Tuesday, March 1, 2011

Mexico the Lowest Taxed country in the world



Comparing taxes between countries is complicated simply because not all countries have the same types of taxes, nor do they apply them in similar way. The Organization for Economic Cooperation and Development (OECD) computes an "aggregate tax burden" consisting of the ratio of total tax revenues to gross domestic product. Included in the database are OECD member countries that represent many of the world's largest economies. Data from the 2010 edition of its Revenue Statistics report shows that Mexico is indeed the lowest taxed country in the world.

In addition to being the lowest taxed country in the OECD report at 21.1% based on the latest available estimates, Mexico is also ranked as the best place to do business from an overall tax standpoint and is evidenced from the sheer number of foreign business owners in popular tourist destination such as Playa del Carmen and Cancún. Mexico's low cost of living has attracted more U.S. expatriates and retirees than any other country and has also become the new hotspot of former Canadian residents, as well as many other peoples from around the world.

While Mexico has a reputation of being dangerous in some areas, most of the country is very safe. It also offers low property taxes and the highest quality medical care at costs far less than in the United States, with many of its doctors trained in the United States and a large number of US and Canadian health professionals having moved to Mexico, in particular the Yucatan, for the quality of lifestyle found in owning a home and living on the tropical coasts. The medical system is a combination of public, private and employer-sponsored insurance programs while funding for public healthcare continues to rise rapidly. 

All these factors combined with the recent economical disaster in the US have caused Mexico to become the new hotspot for sound financial investment and an entirely legal way to escape paying increasing taxes.


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