Get to know the author
Connect on LinkedIn
If you’ve ever dreamed about leaving the US behind and moving to Mexico, you’re not alone. Over a million Americans — not to mention expats from other countries — call this North American country home. And given the many visa options, relatively low cost of living, and natural beauty, it’s no wonder.
Of course, before you decide to move to Latin America, it’s important to do some basic research. In this guide, we’ll cover all of the essentials US expats need: visa options, cost of living, the best places to live in Mexico for expats, and much more. Read on to learn everything you need to know about moving to Mexico from the US.
Snapshot of expat life in Mexico
- Population: 128.5 million
- # of American expats: ~1.6 million
- Capital city: Mexico City
- Currency: Mexican peso
- Official language(s): Spanish
- Top cities for expats: Mexico City, Playa del Carmen, San Miguel de Allende
- School-year calendar: Late August to early July
How to move to Mexico from the USA: Securing a visa
While Americans planning a short-term visit to Mexico do not need to apply for a visa beforehand, they must file an immigration form upon entry. Doing so allows you to stay in Mexico for up to 180 days at a time, although the exact amount of time permitted is up to individual immigration officers.
Note:
Working in Mexico as a tourist — even remotely — is prohibited. Getting caught doing so can result in steep fines, deportation, and difficulty re-entering Mexico in the future.
Stays of more than 180 days, however, will require a visa.
Types of visas
Among the most popular Mexican visa options for Americans include the:
Temporary resident visa
Mexico’s temporary resident visa lasts up to four years. After this period, you can apply for permanent residence. There are a few ways to qualify for this visa:
- Economic solvency: Present a letter confirming remote employment or documents proving a minimum monthly income of $4,200 or at least $70,000 in savings*
- Family unification: Be married to a Mexican citizen, permanent resident visa holder, or temporary visa holder
- Invitation: Be invited by a sponsoring organization or institution with at least $142,000 in its bank account(s)
*Note: Exact income requirements may vary by consulate
Permanent residence visa
Holders of this type of visa qualify as permanent residents for life, even if they spend extended time outside of Mexico. There are two ways to qualify for this visa:
- Retirement: Be retired and have at least $280,000 in savings or retirement income of at least $7,100 per month*
- Family unification: Be married to a Mexican citizen, permanent resident visa holder, or temporary visa holder
Work visa
Mexico’s work visa is typically for those who have received work offers from Mexican employers. However, certain entrepreneurs and business owners may also qualify. This visa most commonly lasts for one year, after which point it can be renewed annually. After four years, you can apply for a permanent residence visa.
Student visa
Mexico’s student visa is for those hoping to study at a Mexican educational institution (e.g. university, language academy, vocational school). The visa duration is dependent on the length of your studies. For those enrolled in a long-term program (e.g. a four-year university degree), it typically lasts one year and is renewed annually until your studies finish.
Mexican visa application process
To apply for a Mexican visa, you must typically:
- Gather the following documents:
- Completed application form
- Valid passport & copy
- Permanent residents without a US passport may instead use their green card and an immigration form that proves their legal status in the US (e.g. I-20, I-94, J-1, I-797A) and a copy
- Passport-sized photo
- Consular fee of $53 in cash
- Decide which visa to apply for
- Gather the additional documents required for the visa you’re interested in (e.g. letter of employment, bank statements, university acceptance letter, additional fees)
- Book an appointment at your nearest Mexican consulate or embassy
- Note: Some consulates or embassies may allow walk-in appointments, but reserving online is usually the safest bet
- Attend your appointment & submit your application
- Receive approval
- Collect your visa by mail or in person, depending on the consulate
Once you receive your visa, you’re ready to head to Mexico!
Note:
You may need to get certified Spanish translations and/or apostilles on certain application documents.
Applying for Mexican citizenship
Some Americans may be able to apply for Mexican citizenship, including those who:
- Live in Mexico for 5 years as a permanent resident
- Have Mexican parents
- Were born in Mexico
- Marry a Mexican citizen
- Have Mexican children
Fortunately, both Mexico and the US allow dual-citizenship, so you don’t have to give up citizenship in your home country to naturalize in Mexico.
Planning for a long-term move to Mexico
Moving abroad is a big step. To make the transition as smooth as possible, it helps to do some prep work beforehand, like:
- Researching expat life in Mexico
- Saving for upfront moving costs & several months of living expenses
- Deciding whether to sell your home, rent it out, or use it as a home base for when you visit the US
- Creating a packing list
- Selling, donating, or storing items you won’t bring with you
- Purchasing your plane tickets
- Reserving temporary accommodation, such as in a hostel, Airbnb, or co-living space
- Stocking up on any medication you regularly take
- Pro tip: Depending on the medication, your provider may be able to write you a prescription that allows you to pick up a 90-day supply (or more) at once
- Getting all of your recommended vaccines
- Canceling US-based subscriptions & services (e.g. cell phone plan, utilities, newspaper/magazine subscriptions)
- Getting an expat-friendly credit card that doesn’t charge foreign transaction fees
- Pro tip: Consider notifying your bank or credit card company of your move so they don’t freeze or block foreign charges deemed suspicious
- Setting up a forwarding address for your mail
- Looking into cell phone service provider, banking, and healthcare options in Mexico
Best places for expats to live in Mexico
Mexico is full of amazing places to live, but some of the most popular expat hotspots include:
Mexico City
Mexico’s thriving capital has something for just about everyone, from foodies to creatives, shoppers, arts and culture lovers, and nightlife aficionados. A few highlights include the buzzing Constitution Plaza, fascinating National Anthropology Museum, sprawling Chapultepec park, and hundreds of world-class restaurants.
A few of the most popular places for expats to live include the hip Roma, artsy Condesa, and elegant Polanco neighborhoods.
Playa del Carmen
Don’t let Playa’s laidback beach town vibe fool you — there’s plenty to do, from surfing to shopping to going out to clubs.
A few highlights in Playa del Carmen include the many stunning beaches, cute shops and delicious restaurants on 5th Avenue, and picturesque cenotes (natural sinkholes with turquoise-blue water). As a bonus, Playa’s location in the Maya Riviera makes it easy to visit nearby destinations like Tulúm, Cancún, Mérida, Chichen Itza, and more.
Popular places for expats to live in Playa del Carmen include the bustling Centro, upscale Playacar, and family-friendly El Cielo neighborhoods.
San Miguel de Allende
If you’re seeking small-town charm, San Miguel de Allende has it in spades. Although it’s home to 140,000 residents, San Miguel’s tight-knit expat scene makes it feel much smaller. With beautiful colonial architecture, year-round temperate weather, and a thriving arts scene, San Miguel de Allende has attracted expats from all over.
A few highlights in San Miguel de Allende include the central El Jardín plaza, cozy cafés, traditional festivals, and Fábrica La Aurora, a former textile mill converted into a cultural center.
Top places for expats to live in San Miguel de Allende include the charming Centro Historico, peaceful Balcones, and bohemian Colonia Guadalupe neighborhoods.
Expat life in Mexico
Finding your expat community
There are more American expats than any other country in the world, although expats from many different countries also reside there. And of course, living in Mexico presents a great opportunity to meet locals as well (especially if you speak Spanish).
A few places to connect with others include:
- The Expats in Mexico Facebook group
- The Mexico Expats subreddit
- Pro tip: You may be able to find Facebook groups and subreddits for your specific location in Mexico
- Internations Mexico
- Co-working or co-living spaces
- Social hostels
- Classes (e.g. Spanish, dancing, scuba diving… whatever interests you!)
- Cafés & bars
- Sports teams (fútbol, aka soccer, is especially popular!)
Cost of living
While the cost of living in Mexico varies widely from place to place, it tends to be more affordable than in the US. According to Numbeo, prices are about 45.7% lower in Mexico than in the US. Keep in mind, however, that the US dollar has been losing strength against the peso in recent years.
International Living estimates the monthly cost of living in Mexico at around $1,500 per month for an individual or about $2,300 for a couple. Of course, that depends largely on your location and lifestyle.
Healthcare
Mexico offers universal healthcare, although your ability to enroll depends on your visa and quality can vary widely by location. While major cities and expat hubs tend to have high-quality medical care, private healthcare offers shorter wait times and more modern facilities. Private insurance plans usually cost about $5,900 per year.
Popular private insurance providers in Mexico include:
- GNP Seguros
- Metlife Mexico
- Bupa Mexico
Tip:
As an alternative, you could purchase an international health insurance plan that covers you across multiple countries (e.g. ING, Cigna Global, Allianz). While these plans are often more expensive, they are typically very comprehensive.
Banking
Americans are allowed to open bank accounts in Mexico and may in fact need one in certain circumstances (e.g. having a Mexican employer or buying real estate). However, some banks may not allow Americans to open an account with them given the additional reporting requirements that FATCA mandates.
A few popular banking options for Americans in Mexico include:
- BBVA Mexico
- Citibanamex
- Santander Mexico
Some expats, however, prefer online banking services such as Wise — which also makes it easy to transfer money internationally.
Cell phone service providers
Most American expats in Mexico choose a local provider for their cell phone service, which frequently offer month-to-month plans for as little as $9 per month. That said, you can also choose plans with annual contracts if you like.
A few popular cell phone service providers in Mexico include:
- Telcel
- AT&T Mexico
- Movistar
Filing US taxes in Mexico
Living in a foreign country doesn’t mean you no longer have US tax and reporting obligations. All American citizens and residents who earn above a certain threshold — even those who live abroad — have to file, and potentially pay, US taxes. For expats, estimated tax payments are due on April 15th while tax returns are due on June 15th.
Note:
Filing Form 4868 will allow you to request an extension on your tax return until October 15th.
If you spend more than 183 days per year in Mexico, you will also have to file and potentially pay Mexican taxes. Unfortunately, this means Americans who are Mexican tax residents risk double taxation. The good news? The US offers a couple of major tax breaks for Americans abroad.
Strategies to avoid double taxation in Mexico
While the US and Mexico have a tax treaty, Americans living in Mexico can only benefit from it in very specific circumstances. As a result, they’re usually better off claiming one or more of the tax breaks below:
- Foreign Tax Credit (FTC): Gives qualifying Americans dollar-for-dollar US tax credits on any foreign income taxes paid, provided they are legal and made out in their name. If your tax rate in Mexico is higher than it is in the US, this can not only erase your US tax bill, but also give you surplus credits to use in the future.
- Foreign Earned Income Exclusion (FEIE): Lets Americans who pass either the Physical Presence Test or the Bona Fide Residence Test exclude a portion of their income (up to $126,500 in tax year 2024).
- Note: Qualifying for the FEIE also qualifies you for the Foreign Housing Exclusion/Deduction
Note:
There is no totalization agreement between the US and Mexico, so American expats living in Mexico may need to pay Social Security taxes to both countries.
Reporting obligations for US expats living in Mexico
Living and managing your finances in another country may result in new or different reporting obligations. Two of the most common reports for expats include the:
- The Foreign Bank Account Report (FBAR): Required for those with a total of over $10,000 at any point in the tax year across all foreign financial accounts
- Statement of Specified Foreign Financial Assets (Form 8938): Required for those with certain foreign assets exceeding $200,000 on the last day of — or over $300,000 at any point during — the tax year
References:
- Visit Mexico
- Visas for Foreigners
- Cost of Living Comparison Between United States and Mexico
- Cost of Living in Mexico 2024 – Full Breakdown of Costs, Rent and Utilities
- Health Insurance in Mexico for Foreigners
- Mexican Cell Phones: Calling Plans for North America
- What languages are spoken in Mexico?
- Moving Household Goods to Mexico: Cost-effective and Simple
