Changing from FM3/no inmigrante to FM2 before renewal
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Parker
cherchacha
Intercasa
sparks
8 posters
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Changing from FM3/no inmigrante to FM2 before renewal
Anyone done that? On another board someone is suggesting doing it before the new regs take effect. His idea is that FM3 holders will be considered visitors rather than rentistas (semi permanent residents) and may have to restart the process at the border
Re: Changing from FM3/no inmigrante to FM2 before renewal
They are merging FM2 and FM3 so it makes no sense to do that, in my opinion. I doubt they would make all FM3 people leave, thereby creating a hassle and mass exodus from Mexico.
Intercasa- Share Holder
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Re: Changing from FM3/no inmigrante to FM2 before renewal
Merging ... interesting. Wonder what the income requirements will be since they are considerably different now
I didn't believe his idea either .... too drastic
I didn't believe his idea either .... too drastic
Re: Changing from FM3/no inmigrante to FM2 before renewal
Does the merge mean that FM-3 people will not have to pay capital gains taxes if and when they sell, as we thought that was reserved for FM-2 people?
cherchacha- Newbie
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Re: Changing from FM3/no inmigrante to FM2 before renewal
I take the merge to mean that capital gains exemption WILL NOT be available for FM3 and FM2 as they will be in the same class as tourists "Residentes Temporales" and only the "Residentes Permanentes" who currently are known as inmigrado will be able to.
Intercasa- Share Holder
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Re: Changing from FM3/no inmigrante to FM2 before renewal
My understanding is if you lived permanently in resident for 5 years there was no capital gains tax. Am I just wrong or has this changed?
Parker- Share Holder
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Re: Changing from FM3/no inmigrante to FM2 before renewal
You can probably count on change in Mexico Parker.
We've sold property twice now. In San Miguel de Allende, we were FM3's and lived year round in the house for nine years...we paid capital gains.
In Nayarit, you had to have an FM2 AND have lived in the house year round for five years...therefore, we paid no capital gains. Please note that the length of time required in Nayarit WAS two years and changed to five years after we'd been in the house for two years. Bummer. By waiting the extra three years so we didn't have to pay the capital gains, the ass fell out of the economy. We would have been better off selling and paying the capital gains...timing is everything...and we never seem to get it right.
So, now we're Inmigrado and have decided not to own property in Mexico any more...because if something happens to BOTH of us and the kids inherit and go to sell the property then THEY will have to pay capital gains.
IMHO, if the Mexican government wants to encourage people to retire and/or relocate to Mexico then they shouldn't have such negative laws. By all means, nail the speculators with taxes but a person (of any nationality)selling their principal residence should get a break.
Damn, just fell off my soapbox and sprained my ankle.
We've sold property twice now. In San Miguel de Allende, we were FM3's and lived year round in the house for nine years...we paid capital gains.
In Nayarit, you had to have an FM2 AND have lived in the house year round for five years...therefore, we paid no capital gains. Please note that the length of time required in Nayarit WAS two years and changed to five years after we'd been in the house for two years. Bummer. By waiting the extra three years so we didn't have to pay the capital gains, the ass fell out of the economy. We would have been better off selling and paying the capital gains...timing is everything...and we never seem to get it right.
So, now we're Inmigrado and have decided not to own property in Mexico any more...because if something happens to BOTH of us and the kids inherit and go to sell the property then THEY will have to pay capital gains.
IMHO, if the Mexican government wants to encourage people to retire and/or relocate to Mexico then they shouldn't have such negative laws. By all means, nail the speculators with taxes but a person (of any nationality)selling their principal residence should get a break.
Damn, just fell off my soapbox and sprained my ankle.
ferret- Share Holder
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Re: Changing from FM3/no inmigrante to FM2 before renewal
Have an FM2, have had for 3 years now, was told we could become inmigrado after 2, that turned out to be false. Now, after 12 years here, in the same flippin house, after paying taxes in Mexico on investments, and declared non-resident in Canada, are you kidding me?
Somebody is claiming that we´d have to pay 30%.
Somebody is claiming that we´d have to pay 30%.
raqueteer- Share Holder
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Re: Changing from FM3/no inmigrante to FM2 before renewal
I believe there are 2 issues here which I'll try to confirm.
1) Tax on gains from a sale
2) Withholding on the gross sales proceeds where the seller is a foreigner / non resident
#2 would be more of an issue or could be
1) Tax on gains from a sale
2) Withholding on the gross sales proceeds where the seller is a foreigner / non resident
#2 would be more of an issue or could be
Intercasa- Share Holder
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Re: Changing from FM3/no inmigrante to FM2 before renewal
And it makes what difference what they do NOB?
CheenaGringo- Share Holder
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Re: Changing from FM3/no inmigrante to FM2 before renewal
johninajijic wrote:Intercasa wrote:I believe there are 2 issues here which I'll try to confirm.
1) Tax on gains from a sale
2) Withholding on the gross sales proceeds where the seller is a foreigner / non resident
#2 would be more of an issue or could be
The builders, property developers and Realtors should fight the Mexican government on this because it will kill their businesses.
keep talk'n like that on an open forum johhnieboy and u may make it to san diego much sooner than u think...
hockables- Share Holder
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