)

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Re: [talosian] May I have your Social Security number, Please?

Are you sure that you aren't confusing the RFC with an SSN?

Bubba

Jan 2, 2005, 9:18 PM

Post #16 of 30 (2165 views)

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Re: [talosian] May I have your Social Security number, Please?

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I have had a bank account at Bancomer in Ajijic for a couple of years and they have never asked me for my SS # nor do I pay taxes in the U.S. on interest from that bank. That is actually pretty laughable since interest on a savings account at Bancomer is mininscule to say the least. I think I earned $3.9 Pesos last month on a fairly sizable account.

My account at Lloyd investment house pays decent interest and they withhold Mexican income taxes from my interest incme but the U.S. has no taxing rights on that interest.

talosian

Jan 3, 2005, 6:43 AM

Post #17 of 30 (2137 views)

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Re: [jennifer rose] May I have your Social Security number, Please?

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No confusion. I specifically asked if information on my account was transmitted to the IRS and was told it was.

And for Bubba, I'm wondering how long ago you opened your US dollar account. The reporting to the IRS may be a relatively new thing. And just for interest (no pun intended), I may ask another bank if they need a my US - SS number for me to open an account.

I just find it all so interesting. The US spends BILLIONS on destroying a country, killing more civilians than enemy and then trying to rebuild the country yet still has time to see if any retirees in Mexico may be trying to save a couple of hundred dollars on their taxes by not reporting the less than 1% interest they get on a Mexican account.

Madness.

Spock.
"When all logical explanations have failed, we must look to the illogical for the answer.

esperanza

Jan 3, 2005, 7:21 AM

Post #18 of 30 (2128 views)

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Re: [talosian] May I have your Social Security number, Please?

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Now I'm really confused. Aren't bank accounts in Mexico--including Lloyd and MultiValores, the investment firms--peso accounts? I know the accounts that I have here in Mexico are peso accounts. My old Bital (now HSBC) account was in pesos, my MultiValores account is in pesos, and my Bancomer account is in pesos.

Talosian, where do you have a dollar account in Mexico? I don't want you to disclose your information here, just think about it. Somehow I don't think it's possible. Even if you bank here in Mexico with Banamex through California Commerce, your money transferred to Mexico is surely in pesos. California Commerce probably asked you for your Social Security number.

I'm willing to be wrong about all this, but I need help thinking about it.

Esperanza

http://www.mexicocooks.typepad.com

Esteban

Jan 3, 2005, 9:20 AM

Post #19 of 30 (2098 views)

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Re: [esperanza] May I have your Social Security number, Please?

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I have never heard of anyone being asked for their SSN in Mexico while opening a Mexican bank account. Grupo Inbursa has dollar accounts ($10,000 min.). When you open a dollar account you may be asked for a SSN but I'm not sure.

Rolly

Jan 3, 2005, 2:47 PM

Post #20 of 30 (2059 views)

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Re: [Esteban] May I have your Social Security number, Please?

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I wasn't asked for my SS number when I opened an account at Banamex, but a couple of years ago I got a form letter from them requesting my SS number and, I think, some other stuff, so they could begin filing an IRS 1099-int form as required by some agreement between Mexico and the USA. I remember the form because Banamex kept loosing it; I sent it in 3 times. I know it got into the system because I have my Banamex 2003 1099-int report on my desk as I type this. They reported my staggering $12.77 interest income and Mexico's $4.60 withholding.

What I would like to know is how you guys escaped this bit of bureaucracy.

Rolly Pirate

talosian

Jan 3, 2005, 3:16 PM

Post #21 of 30 (2053 views)

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Peso or Dollar accounts.

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Yes, the accin Mexico are mainly Peso accounts however the IRS wants to know at least two things, 1) How many dollars did you deposit which were converted into pesos, and, 2) How much interest did you get (IE: income) from your foreign "investment."

No matter how you cut it, BBIW (Big Brother Is Watching).
"When all logical explanations have failed, we must look to the illogical for the answer.

gpk

Jan 3, 2005, 4:01 PM

Post #22 of 30 (2045 views)

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Re: [Rolly] May I have your Social Security number, Please?

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I have a Banamex account and a Scotiabank account, but neither bears interest, so I guess that is why they never asked for a SSN. I also have a Lloyd account and I am pretty sure all they ever asked for was the RFC. Another Mexican Mystery Moment--maybe.

Bill in NC

Jan 4, 2005, 5:43 PM

Post #23 of 30 (1933 views)

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Re: [talosian] Peso or Dollar accounts.

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A foreign account must be reported on your U.S. federal tax form 1040, including the name of the foreign country (see Schedule B, Part III "Foreign Accounts and Trusts")

If the total amount exceeded US$10,000 at any time during the tax year, you also get to file a separate report (Form TDF 90-22.1) with the U.S. Treasury Department (see http://www.irs.gov/pub/irs-pdf/p4261.pdf)

AFAIK, there is no requirement to report the amount deposited when opening an account (reference, please?)

Adrian

Jan 4, 2005, 9:03 PM

Post #24 of 30 (1898 views)

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Re: [Bill in NC] Peso or Dollar accounts.

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I opened and account on my FM3 at Banamex then wired about US$60k from England straight in to it. The Bank (HSBC) in the UK had to report to the IRS there exactly where that money had come from - I told HSBC that they could tell the gubmint to 'fuh cough' and the money came through just fine in 2 days.

Sheesh - and I thought America was the 'land of the free' 'til I heard about the IRS hounding expats.

Adrian

markmason

Jan 5, 2005, 6:42 AM

Post #25 of 30 (1871 views)

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Re: [johnv] Bringing money into Mexico

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AAAAHHHHH!

JohnV caught the drift of my thinking. I am primarily interested in bringing in GOLD MEXICAN PESOS. They are denominated as 50 pesos. They weigh 1.2057 oz. At today's spot gold price that would make them worth about $515.00 USD. So if you brought in 50 of them it should be considered as bringing in 2500 pesos. The actual value of course would be just over $25.000.

The reason that I started this thread was to find out how one can obtain cash in Mexico without getting ripped off at the ATM's or at the banks.

My past experiences indicate that you lose about 5-8% when exchanging dollars for pesos. This means that if you transfer $40,000 over the course of a year you are paying $2,000-$3,000 in fees. Gold pesos can usually be purchased for about a 2 1/2-3% premium over spot gold and there is usually no premium involved when you sell them.

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