Mercado Libre was founded in Argentina in 1999 and today, Mexico is its second-biggest market. (Mercado Libre México)
Mercado Libre, Latin America’s e-commerce and financial services behemoth, announced plans to invest US $2.45 billion in Mexico this year, its largest-ever expenditure in the country.
David Geisen, director general of Mercado Libre México, said the funds would serve to boost the company’s technical and logistical capabilities while also demonstrating its commitment to Mexico, Mercado Libre’s second-biggest market.
A Mercado Libre distribution center in Tepotzotlán, México state. (Mercado Libre México)
The company, founded in Argentina in 1999, will upgrade its logistics network, develop priority categories, invest in marketing and strengthen its Mercado Pago financial services product application.
“This continues the upward trajectory of our investments in Mexico dating to 2017 when, for the first time, we invested more than US $100 million,” Geisen told reporters at a press conference.
Last year, Mercado Libre invested US $1.6 billion in Mexico, where it has 90 distribution centers as well as a fleet of 900 electric vehicles.
Thursday’s announcement comes on the heels of a banner year for e-commerce in Mexico. Growth in Mexico’s e-commerce sector in 2023 was the highest in the world, according to the Mexican Association of Online Sales (AMVO). E-commerce profits in Mexico soared to 658 billion pesos (US $39.4 billion) last year, up 24.6% over 2022.
The company also saw the number of users soar in 2023, spurred by a rapidly expanding consumer base in Mexico. Mercado Libre reported 144 million active users across all of its platforms last year, a 50% increase over 2022. Total sales last year grew to 1.4 billion units, up 32% over 2022, and the company reported profits of US $1.2 billion in 2023, up 156% over the previous year.
Although Mercado Libre and its rival Amazon are confronting regulators in Mexico who accuse the companies of monopolistic practices, the threat of legal action has not negatively impacted stock listings. Mercado Libre’s stock price closed at US $1,550 on Wednesday and financial analysts project share prices will reach US $1,900 this year.
A report in El Norte newspaper revealed payments made by a company affiliated with a government supplier to a law firm owned by the governor. García says the payments were for services rendered in 2017, before he took office as governor. (Samuel García/X)
Nuevo León Governor Samuel García Sepúlveda denied any wrongdoing and declared that his government is “incorruptible” after a Monterrey-based newspaper reported that a law firm owned by the politician and his father received payments of over 200 million pesos from a company affiliated with a favored government supplier.
“I’m very relaxed because I don’t have anything to hide and because I have proof and arguments to refute every false accusation,” García, a representative of the Citizens Movement (MC) party and one of Mexico’s best known political leaders, said in a statement on Wednesday.
“… I hope that next time [the] El Norte [newspaper] asks me for information before drawing up a front page in bad faith, based on false and manipulated information.”
What does the El Norte report say?
El Norte, a sister paper of the Mexico City-based broadsheet Reforma, reported Wednesday that it had obtained a copy of a document from the federal tax administration SAT that showed that a law firm established in 2014 by García and his father Samuel García Mascorro received 202.9 million pesos (US $12.1 million) from a “sister company” of “one of the most favored suppliers” of the current Nuevo León government.
The report, which was also published by Reforma, said that the SAT document shows that between October 2021 — the month García took office — and November 2023 the company Suministro MYR billed the Nuevo León government 964.7 million pesos (US $57.8 million) for its provision of meals to prisons, police training facilities, cafeterias of government department and government events.
El Norte reported that MYR paid its “sister company” Proveedor de Productos Mexicanos Jace — with which it has partners in common — 237.2 million pesos in the same period for “supposed corporate administration services.”
The governor was questioned about the payments during a press conference on Wednesday. (Screen capture)
Jace, meanwhile, paid 202.9 million pesos in professional service fees to García’s law firm, Firma Jurídica y Fiscal Abogados, according to the report. El Norte noted that the exact natures of the services wasn’t specified. The newspaper called the payments by Jace to the governor’s law firm a “triangulation” of resources.
El Norte said that the SAT document indicates that Jace’s payments to the law firm began on Oct. 15, 2021 — 11 days after García was sworn in as governor of Nuevo León. The company made a total of 29 payments to the law firm in 2021, 2022 and 2023, according to the newspaper.
El Norte said that MYR also provided food services to the Nuevo León government when Jaime Rodríguez, García’s predecessor, was governor. The company has been involved in a range of other businesses and didn’t make the provision of meals its main activity until 2022, El Norte said.
The only government supplier that has received more money from García’s administration is Mota-Engil México, which is building new metro lines in Monterrey, the newspaper said.
The contractor building new metro lines in Monterrey has been the biggest recipient of payments from the state government during García’s term. (Samuel García/X)
Based on information to which it had access, El Norte said that Jace became a client of the governor’s law firm in 2021. “There are no previous records of operations or transactions between the company and the [law] firm,” it reported.
García’s response in detail
The governor and erstwhile 2024 presidential hopeful rejected the basis of El Norte’s report at a press conference on Wednesday morning. He subsequently released a statement based on his remarks.
“My government is incorruptible and I am as well,” the statement began.
In the first of three numbered points, García said that MYR has been a Nuevo León government supplier since January 2016 when the government led by Rodríguez was in office.
Contradicting El Norte’s claim, he said that Jace has been a client of his law firm since October 2017, four years before he became governor. “I wasn’t even a senator at that time,” García added.
At his press conference, the governor said that his law firm signed an agreement with Jace to provide it with legal services associated with an audit. That audit, El Norte reported, resulted in the company receiving a 196-million-peso tax credit.
One of the companies in question has been supplying the government since the administration of García’s predecessor, Jaime “El Bronco” Rodríguez. (Cuartoscuro)
García said that the payments the law firm received from Jace were for services rendered starting in 2017, but didn’t explain why the company only settled its bill after he took office as governor in October 2021.
El Norte and Reforma reiterated on Thursday that “available information from SAT indicates that between 2017 and September 2021 there was no invoicing between Jace and Firma Jurídica y Fiscal Abogados.”
García said in his statement that the tax credit granted to Jace was “nullified” by a court in September 2022 and that another court upheld that ruling in January 2024.
“The origin of this article is a montage,” he said, asserting that it was based on information leaked by the Nuevo León Attorney General’s Office [FNL], which he derided as being “managed by the old politics,” i.e. parties that previously held power in the northern state, namely the Institutional Revolutionary Party (PRI) and the National Action Party (PAN).
Since January, the FNL “has been investigating my family’s companies as a means to pressure, extort and defame us during this electoral process,” said the governor.
García’s term as governor doesn’t end until 2027, but his wife Mariana Rodríguez will represent MC at the June 2 mayoral election in Monterrey, and voters will elect new Nuevo León lawmakers on the same date.
García’s wife Mariana Rodríguez is running for mayor of Monterrey. (Cuartoscuro)
The governor predicted that “more attacks like this” will occur “for a simple reason: … [we’re in] electoral times and that’s the way the old politics operates.”
Another reason for future attacks, he said, will be that “the government has thousands of suppliers and the [law] firm that my father founded has a lot of clients because for years it has been one of the best in Nuevo León.”
In addition to saying he had “nothing to hide” and “proof and arguments to refute every false accusation,” García asserted that he “built” his personal wealth “working hard and a lot before entering politics.”
The El Financiero newspaper reported that García declared annual income of 4.23 million pesos (US $253,750) in 2022, of which 1.13 million pesos came from his salary as governor. The newspaper said that he is a partner of at least 11 companies, including the law firm he established with his father.
Xóchitl Gálvez, presidential candidate for an opposition alliance made up of the PRI, the PAN and the Democratic Revolution Party, was one of several politicians who called for García to be investigated in light of the information disclosed by El Norte.
India's Hinduja Tech helps auto industry clients lower costs by moving engineering and R&D functions closer to where they’re already doing their manufacturing. (Hinduja Tech)
In many ways, the automotive industry is the poster child for Mexico’s evolution as a manufacturing powerhouse. What was once a “Saturday Night Live” skit that I wrote about hereis now a significant contributor to national GDP and a major source of jobs. The industry employs hundreds of thousands of people throughout the country and continues to take in significant foreign investment as the nearshoring boom gains momentum.
We at Mexico News Daily frequently write about the automotive industry, given its outsized importance, and are following two emerging trends that could accelerate not only the quantity but also the quality of jobs throughout the country.
Hinduja Tech has been in Mexico for five years with a staff made up of both Indians and Mexicans. It says it plans to keep expanding staff and revenue in Mexico by 25% per year for the foreseeable future. Here company representatives are seen with India’s Ambassador to Mexico, Pankaj Sharma (fourth from the left). (Hinduja Tech)
The first trend is that of electric vehicle (EV) manufacturing, led by companies like Tesla, Volkswagen, Audi, BMW, as well as by several Chinese companies.
The second is the relocalization of not only these foreign companies’ manufacturing processes to Mexico but also increasingly large parts of their engineering and R&D departments. This trend means more well-paid professional engineering jobs being created in Mexico.
Enter Hinduja Tech, an India-based company focused on integrated product engineering and digital solutions for the vehicle industry. Hinduja Tech helps its business clients move engineering and R&D functions closer to where they’re already doing their manufacturing, to lower costs and improve product development speed.
Hinduja is currently on a hiring spree, seeking 100 mechanical and electrical engineers throughout Mexico to help its customers localize engineering capabilities.
I recently spoke with Vijay Malik, the company’s president of marketing and international sales to discuss Hinduja’s journey to Mexico.
After taking five years to hire its first 100 engineers in Mexico, Hinduja Tech is now looking to double that number this year alone. The company is confident it can grow both its personnel and revenue in Mexico by at least 25% per year going forward, Malik says, and he sees huge potential for growth given the acceleration of EV manufacturing moving to Mexico.
Vijay Malik, president of marketing and international sales, says his company believes that 70% of its engineering work can be done in Mexico and the other 30% remotely with experts from India. (Hinduja Tech)
Having witnessed the power of localization and outsourcing of its customers’ engineering in India, the company now sees Mexico as “the new India” to follow that trend.
Hinduja Tech’s model aims to have approximately 70% of engineering work done in Mexico and the other 30% done remotely with specialized experts from India.
Imagine a Hinduja Tech Mexican engineer working in a Japanese, American, or European automobile plant in Mexico, collaborating with colleagues in India — a fascinating mix of globalization and regionalization.
Mexico has already demonstrated that it has the skilled labor force to make auto parts and assemble vehicles in huge quantities.
This new opportunity is to “move up the food chain” by providing higher-level, value-added services — in this case, engineering work — to capture more high-skill jobs in Mexico.
These are higher-paid, less labor-intensive jobs — ones that require a college degree and pay middle- and upper-middle-class salaries. These are exactly the jobs that Mexico needs to develop to improve standards of living.
The country is already making strides: while just a few years ago, few women graduated from Mexico’s university-level mechanical and electrical engineering programs, Hindjua Tech’s Mexico-based engineering team is currently made up of over 10% women; and the company expects that percentage to grow. Its human resources team is made up entirely of women, and the Mexico leadership team is 100% local talent.
We at MND are closely following how companies from around the world are investing in Mexico — increasingly in the tech and engineering sectors — and Hinduja Tech is an interesting example of a company doing just that.
Travis Bembenek is the CEO of Mexico News Daily and has been living, working or playing in Mexico for over 27 years.
Governor Sinhué meets with representatives of Chinese auto parts manufacturer IKD. (Diego Sinhue Rodríguez Vallejo/X)
As Mexico continues to grow as a hotspot for nearshoring by manufacturers, some Mexican politicians have gone on tour to attract investment to their states. This week, Guanajuato Governor Diego Sinhue Rodríguez visited Asia and announced some significant investments planned for the Bajío state.
NTT Data
“We’ve started our business trip in Japan with some great news for Guanajuato,” Governor Rodríguez shared on the X social media platform. “The global technology leader NTT Data has chosen León, Guanajuato, to expand its operations.”
Governor Rodríguez at a meeting at NTT headquarters in Japan. (Diego Sinhue Rodríguez Vallejo/X)
NTT Data is a multinational technology consulting and services company based in Tokyo, Japan, with operations in over 50 countries. The company already operates in León.
While neither the government nor the company shared details about the amount of the investment, it will reportedly focus on creating specialized tools for the telecommunications, banking and insurance sectors in the state, creating some 500 jobs for engineers specialized in technological development.
Nippon Steel Trading
Governor Rodríguez alsoconfirmed on his X account that Nippon Steel Trading will invest US $71 million in a factory in Apaseo el Grande, Guanajuato that is already under construction.
According to a company statement, “the factory will become a crucial supply base for meeting the increasing demand for electric vehicles in North America.” It will specialize in processing and selling electrical steel sheets.
The new plant aims to achieve an annual production of 120,000 tons of steel and is expected to create 200 direct jobs. It will start operations in April 2025.
Nippon Steel Corporation is Japan’s largest steel manufacturer and one of the world’s leading steel producers, with operations in 15 countries. In December, it announced an agreement to buy American-owned US Steel for US $14.9 billion. On Wednesday, however, Reuters reported that U.S. President Joe Biden will express concerns about the planned buyout, which is projected to be finalized in the second or third quarter of this year.
Nippon Steel executives at a March 7 meeting with Governor Rodríguez. (Diego Sinhue Rodríguez Vallejo/X)
IKD
The Chinese automotive aluminum parts casting supplier IKD will invest US $178.2 million in Guanajuato, creating some 1,000 jobs, according to Rodríguez.
IKD produces and sells high-precision aluminum alloy castings for automobiles, including for electric vehicles (EVs). Neither the company nor the Guanajuato government has provided any additional information regarding how the investment will be utilized.
However, according to the news site Cluster Industrial, the investment will likely be allocated to the construction of a new plant, based on reports that a 30,000-square-meter space is currently being built next to the existing IKD México plant in Irapuato.
Yusei Holdings
Yusei Holdings, a Japanese company that specializes in plastic injection for the automotive industry, is another that announced an investment in Guanajuato. The company says it will build a US $84 million plant —though the location is not yet confirmed — and Rodríguez said it will create 500 jobs in the state.
The company started operations in Querétaro in 2019, and some of its main clients include Toyota, Volkswagen, Ford, Nissan, Honda, Mercedes Benz, Buick, Audi, BMW, Tesla and Volvo.
Globally, Yusei Holdings also manufactures and trades molds and plastic components, offering assembly and processing services.
Where are Mexico's best swimming pools, and what do they look like? We've compiled a handy guide to the most Instagrammable swims in the country. (Casa de la Playa)
There is no combination better than Mexico and swimming pools, as the diverse landscapes and pleasant weather allow you to enjoy incredible views from the comfort of the water. The country’s extensive beaches, spanning 11,122 kilometers, make relaxing in the pool an integral part of Mexico’s tourist offerings.
Recently, the variety of accommodation choices in the country has increased as platforms like Airbnb have expanded tourist options beyond traditional hotel accommodation — and many of these homes also come with their own (incredible) private pools.
View of the famous Peña de Bernal from the pool of the Casa Bernal. (@tomdepeyret/Casita MX)
Today, we present a curated collection of unique and stunning swimming spots throughout this country. From the desert mountains of Baja California Sur to the breathtaking Caribbean coast, prepare to discover some of the finest pools Mexico has to offer.
Querétaro
This amazing pool is a work of art. The visual harmony between the walls, the reflective surface that mirrors the water and the cactus, creates a surreal and dreamy ambiance. The space is situated within the brutalist architecture of Casa Bernal, located in the town of Peña de Bernal, Querétaro, known for the captivating view of the unique rock formation that defines that area.
The private home was built for Mexican architect Emmanuel Picault and his studio, Chic by Accident, a project that also serves as a gallery of antiques and contemporary design. The mix of talents within this project is reflected in the uniqueness of the pool; from every angle and every point you stand, you experience a different visual composition.
Puerto Escondido
Futurism and dreaminess abounds at Casa Hezbo. (Casa Hezbo/Instagram)
Previously on Mexico News Daily, the exquisite Casa TO was featured in our compilation of the best brutalist buildings in the country. Located in Puerto Escondido, Oaxaca, this house is a creation of the renowned architect Ludwig Godefroy. Twin projects Casa VO and Casa Hezbo make it onto this list thanks to their remarkable pools, which evoke a futuristic experience akin to another world. The visual effects achieved by this architect are truly special.
Perhaps the most memorable of the dreamy spaces created by Godefroy in Puerto Escondido, the water serves as the center of the composition, resembling a tunnel of reality and a painting that foretells the future. Godefroy, a Mexican architect renowned for his brutalist style integrated with nature, established his studio, Ludwig Godefroy Architecture, in 2011.
Playa del Carmen
One of Mexico’s most photographed pools, Casa de la Playa offers a swim unlike any other. (Casa de la Playa)
La Casa de la Playa showcases a charming style that culminates in one of the most photographed pools in Mexico. The cantilevered pool is a favorite Instagram spot for a reason – it evokes a floating bridge which seamlessly blends with the Caribbean waters. Moreover, each of the 63 hotel suites at La Casa de la Playa include a balcony-style floating pool, further enhancing the appeal of the property. A transparent pool suspended between two buildings elevates the swimming experience to an entirely new level of amazement.
Created by architect David Quintana, La Casa de la Playa is highly exclusive and adults only. One of its notable characteristics is the visual impact of each of its views, which are all an awesome experience in their own right.
Baja California Sur
Swim among rocks and salt water in Los Cabos. (The Cape, A Thompson Hotel)
In Todos Santos, a quiet location named “Paradero” harmoniously blends the extraordinary beauty of the desert mountains. The serene pool water creates an infinite effect that sparkles within the unpredictable landscape. Moving on to Baja California Sur, we would also like to highlight the stunning pool in Los Cabos, fed with salt water and nestled among natural rocks at The Cape, A Thompson Hotel.
Paradero Todos Santos was designed by architects Yashar Yektajo and Rubén Valdez. As they explain on their website, this remarkable building was inspired by the desert: “In this project, we aimed to emphasize the dynamic natural movement of the desert, exploring and highlighting the topography shaped by its winds and elements that contribute to its sensory appeal,” the team explained to Arch Daily.
The design of The Cape was a collaborative effort involving Mexican architect Javier Sánchez of JSa Arquitectura, Marisabel Gómez Vázquez of the interior design firm Arquitectura de Interiores, ceramicist Jose Noé Suro.
Oaxaca
The heart of Oaxaca’s historic center and the comfort of a pool, does life get any better? (Otro Oaxaca)
Offering one of the most iconic and breathtaking views in Oaxaca City, Otro Oaxaca is a design hotel with a rooftop pool that is truly inspiring. From this vantage point, you can admire the towers of the Templo de Santo Domingo de Guzmán, a UNESCO World Heritage Site, as well as the entirety of the historic center of Oaxaca.
The design of this pool (and building) was overseen by João Boto Caeiro of ROOTSTUDIO, while the interior design was handled by Carlos Couturier of Grupo Habita. The building drew inspiration from Mitla, an ancient Zapotec archaeological site situated 40 kilometers from the city of Oaxaca. The ground floor of the building has a spa featuring a 7-meter diameter pool with a brick dome that creates the effect of natural light streaming into the center, reminiscent of the cenotes found across the southern region of Mexico.
CDMX
With the Metropolitan Cathedral and Zócalo in full view, this city center pool offers relaxation like no other. (Círculo Mexicano)
Situated on the rooftop of the design hotel Círculo Mexicano, this pool offers a panoramic view of downtown Mexico City. From the water, you can gaze upon the iconic towers of the Catedral Metropolitana, the oldest Baroque building in Latin America, as well as other iconic buildings like the Torre Latinoamericana. Additionally, this location holds significance as the birthplace and childhood home of Manuel Álvarez Bravo, the famed Mexican photographer, adding an extra layer of magic to the experience.
The building was designed by Ambrosi | Etchegaray, and the interior was a collaboration between La Metropolitana and Carlos Couturier. According to their website, “The idea was to reimagine a 19th-century residential building, envisioning the ground floor as a modern marketplace.”
San Miguel de Allende
Its transparent pool is another spectacle in the interior of this building. (Casa Oratorio/Instagram)
The Hotel Oratorio provides a delightful view of the towers in San Miguel de Allende, complemented by the serenity of its pool. It is truly a pleasure to behold the iconic sights, including the towers of the Parroquia de San Miguel Arcángel and other classic buildings in San Miguel de Allende. Additionally, this pool offers a unique feature as it is transparent and serves as a visible ceiling inside the building; while at the same time, the swimmer can see down intothe hotel.
On the rooftop, you will also find comfortable loungers, where you can relax and enjoy the view while savoring a drink from their bar and food service.
Punta Mita, Nayarit
The W Punta de Mita pool is designed to incorporate traditional Wixárika art. (All Inclusive Outlet)
Undoubtedly, the tiles of this pool make it truly unique, as the pattern they create pays homage to traditional Wixárika design. The Huichol tribe, also known as the Wixárika, are a prominent indigenous group, renowned for their art, which is inspired by visions induced by peyote. This remarkable pool is located at Hotel W Punta de Mita, just a short drive from Puerto Vallarta. What sets it apart is that the pool extends inside the hotel, seamlessly crossing through the bar and other significant areas of the property.
Another special feature of this pool is that it is supported by columns, creating the illusion of a floating pool and a sense of infinity when you are at the pool’s edge. The project was developed by ASET / AOMA in collaboration with the Oakland-based design firm Mister Important Design and the award-winning design studio Starwood.
Have we missed your vote for Mexico’s best pool? Have you been lucky enough to swim in any of these amazing spots? Let us know in the comments.
Ana Paula de la Torre is a Mexican journalist and collaborator for various outlets including Milenio, Animal Político, Vice, Newsweek en Español, Televisa and Mexico News Daily.
Saúl "Canelo" Álvarez weighs in, in May 2023. (Cuartoscuro)
Mexican super middleweight Saúl “Canelo” Álvarez will be returning to the boxing ring on Cinco de Mayo weekend to defend his undisputed world title against countryman Jaime Munguía — the first time Álvarez will have fought a Mexican boxer in nearly seven years.
Organizers of the May 4 bout at the T-Mobile Arena in Las Vegas announced the fight on Tuesday.
The match was made official this week. (Saúl Canelo Álvarez/X)
Álvarez, who fought exclusively in Mexico from his 2005 debut until his first bout in the U.S. five years later, has come under fire in recent years for saying he didn’t want to fight Mexicans.
The Guadalajara native’s last Mexican opponent was Julio César Chávez Jr. in 2017, and only three of his 34 fights since 2011 have been against Mexican-born boxers. He even told the TV Azteca network in February that his May 4 opponent would be “an American.”
The bout was only decided upon after a long period of drama and negotiation over who that opponent would be — with more twists and turns than a telenovela.
Álvarez has a 60-2-2 record with 39 knockouts following his latest fight in September, when he made easy work of Jermell Charlo. The 168-pounder currently possesses all four super middleweight championship belts: from the World Boxing Council (WBC), the World Boxing Association (WBA), the International Boxing Federation (IBF) and the World Boxing Organization (WBO).
Canelo and Charlo in their September face-off. (Canelo Álvarez/Instagram)
The scheduled fight falls two months before Álvarez’s 34th birthday, with retirement seemingly looming.
Munguía is a 27-year-old from Tijuana with a career record of 43-0, including 34 wins by knockout. Having improved under Hall of Fame trainer Freddie Roach, he is coming off a career-best win — a ninth-round technical knockout (TKO) in January of now-retired British boxer John Ryder.
Munguía is rated No. 4 by ESPN at 168 pounds; Álvarez is No. 1 at that weight and is also ESPN’s No. 4 pound-for-pound boxer.
Álvarez also plans to fight on Mexico’s Independence Day weekend in September, ESPN reported.
Many boxing fans were hoping the May 4 opponent would be David Benavídez, the WBC’s mandatory super middleweight challenger. The Phoenix native has a Mexican father and is nicknamed “El Bandera Roja” (the Red Flag) and “The Mexican Monster.”
But Benavídez (28-0, 24 by KO) is six years younger and four inches taller than Álvarez, with a 10-centimeter longer reach and just as powerfully built. Citing these factors, some have accused Álvarez of ducking Benavídez.
However, Álvarez denied such claims, telling TalkSport’s Michael Benson, “Look at my history, I’ve done everything in boxing. I’ve done it all.”
Amazon Prime and DAZN have secured pay-per-view rights for the upcoming bout, which will be shown for free in Mexico.
Tax preparation can be a challenge when you spend a lot of time abroad. Paul Carlino explains how to file your state tax returns whilst living in Mexico. (Kelly Sikkema/Unsplash)
There are many benefits to living abroad. Exploring a different culture on a day-to-day basis. Challenging yourself to try new foods and learn another language. Making new friends and getting out of your comfort zone. And, if you’re a United States citizen, maybe one that you didn’t expect: not being required to file a state income tax return.
Now, as a former tax attorney who worked for the IRS for twenty years, I want readers to understand that U.S. citizens who live and work overseas are still required to file a U.S. tax return to report their worldwide income. That’s just the way the U.S. tax system works. No matter where you earn your salary or self-employment income, receive interest or dividends, own and rent property or hit it big on the lottery, the income should go on your Form 1040, U.S. Individual Income Tax Return.
Depending on your home state, you may need to file additional tax returns. (Scott Graham/Unsplash)
No kidding, I had a friend, Rich, who won ten grand at a slot machine in a casino in the Bahamas. He had to include it on his U.S. tax return. And because he lived in New Jersey, he had to include it on his state income tax return as well. Easy come, easy go, as they say.
I live in Mexico, can I stop filing a state tax return?
States generally tax state residents on all of their income, no matter where it is earned. Vermont is known as the Green Mountain State, but if you lived there, you might also call it the High Income Tax State as its personal income tax rate can be as steep as 8.75%. In New Jersey, the income tax rate checks in at 10.75%, while Oregon isn’t far behind at 9.9%. From sea to shining sea indeed.
So how does one get out of paying state income tax? Nine U.S. states do not have an income tax. Those states are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. If you don’t want to move to one of those places, move overseas.
But does living in Mexico mean that I don’t have to file a state income tax return? As stated earlier, states tax their residents, and the most common way to be a state resident is to live in the state. For tax purposes, however, residency means more than just physical presence.
For example, New Jersey, in addition to physical presence, determines residency by looking at whether you have a domicile in the state. New Jersey defines your domicile as the place you consider your permanent home; that is, the place you intend to return to after a period of absence, such as a vacation, temporary work assignment or for educational leave like time spent at college. Because my friend Rich was only vacationing in the Bahamas when he made that lucky pull on the slot machine, he hadn’t given up his New Jersey residency.
Some states – such as New Jersey – require a state tax return if you continue to be listed as domiciled there. (Tomas Martinez/Unsplash)
I won’t break down every state’s definition of residency and domicile, but the majority of them define the terms similarly: as your true, fixed and permanent home from which, whenever absent, you intend to return. Thus, based on the standard that you can be physically present in one place and still have a domicile in another, your intent becomes paramount.
Location, location, location and intention, intention, intention
I began to prepare individual income tax returns when I moved to Mexico. One of my first clients had continued to file North Carolina state tax returns even though she had not lived there — in fact, had not lived in the U.S. — for the previous five years. When I asked her if she intended to go back to North Carolina, she said “No way!”
She thought I was the smartest person in the world when I helped her file amended state tax returns as a nonresident and secure a refund of nearly $700.
What if you aren’t as certain as she was that you don’t intend to move back to the U.S.? For example, what if you have a digital nomad visa that expires after a year? Or you decide not to sell your U.S. home in case your move overseas doesn’t work out? Or you just really, really like Montana and write into your will that you want your ashes scattered from the top of Granite Peak? Does that mean you intend to return and still have a tax domicile in Montana?
Look at it this way: it isn’t brain surgery, it’s tax law. While screwing up in either can get you in trouble, in tax law, you can take positions based on reasonable facts and circumstances that you wouldn’t take if you had just scrubbed in and were holding a scalpel.
Remember, taxes are a matter of law. (Tingley Injury Firm/Unsplash)
The advice I give to clients is this: if 1) you intend to abandon your old domicile in a state and take actions consistent with that intent, such as actually moving out of that state; 2) you intend to acquire a new domicile and take actions consistent with that intent, such as renting a house in Mexico; and 3) you are physically present in your new house in Mexico for the majority of your year, then you have changed your domicile and are no longer a resident of the U.S. state that you left.
For example, my wife and I lived and worked in Virginia for 20 years. During that time we filed a state income tax return as residents and paid income tax to Virginia on our wages, investment income and bank account interest.
We left our jobs and moved to Mexico in 2018. We didn’t intend to come back to Virginia, but there was an element of uncertainty to the move. In case things didn’t work out, we decided to rent our house instead of sell it. We signed a year-long lease on a house in Mexico and only traveled back to the U.S. for family visits. We put our kids in school in Mexico. We ran a business from our foreign address. In my opinion, these facts established our intent to abandon our Virginia domicile.
Generally, if you are not a resident of a state, you only have to pay state tax on income earned from sources within that state. This means that only income earned from a job or business performed in the state, or from rental property located in the state, is taxed by the state. Since the only income we had that was Virginia source income was the rental income from our house, the nonresident income tax return I filed with the state only included that income. I left off the income we earned from the business we ran in Mexico, as well as our investment income and bank interest. This significantly reduced our Virginia tax bill.
What if we only planned to be overseas for as long as it took for our kids to graduate high school and then planned to move back? I would have taken the same position regarding our state residency. So long as we weren’t using our Virginia house as our home — in other words, going back and forth there during the year — and we lived and worked outside of Virginia, we had given up our residency.
What if we were only overseas for one year on a digital nomad visa? This is a little trickier. The time period is shorter and it could be viewed as a temporary absence. However, given that we had moved out of our Virginia home for the entire year and enrolled our children in school, my opinion is that it is reasonable to say that we established a new domicile. In particular, the fact that we rented our Virginia house for the year and signed a year lease in Mexico established our intent to be gone for at least one year. My advice to anyone in this situation is to talk with your tax professional about your specific facts and circumstances.
If in doubt about previous tax returns, it is always better to seek clarification than risk a fine from the IRS. (Olga Delawrence/Unsplash)
State-issued driver’s licenses and the right to vote
People who no longer reside in a given state but who continue to file state tax returns often give me two reasons for doing so. The first is that they have a drivers’ license from the state. The second is that they want to continue to vote in U.S. and state elections.
There are good reasons to hang onto your state-issued license when you move, but there is no correlation between having a state driver’s license and the requirement to file a state income tax return. States don’t require that you turn in your license when you move to another state, although your new state may prefer you get a license issued by it within a reasonable amount of time..) While having a state-issued driver’s license might be evidence that you intend to return to the state, other factors discussed above can outweigh it.
In terms of voting rights, under the Uniformed and Overseas Citizens Absentee Voting Act, if you were eligible to vote when you were a resident in the U.S., you are eligible to vote if you live outside the U.S. There is no requirement to maintain residency or own property in the U.S. in order to vote in Federal elections. For voting purposes, your voting residence address would continue to be the last home where you actually resided in the U.S.
You may also continue to vote for state and local offices, such as governor, state legislator, county clerk, mayor, etc. Many states even allow U.S. citizens who have never lived in the U.S. to register to vote based on their parents’ last U.S. voting residence address.
For nonpartisan information pertaining to each U.S. state’s requirements, visit the website of the Overseas Vote Foundation. The Federal Voting Assistance Program website has information about how you can register with local election officials in your state of voting residence and request an absentee ballot.
There is one benefit to maintaining state residency even if you live overseas. When it came time for my daughter to apply to college, I had been filing Virginia nonresident tax returns for years. We couldn’t fake Virginia residency at that point. In my haste to avoid paying state tax, I blew a chance to take advantage of in-state tuition rates. Fortunately, my daughter didn’t want to go to any of the Virginia schools, but my failure to consider that she might is evidence that, despite what my client thought, I am not the smartest man in the world. In case you were wondering.
Paul Carlino is an attorney living in San Miguel de Allende and the founder of Pickleball Mexico. He writes for Mexico News Daily.
Agricultural geneticist Ravi Singh came to Mexico in 1983 aiming to curb world hunger by developing wheat varieties that could thrive in different climatic conditions around the world. (CIMMYT)
It’s a long way from Varanasi, a holy city on the Ganges River in northern India, to the International Maize and Wheat Improvement Center (Cimmyt) in Texcoco, México state.
But the vast distance between the two points was no barrier to a career at Cimmyt for Ravi Singh, a distinguished scientist who grew up in Varanasi but spent most of his working life at the renowned research organization and rose to become its head of global wheat improvement, a position he held for almost two decades before his recent retirement.
Over the years, students from around the world came to Singh’s classes at CIMMYT’s experimental stations in Mexico to learn about developing optimal wheat varieties. This Chilean student is inspecting a wheat stem for signs of disease. (Cimmyt)
After completing a PhD in agricultural genetics and biometry at Australia’s University of Sydney, he was offered a postdoctoral fellowship at Cimmyt, which developed in its early years under the leadership of prominent United States agronomist Norman Borlaug, a Nobel Peace Prize winner considered the father of the Green Revolution.
Singh accepted the offer and thus, as a young man, found himself working on the outskirts of the capital of a country where corn — not wheat — is most definitely king. Undeterred, the new doctor in agricultural genetics embarked on a career largely dedicated to the study of wheat, a crop thought to have first been cultivated more than 10,000 years ago in the Fertile Crescent, a region spanning several modern-day Middle Eastern countries, including Iraq, Israel, Jordan and Lebanon.
To that end, much of his work in Mexico focused on developing new wheat varieties that would thrive in different climatic conditions around the world and produce large crop yields as a result. Singh was certainly prolific in that regard: he contributed to the development, release and cultivation of over 700 wheat varieties in the 37 years he spent at Cimmyt.
“Even though you are in Mexico, you can generate very competitive materials for geographies like Australia, Bangladesh, India, Nepal, Pakistan, … the Ethiopian highlands, … even Nigeria,” Singh told MND, referring to wheat varieties that not only produce large yields but are also endowed with resistance to deadly disease pathogens, particularly those that cause different kinds of rust diseases in wheat.
In 2016, Singh was inducted as a fellow of the American Association for the Advancement of Science. In this photo from that ceremony in Washington, D.C., he is shaking hands with AAAS’ president, Geraldine Richmond. (CIMMYT)
“By continuously providing superior varieties, we increased wheat production and incomes of millions of smallholder farming families,” he said in a previous interview after winning the prestigious Pravasi Bharatiya Samman Award, the top Indian government award for Indians who live abroad.
Speaking to MND, Singh highlighted that Cimmyt is a nonprofit research organization and thus “gives away” seeds for new wheat varieties and provides free access to the associated techniques and knowledge it develops. “We’re not in the seed business,” Singh emphasized.
Over the past four decades, Singh’s work has had a significant impact around the world — in Asia, in Africa and in Latin America, including in his adopted homeland, where wheat is an important crop albeit one that is not grown anywhere near as widely as corn.
He told MND that farmers in Mexico have long been receptive to the expertise he and other Cimmyt scientists share with them, noting that the wheat growers he met in Sonora — the country’s biggest wheat-producing state — during his early days in Mexico “were always looking for new technologies to improve their profitability [and] sustainability.”
Mexican farmers’ openness to sowing new wheat varieties and trialing emerging agricultural technologies made Mexico a good place to work for a scientist such as Singh, who four decades after moving here feels very much at home.
Food security
Singh told MND he is optimistic about humanity’s capacity to produce enough food for a growing global population, but cited a range of things he believes could soon pose a threat to food security.
They include climate change, seed shortages, insufficient government investment in agriculture and water infrastructure and a lack of capacity to store grains.
“In several countries, people think that the private sector is going to resolve all the problems, and that’s not the case,” said Singh, who also worked as an academic supervisor, authored hundreds of journal articles and is among the world’s top 100 plant science and agronomy scientists as listed by research.com.
“There is still a lot of need for the public sector to be engaged in agriculture,” and many countries around the world require additional capacity to store grain, he said.
Singh sees a greater need than ever for agricultural research institutions like CIMMYT, where he was head of the Wheat Improvement Program. “In several countries, people think that the private sector is going to resolve all the problems, and that’s not the case,” he says.
Singh acknowledged that the current Mexican government has invested in agriculture and water infrastructure, but stressed that a lot more investment is needed, and that investment decisions need to be proactive rather than reactive.
Norman Borlaug and the Green Revolution
According to the International Encyclopedia of Human Geography, “the Green Revolution is the term given to the use of high-yielding varieties (HYVs) of wheat and rice particularly during the 1960s to increase food crop production, especially in India.”
“The new seed varieties, popularly called ‘miracle’ seeds, were developed in Mexico (wheat) and the Philippines (rice), but it was the new dwarf varieties of wheat [developed by Norman Borlaug and others] which provided the bigger growth in yields per hectare,” the summary continues.
While Borlaug has been described as “history’s greatest human being” and credited with saving “1 billion people from death by starvation,” the Green Revolution of which he was a key leader has also been criticized for a range of reasons, including for some negative impacts it had on the environment and water resources.
Borlaug, seen here in an undated photo, established his first experimental crop stations in Mexico, which could be considered the birthplace of the Green Revolution. (CIMMYT)
“Critics blame debt, displacement and ongoing malnutrition in India and elsewhere on a revolution they say was anything but green,” The Washington Post reported in 2020
Singh acknowledged that the Green Revolution is controversial, but emphasized the positive impact it had at a time when food insecurity was a major concern.
“It depends how you want to see it,” he said. “The Green Revolution provided food instead of letting people die,” Singh said.
In Mexico, the Green Revolution allowed Mexico to quickly become self-sufficient for wheat.
“In 1943, Mexico imported half its wheat, but by 1956, the Green Revolution had made Mexico self-sufficient, and by 1964, Mexico exported half a million tons of wheat,” according to Global Food Security, a United Kingdom cross-government program on food security research.
Over the past four decades, Singh contributed to the development of 68 wheat varieties released in Mexico in collaboration with the National Institute for Forestry, Agriculture and Livestock Research and other Mexican government institutions.
Although Borlaug’s Green Revolution eventually came to be criticized for its environmental effects, Singh points out that it addressed a serious hunger problem in Asia at the time. (International Rice Research Institute)
Mexico’s most widely grown bread and pasta wheat varieties were both developed by Singh’s team at Cimmyt. Mexican wheat varieties developed in Texcoco are also widely grown in India and many other countries, a testament to their proven capacity to produce large yields and resist disease.
New technologies in agriculture
Acknowledging that it will be a challenge to grow enough food for a global population that is projected to reach 10 billion in the second half of this century, Singh emphasized the need for people to accept the use of new technologies and techniques in farming.
“People will need to trust new [agriculture] technologies. … We need to be open-minded,” he said, noting that there is a general acceptance of new technologies in other fields such as medicine and manufacturing.
“You have to see what’s good about it before you straight-out reject it,” he said, highlighting that GM crops require less pesticide than their non-GM counterparts.
Singh, second from left, teaching students in CIMMYT’s Wheat Improvement Course how to score seeds for quality in 2007. (CIMMYT)
The lighter side of working in Mexico
Singh recalled some amusing experiences from his early days in Mexico when his Spanish was still very much a work in progress. He told MND that the first thing some of his “colleagues in the field” tried to teach him while he was working on farms near Ciudad Obregón, Sonora, was precisely “not what you should be learning.”
Nevertheless, Singh found value in the swearing and slang lessons he received, explaining that he saw them as an opportunity to learn what not to say in polite company.
“But then if by mistake you say [one of the bad words] everyone laughs. You need to be very cautious!” he said, before noting how such interactions with his Mexican colleagues in fact helped to build camaraderie.
Life in Mexico
Singh said that the friendliness of the Mexican people has been a constant throughout the 40 years he has lived in Mexico, and noted that he has developed strong bonds with colleagues, friends and neighbors during that time.
Over his career, Singh has built a rich life and career in Mexico. (CIMMYT)
He has observed many changes in Mexico since he moved here in the early 1980s, describing his adopted homeland as a constantly “evolving” country. He also remarked that the Indian community in the greater Mexico City area has grown considerably over the same period.
In his initial years in Mexico, Singh recalled gathering with “just five or six [Indian] families” for cultural celebrations such as Diwali and Holi, whereas he recently attended an event at the Indian Embassy alongside hundreds of his compatriots.
“I met people there who I had never met before,” Singh said after acknowledging that the Indian community in Mexico is now “huge.”
While he’s now retired from his position as head of global wheat improvement at Cimmyt, he remains a senior advisor for the research center and continues to share his vast knowledge with farmers in Mexico and those abroad in countries such as China and his native India.
Singh told MND that he would visit both Asian countries during wheat harvests in the first half of this year to observe firsthand the results of the latest growing seasons and hear about the challenges farmers face.
But as much as he likes to travel, the acclaimed wheat geneticist and breeder is always happy to return to Mexico, where he has now lived for more than half his life.
Mexico today, “just feels like it’s my home — that’s it!” Singh said.
Photos of this strange Mexico City scene started circulating on social media this week. (Screen capture)
Images of a Tesla car crushed by an Olmec colossal head in Mexico City recently went viral this week, giving way to all kinds of theories on social media.
The unusual scene was discovered in the Roma Norte neighborhood between Mérida and Colima streets. While some thought it was an AI-generated image, others suggested aliens had dropped the Olmec head onto the Tesla.
But neither artificial nor extraterrestrial intelligence was involved: it’s actually an art installation by Mexican artist Chavis Mármol.
“This is the last in a series of sculptures in which I return to the Olmec heads to talk about specific topics,” Mármol wrote on an Instagram post. In a previous part of the series, the artist imitated Mexico’s ubiquitous app delivery workers, distributing food from an Olmec head-shaped delivery bag.
The name of the series alludes to tamemes, porters who carried loads on their backs in pre-Columbian times. The word tameme comes from the Nahuatl verb “tlamama,” meaning “to carry.” Colossal stone heads are the best-known material legacy of the Olmecs, Mesoamerica’s first major civilization, whose culture flourished on the Gulf coast beginning in 1200 B.C. 17 of the heads have been found so far.
In this video, Mármol explains more about his work
The sculpture combines humor and criticism, emphasizing the importance of conserving and valuing one’s roots.
“The Olmec head imposes itself over the technological object, bursting and crushing it,” the artist explained in an accompanying video. The Tesla vehicle, he said, “is just a product of a capitalist system.”
“What matters is where we came from, who we are, and who we have been for generations,” Mármol added. In a later Instagram post, the artist also mentioned that his intention was to “troll Elon Musk and his new car plant in Mexico.”
The art piece was installed in collaboration with Colima 71 Art Community Hotel and, according to El Universal newspaper, its installation required a crane to lift the 9–tonne Olmec head replica and drop it onto the blue Tesla Model 3.
Originally from Hidalgo, Chavis Mármol studied Visual Arts at the Autonomous University of the State of Hidalgo (UAEH) and the National Autonomous University of Mexico (UNAM).
Just over a decade into his career, he has participated in various national and international exhibitions and has received multiple grants and awards.
The Mexican peso appreciated on Wednesday morning to 16.66 and then weakened slightly, coming close to its best position in over eight years. (Cuartoscuro)
The “super peso” is most definitely back.
The Mexican peso appreciated on Wednesday morning to reach 16.66 to the US dollar, its strongest position since July 2023.
By 1 p.m. Mexico City time, the peso had weakened slightly to trade at 16.68 to the greenback, according to Bloomberg but recovered to 16.67 by the close of the trading day.
While the peso reached a high of 16.62 last year, the USD:MXN exchange rate at the end of a trading day hasn’t been below the 16.66 level seen this morning since December 2015.
The peso has had a good month, appreciating by around 2.3% after closing at 17.05 to the dollar on Feb. 29.
On Tuesday, the currency was trading at 16.80 to the greenback at the close of markets, meaning that it appreciated just over 0.8% to reach 16.66 on Wednesday morning.
The board of governors of the Bank of Mexico meets next week. Could a rate cut, and a weakening of the peso, be coming? (Wikimedia Commons)
The El Financiero newspaper noted that the appreciation of the peso on Wednesday occurred as investors continue to bet that the United States Federal Reserve will cut its benchmark interest rate from the current 5.25%-5.5% range at some stage this year.
The peso has benefited from the wide difference between the Fed’s key interest rate and that of the Bank of Mexico (Banxico), which has remained at 11.25% since it was raised to that level in March 2023.
Mexico’s central bank is also expected to cut interest rates this year, possibly even as soon as next week after its board holds its monetary policy meeting on March 21. A cut in the U.S. before one in Mexico would likely benefit the peso, whereas the peso would probably weaken if Banxico moves first.
Beyond the Mexico-United States interest rate differential, other factors that benefited the peso in 2023 and have continued to do so in early 2024 include record-high incoming flows of remittances and strong foreign investment.