For the past week, I have been inundated with emails from the MazInfo.com group. While some of it holds my interest, much of it is like listening in on an 8 party line. One interesting thing that crossed the ethernet last week was the planned revision of the rules that govern capital gain tax collection. Apparently, FM3 holders have historically been granted a reduction in Capital Gains tax. This either has changed, will change or could change back, depending on who you decide to listen to. Bottom line is that there is a distinct possibility that you will have to be a FM2 holder (permanent alien resident) in Mexico in order to qualify for Capital Gains tax reductions. Without an FM2, you will pay 26 to 30% of any gain associated with your real estate transactions. These taxes go towards water supply, fire and police protection and other municipal services.