The Mexican tax authorities and CRS

[agentsmithhhhh]

Does anyone know whether banking in a CRS jurisdiction will in practice cause the Mexican tax authorities to get involved and make claims? Am currently looking at Mexico as a solution for residency, combined with banking in Switzerland. I've equally received the guidance of not declaring foreign income/wealth, but am still unsure of what that actually looks like in practice. Advice from anyone on the ground would be appreciated

 

[TheCryptoAnt]

I would advise against providing MX residency info to any financial institution as the cartels can access whatever they want in Mexico and the last thing you want* is Jose el Chungo knowing theres some gringuito making bank in a villa somewhere.

Most people I met in MX used US banking w US addresses and just lived in MX, never filling any tax reports.

In practice MX is turbo mismanaged so you are 150% likely to pull it so far you aint making much noise.

 

[JohnnyDoe]

As @TheCryptoAnt said, plus forget banking in Switzerland: it’s no longer 1984.

 

[agentsmithhhhh]

I would advise against providing MX residency info to any financial institution as the cartels can access whatever they want in Mexico and the last thing you want* is Jose el Chungo knowing theres some gringuito making bank in a villa somewhere.

Most people I met in MX used US banking w US addresses and just lived in MX, never filling any tax reports.

In practice MX is turbo mismanaged so you are 150% likely to pull it so far you aint making much noise.

That's a very valid point, thank you.

My current issue is that I've been without a fixed residency for the past 2 years, due to perpetual traveling. I'm now looking to get a residency somewhere in order to get access to banking and cash out some crypto. Have been looking into using Mt Pelerin to then bank with Cite Gestion, which shouldn't be an issue according to talks with them. They obviously need an address though for KYC purposes. Am going to be in MX for the next 6 months, which is why I figured this would be the most straightforward option, esp. since obtaining residency here is very easy.

As @TheCryptoAnt said, plus forget banking in Switzerland: it’s no longer 1984.

As a Swiss citizen involved in crypto, I was of the impression that one of the best options for my specific case would be banking with Cite Gestion. What makes you advise against Switzerland?

 

[JohnnyDoe]

As a Swiss citizen involved in crypto, I was of the impression that one of the best options for my specific case would be banking with Cite Gestion. What makes you advise against Switzerland?

You can search in the forum, many posts explain why Switzerland today is just like all the other EU countries. In short, nobody needs Switzerland any longer, and you can do very well without banks.

 

[agentsmithhhhh]

You can search in the forum, many posts explain why Switzerland today is just like all the other EU countries. In short, nobody needs Switzerland any longer, and you can do very well without banks.

Say there's reasons I would require access to banking though - wouldn't using Cite Gestion in conjunction with Mt Pelerin be a viable option for cashing out as a Swiss citizen? Have seen you mention this solution in the past.

 

[JohnnyDoe]

Say there's reasons I would require access to banking though - wouldn't using Cite Gestion in conjunction with Mt Pelerin be a viable option for cashing out as a Swiss citizen? Have seen you mention this solution in the past.

The concept of “Cashing out” is nonsensical.
Cite Gestion + MP is a better solution than others for this nonsense.
As I said, execution by electrocution might be better than death by a thousand cuts.

 

[agentsmithhhhh]

The concept of “Cashing out” is nonsensical.
Cite Gestion + MP is a better solution than others for this nonsense.
As I said, execution by electrocution might be better than death by a thousand cuts.

Fair enough! Do you fully discount any potential systemic risks to stable-coins? I have PTSD from seeing USDC and then USDT depeg these past few years , and am still not 100% sure about tether, given the fud around lack of audits / reserves. At least not sure enough to want to bet my entire wealth on these coins holding their peg.

I know the alternative is to just stay in BTC, but its cyclicality has played out quite similarly throughout its history, with a 70-80% drop in price happening every 4 years. Sure it doesn't mean this will happen again in the future, but there's no discounting its extreme volatility compared to other assets.

Given all of the above, I'd like to have access to other investments (mainly ETFs & real estate) to complement my crypto holdings. I know real estate is quite doable (finding a seller willing to accept crypto, or potentially also through Mt Pelerin who offers settling fiat invoices with crypto), but how would I get access to an ETF or similar product?

I'm aware that my inclination to cash out and go to a bank might be based on having been brainwashed, so I'm genuinely curious about other options that aren't overly complicated or impractical.

 

[JohnnyDoe]

Fair enough! Do you fully discount any potential systemic risks to stable-coins? I have PTSD from seeing USDC and then USDT depeg these past few years , and am still not 100% sure about tether, given the fud around lack of audits / reserves. At least not sure enough to want to bet my entire wealth on these coins holding their peg.

Search forum for stablecoins. In brief: scams and honeypots. Fiat USD much safer, which tells it all.

I know the alternative is to just stay in BTC, but its cyclicality has played out quite similarly throughout its history, with a 70-80% drop in price happening every 4 years.

If you already know that, go short at the top, reverse at the bottom, add leverage and become insanely rich.

Sure it doesn't mean this will happen again in the future, but there's no discounting its extreme volatility compared to other assets.

Why do you need to compare btc with something else?

Given all of the above, I'd like to have access to other investments (mainly ETFs & real estate) to complement my crypto holdings.

You don’t need to invest btc. You only need to invest deflationary currency.
Real estate can easily be bought with crypto.

I know real estate is quite doable (finding a seller willing to accept crypto, or potentially also through Mt Pelerin who offers settling fiat invoices with crypto), but how would I get access to an ETF or similar product?

You don’t need that. You need an economics/finance tutor.

I'm aware that my inclination to cash out and go to a bank might be based on having been brainwashed, so I'm genuinely curious about other options that aren't overly complicated or impractical.

You might also need a life coach. You need to make that switch in your head.

 

[agentsmithhhhh]

Search forum for stablecoins. In brief: scams and honeypots. Fiat USD much safer, which tells it all.

If you already know that, go short at the top, reverse at the bottom, add leverage and become insanely rich.

Why do you need to compare btc with something else?

You don’t need to invest btc. You only need to invest deflationary currency.
Real estate can easily be bought with crypto.

You don’t need that. You need an economics/finance tutor.

You might also need a life coach. You need to make that switch in your head.

No reason to be condescending. I understand the point you're trying to make on BTCs superiority. You've shared your IBKR portfolio here too in the past, so I assume you're no stranger to diversification and investing in things other than BTC.

If you already know that, go short at the top, reverse at the bottom, add leverage and become insanely rich.

If only it were this easy. Timing is obviously a big factor - imo it's more of a matter of when and not if. Or do you suggest that BTC will no longer decrease in USD terms?

 

[aniglo22]

That's a very valid point, thank you.

My current issue is that I've been without a fixed residency for the past 2 years, due to perpetual traveling. I'm now looking to get a residency somewhere in order to get access to banking and cash out some crypto. Have been looking into using Mt Pelerin to then bank with Cite Gestion, which shouldn't be an issue according to talks with them. They obviously need an address though for KYC purposes. Am going to be in MX for the next 6 months, which is why I figured this would be the most straightforward option, esp. since obtaining residency here is very easy.

As a Swiss citizen involved in crypto, I was of the impression that one of the best options for my specific case would be banking with Cite Gestion. What makes you advise against Switzerland?

What about Paraguay ?

 

[JohnnyDoe]

No reason to be condescending. I understand the point you're trying to make on BTCs superiority. You've shared your IBKR portfolio here too in the past, so I assume you're no stranger to diversification and investing in things other than BTC.

I happen to have fiat which I use for generating cash to buy btc.

If only it were this easy. Timing is obviously a big factor - imo it's more of a matter of when and not if. Or do you suggest that BTC will no longer decrease in USD terms?

The USD price of btc is irrelevant. Swings in such price are just noise in long term (and log) scale.

 

[agentsmithhhhh]

What about Paraguay ?

Have been looking into this option too, but it seems to be a bit trickier due to a technicality, i.e. needing to move back to my home country temporarily in order to get a specific document that is required to obtain residency in Paraguay. It's technically still doable, just a pain in the a*s. Was considering Mexico since I am currently here anyways and the path to residency is a lot easier.

Regarding @TheCryptoAnt 's point: I am curious how real the threat of this information being shared with criminal entities is in Mexico. Is this a real risk for a low 7 figure amount held in a foreign bank with Mexico listed as residency? Does not fulfilling the criteria for tax residency (only spending under 183 days in the country) change this at all?

 

[Suzy Emerald]

Just dont ever bank in mx with high amounts because mx banks do sell info to criminals. Spread your money over accounts in the US and EU. If you use a mx address be careful not to give your current/real address

 

[JackAlabama]

Have been looking into this option too, but it seems to be a bit trickier due to a technicality, i.e. needing to move back to my home country temporarily in order to get a specific document that is required to obtain residency in Paraguay. It's technically still doable, just a pain in the a*s. Was considering Mexico since I am currently here anyways and the path to residency is a lot easier.

Why cant you order the criminal record nor the birth certificate? Does the embassy not provide these?
Or is it the fact you have been without residency 2y the issue?

Regarding @TheCryptoAnt 's point: I am curious how real the threat of this information being shared with criminal entities is in Mexico. Is this a real risk for a low 7 figure amount held in a foreign bank with Mexico listed as residency? Does not fulfilling the criteria for tax residency (only spending under 183 days in the country) change this at all?

if you look for the safety of your native country of Switzerland, do not go to that part of the world. I imagine its hard to think this way coming from such a place and you demonstrate here you are not used to live under such circumstance.

Look up the average salary in Mex, it is very low compared to your number and no one has any realistic chance to come to anything close to 7 figs. In Switzerland 7figs is more like a good sized pocket money, but this is totally different in third world where only the shrewd/overly ambitious and smart and/or connected can amass this kind of wealth.

If you wanna play this, you gotta approach it differently.
Its again the time of Habibi come to Dubai

 

[agentsmithhhhh]

if you look for the safety of your native country of Switzerland, do not go to that part of the world. I imagine its hard to think this way coming from such a place and you demonstrate here you are not used to live under such circumstance.

Look up the average salary in Mex, it is very low compared to your number and no one has any realistic chance to come to anything close to 7 figs. In Switzerland 7figs is more like a good sized pocket money, but this is totally different in third world where only the shrewd/overly ambitious and smart and/or connected can amass this kind of wealth.

I've lived in areas you could consider third world countries in the past and am in no way expecting Mexico to come close to the safety of Switzerland. If safety were the main concern, I could just stay put in Switzerland.

Fully aware of the discrepancies in wealth / income between the two countries...

If you wanna play this, you gotta approach it differently.

care to elaborate?

 

[JackAlabama]

I've lived in areas you could consider third world countries in the past and am in no way expecting Mexico to come close to the safety of Switzerland. If safety were the main concern, I could just stay put in Switzerland.

Fully aware of the discrepancies in wealth / income between the two countries...

Then why do you even consider this idea of wanting your account info shared with Mex?

care to elaborate?

habibi come to Dubai

 

[agentsmithhhhh]

Then why do you even consider this idea of wanting your account info shared with Mex?

I'm new to all of this. Was never in a financial position to have to ask myself these questions in the past. Now that I've made progress in terms of my wealth, I'm trying to learn how to best go about preserving it without making any dumb mistakes.

My current goal is to obtain a residency. Being in Mexico, I figured it might be the most straightforward solution. From the responses here I gather that it would be more or less worthless in my situation though, since using it for banking would pose a safety risk.

habibi come to Dubai

Unfortunately really couldn't see myself spending a substantial amount of time in Dubai

 

[TheCryptoAnt]

That's a very valid point, thank you.

My current issue is that I've been without a fixed residency for the past 2 years, due to perpetual traveling.

Brother just give them whatever, use this
https://jspaint.app/

 

[TheCryptoAnt]

Regarding @TheCryptoAnt 's point: I am curious how real the threat of this information being shared with criminal entities is in Mexico.

Very, hence why all rich people live in gated communities rather flat in houses or in gated buildings in CDMX.

Is this a real risk for a low 7 figure amount held in a foreign bank with Mexico listed as residency?

If the cartel gets to know about it, yes it will most likely be an issue. Usually one you can get away from by paying.

Does not fulfilling the criteria for tax residency (only spending under 183 days in the country) change this at all?

No if you plan it right; just dont use Mexican addresses, phone numbers, residency cards, etc etc when opening accounts.