San Antonio's International Ties
San Antonio has deep ties to Mexico, through families, trade along Interstate 35 and business owners who live on both sides of the border, and it also draws Canadians through the bases, the medical schools, retirement in the Hill Country and manufacturing supply chains. BOMCAS concentrates on Canada–U.S. tax: Canadians living, working or investing in San Antonio, Canadian suppliers selling into Texas and Americans with Canadian accounts. For Mexican matters, we prepare the U.S. reporting and work with the client's adviser in Mexico.
Treaty basics and residency tests are on our Texas cross-border page; this page applies them to San Antonio's Canadian and Mexican connections.
Canadians Working Here
Canadian nurses, physicians, researchers and engineers often come on TN status. Once they meet the substantial presence test, they are U.S. residents for tax and report worldwide income. The year of the move can be split under the treaty, and Canadian departure tax applies to the deemed sale of assets when Canadian residence ends. Canadian employers who send staff to San Antonio projects need to check withholding and treaty limits on the employee's U.S. earnings.
Canadian Retirees in the Hill Country
Retirees who spend the winter in Texas but keep their home in Canada can stay nonresidents if they are in the U.S. fewer than 183 days in the year and file Form 8840 to show a closer connection to Canada. Those who move permanently become U.S. residents; their CPP and OAS are then taxed only in the U.S., like Social Security, and their RRSPs and RRIFs keep their deferral under the treaty. TFSAs do not, and Canadian mutual funds can create PFIC reporting.
Canadian Suppliers to Texas Plants
Canadian manufacturers supplying the auto and aerospace plants in and around San Antonio may never set foot in Texas, or may keep inventory in a local warehouse, send technicians or open an office. The treaty protects business profits unless there is a permanent establishment, but it does not cover the Texas franchise tax, and Texas sales tax applies to remote sellers above the threshold. We review the arrangement before it begins.
Mexico
For San Antonio families with Mexican businesses, ranches or bank accounts, the U.S. side involves reporting worldwide income, foreign accounts on FBAR and Form 8938, Mexican companies on Form 5471 and gifts or inheritances from Mexican relatives above the threshold on Form 3520. The U.S.–Mexico treaty can reduce double tax on some income. Mexican nationals who buy San Antonio property and later sell it are subject to FIRPTA withholding. We prepare the U.S. forms and coordinate with Mexican advisers.
Selling San Antonio Property as a Nonresident
When a nonresident sells a San Antonio home or rental, the buyer's title company generally withholds 15 percent of the amount realised under FIRPTA, with a lower rate or exemption for some lower-priced homes bought as residences. Filing a U.S. return reports the actual gain and often returns part of the withholding.
Common Filings
- Form 1040 or 1040-NR and Form 8840.
- FBAR and Form 8938.
- Forms 8621, 5471 and 3520.
- Form 8833 treaty statements.
- FIRPTA withholding refunds.
San Antonio Cross-Border Tax Questions
Can I winter in San Antonio without becoming a U.S. resident?
Usually, if you are in the U.S. fewer than 183 days and file Form 8840 showing a closer connection to Canada.
Do you handle Mexican tax returns?
No. We prepare U.S. returns and forms for clients with Mexican ties and work with their advisers in Mexico.
Does a Canadian supplier to a Texas plant owe Texas tax?
It may owe the franchise tax and need a sales tax permit even if the treaty protects it from federal income tax.
Is FIRPTA always 15 percent?
Generally, though lower rates or exemptions can apply to some homes bought as the buyer's residence.
Talk to BOMCAS About Cross-Border Tax in San Antonio
Foreign-owned companies still file the business return and new residents a personal return. Local sales tax, books and payroll continue as for any San Antonio firm. Plan a move in advance, and use late filing for missed forms. The same subjects across the state are covered on our Texas pages for business taxes, personal returns, sales tax, bookkeeping, payroll, planning and late filing, with a summary in the statewide overview.
Send BOMCAS a short note about your San Antonio business or household and we will come back with next steps and the documents we need for a quote. Reach us through the contact page or the form below, by phone at 780-667-5250 or at info@bomcas.ca. All San Antonio services are on the San Antonio overview. Nothing here is advice for your particular circumstances.