Moving to Mexico from the US: Tax Checklist for Americans

Moving to Mexico is exciting, but the tax implications start before you leave. Pre-move planning can save you thousands in taxes and prevent costly mistakes. This checklist covers the key tax steps before, during, and after your move.

Before You Move (3-6 months before)

State Tax Exit

• If you live in California, New York, or another aggressive state, plan your exit carefully
• Surrender your driver's license and obtain a new one
• Cancel voter registration
• Sell or rent out property
• Close or minimize bank accounts in your former state
• Consider establishing residency in a no-tax state (Texas, Florida, Nevada) before moving abroad

FEIE Planning

• Understand the physical presence test (330 days outside the US in a 12-month period)
• Plan your move date to maximize your first-year FEIE
• Keep detailed travel records from day one

Visa Planning

• Research temporary vs permanent resident visa options
• Temporary residents may have different Mexican tax treatment
• Neither visa determines your US tax treatment

Banking

• Plan for Mexican bank account opening (requires RFC and often a fiador)
• Keep at least one US bank account open
• Understand FBAR reporting requirements

First Year Filing

Partial-Year FEIE

In your first year abroad, you may qualify for partial-year FEIE.

Mexican Tax Residency

You become a Mexican tax resident if you spend more than 183 days in Mexico or if your center of vital interests is in Mexico. Temporary residents may have different treatment.

FBAR

File FBAR for all foreign accounts, including Mexican accounts, if the aggregate value exceeds $10,000.

Establishing Mexico Tax Residency

• Obtain RFC (Registro Federal de Contribuyentes)
• Open a Mexican bank account
• Register with IMSS (if self-employed)

Common Pre-Move Mistakes

1. Not planning state tax exit — California and New York can follow you abroad for years.
2. Not tracking travel days — You need 330 days outside the US for the physical presence test.
3. Not understanding temporary vs permanent resident tax implications — Different visa types may have different Mexican tax treatment.
4. Not reporting Mexican bank accounts on FBAR — All foreign accounts are reportable.

Timeline Checklist

3 months before:

• Research visa options (temporary vs permanent resident)
• Plan state tax exit strategy
• Obtain RFC (can be done after arrival)
• Plan for Mexican bank account opening

1 month before:

• Surrender state driver's license (if needed)
• Cancel state voter registration
• Document your move
• Set up travel tracking system

First month in Mexico:

• Obtain RFC
• Open Mexican bank account
• Register with IMSS (if self-employed)
• Obtain temporary or permanent resident visa

First tax season:

• File US tax return with FEIE
• File FBAR
• File Mexican tax return (if resident)
• Make quarterly estimated tax payments (if self-employed)

When to Get Professional Help

You should consider professional help before you move, especially if you live in a high-tax state, have complex income, or are unsure about visa implications.

FileAbroad reviews each engagement personally.

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FileAbroad explains U.S. federal tax and U.S. international information-reporting consequences of documented foreign facts. It does not provide foreign-country legal or tax representation, valuation opinions, banking or remittance advice, or advice on what a foreign authority will accept.

Scope statement reviewed 2026-08-30 · FileAbroad product/content owner