Low tax rates in Mexico

In a study that examined 95 cities in 10 countries, Mexico tax rates came out on top for having the least total tax burden faced by companies doing business there.

The study, released Wednesday by business research firm KPMG, ranked Mexico #1, making it the best place to do business from a tax burden point of view.

Mexico was also ranked #1 in the same category in 2008. This year Canada garnered the #2 spot, with the Netherlands and Australia coming in third and fourth.

Topping the list of Mexican cities with the most competitive business tax structure were Monterrey and the Mexico City.

Mexico’s business friendly tax structure is just one surprising fact that often gets lost in the news of drug-based violence as gangs compete for access to the U.S. illegal drug market. The other surprise is that most of Mexico is remarkably safe… so safe, in fact, that Mexico is home to more U.S. expats living abroad full or part time than any other country.

Merida, the capitol of Mexico’s Yucatan state, is just one example. Home to hundreds of U.S., Canadian, and other expats from around the world, Merida has a population of nearly 1 million yet is clean, quiet, and remarkably safe, with excellent infrastructure and travel connections through its international airport.

With a wealth of modern health care facilities, Merida is attracting a growing number of expats drawn by high-quality medical care at a fraction of the cost in the U.S. Low cost of living, extremely low property taxes, and nearby Gulf beaches complete a package that makes Merida one of the most popular current retirement and second home destinations for expats from north of the border.