How many expats live in Mexico?

If you are looking for official numbers on expats in Mexico, make sure you look at a number of sources.

How many expats really live in Mexico?

It is difficult to say, because there are many expats flying "under the radar" that are living and working in Mexico on tourist visas.  There are also a number of foreigners that own property in Mexico, but do not live in the country full time.  It is expected that 5 million Americans will call Mexico home by 2025 as people look for low cost areas to retire migrate to Mexico

1.  Americans (Mexico has the largest population of Americans abroad) - estimated anywhere from 200,000 (highly unlikely!) to around 2 million
2.  Canadians - 1.4 million
3.  Spaniards - around 700,000
 
After the financial crisis of 2004 in Argentina, Mexico saw huge numbers of Argentineans flock to Mexico City.  In fact, there are now areas of the city where most of the waiters/models are from Argentina.
 
Now, a funny video about "illegal immigration" to Mexico:
http://www.thedailyshow.com/watch/mon-november-30-2009/american-refugees-seek-health-care-in-mexico

Setting Up: What is an S.A. de C.V.?

When you first open a business in Mexico, you will be faced with a variety of options...S.A. de C.V., S.R. de L., S.A., S.C., etc

It is important to note that in Mexico, sole proprietorships do not exist.  You must have someone else on the papers when you incorporate.  Many people who want to run their own businesses have silent partners who are listed in the paperwork, but in reality do not make any of the business decisions.

S.A. de C.V.'s must have a minimum of two partners (individuals or entities).  There is a misconception that corporations in Mexico can NOT be completely foreigned owned.  This is simply not true.  There are certain protected industries (oil and electricity for example), but the majority of corporations can be opened with foreign partners.

S.A. de C.V. means "Sociedad Anonima de Capital Variable" or.  In a S.A. de C.V. setup, the partners may alter the amount of capital at anytime either by adding new partners or just simply adding more capital, without ammending the original incorporation documents.

The S.A. de C.V. set up is the most common form of incorporating your business in Mexico. 

New Immigration Procedures for Foreigners in Mexico

Beginning May 1, 2010, changes to Mexico's immigration law will be put into effect. 

Changes are as follows:

The FMT, or Forma Migratoria de Turista, will be replaced with the FMM, or Forma Migratoria Multiple.  The FMM will be valid for up to 180 days from the date of entry into Mexico. 

The current FM-2 and FM-3 visas (for employees, business owners, investors, students, etc) which are paper booklets (similar to a passport) will be replaced with plastic cards.

These changes are great news for foreigners in Mexico (or those planning on moving) as they will help to ease the immigration process.

How to get an FM3 (or Mexican work visa)

One of the questions I am asked most often by people looking to open businesses or work in Mexico is "How do I get an FM3?". The FM3 is similar to a H1-B visa in the United States. It gives you the legal right to live and work in the country.

Check out my simplified article on how to get your FM3

I've had experience getting an FM3 on both sides of the border, and for some reason getting your FM3 at the Mexican consulate (locations in several big cities) seems to be easier.

If you are already in Mexico, your best bet is to go to the Instituto Nacional de Migracion in Mexico City with all of your paperwork:

Visa application (can be downloaded online)
5 passport sized photos (no earrings, hair must be down, no glasses, 3 frontal, 2 profile)
Copy of every single page of your passport
A letter, on company letterhead, from the company you will be working for stating your position, your salary, and the fact that they will be financially responsible for you during your stay in Mexico
Receipt of payment of fee (check with INM for costs)

The FM3 should be issued within 35 days.

If you don't speak Spanish that well, or you would just rather have someone else handle it, I recommend hiring a qualified lawyer. They will explain the process and take care of all of the paperwork and headaches so that you don't have to.

If you are in Mexico City, I highly recommend the law firm of Becker and Becker. Their staff is bilingual and very well versed in Mexican immigration law.