US citizens and green card holders retired or working in Mexico
US Taxes for Americans in Mexico
Whether you retired to the coast or work remotely from Mexico City, your US filings continue. We prepare your US returns, and Canadian returns if you also file in Canada. We do not prepare Mexican returns, so keep a local adviser for Mexican tax, as Gurleen Kaur is not licensed there.
Quick answer
Do Americans living in Mexico have to file US taxes?
Yes, generally, on worldwide income. The US has an income tax treaty with Mexico (IRS), but the SSA list does not show a social security agreement (SSA). Mexico treats you as a tax resident if you have your home there, and if you also have a home elsewhere, it looks at where your centre of vital interests is (Mexican tax code, article 9).
At a glance
- Income tax treaty
- Yes, on the IRS list
- Social security agreement
- None on the SSA list
- Mexican residence
- Home in Mexico, then centre of vital interests
- Fideicomiso
- Not a trust under Rev. Rul. 2013-14, if the bank only holds title
- Source
- IRS, Rev. Rul. 2013-14, checked November 2, 2026
What usually applies
| Situation | What it can mean for your US filing | Source |
|---|---|---|
| Retired in Mexico | US pensions, IRAs, Social Security and any Mexican income are looked at on your return, with credits for Mexican tax where they apply | IRS |
| Working in Mexico or remotely from there | Compare Form 1116 and Form 2555 on your numbers | Publication 54 |
| Self-employed | Self-employment tax generally applies the same way abroad, and the SSA list shows no agreement with Mexico | IRS, SSA |
| Coastal or border property through a fideicomiso | The IRS ruled that this land trust is not a trust where the bank only holds legal title. If the bank holds other assets or does more, the ruling does not apply, so we read your agreement | Rev. Rul. 2013-14 |
| Mexican funds | Funds can be passive foreign investment companies, with Form 8621 | How PFIC reporting works |
| You own a Mexican SA, S de RL or similar | Form 5471, or other forms such as 8865 or 8858, depending on how the business is classified for US tax | IRS |
| Mexican bank and brokerage accounts | FBAR over US$10,000 in total; Form 8938 above the thresholds | IRS, IRS |
Tools and next steps
Tools: Form 5471 checker, FBAR calculator and Streamlined checker. Behind on filings? See IRS amnesty and Streamlined. Want it handled every year? See the yearly package for Americans abroad.
How it works
- Send your request. Tell us where you live, what you earn and what you own, using the form below.
- Review and fixed quote. We review your last returns and give you a written scope and fee.
- Preparation and review. We prepare your US forms and go through them with you remotely.
- Filing. Your forms are filed, and your file carries forward to next year.
Please do not send tax IDs or statements through the website form. If we work together, documents come in through our secure client portal.
Common questions
Does my fideicomiso mean I file Form 3520?
Often not. Rev. Rul. 2013-14 says this arrangement is not a trust where the bank only holds legal title. If the bank holds other assets or does more than that, the ruling does not apply, so the agreement needs reading.
Is there a US-Mexico tax treaty?
Yes. It is on the IRS list. It generally does not remove your US filing as a citizen.
Is there a Social Security agreement with Mexico?
The current SSA list of agreements does not show one.
Do you prepare my Mexican return?
No. We prepare your US returns, and Canadian returns if you also file in Canada. We can coordinate with your Mexican accountant.
I am retired and only have Social Security. Do I still file?
It depends on your total income and filing status. Check before you assume you do not have to.
Sources
Every rule and figure on this page links to the IRS, CRA or other official source it comes from. Amounts change; we re-check them before each engagement.
- IRS: United States income tax treaties, A to Z (reviewed January 3, 2026)
- SSA: International Social Security agreements, POMS GN 01701.005
- Mexico: Codigo Fiscal de la Federacion, article 9
- IRS: Rev. Rul. 2013-14, Mexican land trusts
- IRS: Publication 54, Tax Guide for US Citizens and Resident Aliens Abroad
- IRS: Report of Foreign Bank and Financial Accounts (FBAR)
- IRS: Instructions for Form 8938
- IRS: Instructions for Form 5471
Gurleen Kaur, CPA licensed in British Columbia and Washington State. Last updated November 2, 2026. This page is general information, not tax or legal advice for your situation.
Related guides: Yearly package, Americans abroad, Form 5471 service, FBAR requirements, IRS amnesty and Streamlined.
Living in Mexico? Request a quote
Tell us your situation in a few lines. We confirm whether we can help, what records matter and the next step. Substantive advice begins under a paid diagnostic or signed engagement.
Prepared and signed by a licensed US CPA who can represent you before the IRS. Verify Gurleen Kaur's Washington licence (#41150) on CPAverify