Should I invest in the U.S. or Mexico as an expat?

[jszy04]

I'm a U.S. citizen with a brokerage account in the U.S. I recently moved to Mexico where I'm working for a Mexican company. Should I open a brokerage account in Mexico to invest in, or should I transfer my savings from my Mexican bank account to my U.S. bank account and then invest in my U.S. brokerage account?

How would the taxes be different in Mexico and the U.S. depending on the option I choose?

 

[mastermulti]

@jszy04 Your knowledge about the market may be an important factor to decide on which stock market to invest.

I know nothing about Mexican stocks nor ETFs, so I would not invest in Mexican stocks. Perhaps an index ETF if you want some diversification?

Another goodness from Mexico is their interest rate is currently very very very high, around 11 percent. You may want to take advantage of that rate!!!!!!!

 

[jszy04]

@mastermulti That has nothing to do with it, I could invest in Mexican stocks with a U.S. brokerage, or us stocks with a Mexican brokerage

 

[alexstore06]

@mastermulti One also need to compare the level of protection the assets would receive in Mexico and in US - both on paper and the real implementation.

 

[wuodnyawasi]

@jszy04 It would be wise to consult with a financial advisor

 

[patriotpaladin]

@jszy04 If you are considered a tax resident of Mexico then the tax implications should be similar regardless of which system you’re invested in, it’s just a question of which agency gets information automatically vs. you needing to self report

 

[mrroy]

@jszy04 Make sure you declare these investments to the IRS. FBAR and FATCA penalties can add up to $50,000 if you willfully don’t file

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