It’s no secret that a growing number of Americans are moving to Mexico.1 With the high costs of living in the U.S.2, it’s no wonder that more people are starting to look south of the border for a new home.
But is it the right move for you?
Whether you’re considering retirement, a career change, or simply a life adventure, this will help you determine if escaping to Mexico is your path to “la vida loca” (the good kind!) all while living comfortably on a budget.
Is Retiring in Mexico a Good Fit for Your Needs?
One of the benefits of living in Mexico is its proximity to the U.S. and Canada. This means you’ll easily find familiar products and brands you’re used to.
And let’s not forget the biggest draw: the cost of living. It’s significantly lower here than in most parts of North America, from everyday expenses and healthcare to housing.
It’s important to be realistic—it’s not paradise without its challenges. While the affordability is undeniable, truly enjoying life in Mexico goes beyond saving money. You need to genuinely like the country and its culture to make it your permanent home.
Where in Mexico Would You Most Enjoy Retiring?
If you’re a beach lover, coastal areas like Puerto Vallarta and the Riviera Maya might be your paradise.
Do you prefer cooler temperatures and cultural immersion? Central Mexico cities like San Miguel de Allende and Ajijic offer that and more.
For those who thrive in the city’s pulse, big cities like Mexico City and Guadalajara combine urban energy with historical sites and, of course, mouthwatering tacos.
When deciding where to settle down, consider your priorities. What kind of climate do you prefer? Do you want a close-knit community or a bustling city? How important is access to healthcare, public transportation, and your preferred lifestyle?
If you’re a U.S. permanent resident, you don’t need a visa to enter Mexico for tourism, business, or transit (ref). Plus, you have the freedom to stay for up to six months at a time. Take advantage of this opportunity to find your perfect stay in Mexico.
Is Mexico’s Healthcare System Right for You?
Mexico’s healthcare system is renowned for its quality and affordability. Many doctors and dentists are U.S.-trained, which makes communication and care easier for North Americans. Plus, Mexico is a hub for medical tourism (ref), with Americans increasingly choosing it for their healthcare needs.
Major cities boast modern, well-equipped hospitals that are often more accessible than their counterparts in the U.S. or Canada.
As a resident, you can access affordable, comprehensive care through Mexico’s public health insurance options, IMSS (ref) and INSABI (ref). If you prefer broader coverage, private health insurance is also available.
What Should You Know about Renting or Buying Property in Mexico?
Housing costs depend on where you look and what type of property you’re after. Naturally, coastal hotspots and touristy areas tend to be pricier, but don’t worry, budget-friendly options exist throughout the country.
Need a hand navigating the rental or buying process? Local real estate agents and online expat communities are invaluable resources. Facebook and X (formerly Twitter) groups are a great place to start your search.
If you’re renting long-term, be prepared for a lease agreement, deposit, and proof of income. But if you prefer a more flexible route, platforms like Airbnb or VRBO offer short-term rentals without the paperwork.
Keep in mind that housing costs can fluctuate, so it’s best to keep tabs on Mexican-based real estate websites for the latest prices.
How Safe & Welcoming are Communities in Mexico?
Safety is a natural concern for anyone considering a move to a new country. While it’s advisable to be aware of your surroundings and exercise caution as you would anywhere, some Mexican states, like Yucatan, boast lower crime rates than major U.S. cities (ref).
Mexican culture is known for its warmth and hospitality, and you’ll likely find yourself quickly assimilated into the local community. Engaging with your neighbors, learning some Spanish, and respecting local customs will go a long way in building meaningful connections.
The Financial Reality of Retiring in Mexico
Here are factors to consider before making the move to Mexico:
- Housing: You could live on USD $1,500-$1,800 per month as a single person or USD $2,000-2,500 as a couple (ref). Of course, the costs depend on your lifestyle, the city you choose, and other factors. Popular expat destinations like Cancun, Puerto Vallarta, Ajijic, Playa del Carmen, and Mexico City tend to have higher rental prices.
- Food: Groceries for two people can range from $300 to $500 USD per month. Dining out is also quite affordable, with meals at inexpensive restaurants averaging around 172.20 MXN ($9 USD), and a three-course meal for two at a mid-range restaurant costing about 750 MXN ($40 USD) (ref).
- Income: According to a national survey, the highest-earning 10% of households bring in 13 times the annual income of the lowest-earning 10% (ref). Data from Mexico’s National Institute of Statistics and Geography (INEGI) further highlights this gap, showing the average annual income for the top 10% to be around $65,000 (ref).
- Transportation: Local transportation is very economical in Mexico. For instance, if you need to get around Mexico City on a Metrobus, you’ll need a Metro Card smart card. The fare is a flat rate of 30 MXN (2 USD) per passenger, per ride, from the airport (ref).
- Healthcare: Healthcare in Mexico is known for being affordable and of good quality, but it’s different between urban and rural areas. Private healthcare, often preferred by expats, can be costly, so it’s best to research insurance options and possible out-of-pocket expenses.
- Utilities: The cost of utilities in Mexico, which includes electricity, water, and gas, will depend on your usage and other appliances used.
- Taxes: Moving to Mexico doesn’t exempt you from taxes. Mexico has its own tax laws, and if you’re earning income within the country or from abroad, you may have tax obligations. Consult with a tax advisor familiar with both U.S. and Mexican tax laws.
With careful budgeting and smart choices, retiring in Mexico can be a financially savvy decision that allows you to enjoy a fulfilling lifestyle.
Are You Ready to Embrace the Mexican Lifestyle?
Retiring in Mexico isn’t just about stretching your budget further—it’s about embracing a whole new way of life.
From vibrant festivals and ancient traditions to scenic landscapes and welcoming communities, the Mexican lifestyle offers something for everyone.
So, as you contemplate your options, consider Mexico not just as a destination but as a place to truly thrive and to start a new chapter of your life.
Sources:
Read Next:
Nancy Maffia
Nancy received a bachelor’s in biology from Elmira College and a master’s degree in horticulture and communications from the University of Kentucky. Worked in plant taxonomy at the University of Florida and the L. H. Bailey Hortorium at Cornell University, and wrote and edited gardening books at Rodale Press in Emmaus, PA. Her interests are plant identification, gardening, hiking, and reading.
