Does dual citizenship pay?

[Tecolote]

I was born in Mexico of U.S. parents, so I have a Mexican birth certificate (and also a U.S. birth certificate issued by the American Consulate in Mexico). I have an old Mexican passport issued when I was a child, and I have a recent U.S. passport.

I have some questions. If anyone knows the answers, I'd be grateful!

(1) Can I renew such an old Mexican passport by presenting it and my Mexican birth certificate to a Mexican consultate in the U.S.? I've e-mailed the nearest Mexican consulate in Spanish and they gave a completely non-committal, unhelpful response. It's 100 miles each way for me to drive there to talk to them in person (and would this help?!).

(2) If I renew my Mexican passport, does this mean I must enter Mexico as a Mexican? Related to this, if I live in Mexico as a Mexican, and receive U.S. income (U.S. Social Security and U.S. pension income, for example), do I have to pay Mexican income tax as well as U.S. income tax? Is there a reciprocity agreement, so that taxes paid to one country are treated as tax credits by the other country?

(3) Would I receive IMSS free as a Mexican? Would my wife also, who is a U.S. citizen, by virtue of being married to a Mexican?

(4) If I live in Mexico as a Mexican and my wife lives with me, does she acquire permanent resident status of some kind as a result of my Mexican nationality? The recent draft version of the new Ley de Migracion at

http://207.248.177.30/mir/uploadtest...A%20170512.doc

seems to indicate this.

Many thanks for any answers, suggestions, or advice! --I imagine some intelligent people would advise me to see a lawyer, but in my small town there isn't anyone versed in these things (and I would like to avoid a large attorney's fee if possible).

[sparks]

I would check with immigration in Mexico on what you need to do. Your Mexican passport has expired so I guess you enter with your US passport. Being married to a Mexican speeds the process but does not make it automatic.

If you are coming to Mexico anyway ... I would handle it here

[maesonna]

To the best of my knowledge and experience:

1. You have Mexican nationality by virtue of being born in Mexico and never having renounced it (you don’t mention having ever renounced your Mexican nationality, so I assume that is the case). You can apply for a Mexican passport like any Mexican abroad would. Check at the consular website what the requirements are for a Mexican to get a passport.

2. Yes, you have to enter as a Mexican (in theory).
What taxes you owe in Mexico are not due to your nationality, but to your country of residence. So if you were a non-Mexican living and working in Mexico, you would also owe the same Mexican taxes.
There is reciprocity, but it is complicated by the US policy of taxing its citizens and residents on worldwide income that exceeds the exclusion limits.

3. You can apply for IMSS on the same terms as any Mexican or legal resident. If you don't have an employer paying your social benefits, then like any Mexican—and like any foreigner legally residing in Mexico—you have to pay an annual fee to have IMSS coverage (and for your wife). It is not a very large amount. There is also Seguro Popular, to provide coverage for people who don’t have any other health insurance.

4. The new Ley de Migración isn’t entirely in operation yet. The way things have been until now is that being married to a Mexican improves your wife’s options for getting a residency visa. For example, she can be admitted as your economic dependent.

5. The big advantage you would have in Mexico as a Mexican national is that you don’t have to bother with a visa. You will be automatically eligible to work: you don’t have to go through the steps of proving that you are eligible for a work visa. Foreigners who want to get permission to work have to submit their qualifications (like providing relevant degrees), and in theory they can not take a job that could be filled by a Mexican.

[Tecolote]

Maesonna - Many thanks for your detailed, clear, and helpful reply, which I appreciated very much.

No, I have never renounced my Mexican nationality. In fact, when I was in my 20s, I went to a Mexican consulate and got a certificado de matricula, certifying my Mexican nationality-- so that I could legitimately live in the Maison du Mexique in Paris, France, while doing graduate work there. So, I have my birth certificate, my old expired passport, and my certificado.

Since I'm retired and don't plan to work any more (!), I wasn't sure how to understand your answer to my second question about taxes while living in Mexico. If all my income while living there comes from the States, am I taxed on this in Mexico? and if so, do you know if the taxes I pay to Mexico would be credits against U.S. income taxes? (I don't think I would plan to give up my U.S. citizenship, so would have to pay U.S. income taxes, alas...)

Since I don't plan to work in Mexico, do you think that, weighing the pros and cons, it would complicate or simplify life in Mexico if I'm considered a Mexican?

Many thanks again for your helpful reply!

----

Sparks - Thank you, too, for your response. I'm trying, before deciding to move back to Mexico, to get as clear a picture as I can of the consequences. I haven't made the decision to return to live in Mexico yet. The questions I'm trying to sort out would be helpful to answer "proactively," rather than after I've moved there.