Depositing And Withdrawing Money In Mexico
Before you make a deposit in a Mexican bank you have consider the New Mexican IDE tax law for cash deposits.
IDE Taxes bank law – The New Tax Law for Cash Deposits (IDE), applies to cash deposits in bank accounts and applies a 3% tax on the excess over $ 15,000 Pesos of the deposits (domestic or foreign) combined in all accounts you have in the bank. This tax will be charged automatically by the bank.
It won’t apply if:
» Your cash deposits for all your accounts not exceed $15,000 Pesos a month.
» You make check deposits.
» You make Wire transfers.
» If you pay cash payments to pay your credit cards, car loans, mortgage or personal credit lines.
How the IDE is calculated – for example, if during one month you made cash deposits for $30,000 pesos (or the equivalent in dollars) the IDE should be calculated as following:
Total deposit $30,000 Pesos - $15,000 Pesos = $15,000 Pesos over the limit. Take 3% of $15,000 Pesos = $450 Pesos you will owe for IDE taxes. The over the limit amount will be deducted automatically from your account on the last day of the month.
I will recommend you to use wire transfers or check deposits every time you can, instead of cash deposits.
WITHDRAWALS IN MEXICAN BANKS
ATMs are the most convenient way of withdrawing Pesos in Mexico. If you have a card from a foreign bank you will usually get a favorable exchange rate on your cash withdrawal.
Most banks charge about 1% of the transaction value for cash withdrawals with debit cards, while fees for cash withdrawals with credit cards can be significantly higher. For foreign cards some banks charge an additional ‘foreign exchange fee’. If you are staying in Mexico for a while, you will probably save yourself from fees by withdrawing cash with a Mexican card.
You can withdraw Mexican Pesos with any card that is connected to one of the global networks like MasterCard, American Express or Visa.