bledito - 2-15-2015 at 01:54 PM
If the time comes that I obtain permanent residancy or eventually Mexican citizenship. What then are the consequences for taxation on retirement
income in Mexico? are there taxes to be paid to Mexico as well as the Usa on this retirement income?
john68 - 2-16-2015 at 09:25 AM
Good question.
I think the U.S. Mexico Tax Convention prevents double taxation, but I have been concerned that citizenship (and maybe permanent residency) might
require filing a Mexican income tax return even if one has no Mexico-source income.
On the other hand, the Ernst & Young Worldwide Personal Tax Guide (it's a PDF you can find if you search www.ey.com) says resident individuals are taxed on worldwide income. E&Y says residency is determined by "center of vital interests"--more
than 50% of income is Mexico source or center of "professional activities" is in Mexico.
Katiejay99 - 2-16-2015 at 09:35 AM
As far as I know (I may be wrong) there are no laws stating that individual's (Mexican or Foreign) need to file an annual tax return. I believe it is
only businesses (self employed and corporations).
I'm sure someone will let us know if that is incorrect.
Edit to say: Speaking solely as related to Mexico, not the US
[Edited on 2-17-2015 by Katiejay99]
Even living full time in Mexico ....
durrelllrobert - 2-16-2015 at 09:46 AM
YOU MUST FILE Federal, but not necessarily state, EVEN IF YOUR ONLY SOURCE OF INCOME IS Social Security or other retirement income.
..and this year, in addition to the usual 1040 tax return, you are also required to fill out and submit a new form 1095-A so the IRS can determine if
you owe taxes on Government provided assistance with your Obama Care. 
bledito - 2-16-2015 at 09:52 AM
It is my understanding from reading forums that realestate sales profit from the sale of property owned in Mexico by non mexicans is taxed at a 30%.
Becoming a mexican citizen is a avenue I would persue for a future sale of our home some time down the line. Properties are often manifested at a
higher cost to construct to offset this tax but all reciepts must be signed showing the material and construction costs. this results in a higher
property tax, but property taxes are low to begin with so that may not be an issue.
john68 - 2-16-2015 at 09:55 AM
I think we're talking about requirements to file Mexican income tax returns.
bledito - 2-17-2015 at 10:20 AM
Yes and other tax issues as well so there are no surprises as a result of ignorance of the laws.