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Tom Leonard of Hotel Perico – Best Places In The World To Retire User Account
House rental, Quintana Roo, Mexico – Best Places In The World To Retire – International LivingMexico's economic system protects the renter more than the property owners, which is somewhat a socialist policy. Certain countries have "squatting rights", wherein a person may squat on someone else's property if they needed it and if the property owner has more than one property. 
 
Mexico has something similar such that if someone owns more than one property and one is being rented out because he doesn't really need it, Mexico's laws protect the renter more. If the renter stops paying rent, there's not much the owner can do. The property owner can take it to court, which can take six to nine months before any settlement is decided on, during which time the renter doesn't have to pay any rent. When the renter leaves after a favorable court decision, there will be no fine, he doesn't have to pay any back-rent, and he won't incur any criminal record.
 
 
My advice to property owners and renters is to make sure that there is a really good and very clear contract, especially when you're the landlord.
 
(House rental, Quintana Roo, Mexico, pictured.)
Chris Gruenwald of Biencom Real Estate – Best Places In The World To Retire User Account
Downtown Ajijic, Mexico – Best Places In The World To Retire – International LivingMexico is more free market, ultra-capitalistic but there are certain exceptions like petroleum and energy and telecommunications (which can be argued one way or the other). 
 
Other than certain sectors, which the government is highly involved with, you would not find a heavy hand of regulation like you would in California. As a business owner, you are much freer to operate as you like as long as you operate within the laws but you are not as regulated. At the same time, it is also not as easy to find financing. You finance your business by yourself through your business activities but it is not as easy to raise money here at all as it would in California.
 
(Downtown Ajijic, Mexico, pictured.)
David Schwendeman of Mexlend – Best Places In The World To Retire User Account
Pastries being baked in a traditional oven, Mexico – Best Places In The World To Retire – International LivingThe economic system in Mexico is a little bit different than in the US and in Canada and it continues to evolve. The law in Mexico is based primarily on Napoleonic law rather than the Civil Law, of the US.  I can’t speak to the economic system or the legal Canada so much because I’m from the US, but I believe the US and Canada might be more similar than the US and Mexico or Canada and Mexico.
 
Mexico is getting more and more capitalistic. When we first moved here, there was considerable talk about the disparity between the lower classes and the upper classes and there wasn’t that much of a middle class. Now the middle class is expanding rapidly in Mexico. There’s so much entrepreneurialism!  You’re seeing lots of people opening businesses; anything from small Laundromats to artisinal bakeries to little bars and restaurants to financial services and shipping. And this is not just in the resort areas; the growth is palpable in urban areas as well. It’s a very, very exciting time in Mexico to see more and more people self-starting and experiencing the fulfillment and standard of living associated with owning and operating a business.
 
Entrepreneurialism is being encouraged and nurtured by the government and by the banks. You’re seeing personal loans and business loans being granted on levels that didn’t happen before. It’s a really exciting time to be here as you see society embracing opportunity that maybe we didn’t see so much of 10 or 15 years ago. 
 
I believe that some of the reasons things have changed in Mexico is on account of the age of information that we live in; the Internet and media.  With information comes knowledge.   People can see opportunity —and this is not just for Mexico - this is all over the world.  Folks can envision what they might achieve if they take steps A, B, and C . . . leading them to success.   In the past, when someone wasn’t aware of what they could have or what they could accomplish then they weren’t necessarily going to take the steps to do it. But when you see great accomplishments being made in the world – you get motivated.
 
Also, the availability of credit is changing across the board in Mexico.  Just 10 or 15 years ago hardly anyone had a credit card, and mortgages were pretty much unheard of. Today, nearly everyone has a credit card. Car loans are available and they’re getting more attractive in terms of the interest rates. Ten to 15 years ago, perhaps 1 or 2% of the population would have had a home mortgage. Now we’re up to about 15% of the population.
 
It’s no secret that Mexico has had issues with its banking industry at several different times, with peso devaluations, etc.  As the peso stabilized, the banking industry had a lot of work to do to gain the trust of the Mexican population. Now, we see the results of those efforts.  We see people using banks and leverage, we see credit offered through a variety of sources, and you see the concept of leverage catching on whereas previously it was looked at as something to be wary of.
 
(Pastries being baked in a traditional oven, Sonora, Mexico, pictured.)
Alberto Alvelais of Alvelais & Asociados – Best Places In The World To Retire User Account
Pemex oil platform, Mexico – Best Places In The World To Retire – International LivingThe economic system in Mexico is in the center.  There are no socialists any longer.  That disappeared 15 years ago even though, in theory, we have socialistic parties.
 
The economy in Mexico is not as capitalist as in the US, but we are very linked with the US.  We in Mexico always try to go and see your model because for Mexico, the US is always a dream. 
 
There is no longer much government interference in the economy of Mexico. Years before, the government ruled the economy of Mexico, but not anymore. The government sold all those types of business. Now the government only collects taxes.  
 
(Pemex oil platform, Mexico, pictured.)
Jesus Celis of RH Fiscalis – Best Places In The World To Retire User Account
Pipeline in Mexico – Best Places In The World To Retire – International LivingMexico’s economic system is capitalism and free market.  In Mexico we have a saying that translates loosely to "You don’t earn the money you deserve, you earn the money you negotiate."  The more value you add, the more you earn.
 
The government of Mexico is involved with the petrol and electricity industries, but according to the new changes in the law the petrol industry is opening to different investors and not only to the government. The government cannot invest all the money necessary to produce good services or good products sold to the people, so they opened the industry to others in order to get more investment and do the jobs the government cannot do. 
 
If you were to open up a business, you only have to follow the rules and get the permits necessary to run a business here, and that’s it. The government is going to leave you to run your own business as long as you pay taxes and you follow the law. That’s it. It’s very simple.
 
(Pictured: Pipeline in Mexico.)
John Venator of Casa de los Venados – Best Places In The World To Retire User Account
Valladolid Christmas party, Mexico – Best Places In The World To Retire – International LivingMexico’s economic system is free market capitalistic with a little tinge of socialism in terms of access to medical care, the Social Security hospitals as far as a bit of a safety net.
 
One of our employees unfortunately discovered that she had kidney failure and she was in the hospital for about a month. She now has a home dialysis machine provided free of charge so she plugs herself in each night to have dialysis. Once every six weeks, she has to go to a nearby town where she spends the whole day to do dialysis. What the home dialysis does not provide is all paid for by the Social Security. Interestingly enough, when that happened, she was delayed about a day or so getting into a hospital because she never had applied for a Social Security card even though I paid for it. So the first thing I did after we gathered her birth certificate and the proper papers so she could apply for it was to get in a hospital and get the services free of charge.
 
After that, we had a little meeting of our employees along with our administrator and I asked who had applied for Social Security, not just because they were in my employ then but anytime in the past. Only one of our employees said and she never bothered to enroll her husband or her children. So I told them all, “You have 30 days to go ahead and do it. You need a photograph. You can go across the street to a photographic studio and I'll pay for that. Get you birth certificate and other things you need and in a month or less, I want you to come here with Social Security cards with the photo ID on them for you, your spouse and any children you have under age 18 and our administrator is going to make a photocopy of them. You then keep them, but if anything even happens to you here, while you are at our house, we will have photocopies of that. We can take you to the hospital immediately.”
 
So there is a social network in terms of at least hospital medical coverage. There is a payee pension system also but we know somebody in Cancun, an American, who is the owner of a marina and after running it for about 15 years they sold it and moved back to North Carolina. He never ever got a dime of the money he put in or the match money that the government supposedly put in because Mexico is very persnickety about paper work. Strange ironic thing is that the name on his account had his middle name wrong in Mexico. Try as he could, even hiring Mexican lawyers, he was never able to convince them that he was that person and the middle name when this account was set-up was wrong. Shame on me, we just found out about it. He never got a dime of that money.
 
So they are very persnickety about signatures on bank accounts. Checks have to be sequential. You cannot have one checkbook and your wife has the other and you both write checks because your numbers will be non-sequential. The signatures on those things have to be absolutely exactly the same as it is on their signature card. This is a country, like a lot of places, that floats on paperwork, duplicate copies, and notarized copies. That is again where you need to do it right and understand their system and understand how their business is done.
 
Mexico has a free market capitalist economy. There are huge multinational businesses here. There is a small little ma and pa kind of corner grocery, snack shop, and other similar businesses. Tax evasion is not as bad as it is in Italy but there is an awful lot of off the books business done here, too. It was even to the point when I was told, “Do you want to just pay your construction workers or your staff in cash off the books?” I said, “No. I want to do it totally legally,” but there are a lot of people that are paid that way. I know somebody who owns a restaurant. He pays his people in cash and plus the tips they get but they are not legal employees.
 
(Annual Christmas Party for employees' children of Casa de los Venados, Valladolid, Yucatan, Mexico, pictured.)

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