Living In Mexico: Essential Expat Guide 2024

Mexico offers a varied culture, beautiful vistas, a good economy, and contrasting lifestyles. If you are looking to relocate to Mexico, our practical and informative guide will take you on the right path.

In this guide:

• Mexico’s highlights: the pros and cons.
• Legalities and paperwork: visas, residency options, and other paperwork.
• The cost of living: daily expenses, rental prices, and real estate.
• Mexico as a retirement destination.
• Facilities & infrastructure: travel connections, education and healthcare.
• Where to live in Mexico: an overview of the most popular expat locations.

Mexico’s highlights

Mexico is the number one country for US citizens and Canadians considering moving abroad. The country also attracts many other nationalities – Britons, Spaniards, and other Europeans.  

The main benefits of living in Mexico

• The low cost of living: Everyday expenses, rentals, and real estate are affordable. If you are relocating from Europe or North America, you will find that the exchange rate for the Mexican peso can also be beneficial to your pocket.
• Mexico is well-connected. Buses travel from North America through Mexico and beyond as far as Panama, thanks to the Pan-American Highway. You can use it to drive your RV from Canada or the U.S. Mexico City, Cancun, Puerto Vallarta, Los Cabos, and Guadalajara, amongst others, have excellent flight links within Mexico, Northern America, and Europe.
• The healthcare system in Mexico is modern, impressive, and of high-quality standards. Also, it is cost-effective: you could see a local doctor for around $15. Pharmacies are everywhere, and some are open 24/7.
• Beautiful beaches and picturesque coastlines: From the Riviera Maya – Cancun, Playa del Carmen to The Pacific coast beaches of Puerto Vallarta or Puerto Escondido, you can enjoy endless perfect vistas.

Things to keep in mind

1. The language

Locals speak a variation of Mexican Spanish, which may take some time to adjust to the expressions that differ from mainland Spain or other parts of Latin America. If you don’t want to learn Spanish, then consider living in a border city like Tijuana. Most of the people there will speak English.

2. Higher cost of properties purposely built for expats

New expat communities and house developments may cost quite a lot by Mexican standards. Newer developments are being quoted in U.S. dollars as opposed to Mexican pesos and are sometimes a reflection of the property prices in the U.S.A. 

3. Drinking water and water supply

Tap water is not considered safe to drink in Mexico.  People buy bottled water in supermarkets. Or you can use local water delivery trucks.

Living in more remote areas comes with the risk of having the municipal water supply only for a few days a week, especially during the dry season. It is important to have a water storage tank on the roof of your home to store water.

4. Toilet paper and drainage

In many locations, you cannot flush toilet paper down the toilet. In public places, it is common to see wastebaskets by the side of the toilet to place the used toilet paper. 

5. Crime can be an issue

As anywhere in the world, one must be cautious. It is a question of common sense and some adjustments in your habits. Small thefts and pickpocketing do occur, so don’t leave your possessions unattended.

6. Slower postal service

The post can be slower than expected yet reliable, especially in larger cities. There are numerous courier services, though, if delivery time and date are important factors.

Safety and crime

Mexico has a preconceived image of being a dangerous country. However, it is a matter of taking precautions as one would do in any country.

The Pacific coastal areas such as Puerto Vallarta and Puerto Escondido, for example, are known to be calm and tranquil, with only petty crime.

On the Caribbean side – Riviera Maya, Cancun, and Playa del Carmen are touristy but safe. Border towns such as Tijuana and Cuidad Juarez are somewhat notorious for crime. 

Safety in Mexico is about being sensible and not walking alone through a deserted neighborhood at night or not driving in desolate areas. 

You will find that driving through Mexico is incredibly safe. The country has well-maintained highways with plenty of rest stops.

Be aware, observe, and respect the local laws and customs, and your experience will be pleasant. It is a good idea always to have your Embassy’s information with you.

Mexico as a retirement destination

Mexico is in the top 20 retirement destinations worldwide, according to the Expatra Global Retirement Index.

The index is based on the Expatra Global Retirement Survey that asks international retirees to rate their retirement destination’s infrastructure, climate, ease of settling down, value for money, friendliness, and other aspects of life in their retirement destination.

Here’s how Mexico scores:

Climate and weather

You will find that the weather is pleasant year-round and warmer than in some parts of North America or Europe.

Some locations in Mexico have mild temperatures all year round, creating a climate beneficial for your well-being.

The humid and tropical heat, especially on the Pacific coast, can be a little overbearing and takes some getting used to! A ceiling fan and air conditioning can help a lot.

This is how the climate varies in the most popular expat locations in Mexico:

Location	Climate	Average Temperature	Rainy Season
Mexico City	Mild	18°C (64°F)	May to October
Cancun	Tropical	27°C (81°F)	June to October
Puerto Vallarta	Tropical	28°C (82°F)	June to October
Guadalajara	Warm	24°C (75°F)	June to September
Oaxaca	Mediterranean	22°C (72°F)	June to October
San Cristobal de las Casas	Mild	18°C (64°F)	May to October
Tulum	Tropical	26°C (79°F)	June to October
Mazatlan	Arid	26°C (79°F)	July to September
Merida	Tropical	29°C (84°F)	June to October
Monterrey	Hot	32°C (90°F)	May to October

Please note that these are average temperatures, and rainy season dates may vary slightly each year.

The cost of living in Mexico

In general, Mexico is way cheaper than North America or Northern Europe.

Here’s a comparison of the average cost of living in Mexico with the countries from which many people move to Mexico:

How much money do you need for a comfortable life in Mexico

You could live comfortably on $1,600 per month. This could cover all the basics such as rent, food, internet, and general living costs. This, of course, very much depends on the location. 

Mexico City is considered to have a higher cost of living than other parts of Mexico. However, it is still cheaper than in the United Kingdom or the United States.  

A three-bed apartment in Mexico City will cost you between $610 and $1,100 USD per month. In the outskirts or in a more remote region, monthly rent could be much less, say between $400 to $650 per month.

Utilities are cheap in Mexico. Electricity, water, and garbage services cost around $30, and electricity bills around $20, including the use of air conditioning. 

Unlimited broadband is around $25 per month. Prepaid cell phone costs are around 6 cents per minute.

Grocery stores, bakeries, local markets, and supermarkets have reasonable prices. An average shopping bill for a couple would be around $350 a month.

Restaurants and dining out at local food courts cost around $5. Food aficionados looking to try international or a la carte cuisine pay around $25 for a 3-course dinner.

Bus travel is cheap at 25 cents. Taxis and shared taxis can be from $1 upwards.

In cheaper locations, you could live on a budget of under $1,000 per month, inclusive of all necessities.

Renting a rustic ‘casita’ can be a cheaper option than a new modern apartment.

Look for rentals and houses for sale in Mexican pesos. They might be cheaper than those priced in dollars. 

Planning to buy or rent a home? Read our guide on How To Avoid Pitfalls When Renting Or Buying Property In Mexico.

Visas and residency in Mexico

First, you must obtain a visa – permission to enter the country. EU, UK, and North American nationals can obtain a tourist visa at the border.

This visa is valid for six months. It is common for expats to get this visa upon entering the country, stay for six months, and then leave the country for a few days and re-enter on a new tourist visa without bothering about permanent residency. 

The disadvantage is that it’s very difficult (or next to impossible) to open a bank account in Mexico with a tourist visa.

So, if you are planning to stay longer than six months, you should apply for residency.

Obtaining residency in Mexico

Mexico is considered one of the easiest countries to obtain a residency visa due to its straightforward and cost-effective application process. The process involves demonstrating adequate funds to cover living expenses and undergoing a simple immigration interview at the nearest Mexican Consulate.

There are two types of residency visas available: permanente (permanent) and temporal (temporary), each with specific income requirements and considerations related to the applicant’s “retirement” age.

Typically, the residency visa application begins outside Mexico at a Mexican Consulate, where an appointment is scheduled. The consulate provides a list of required documents for the interview, focusing on financial stability and the purpose of residency in Mexico.

During the interview, applicants are questioned about their financial situation, including how they plan to sustain themselves in Mexico, whether they receive a pension or social security, their employment status, and the reasons motivating their move to Mexico.

If you go through the application process yourself, it will cost you approximately US$300.

However, due to certain paperwork being in Spanish and the requirement for accurate completion of forms, many applicants opt to hire an immigration lawyer or facilitator for assistance. The professional fees for such services typically range between US$400-$700, excluding any immigration fees applicable at the time.

A temporary resident visa

It is valid from 6 months up to 4 years, issued initially for one year, after which it can be renewed. With this visa, you can work, leave, and enter the country as you wish.

To get it, you need to demonstrate that you have sufficient funds or a steady income. After 4 years, you can exchange your temporary status for a permanent residence permit.  

FM3 – the long-term non-immigrant visa

This visa gives you non-immigrant temporary residency status for an indefinite period or a fixed period, renewable every year.

It can be both lucrative and non-lucrative, depending on what you are planning to do in Mexico. The application process and fees for these two categories differ.

As a retiree, you would apply for a non-lucrative type.

You will need to demonstrate proof of steady regular income. As a rule, around $2,000 per month plus an additional $540 per month for a spouse will be enough. The income can be your investments, savings, dividends, incoming rent, or a retirement pension. 

FM3 does not lead to permanent residency. However, it can be swapped into FM2 later if you want.

FM2 – the immigrant visa

If you want a long-term residency in Mexico or citizenship, this is the right type of visa for you.

Just like the FM3, this visa can be either lucrative or non-lucrative, depending on whether you plan to work in the country. When applying for FM2, you must demonstrate a higher income than with FM3.

Mexican residency through real estate investment

If you own property in Mexico, you may qualify for a temporary residency permit, provided the property meets specific financial criteria:

• The property’s value should be at least $220,000.
• The property must be within Mexican territory.
• The property should have no outstanding debts, mortgages, or other encumbrances.
• The property’s valuation should align with the details specified in the title deed, sales contract, or a recent official appraisal.
• The deed or sales contract should be in your name.

Mexican residency through investment in business

Temporary residency in Mexico can be obtained through investment in a privately owned Mexican business or a corporation listed on the Mexican stock market.

To qualify, you must buy shares in a Mexican corporation (or invest in a privately owned business), investing a minimum of roughly $110,000, creating at least three employments.

Mexico residency card

When you arrive in the country with your newly issued visa, within 30 days, you will need to apply for a Mexican Permanent Resident Card at the National Immigration Institute (Instituto Nacional de Migracion (INM)).

Many expats hire a “fixer” or immigration attorney to help them with the process. The paperwork is not easy and should be done in Spanish. It will cost you anything between $500 and $1,500, depending on your helper’s rates, but it’s worth it.

Infrastructure – internet, TV, phone, mobile 

Cable packages that incorporate internet and TV are available in most areas of Mexico, but it is wise to check the coverage first. Some packages also include free calls to other countries and unlimited calls within Mexico, the Americas, and Europe, such as with Telmex and Cablevision.

Pay-TV services are available via cable companies and satellite TV providers Sky and Dish. Cablevision has a range of TV packages that include a fixed landline and internet services. 

Mexico has good and reliable mobile communications, Telcel, Movistar, AT&T, Nextel, and Virgin Mobile. Also, 5G is starting to be rolled out through Mexico.

There are two options for mobile cell phone packages – 

• Prepago (prepaid) – you can top up your balance at any convenience store or supermarket;
• Pospago – contract plans for a period of 2, 24, or 36 months at a fixed monthly rate, including a free cell phone.

Wireless home internet is offered in rural areas where there is a lack of telephone lines and serves as backup internet during bad weather periods.

Taxes in Mexico 

If you have a home in Mexico and live there for the most part of a year, you will likely become a tax resident in Mexico. It means you will have to pay Mexican income tax that ranges from 1.92% to 35%, depending on your income level.

If you set up a business in Mexico, you will have to pay Federal Corporate Income Tax at 30%.

Taxes on residential properties are a 2% acquisition tax, an annual property tax, and a capital gains tax when you sell your property. This tax is based on the assessment value of the property, which tends to be lower than the property’s actual market value.

The VAT is 16% in most of the country and 11% in border areas. It will show at the bottom of all receipts in Mexico.

Banking and bank accounts

To open a local bank account, you need to come to the local branch office in person and present your visa, ID, and proof of a Mexican address as well as an initial deposit.

Most banks will not allow you to open an account if you have a tourist visa.

Expats can open a basic checking or deposit account, which is useful if wages need to be paid in.

Some banks require a minimum amount to be always in the account and may specify how many ATM withdrawals are possible within a certain period.

US/Canadian citizens can open a bank account in US dollars as well as in Mexican pesos. 

Internet banking is widely available for Mexican bank accounts and can be a time saver as the lines at banks can be quite long.

Healthcare in Mexico

Mexico’s public healthcare system is funded through the Instituto Mexicano de Seguro Social (IMSS) and Seguro Popular – public health insurance systems. 

These two systems provide most medical services and prescription drugs. If you are employed in Mexico, you will be automatically enrolled in the IMSS, and your contribution will be deducted from your salary. 

If you’re running a business, retired, or self-employed, you can voluntarily enroll in the IMSS and pay an annual fee of approximately $500 per person.

If you have some pre-existing medical conditions, the IMSS might apply waiting periods or exclude them. In some cases, your application can be declined. 

If your IMSS application has been declined, you can either opt for the Seguro Popular or private insurance (although, again, a private insurer will most probably excuse your pre-existing condition).

The Seguro Popular is a low-cost healthcare alternative that is available for anyone not enrolled in the IMSS or those who cannot afford private health insurance. Both temporary and permanent Mexican residents can enroll. The cost range goes from $0 to about $500 per family per year. The Seguro Popular covers all conditions.

The downside to public healthcare for expats is that everything is in Spanish and has long waiting periods. Therefore private health insurance in Mexico can be a better option.

If you plan to travel back to your home country, you’d be better off choosing an international health plan to cover you in both destinations. To make sure you get the best value for money, compare international health insurance options from various providers to find the best deal. 

Here are a few examples of the costs without insurance:

• A GP or specialist consultation or home visit: 350 – 500 pesos (£14 – £20, $18 – $25). 
• Dental consultation: 400 – 1,000 pesos (£16 – £40, $20 – $50). 
• Having a crown fitted: 5,000 to 10,000 pesos (£200 – £397, $252 – $504), 
• Teeth cleaning: $28.00 (£22).

Schools and education options

While public education in Mexico is tuition-free, expats often prefer private education due to its higher quality standards.

In major cities like Mexico City, Guadalajara, and Monterrey, there are international schools that provide a curriculum in English and often follow American, British, or International Baccalaureate (IB) programs.

Some notable international schools include The American School Foundation (ASF) and Greengates School in Mexico City, offering excellent academic standards and diverse extracurricular activities.

The British American School has campuses in Ciudad de México and Puerto Vallarta. Another popular choice is The American School Foundation of Guadalajara.

There are also private bilingual schools throughout the country, including:

• Colegio Peterson in Monterrey – known for its quality bilingual education and strong academic reputation.
• International American School in Cancun – provides a high-quality bilingual education following the American curriculum.
• Instituto México Americano (IMA) in Tijuana – offers bilingual education with a focus on academic excellence.
• The Workshop School in Merida – provides bilingual education and a unique approach to learning.
• The Carol Baur International School (CBIS) in Querétaro – offers a bilingual education with an American-style curriculum.
• El Papalote School in Playa del Carmen – known for its bilingual education and strong sense of community.

Where should I live in Mexico?

There are a variety of options: off-grid and remote villages, colonial rustic towns, cities, or tropical beach locations – Mexico has it all!

Puerto Vallarta and its surrounds

Known as the Mexican Riviera, Puerto Vallarta is situated on the Pacific coast. It offers a stunning contrast of a Sierra Madre mountainous backdrop against miles of golden sand beaches. 

This is one of Mexico’s fastest-growing cities, and the influx of expats from all parts of the world has been increasing rapidly of late. 

The place is full of everything you need for a good life: amenities from shopping malls to local markets and long boardwalks with restaurants and hotels lining the coast. 

Find out more about Puerto Vallarta, its cons and pros, and the best areas and living costs in our Living In Puerto Vallarta guide.

Lake Chapala

Lake Chapala and the surrounding area are home to the largest concentration of U.S. expats worldwide, along with Canadians and other nationalities. 

Homes are designed in a Spanish style with gentle arches, hand-painted tiles, and adjoining gardens that bloom year-round. The climate is lovely and mild, without too much humidity.

Chapala is a charming town with cobblestone streets, cafes, and street vendors. It is also home to Vista de Lago, a popular country club and golf course.

Ajijic and Chapala are havens for artists and writers. Expats and locals tend to meet on Wednesdays, where there is a large outdoor artisan market that sells clothes, fruit, vegetables and fish, and household items.

The Baja Peninsula

The Baja Peninsula is home to 2 states: Baja California and Baja California Sur.

The whole peninsula has very strong ties to the U.S. Expats say that living in Baja California is a unique experience – it’s very Mexican while also quite close in many ways to the states. 

Because of this closeness, The Baja is where many Americans and Mexicans who worked in the U.S.A. choose to retire.

There’s a lot to do in Baja California. It is home to Baja 1000 and Baja 500 off-road races, Rosarito Ensenada bicycle races, and tours to watch the whales or go fishing. Then, of course, there is the wine festival. 

The climate is nice all year round and is the main draw for retirees. If you love the summer heat, you will do well choosing a coastal location. If you prefer cooler temperatures, just go up the mountains, where you can find your ideal climate. 

Playa del Carmen and The Riviera Maya

This is a popular region on the Caribbean side of the Yucatán Peninsula coast. The two most popular destinations here are Cancún, with its high-rise hotels and nightlife, and, down the coast, quieter Tulum.

The region is well connected and served by the international airport of Cancun. 

Playa del Carmen is immensely popular with digital nomads who find that accommodation is varied, modern, and plentiful, from apartments overlooking the beach to more rustic houses on the outskirts. 

It offers a more relaxed lifestyle than Cancun, which can be very touristic and high-energy-paced. Amenities are plentiful, from shopping malls to transport. 

Nearby Tulum attracts those looking for a country feel and a ‘get away from it all experience. It is an area of contrast with a Caribbean feel. One can choose to live in the town center or the outskirts where it is quiet and peaceful.

San Miguel de Allende

Known as one of the prettiest towns in Mexico, San Miguel de Allende is a Spanish colonial town with houses in pastel colors. 

It has a rich arts and crafts tradition, with plenty of artisan markets. The town has benefited from the influx of investment and people in recent times. It is rated as one of the top places to live and retire and has a thriving expat community. 

English is widely spoken here. You will also find that the climate is drier and there’s not much rain throughout the year.

Read more in our Living In San Miguel de Allende guide.

Other popular locations

You will find more ideas on where to live in Mexico in our guide, The Best Places To Live In Mexico As An Expat.

Final thoughts on living in Mexico

Overall, Mexico has something for everyone and is an attractive place to live. 

Research in advance, consider all aspects of Mexican life, have several field trips to different parts of Mexico to get a feel for various locations, be open-minded, have patience, and allow for a period of adjustment – that’s the recipe for success. 

You might find useful:

• The Best Places To Live In Mexico For Expats – a detailed overview of the most popular expat locations in Mexico
• How To Avoid Pitfalls When Renting Or Buying Property In Mexico
• Didn’t find what you were looking for or need further advice? Comment with your question below, and we will do our best to help.

Helpful external links:

• Bringing your car to Mexico: paperwork and online applications – Banjercito.com
• To obtain the FMM (Mexican tourist card or tourist visa), visit INM (Instituto Nacional de Migración) offices in Mexico when you cross the border or apply online.
• The latest government advice on traveling to Mexico – Travel.State.Gov.
• Clearing Mexican Customs – the Mexican Customs website.
• Crossing the border – download SENASICA’s PDF for more information on permitted and prohibited items.

Further places to explore in Latin America:

• Living In Chile
• Living In Panama
• Living In Argentina
• Living In Costa Rica
• Living In Colombia
• Living In Brazil
• Living In Paraguay
• Living In Uruguay