How to Invest in US Stock Market from Mexico

Mexican residents and expats can invest in US stocks from Mexico by opening accounts with international brokers, or through select Mexican banks that provide US market access.

While the opportunity allows investors to diversify into US dollar assets and global companies like Apple, Microsoft, and Tesla, it also triggers US withholding tax, Mexican capital gains tax, and requires proper compliance with foreign regulations.

Questo articolo analizza:

• Can I invest in the US stock market if I live in Mexico?
• Is there capital gains tax on stocks in Mexico?
• How can Mexicans invest in US stocks?
• What are the risks of US stock investments from Mexico?

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The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.

Is it legal to buy US stocks from Mexico?

It is legal for both Mexican citizens and foreign residents in Mexico to invest in US stocks.

However, investors must comply with Mexican tax reporting rules, US regulations for foreign investors, and brokerage KYC (Know Your Customer) requirements.

The legality is clear, but the right choice of broker and tax compliance are essential.

How to buy US stocks from Mexico?

You can buy US stocks from Mexico by opening an account with an international brokerage platform that serves Mexican residents, completing the required documentation (including tax forms), funding your account in USD, and then purchasing your chosen stocks or ETFs.

Here’s a step-by-step breakdown:

1. Choose a regulated international broker that accepts Mexican residents.
   Popular options include Interactive Brokers. Some Mexican banks also offer indirect access to US stocks, but fees are usually higher. The key is to ensure the broker is licensed and has a strong reputation with international clients.
2. Complete registration and submit documents, including the W-8BEN form.
   When you open an account as a non-US resident, you’ll need to provide proof of identity and address. The W-8BEN form is essential because it declares your tax residency as Mexico, allowing you to benefit from the reduced 10% US dividend withholding tax under the US-Mexico tax treaty.
3. Fund your account using bank transfers.
   Most brokers require you to deposit USD, which means converting Mexican pesos to dollars. Currency conversion fees and exchange rates can affect your returns, so it’s important to compare your bank’s rates with other money transfer services to minimize costs.
4. Select your investments — individual stocks, ETFs, or ADRs.
   Investors can directly buy US stocks such as Apple, Amazon, or Tesla, or opt for exchange-traded funds (ETFs) that track the S&P 500 or Nasdaq for broader diversificazione. Another option is American Depositary Receipts (ADRs), which allow you to invest in foreign companies listed on US exchanges.
5. Monitor your portfolio with tax efficiency in mind.
   Beyond tracking performance, you’ll need to report dividends and capital gains in Mexico and ensure compliance with both US and Mexican tax rules. Some investors choose tax-efficient products like ETFs, which may generate fewer taxable events compared to frequent stock trading.

What are the tax implications of investing in US stocks from Mexico?

Investors are subject to taxation in both the United States and Mexico.

The US generally withholds 30% on dividends paid to non-residents, though this rate can be reduced to 10% under the US-Mexico tax treaty.

In Mexico, capital gains from selling US stocks are also taxable, typically at rates ranging from 10% to 35%, depending on the investor’s income bracket.

Double taxation can be avoided by using the treaty between both countries.

Is there a tax treaty between Mexico and the US?

Yes. The US-Mexico tax treaty reduces withholding tax on dividends from 30% to 10%. It also provides a framework to prevent double taxation.

This means income earned from US stocks may be taxed in the US, but investors can typically credit those taxes against their Mexican tax obligations.

Which broker is best for US stocks?

Interactive Brokers (IBKR) is widely regarded as one of the best platforms for buying US stocks from Mexico, but several other international brokers also offer solid options depending on your needs.

The table below outlines some of the most accessible choices for Mexican investors.

What is the primary risk when investing in US stocks from Mexico?

Have international stocks ever outperformed US stocks?

Yes, there have been periods when global equities outpaced the US, especially during downturns in the US economy or when emerging markets surged.

During the 2000s, often dubbed a lost decade, the S&P 500 delivered weak returns, while some emerging markets delivered much stronger gains.

In the mid-1980s, Japanese and European equities outperformed the US amid a weakening dollar and favorable local conditions.

More recently, in select years of the 2010s and 2020s, international stocks temporarily outpaced US equities when valuations shifted or the dollar softened.

Over longer periods, however, the US has shown more consistent outperformance.

For example, during many recent 10- and 15-year spans, the S&P 500 has significantly outpaced developed international indices, due in part to stronger profit growth, innovation leadership, and market liquidity.

For investors, this suggests that blending US and international holdings remains a prudent strategy.

Key Tips for Buying US Stocks from Mexico

• Work with reputable international brokers to ensure access and compliance.
• Always file the W-8BEN form to benefit from reduced tax withholding.
• Diversify across sectors, not just US tech stocks.
• Consider using ETFs or ADRs for easier exposure.
• Keep in mind currency risks when converting pesos to dollars.

Conclusione

Investing in US stocks from Mexico is not only possible but also a smart way to diversify wealth across global markets.

With the right broker, awareness of tax treaties, and careful planning, investors can maximize returns while remaining compliant.

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Adam è un autore riconosciuto a livello internazionale in materia finanziaria con oltre 830 milioni di visualizzazioni di risposte su Quora, un libro molto venduto su Amazon e un contributo su Forbes.