Welcome to the expat life!

I'm going on my second international relocation as a wife. We moved to Sao Paulo, Brazil, about 3 years ago and now we're moving to Mexico City, Mexico.
As I know very well relocating is not easy but it is a choice. So, even with all the issues we have I'll try to make the best out of it!

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Monday, October 25, 2010

Things the Relocation Company won't tell you

I did manage to take my dog to Mexico in-cabin and he arrived safe and sound! He was the big attraction at the plane for the flight attendants who told me he behaved much better than most passengers. And it's true, he was extremely well behaved. Never barked and never bothered! The kids were also very well behaved during the long flight. Once again I can't thank AA and it's crew enough!!


Well, we got to Mexico. And now the adventure starts. And this are the things the relocation company people haven't told me:

  • The kids NEED to be tested at school;
  • Renting a house here is not easy.
When I went on my Look-and-See trip I did not take my kids thinking it was not necessary. BIG MISTAKE! The school has a mandatory test for all the kids who are applying for a spot there. For ALL the kids! I didn't know it so I had to take my kids this time to make sure they'll have a place in their grades. And no one told me about this! But this time they took the test and we'll see if they'll be accepted.

And renting a house is a big ordeal! Anywhere else in the world you go with the relocation company and a realtor to search for houses, you find one within your budget, the landlords are happy they are renting the house to a multinational company, they negotiate the deal and it's done! In mexico, not that easy!!

First you find a house, then you negotiate in which currency the lease will be in, US Dollars or Mexican Pesos. Then there is the inflation index that need to be used every year. Anyone would think that if your contract is in US Dollars you will use the CPI US and if it is in Mexican Pesos then CPI Mexico it is, right? No, you're wrong. They want the rent in dollars and the CPI Mexico. They make a lot more money this way.

And how about getting a receipt for the payments with the SSN equivalent so the company can justify how they're spending this money? The landlords will NOT provide a receipt! Absolutely not! And what if your company, like mine, doesn't work this way? Then good luck finding a house! I'm back on the market looking for one right now.

The reason why they don't provide receipts is because under mexican laws if you buy a house to live on it you get tax benefits. If you rent the house and the government finds out about it they will tax the owner big time when they sell the house. So the landlords refuse to write receipts. No matter what your budget is this is the situation. You're not even allowed to change the utilities bills to your name. The landlords need to keep the house as if he's leaving there.

Bad news is that most multinational companies won't cheat on their taxes.  Now I have to try to figure this out and find a new place to live.



3 comments:

Cecilia said...

By all means avoid using Express Relo.

Anonymous said...

We rent our house in the US. We have the same situation. Americans generally suck it up and pay the taxes. I have no idea what percentage Latins pay compared to American though. In Argentina, they wanted cash payment as well and no changing the utilities.

Cecilia said...

In Brazil the tenants are supposed to pay the rent, condo fees (homeowners association), taxes and also to fix anything that brakes in the house/apartment they're renting. The taxes are around 8% of the property value- I think. The tenants also have to pay for all the utilities but they can put it under their names.

In Mexico the tax is already included in our rent but we do have to pay the homeowners association fee and a fee to use the golf club. Therefore I have no idea what the tax cost is. We have to pay for the utilities although we are not allowed to put them in our names - so forget about proof of residency.