Mexico and investment Visas
When it comes to the general conditions of Mexico for investing or getting a permanent residence permit through a retirement visa, we try to make you more familiar with the basics. Note that there are two types of temporary and permanent residences for retirement visas in the current Mexico’s Law of Migration, which can be proved by showing the applicant’s bank turnover. There are also two types of investment visas which can be obtained, one by buying a property and other by registering a company, which will lead the applicant to get a permanent residence permit from the beginning.
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Topics reviewed in this article:
Investment through company registration in Mexico
According to the laws of Mexico, individuals can apply for a permanent residence permit to the Immigration Office if they can invest in Mexico through registering a company and starting a business. Therefore, a company must be established for the applicant and then the original and a copy of the company registration documents and the stock certificate (to show the amount of the applicant’s shares) must be submitted to the Immigration Office. In order to get permanent residence permits in Mexico through this method, you must invest about 110 thousand dollars which is equivalent to the amount that a worker in Mexico will earn as the minimum wage for working for 20,000 days.
This amount of investment can usually be proven by showing the applicant’s amount of shares in the established company. Individuals can set up a business in Mexico and get a permanent residence permit in Mexico, and they do not need to be present in Mexico
Investment through buying a property in Mexico
Buying property in Mexico can also lead you to get a permanent residence permit in this country. This way, people who want to buy a property in this beautiful and ancient country in the south of the North America, can apply to the Mexican Immigration Office if they buy a property in Mexico and present the ownership document in the name of the applicant. The minimum value of the property must be about 110 thousand dollars which is equivalent to the amount that a worker in Mexico will earn as the minimum wage for working for 20,000 days. People who buy a property in Mexico should know that if the property that they bought in Mexico is inside of the restricted zones (50 kilometers (about 31 miles) from shorelines and 100 kilometers (about 62 miles) from international borders), foreign nationals may own land through a fidecomiso (a trust) which is set up through a bank and provides for ownership of the land and property in all but name. The property can be in your name after you obtain Mexican citizenship.
Getting a residence permit through a retirement visa in Mexico
It is possible to get a permanent residence permit in Mexico by showing sufficient financial ability/means or, in other words, a retirement visa in two ways:
- Temporary residence
If the applicant can present a bank account receipt which shows he/she has had about $ 30,000 in his/her bank account in the last 12 months which is equivalent to the amount that a worker in Mexico earns for working for 5000 days. Or the applicant must present a bank receipt which shows he/she has earned $ 2,000 a month which is equivalent to the amount that a worker in Mexico earns for working for 300 days.
- permanent residency
In order to get permanent residence permits in Mexico through a retirement visa, the applicant must present a bank account receipt which shows that he/she has had at least $ 110.000 in his/her bank account in the last 12 months. Another way is to show his/her monthly income. If in the past 6 months, the applicant has earned at least $ 3,200 a month which is equivalent to the amount that a worker in Mexico earns for working for 500 days, he/she can apply for a permanent residence permit.
Investment Standards in Mexico
In this section we will check topics that are related to investment standards in Mexico. One of these standards is the rate of confiscation of property. According to statistics, the property confiscation index in Mexico is from 1 to 7 and in recent years it has been between 2 to 3, and in 2019 it was 3 which was the highest rate.
The GDP in 2020 was 17% in Mexico.
Economic indicators in Mexico for investment and retirement visa
One of the most important thing for registering companies is the corporate income tax in Mexico which we will discuss about it in this section. In Mexico, this rate has risen to 30 percent over the past 10 years. This rate is calculated as 35% for the individual income tax (personal income tax).
Inflation rate in Mexico in August 2020 was estimated 4%. This inflation rate in April of this year was the lowest in last year. According to the statistics of the last year, it seems that the inflation rate in Mexico in 2020 was 3%.
The steps of applying for a visa and the required documents
In order to apply for residence permits in Mexico through investment, you must first apply for a temporary residence permit and prepare the following documents:
- The original and a copy of the passport which is valid
- A passport size photo
- Paying visa fees which is about $ 40
Then, financial documents that are related to the type of investment visa or retirement visa must be submitted to the embassy so that a single-entry visa can be issued for a maximum period of 6 months.
After arriving in Mexico, the applicant has one month to apply for a residence permit and convert his/her visa into a residence card. The forms will be completed and filled out in Spanish and the application fees will be paid. Depending on the type of the residence permit and whether it is a temporary or permanent residence permit the costs of applying for a residence permit is 4 thousand to 5 thousand Mexican pesos. An interview will be scheduled for the applicant at the Mexican Immigration Office in order for them to present documentation and in order to take the fingerprint of the applicant.
Advantages and disadvantages of investment and retirement visas for retirees in Mexico
Mexico is one of the three members of the NAFTA. NAFTA is a trade agreement which consists of three countries: Canada, the United States and Mexico. A valid Mexican passport allows its holder to travel to all over the EU, the UK and Canada without a visa. One of the most important reasons why applicants want to get a permanent residence permit in Mexico is that getting a permanent residence permit in Mexico and renewing it does not require the applicants to be present in Mexico and this is a very important advantage. Mexico is going to be one of the three hosts of the 2026 FIFA World Cup alongside with the United States and Canada, and will certainly attract a lot of investors in the future.
Perhaps one of the disadvantages of Mexico is that you must be fluent in Spanish in order to obtain citizenship, and you must have lived in this country in the final years before applying for citizenship. Another point is that Mexico is far from Europe and Asia in terms of distance and may not be a priority for those who are interested in Europe and Asia.
Advantages and disadvantages of investment and retirement visas for retirees in Mexico
Mexico is one of the three members of the NAFTA. NAFTA is a trade agreement which consists of three countries: Canada, the United States and Mexico. A valid Mexican passport allows its holder to travel to all over the EU, the UK and Canada without a visa. One of the most important reasons why applicants want to get a permanent residence permit in Mexico is that getting a permanent residence permit in Mexico and renewing it does not require the applicants to be present in Mexico and this is a very important advantage. Mexico is going to be one of the three hosts of the 2026 FIFA World Cup alongside with the United States and Canada, and will certainly attract a lot of investors in the future.
Perhaps one of the disadvantages of Mexico is that you must be fluent in Spanish in order to obtain citizenship, and you must have lived in this country in the final years before applying for citizenship. Another point is that Mexico is far from Europe and Asia in terms of distance and may not be a priority for those who are interested in Europe and Asia.
Permanent residence permits and citizenship in Mexico
People who apply for a retirement visa and an investment visa in Mexico can get a residence permit in this country. When it comes to retirement visas, a one-year residence permit will be granted with lower amounts of investment compared to the amounts mentioned above, then after renewing it and after 4 years of residence, this permit will be converted to a permanent residence permit.
But retirement visas with higher amounts of investment (a minimum deposit of $ 130,000 or a monthly income of $ 3,250), also in order to get a residence permit through investment by buying a property or registering a company will lead to getting a permanent residence permit in Mexico from the beginning (4 year-residence permit).
But in order to obtain Mexican citizenship, the applicant must have lived in Mexico for 5 years on a permanent or temporary residence permit. The applicant must have a permanent residence permit at the time of application.
Other requirements for obtaining Mexican citizenship are that the applicant must marry a Mexican citizen in Mexico or have a child in Mexico. In this case, after 2 years of living in Mexico, he/she can apply for Mexican citizenship. In order to obtain citizenship, the following requirements must be provided:
- Letter of no criminal record from city officials and provincial authorities
- Having a basic knowledge of Spanish
- Basic knowledge of the history and geography of Mexico
- The applicant must prove that he/she can fit in with the culture of Mexico
The Mexican passport is one of the most valid passports in Latin America, and with a Mexican passport it is possible to travel to all European countries, Britain and Canada without a visa.
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