Originally Posted by GringoCArlos

It depends. If you work for a foreign company at a MX location, and have a "no imigrante" visa (used to be called an FM-3), have the US company sponsor you for the MX plant, and get paid outside of MX (into your US account), you do NOT pay MX income taxes. You must still file your annual US tax return but can use the Foreign Earned Income exclusion up to the limit (for 2011 it is $92,900) to also not pay income taxes in the US.

If the company you are going to work for here is a MX company, but they also have a separate sister US company for their business there, get them to structure the agreement so that you work for/get paid by the US sister company, and are on assignment to the MX company. You will be working as a specialist/consultant to the MX company.

That will work for the first 5 years in order to not be liable for the MX income taxes. There may be a twist to this by having a MX national for your spouse. If you get (what used to be) an FM-2 visa (inmigrante) you will be liable for MX taxes from day 1, but will receive credit against your US taxes for the MX income taxes paid.

There is quite a bit of paperwork to file with INM, but the company here can easily find an abogado to do this for you. The US company writes a sponsoring letter, the MX company writes a sponsoring letter, your college transcripts or proof of many years of experience in your field, etc.

(I didn't come to MX as a retiree, I came here to work, and went through this process. The tax savings are a great benefit to being a working expat.) Suerte.