Sending money to Mexico during the coronavirus
Self-quarantining and social distancing due to the coronavirus may impact your ability to send money to Mexico. Read our guide to find out what options are available to you.
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Tax guidelines and regulations for large money transfers into Mexico
Your recipient may not have to pay taxes on the money — but you need to tell the IRS.
The IRS requires you to report any transfer over $10,000, and failing to file can mean hefty penalties — and in some cases even jail time.
How Mexico regulates large remittances
Mexico doesn’t levy specific inheritance, estate or gift taxes on large amounts of money transferred into the country, but your recipient may have to report the transfer as income when they file their yearly taxes.
Gifts to spouses, children and parents are exempt, but gifts to siblings are not — and if the government finds out that the stated recipient gave the money to someone else, it won’t be exempt.
Send money to Mexico with CurrencyTransfer
Exclusive: Minimum transfer of $1,000 for Finder readers (normally $5,000).
CurrencyTransfer lets you shop around for the best exchange rate on its online marketplace.
- Get the best foreign exchange rates available from this online marketplace
- Fast 1-2 day delivery to bank accounts
- Price-match guarantee if you find a better price elsewhere
Compare providers for your next large transfer to Mexico
Our table lets you compare the services you can use to send money abroad. Compare services on transfer speeds and fees, then click Go to site when you're ready to send.
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What are the penalties in Mexico if my recipient fails to file?
If your recipient doesn’t list the transfer on their income taxes, they could be charged with tax evasion in Mexico. If they can prove that the failure to list the transfer was accidental, they’ll have to pay any taxes due, along with a penalty. If the failure to file was intentional, they can be criminally charged.
Do I have to report large transfers out of the US?
Possibly. If you’re sending more than $15,000 as a gift, sending to a foreign account in your name that holds over $10,000 or sending over $10,000 as a business, you’ll need to let the IRS know.
By law, banks report cash transactions into and out of the country. Money transfer companies are sometimes held to reporting thresholds as low as $1,000. With so much attention paid to money entering and leaving the country, the government will likely discover if you fail to report large sums out of the US.
Sending a lot of money out of the country? Know what the IRS expects of you.
How much money can I send to Mexico?
There is no legal limit on the amount of money you can send to Mexico. Different money transfer providers will impose their own limits when sending to Mexico from the US, for example:
- Western Union’s sending limit to Mexico is $5,000.
- Xoom’s sending limit to Mexico is $10,000.
- MoneyGram’s sending limit to Mexico is $10,000.
- Wise’s sending limit to Mexico is $1,000,000
When sending large amounts of money you’ll want to go with providers that have extremely high limits or no limit at all. Wise’s $1,000,000 limit is useful, but compare XE against Wise as it offers competitive fees and no sending limit.
How can my recipient in Mexico get the money?
How your friends and family receive your money transfer depends on the provider and method you’ve used to deliver it. Available options include direct bank transfers, cash pickup and mobile wallet deposits. If you’re sending cash, your recipient may need to show ID or a transaction number to pick up the funds.
As with all international money transfers, be wary of potential fraud and only send money to people you know. Using a reputable provider can safeguard you from potential scams.
How to send money to Mexico
Bottom line
When it comes to tax regulations, Mexico is an easy country to send money to. Your recipient won’t have to fill out any extra forms, and depending on how much you’re sending and who you’re sending it to, you might not have to, either.
Before you start your transfer, compare international money transfer providers to make sure you’re getting the best deal on fees and exchange rates.
Frequently asked questions
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Ask an Expert
Is it better to make a transfer of greater than $10,000 or separate transfers of less than $10,000?
Hi Michael,
Thanks for your question.
If you are sending the money to one person only it will not matter if you’ll send it in one go or if you will separate the transfer to below $10,000. Your recipient may still have to report the transfer as income when they file their yearly taxes anyways. On the other hand, IRS requires you to report any transfer that you will do if it will go $10,000.
You can compare providers for your large money transfer to Mexico from this page. Feel free to use the calculator so you can identify which money transfer agency will best suit you. Just click the ‘Go To Site’ button so you can be routed to their page where you can sign up and bein the transfer process.
Hope this helps. ​Please feel free to contact us back should you require further assistance.
Kind Regard,
Mai
Has President Obrador imposed a new border adjustment tax fr money being transferred from Mexico to the U.S. or money from the U.S. to Mexico.
Hi James,
Thank you for leaving a question. There is still no update on the new border tax for money transfers. Our page indicates that in 2017, Congress submitted a bill proposing a 2% tax on remittances to Latin American countries that include Mexico, Brazil, Honduras and El Salvador — a tax that’s a significant key to funding the wall. We’ll update this page as details are finalized.
Hope this helps! Would you have further questions, please don’t hesitate to visit us again.
Regards,
Val
Hi. I need INF.
Hello Pedro,
Thank you for your comment.
If you’re referring to internet fund transfer, you may refer to our guide wherein you can also compare different international money transfer companies with their corresponding costs and fees. I hope this helps.
Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.
Regards,
Jhezelyn