Forums > General > Living, Working, Retiring

bienchida

Mar 31, 2011, 11:59 AM

Post #1 of 16 (3235 views)

Shortcut

Moving to GDL to work for HP

Can't Post | Private Reply

Hi all,
I have a few questions that I am sure you can help me with! :)

1. I am married to a Mexican citizen so I would be getting a FM2 via him, right?
2. Wouldn't I need a FM3 in order to work in Mexico?
3. Is it possible to have both?
4. What taxes would I pay?

I know about the US citizen/IRS thing regarding global income but I saw somewhere that for 2010 tax year if you work in Mex and pay MX taxes you can take an exemption for up to $91K.
--Does that mean that as long as I make less than $91K I would still need to report the income to the IRS but not pay US taxes on it?
--How are taxes paid in Mexico, deducted from payroll like US or paid at tax year end?

5. Does anyone on here work for HP in GDL, if so, how do you like it?

Sorry for the longer thread, hopefully I can get some clarification :)

-Maria
-BienChida

Maesonna

Mar 31, 2011, 1:24 PM

Post #2 of 16 (3214 views)

Shortcut

Re: [bienchida] Moving to GDL to work for HP

Can't Post | Private Reply

1, 2 & 3: Since you're going to Mexico to work, your employer will support your application for permission to work, although Immigration may also ask for a constancia de matrimonio with a form signed by your husband to document that you're married to a Mexican national, as part of the supporting documentation for the application. There may be a lawyer attached to your company with expertise in these matters who will hold your hand through the whole visa thing.
It doesn't necessarily have to be an FM3; either an FM2 or FM3 can be issued either without permission to work, or (as in your case) with permission to work. No, you can't have both, it's one or the other. The difference between FM3 and FM2 doesn't relate to work permission or to being married to Mexican national, but to your longterm intentions. The FM3 is for a temporary resident (even if temporary for many, many years) and the FM2 is the route to becoming a permanent resident (which may or may not include getting Mexican nationality).

At least that's the way it used to be before last year's revision. If I understand correctly, the categories FM2 and FM3 now have different names, but the principals remain the same.

(This post was edited by Maesonna on Mar 31, 2011, 1:27 PM)

Rolly

Mar 31, 2011, 1:29 PM

Post #3 of 16 (3211 views)

Shortcut

Re: [Maesonna] Moving to GDL to work for HP

Can't Post | Private Reply

FM2 is probably the way for you. Since you are married to a Mexican, you can apply for citizenship after two years with an FM2.
The new name for FM2 is Inmgrante.

Rolly Pirate

E-visit me http://Rollybrook.com
On Facebook as Rolly Brook

bienchida

Mar 31, 2011, 2:15 PM

Post #4 of 16 (3191 views)

Shortcut

Re: Moving to GDL to work for HP

Can't Post | Private Reply

Awesome, thanks Maesonna and Rolly for the clarification on the visa things.

Any advice or info on taxes? Would I be paying both the IRS on what I make in Mexico AND the Hacienda tax?

This is a huge question mark for me and the one that ultimately weighs on me the most.

Gracias de antemano!

-M
-BienChida

Rolly

Mar 31, 2011, 2:31 PM

Post #5 of 16 (3182 views)

Shortcut

Re: [bienchida] Moving to GDL to work for HP

Can't Post | Private Reply

You must pay taxes to México on the income you get in México.
México and the USA have a tax agreement so that you are not taxed twice on the same income.
Exactly how you do the paperwork is something a tax attorney or CPA needs to set up for you.
I'm pretty sure it's not a good do-it-yourself project.

Rolly Pirate

E-visit me http://Rollybrook.com
On Facebook as Rolly Brook

bienchida

Mar 31, 2011, 2:36 PM

Post #6 of 16 (3176 views)

Shortcut

Re: [Rolly] Moving to GDL to work for HP

Can't Post | Private Reply

In Reply To

You must pay taxes to México on the income you get in México.
México and the USA have a tax agreement so that you are not taxed twice on the same income.
Exactly how you do the paperwork is something a tax attorney or CPA needs to set up for you.
I'm pretty sure it's not a good do-it-yourself project.

~~~~~~~~~~~~~~~~~~~~~~~~

This is what I needed to hear :) Thanks Rolly!! In your opinion, would you say that the Hacienda tax in mexico is more or less than the IRS here in the states? Just curious.

-m
-BienChida

Rolly

Mar 31, 2011, 2:41 PM

Post #7 of 16 (3174 views)

Shortcut

Re: [bienchida] Moving to GDL to work for HP

Can't Post | Private Reply

I don't know how the Mexico taxes are. I do know that you have to pay because when you apply for the renewal of your work permit, you have to show your tax receipt.

Rolly Pirate

E-visit me http://Rollybrook.com
On Facebook as Rolly Brook

mazbook1

Mar 31, 2011, 2:54 PM

Post #8 of 16 (3165 views)

Shortcut

Re: [bienchida] Moving to GDL to work for HP

Can't Post | Private Reply

A little further clarification on the Visa thing, as neither Rolly or Maesonna mentioned it. Unless your U.S. passport specifically shows you as "Maria Brandeen Rodriguez", be prepared to completely revert to your maiden name, as in México a wife cannot legally take the surname of her husband. Socially you can call yourself Maria Brandeen de Rodriguez, but legally you are, and will remain for your stay and any legal paperwork in México, Maria Brandeen or whatever your U.S. passport shows as your FULL name. This comes as a shock to so many folks that I thought it worth mentioning.

Assuming that your passport shows your name without the Rodriguez, you must be very careful to always point out to anyone filling out papers that your middle name is a nombre, NOT your apellido paterno.

If your passport shows the Rodriguez, Brandeen Rodriguez will be your apellido paterno and apellido materno respectively, and you will be forever alphabetized under Brandeen and no one will recognize that Rodriguez is your husband's surname, as they will assume that it is your mother's surname - apellido materno. The work-around for this particular problem is to make certain that EVERYONE filling out ANY official papers (from the first time you get the FMM to enter México) knows that Brandeen is a nombre, rather than an apellido paterno, even though it really is your apellido paterno - father's surname.

If this is confusing, just write me a PM, and I think I can explain it more clearly once I know exactly how your name is on your passport.

(This post was edited by mazbook1 on Mar 31, 2011, 2:57 PM)

tashby

Mar 31, 2011, 4:19 PM

Post #9 of 16 (3152 views)

Shortcut

Re: [bienchida] Moving to GDL to work for HP

Can't Post | Private Reply

Quote

I know about the US citizen/IRS thing regarding global income but I saw somewhere that for 2010 tax year if you work in Mex and pay MX taxes you can take an exemption for up to $91K.
--Does that mean that as long as I make less than $91K I would still need to report the income to the IRS but not pay US taxes on it?

I think what you're probably referring to here is what's called the "Foreign Earned Income Tax Credit", or something like that.

This has nothing to do with you if you're working for HP México, in México, and being paid in pesos, and paying taxes in México.

It has to do with people who, say, might be living here, but working for HP USA on a contract basis. For example, say I write code for HP USA, but I live here, but I do all my work for them over the internet. That kind of thing.

You should talk to a tax expert either way, depending how your situation is set up. Good luck!

(This post was edited by tashby on Mar 31, 2011, 4:23 PM)

DavidHF

Mar 31, 2011, 5:16 PM

Post #10 of 16 (3134 views)

Shortcut

Re: [Rolly] Moving to GDL to work for HP

Can't Post | Private Reply

In my former life I was an executive in an electronics company and I had both foreign and American employees in several different countries. It was company policy to ensure the employees tax returns were properly prepared in both their country of residence and their foreign location. I'd be surprised if HP didn't have a similar policy. You should talk to your HR department about this.

Marlene

Mar 31, 2011, 9:03 PM

Post #11 of 16 (3094 views)

Shortcut

Re: [bienchida] Moving to GDL to work for HP

Can't Post | Private Reply

HP has long employed people in Mexico, so their HR department would be able to advise you about work visas required for their employees, as well as tax deductions, etc. You didn't say if you were planning a permanent move or not, but that will make a difference as far as which kind of visa you would apply for.

bienchida

Apr 1, 2011, 8:20 AM

Post #12 of 16 (3039 views)

Shortcut

Re: Moving to GDL to work for HP

Can't Post | Private Reply

I am so grateful to all of you for your responses and info.

I am planning on moving permanently to Mx and now realize that I will be applying for the Inmigrante (FM2) visa and permission to work.

I'm very relieved about the taxes and plan on contacting un contador when I get to GDL and of course speak to HP HR.

I am still interested in hearing from current employees of HP, just to see how they like it, the mexican:american ratio of employees, benefits etc... Anyone??

-m
-BienChida

Rolly

Apr 1, 2011, 8:40 AM

Post #13 of 16 (3031 views)

Shortcut

Re: [bienchida] Moving to GDL to work for HP

Can't Post | Private Reply

One thing you have not mentioned is your car. Are you planning to bring a car from the USA?
You cannot have a foreign-plated car with an working FM2. The car is OK with a working FM3.

Rolly Pirate

E-visit me http://Rollybrook.com
On Facebook as Rolly Brook

bienchida

Apr 1, 2011, 9:32 AM

Post #14 of 16 (3008 views)

Shortcut

Re: Moving to GDL to work for HP

Can't Post | Private Reply

I may or may not take my vehicle from here it all depends if my bank is willing to give me a letter to take it over there, otherwise it will be parked for another 2 years until I pay it off.

If I do get permission and want to take it, arriving in Mexico and applying for a FM3, can I later switch to a FM2 and retain my permission to work?

I ultimately want to become a citizen of Mx.

-M
-BienChida

Bennie García

Apr 1, 2011, 10:11 AM

Post #15 of 16 (2989 views)

Shortcut

Re: [bienchida] Moving to GDL to work for HP

Can't Post | Private Reply

My daughter's best friend worked at HP for 5 or 6 years. She recently quit to take over the family business. She was mid-level management and hated the place. YMMV

Rolly

Apr 1, 2011, 11:25 AM

Post #16 of 16 (2974 views)

Shortcut

Re: [bienchida] Moving to GDL to work for HP

Can't Post | Private Reply

If I do get permission and want to take it, arriving in Mexico and applying for a FM3, can I later switch to a FM2 and retain my permission to work?

Yes, you can do that, but you can't keep the car if you switch to a working FM2.

Rolly Pirate

E-visit me http://Rollybrook.com
On Facebook as Rolly Brook