Let's discuss taxation, retirement, and social rights for long-term immigrants in Japan and Mexico. For those settling in Japan, understanding the tax system is crucial. If you reside there for over a year, you're considered a tax resident, meaning your worldwide income is taxed. This is progressive, so higher earnings mean higher taxes.
Worldwide income? So, earnings from performances in Tokyo and royalties from elsewhere are both taxed?
Precisely. However, Japan offers robust social security benefits. Contributing to the National Pension System and Employees' Pension Insurance for a sufficient period qualifies you for retirement benefits.
That's reassuring. What about Mexico?
In Mexico, residency is generally established after 183 days a year. You're then taxed on Mexican-sourced income. While tax rates might appear lower than Japan's, the social security system is less comprehensive.
So, my income from selling sombreros on the beach would be taxable, but not my online comedy courses? What about retirement benefits?
Mexico has AFORE, a system of individual retirement accounts. Your retirement benefits depend on contributions. Non-contributory pensions exist, but Mexico's social safety net is less robust than Japan's.
So, Japan offers higher taxes but better social security, while Mexico has lower taxes but requires a more proactive retirement plan. What about healthcare?
Japan has universal healthcare; Mexico's system is more fragmented, often requiring private insurance for comprehensive care. Ultimately, the best choice depends on individual priorities—a strong safety net or lower taxes.
It seems like a trade-off. Thanks for the clarification, Mira.
You're welcome, Leo.