Banking for Mexico-Based Expats: RFC Tax ID, SPEI Transfers, USD Accounts, and the Cash Economy

Mexico has long attracted expats from the United States, Canada, and increasingly from Europe, drawn by its climate, culture, affordable healthcare, and vibrant cities. Mexico City in particular has established itself as one of the most cosmopolitan capitals in the Americas, with a thriving digital nomad and international entrepreneurship scene. The banking system, while functional and increasingly digital, presents some specific challenges for foreign nationals that are worth understanding before arrival.

This guide is for general information only and does not constitute financial, legal, or tax advice. Mexican banking and tax regulations change regularly; consult a qualified Mexican contador público or lawyer before making financial decisions.

---

RFC: The Mexican Tax Identification Requirement

The RFC (Registro Federal de Contribuyentes) is Mexico's tax identification code, assigned by the Servicio de Administración Tributaria (SAT — Mexico's tax authority). The RFC is required for:

• Opening a formal (fully functional) bank account in Mexico
• Signing employment contracts and receiving formal salary payments
• Purchasing real estate
• Registering a business
• Issuing or receiving facturas (tax-compliant invoices)

For foreign nationals:

• An RFC can be obtained by foreign nationals who have a legal immigration status in Mexico (temporary or permanent resident card — tarjeta de residencia temporal or permanente)
• Tourist visa holders (technically, most foreign nationals in Mexico enter on a "Forma Migratoria Múltiple" or FMM) cannot obtain a full RFC and are therefore limited in their ability to open standard bank accounts
• The RFC format for individuals is derived from the person's name, date of birth, and a verificator code

CURP (Clave Única de Registro de Población): Additionally, the CURP is a biometric population registry number used alongside or in place of the RFC in some banking and government contexts. Foreign nationals in Mexico can obtain a CURP through the INM (Instituto Nacional de Migración).

For expats planning to stay long term in Mexico — particularly those from the UK who retire or work remotely there — obtaining a Temporary Resident Card followed by a Permanent Resident Card (after four years) is the correct path, and both enable RFC registration.

---

Major Mexican Banks

BBVA Mexico

BBVA Mexico (formerly BBVA Bancomer, Mexico's largest bank by retail deposits) is a subsidiary of Spain's BBVA Group. It has the widest branch and ATM network in Mexico and offers a well-regarded digital banking platform. BBVA Mexico is typically the most accessible option for foreign residents, with reasonable documentation processes for non-Mexican nationals who hold a residency permit.

Banamex (formerly Citibanamex)

Banamex — formally Banco Nacional de México — is one of Mexico's largest and oldest banks (founded 1884). It was acquired by Citigroup in 2001 and operated as Citibanamex. Citi announced its intention to exit the business in 2022, and in December 2024 formally separated Banamex into a standalone consumer bank (reverting to the Banamex brand). During 2025 Citi sold a combined stake of around 49% to private investors, retaining the rest pending an eventual public listing. The bank remains a mainstream banking choice with an extensive retail network, though prospective customers should be aware that its ownership structure is still in transition.

Banorte

Grupo Financiero Banorte is Mexico's largest domestically owned private bank. Unlike BBVA and Banamex (which have foreign parent companies), Banorte is a purely Mexican institution. It has a strong reputation for retail banking and has invested significantly in digital services. Banorte is often preferred by Mexican nationals and those with established Mexican business relationships.

Santander Mexico

Santander's Mexican subsidiary is a significant player in retail and corporate banking, leveraging the global Santander brand and infrastructure.

HSBC Mexico

HSBC's Mexican operation is more focused on corporate and high-net-worth clients than standard retail banking. For internationally mobile HNW individuals, HSBC Mexico's Premier offering can provide connectivity to HSBC's global account infrastructure.

---

SPEI: Mexico's Real-Time Payment System

SPEI (Sistema de Pagos Electrónicos Interbancarios) is Mexico's interbank real-time electronic transfer system, operated by the Banco de México (Banxico — Mexico's central bank). SPEI enables:

• Near-instantaneous transfers between any Mexican bank accounts
• 24/7 availability (unlike many older payment systems)
• Transfers initiated via internet banking, mobile apps, and bank branches
• Both individual and business transfers

SPEI is the equivalent of the UK's Faster Payments Scheme and has been operational since 2004. For expats, SPEI means that domestic MXN transfers between Mexican accounts are immediate and free or very low cost — it is the standard mechanism for rent payments, business payments, and larger personal transfers.

SPID (Sistema de Pagos Interbancarios en Dólares): For USD-denominated transfers between Mexican banks, SPID operates on similar principles — enabling direct USD account-to-account transfers within the Mexican banking system without requiring conversion to MXN.

---

USD-Denominated Accounts in Border States and Beyond

A distinctive feature of Mexican banking is the availability of dollar-denominated accounts (cuentas en dólares), particularly in northern border states (Baja California, Sonora, Chihuahua, Coahuila, Nuevo León, Tamaulipas) and in major cities with significant US commerce.

Why USD accounts matter:

• Mexico's proximity to the US and the depth of cross-border commerce means USD is widely used in business transactions near the northern border
• USD accounts allow businesses and individuals to hold and transact in dollars without automatic conversion to MXN, avoiding exposure to peso volatility
• For British expats, dollar accounts provide a convenient intermediate currency between GBP and MXN — though the GBP/USD spread is still a consideration

Opening a USD account in Mexico:

• Requires RFC, valid identification, proof of address, and source of funds
• Most major banks (BBVA Mexico, Banorte, HSBC Mexico) offer USD account options
• Some border-area banks offer specialised cross-border services for individuals and businesses with operations on both sides of the US-Mexico frontier

---

CNBV Regulations and Consumer Protections

The CNBV (Comisión Nacional Bancaria y de Valores) is Mexico's banking and securities regulator, equivalent to the UK's FCA. Key consumer protection frameworks include:

• CONDUSEF (Comisión Nacional para la Protección y Defensa de los Usuarios de Servicios Financieros): Mexico's financial consumer protection agency; handles complaints and disputes between customers and financial institutions
• IPAB (Instituto para la Protección al Ahorro Bancario): Mexico's deposit guarantee equivalent, protecting deposits up to 400,000 UDIs (a inflation-indexed unit; approximately MXN 3.3 million or roughly GBP 160,000 at 2026 exchange rates) per depositor per institution
• AML regulations: Mexico's financial system has strengthened AML compliance in recent years under FATF requirements; banks conduct enhanced due diligence for large cash deposits and international transfers

---

Cash Economy Considerations

Despite the growth of digital payments, Mexico remains a substantially cash-based economy, particularly outside major cities and in sectors such as:

• Street food markets (tianguis) and local markets
• Small restaurants and local businesses
• Taxis (though Uber and DiDi have reduced this significantly in cities)
• Domestic workers and informal services

Practical cash considerations for expats:

• Keep a reasonable amount of MXN cash accessible, particularly when travelling outside Mexico City, Guadalajara, Monterrey, and tourist areas
• ATM security: use ATMs located inside banks or shopping centres rather than street-facing machines; card skimming has historically been more prevalent in Mexico than in the UK
• Large cash deposits: Mexican banks are required by the CNBV to report cash deposits above certain thresholds to the Unidad de Inteligencia Financiera (UIF — Mexico's financial intelligence unit); source of funds documentation may be requested

---

Mexico's Remittance Market

Mexico receives one of the world's largest remittance flows, primarily from the Mexican community in the United States. In 2024, Mexico received approximately USD 60 billion in remittances — the country's second-largest source of foreign exchange after oil.

This has produced a highly competitive and efficient remittance infrastructure, which benefits all international money transfers into Mexico:

• Western Union, MoneyGram, Intermex: traditional providers with extensive pickup and delivery networks
• Wise: excellent MXN rates for online transfers from the UK or elsewhere; accounts receivable directly into Mexican bank accounts
• Remitly: US-focused but growing in the UK-Mexico corridor
• Bank wire (SWIFT): slower and more expensive than specialist providers but available for large transfers

For British expats receiving UK pension or salary income into Mexico, or sending property-purchase funds, a specialist currency broker or Wise will consistently outperform high-street bank rates on the GBP/MXN exchange.

---

Tax Residency and Reporting

Mexico taxes residents on worldwide income. UK nationals who spend more than 183 days in Mexico in a calendar year are typically considered Mexican tax residents and subject to ISR (Impuesto Sobre la Renta) on global income. Mexico is a CRS participant; Mexican banks report accounts of foreign-resident customers to their home tax authorities, and vice versa.

The UK-Mexico Double Taxation Convention governs the treatment of income earned in each country by residents of the other; verify treaty application with a specialist adviser.

---

How Global Investments can help

Global Investments supports internationally mobile HNW clients managing assets and property interests across multiple jurisdictions. For clients with Mexican connections — whether considering property, cross-border business structures, or international financial planning — our team can provide introductions to advisers with relevant expertise.

Contact our team to discuss how Global Investments can support your cross-border financial planning requirements.