Legally Investing in Mexico [] INMTEC Legal Services

Published September 2, 2023

Legally Investing in Mexico
There are many forms of investing in Mexico that can be beneficial, in terms of not only having your savings working for you but also having your finances more accessible.

We have talked about investing in “tangible properties” or real property in Mexico with retirement funds, pension resources, and self-directed IRAs in previous articles; today, let’s talk about federally insured “pagarés” bonds.

The word “pagaré” in Spanish means literally “I will pay.” To understand a pagaré, it’s important to know that checks in Mexico are payable upon presentation—regardless of whether they are post-dated or not.

A pagaré then is a type of check that emphasizes the date it can be cashed. These then, are official post-dated checks.

When we discuss a pagaré in terms of a fiduciary investment, it’s understood that we purchase a “bank instrument” or bond at a given price and that the bank will pay a predetermined interest rate on this bond for a predetermined amount of time.

For example, if we were to purchase a pagaré for 28 days at 7.00% annualized interest for any amount ranging from US$100 upwards, the bank at the maturity of the bond would deposit “cash” the bond back to us and take care of all the taxes as well as pay the appropriate interest owed.

This can and is an extremely safe way to have your resources working for you even when you are not “using” them. Typical bonds in Mexico can be purchased for minimal amounts at higher than U.S. interest rates for terms of as little as 28 days and up to 90 days, 6 months, or 1 year. Interest rates tend to go up with the term of maturity extension.

For example, the Mexico 10-year bond yield was 9.11% on Tuesday, May 3, 2022, according to over-the-counter interbank yield quotes for this government bond maturity.

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INMTEC Legal Services.

San Miguel Allende, Gto.

info@inmtec.net

Office 415-121-9005

INMTEC SERVICIOS LEGALES is a bilingual legal firm, offering legal advice, in Real Estate, Labor, Family and Corporate Matters, also counting with immigration procedures, as well as Litigation in Civil, Commercial, Criminal, Administrative and Tax Law. Our attorneys have four decades of experience in all the branches mentioned earlier. We focus on our clients with Enthusiasm showing great Interest, Professionalism, and Attention, reflecting these in your case, which likewise is done with efficiency and great performance. Making your experience with INMTEC SERVICIOS LEGALES pleasant and with the expected results. INMTEC SERVICIOS LEGALS offers offices in San Miguel de Allene and Mexico City, which are deserving of our clients and have the best technology and infrastructure to give our clients security and comfort during their process with INMTEC SERVICIOS LEGALES.

At your service Ing. Angel Marín Díaz, President and C.E.O. INMTEC SERVICIOS LEGALES S.A. by C.V Lic. Edgar Rayas Bautista Managing Director INMTEC SERVICIOS LEGALES S.A. by C.V

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