FBAR and FATCA: What Mexico Expats Need to Know About Foreign Account Reporting

If you have a Mexican bank account, FBAR and FATCA reporting are not optional. Most expats know these rules exist in theory — fewer understand exactly what triggers them, what to file, and what happens if they don’t. Here’s the practical guide.

FBAR: FinCEN Form 114

FBAR stands for Foreign Bank Account Report. It’s filed with the Financial Crimes Enforcement Network (FinCEN), not the IRS. The filing deadline is April 15, with an automatic extension to October 15 — no separate extension request needed.

Who must file: Any US citizen, green card holder, or resident with a financial interest in, or signature authority over, one or more foreign financial accounts if the aggregate value of those accounts exceeded $10,000 at any point during the calendar year.

What “any point during the year” means: If your Mexican bank account reached $10,001 for even one day in 2025, you must file an FBAR for 2025, even if the balance was $500 on December 31.

What counts as a reportable account: Mexican bank accounts (checking, savings, investment), Mexican brokerage accounts, any account where you have signature authority (e.g., a Mexican company account you control).

FATCA: Form 8938

FATCA (Foreign Account Tax Compliance Act) reporting uses Form 8938, filed as part of your regular tax return (Form 1040). The thresholds are higher than FBAR:

• If you live outside the US: report if total foreign assets exceed $200,000 on the last day of the year, or $300,000 at any point during the year (single); $400,000/$600,000 for married filing jointly
• If you live in the US: $50,000/$75,000 thresholds apply (lower)

Most Mexico expats who file FBAR will not hit the FATCA thresholds unless they have substantial foreign investment accounts or are combining a Mexican bank account with other foreign assets.

FBAR vs FATCA: Key Differences

Most Mexico Expats Need to File FBAR

If you open a Mexican bank account — and most long-term Mexico residents do — and your combined foreign account balances exceed $10,000 at any point during the year, you file an FBAR. This is most Mexico expats. FBAR is filed electronically through the BSA e-filing system at bsaefiling.fincen.treas.gov.

Catching Up If You’ve Missed Years

If you had reportable accounts and didn’t file, the IRS has a Streamlined Compliance Procedures program specifically for expats who missed FBAR/FATCA filings due to non-willful failure (not deliberate evasion). Streamlined Foreign Offshore Procedures allow you to file 3 years of amended returns and 6 years of FBARs with reduced penalties. This is a formal amnesty-style process and worth using if you’ve been out of compliance.

Related Resources

• US Expat Taxes When Retiring in Mexico
• Do You Become a Mexican Tax Resident?
• How to Open a Bank Account in Mexico