PORTABLE INCOME HAS MORE THAN ONE LAYER

For an income source to support your move, ask four separate questions.

1. Can the Income Continue?

Would your employer, client, tenant, pension provider or investment continue paying you if you were living in Mexico?

2. Is the Income Reliable?

Is the amount predictable, or does it change significantly from month to month?

3. What Can You Actually Spend?

What remains after:

• Business expenses

• Property expenses

• Tax

• Insurance

• Fees

• Currency conversion

• Required savings

• Other obligations

4. Is the Arrangement Permitted?

Do you need confirmation from:

• Your employer

• A professional licensing body

• An insurance provider

• Mexican immigration authorities

• A Canadian–Mexican cross-border tax professional

• Another qualified adviser

Do not treat one “yes” as an answer to all four questions.

A job may be technically portable but prohibited by your employer.

A business may continue producing income but create tax or licensing questions.

A rental property may produce high gross income but much lower usable income.

A pension may continue abroad but have tax or benefit implications.

Today, identify the layers you still need to verify.

BUILD YOUR INCOME POSSIBILITY LIST

Consider the income you have now and the income you may have by your possible move date. Explore:

Employment

• Is my position currently remote?

• Does my employer allow international remote work?

• Is approval required?

• Are there privacy, licensing, payroll or insurance limitations?

• Would the time zone affect my work?

• Could I keep this position permanently—or only during a short stay?

• Could I start looking at and applying for positions and companies that specifically offer remote positions within my industry?

Self-Employment or Business

• Can my services be delivered remotely?

• Are my clients comfortable with me working from another country?

• Do licensing, insurance or privacy requirements apply?

• Is the income consistent?

• Could the business function if I became sick or lost a major client?

• Could I become self employed and start building a business that will support me from abroad?

Pension or Retirement Income

• What benefits or pensions am I currently entitled to?

• When can they begin?

• What are the current estimates?

• What happens if I live outside Canada?

• What tax advice do I need?

Rental or Investment Income

• What is the reliable net amount after expenses?

• How variable is it?

• Who would manage the asset while I am away?

• What large or unexpected expenses should I anticipate?

• Could I begin planning changes to my current mortgage and property holdings that would add to my ability to support myself while living in Mexico? Who would I need to speak to to discuss a plan?

Savings

• What amount could support the move?

• How long would it last?

• What amount needs to remain untouched?

• Is this funding a temporary stay or an ongoing lifestyle?

• Are there any financial planning and tax strategies that I may be able to begin implementing to ensure I can support myself, even partially with savings and investment income while in Mexico?

You do not need to answer every question today.

Choose the section that applies most directly to you and identify the two or three things you need to investigate.

IDENTIFY YOUR MOST LIKELY INCOME MODEL(S)

Today, you will create a simple inventory of your possible income sources and choose one next research step.

This is not your final financial plan. It is a first look at whether your current income can travel with you—or what may need to change before you move.

Your Steps

1. Open the Notes app on your phone.

2. Open your Can I Really Move to Mexico? folder.

3. Create a new note.

4. Copy and paste the prompt below into your new note.

5. Complete only the sections that apply to you.

6. Choose one income question to investigate this week.

Copy and Paste This Into Your New Note

DAY 3 — HOW WOULD I SUPPORT MYSELF?

My current sources of income are:

[Employment, business, pension, rental property, investments, savings or something else.]

The income sources I believe could continue while I am in Mexico are:

[Write your answer here.]

My most likely income model would be:

Employment / Business income / Pension or retirement income / Rental or investment income / Savings / A combination

Before I rely on this income, I need to confirm:

[Employer approval, reliability, net amount, licensing, immigration, tax or another question.]

The biggest weakness or uncertainty in my current income plan is:

[Write your answer here.]

If none of my current income is portable, what might I need to build, change or wait for?

[Write your answer here.]

The one question I will investigate next is:

[Write your answer here.]

The first person, organization or official source I need to contact is:

[Write your answer here.]

My next action is:

[Write one small action.]

I will complete it by:

[Add a date.]

OPTIONAL DEEPER QUESTION

If your current job or income could not come with you, would you change the move—or begin changing how you earn?

Only use the links relevant to your situation.

If You Are Employed

Before assuming you can work from Mexico, review your employment agreement and ask your employer or HR department:

• Does our remote-work policy permit working internationally?

• For how long?

• Is written approval required?

• Are there restrictions related to payroll, tax, insurance, data security, licensing or client confidentiality?

• Would my benefits or employment status be affected?

Canadian payroll treatment can depend on the worker’s and employer’s circumstances. The CRA provides information about employment and payroll for people working outside Canada: CRA: Employment outside Canada

*** This resource does not replace advice about your specific employment arrangement.

If You Are Self-Employed

Search:

• “[Your profession] licence working outside Canada”

• “[Your profession] insurance international remote work”

• “[Your province] professional regulator work outside Canada”

• “Cross-border accountant Canada Mexico self-employed”

• “Canada Mexico tax treaty self-employed professional advice”

If you handle private client information, ask your insurer, regulator or privacy professional whether information can be accessed or stored while you are outside Canada. Do not rely solely on another business owner saying: “I do it and nobody has ever asked.”

You may also want to investigate the use of a VPN for work related activities depending on the nature of your business, websites you need to access etc. One I use personally that I have great success with is: EXPRESS VPN

If You Receive or Expect a Pension

Review your current CPP information and estimates through My Service Canada Account: Service Canada: CPP Statement of Contributions

For information about Canadian pensions and benefits while living outside Canada: Government of Canada: Pensions and benefits while living outside Canada

If OAS applies to you, confirm your eligibility and how an extended absence or residence outside Canada may affect your particular situation.

If You Plan to Work While Living in Mexico

Review current visa and residency information directly through the Embassy of Mexico in Canada. The general rule of thumb in Mexico that in order to work for a Mexican company you have to be able to prove that you can do a job that another Mexican national cannot- but also keep in mind that the daily wage in Mexico is much lower than in Canada and it would be difficult to live on that income alone. Embassy of Mexico in Canada: Visas and services for foreigners

Mexico’s official guidance distinguishes between income paid from abroad and employment for which salary is received in Mexico. If you intend to accept employment in Mexico, earn income from Mexican sources or operate a business there, obtain guidance appropriate to your circumstances.

Requirements and financial thresholds can change. Always consult the website of the Mexican consular office where you would actually apply.

If You Need Professional Guidance

Useful searches include:

• “Canada Mexico cross-border tax accountant”

• “Canadian employee working remotely from Mexico tax advice”

• “Canadian business owner living in Mexico cross-border accountant”

• “Mexican immigration lawyer remote income”

• “Mexican consulate [your Canadian city] temporary residency”

When evaluating a professional, ask:

• Do you regularly advise people with connections to both Canada and Mexico?

• Which country’s rules are you qualified to advise on?

• What credentials or professional designation do you hold?

• Will I also require advice from a professional in the other country?

• Is your advice specific to my circumstances?

Personal references are always best when it comes to taking tax information, so do your due diligence in vetting professionals, go with your gut when it comes to making decisions and when in doubt Facebook pages in local Mexican communities are usually a wealth of information for personal references.

Today, you identified how you may be able to support yourself and turned a vague financial concern into a specific question.

You do not need every answer yet.

You need to know what you are relying on—and what must be verified before you rely on it.

Tomorrow, we will begin exploring the many different versions of Mexico and identify three places that may fit the life you are imagining.