Living in Los Cabos: The Mexican “Green Card”

I got an email from someone who is moving to Mexico; I’d sent some info about working in Cabo that he misunderstood. So rather than clarify myself to one person I decided to put it on the blog. So here’s what I think I know about it. Bear in mind that the law changes as Mexico continues to improve its Immigration systems. I’ve read that President Calderon signed new legislation some months ago and it will take effect in the near future.

First, if you are going to be in Mexico you need to be approved by Immigration (INM). For tourists this is just a card you fill out and return when you exit the company. If you fly down it will be handed to you on the plane, if you’re driving you’ll need to stop and pick one up at the border, and if coming by sea you’ll check in at arrival. This applies to every man, woman and child entering the country.

If you’re going to be staying more than 180 days or if you own property in Mexico you’ll need to get a more permanent residency permit. These are, right now, referred to as FM3 and FM2. There is talk that the categories will be merged when the new legislation takes effect, so check when you arrive for the latest status or go to the INM website at www.inm.gob.mx. At present, you’ll start with an FM3, which is permanent residency but you’ve not been here five years. After five years of FM3 you can move into FM2. But let’s keep it simple (as simple as we can at least).

Within the FM3 category there are several sub-categories. The two most common are lucrative and non-lucrative. The easiest to get is the non-lucrative. You declare yourself to be a rentista, which is a person who does not need to work to support themselves. You’ll show three months of bank statements as part of your application proving that money is flowing in and out of your accounts. These applications are almost always approved. So why doesn’t everybody apply for rentista status? Because, if you are caught working, you’ll probably be deported.

If you want to work while living in Mexico you’ll apply for an FM3 lucrative. Now here’s where my friend got confused: our ‘green cards’ are extremely specific. It doesn’t say you’re OK to work, it says you’re OK to sell real estate for Cabo Realty Pros in their office on L. Cardenas L-5. If we move our offices (which we are doing BTW) to the other side of the building to L-3 the change must be filed with INM. Just to move to the other side of Dominos! Likewise, permission to sell real estate does not specifically allow you to handle rentals. OK, so now we realize that before you get an FM3 lucrative you’ve got to have a job offer.

Now here’s the important thing to know before you start looking for a job: YOU WILL NOT BE ALLOWED TO REPLACE A MEXICAN. If INM feels there are sufficient qualified Mexicans to fill all openings in the field in the local area your application will be denied. The easiest FM3 to get is to work in time share sales. To work in real estate you’ll need to show a license from wherever you’re coming from or at least that you’ve completed the training course required there. You can be a manager or supervisor in your own company or someone else’s, and there are other miscellaneous fields that are handled on a case-by-case basis.

Once you’ve got a job offer you can go to INM to get your FM3 lucrative or change an FM3 non-lucrative into your new status. Your new boss will have to sign a letter vouching for you and verifying that yes indeed you will be working in that capacity in their company. If you want to change jobs they will have to release you before you can move on.

Two more tidbits:

1. It has become much easier to handle your own application. That said, if you’re going for lucrative status there will probably be someone who handles the paperwork for you. If you’re going into either time share or real estate you will be enrolling with a ‘pay company’. Pay companies are specialized accounting firms who handle filing of taxes, processing of commissions and also make sure that their clients are working legally. They have immigration helpers on staff and will take you through the process. They also will, for a fee, take care of processing other individuals such as family members of clients or rentistas.
2. Even if you earn no salary, if you’re serving on a home-owners board or a charitable foundation board or are president of an association that has to be noted on your FM3. Usually the administrative staff of the organization knows how to handle it.

Last, remember that this is a fluid situation and details are changing rapidly. So check that website or talk to a pay company for the latest information. Hope that helps!

Carol Billups is Broker/Owner of Cabo Realty Pros. She has enjoyed working with both buyers and sellers for over eleven years and still thinks hers is the best job on earth. She is also the real estate columnist for Los Cabos Magazine. You can read more of her articles on the website blog www.caborealtypros.com. You can reach her from the U.S. or Canada at 1-760-481-7694, or in Cabo at 044-624-147-7541. You can listen to our 24/7 broadcast on http://www.livecabo.net for a mix of happy music, weather reports and local information.

© 2012 Carol S. Billups