Main Content

luxuryLuxury Collection Logo
Back to Our Media

5 Things To Know Before You Move To Mexico

Mexico is home to more U.S. expats than any other country, with as many as 1.6 million currently living there.

Relocating south of the border is an easy choice for many Americans. Mexico is easy to reach by plane or car. It’s one of the few international havens that you can reasonably pack up and drive to.

It’s also familiar, with many of the same franchises and brands that are available in the U.S. You won’t need to go without your favorite brand of cereal or settle for a slightly less satisfying local alternative for it.

Costs of living are generally lower in Mexico than in the U.S., and English is fairly well spoken by locals, at least in areas that are popular with tourists.

More importantly, Mexico is an all-around appealing place to live. It’s a land of ancient history with a rich modern culture and world-renowned cuisine. It has beautiful landscapes, including beautiful beaches on its Pacific and Caribbean coasts, and its weather is warm year-round.

While it might be easy to picture your new life in Mexico, this country also has its quirks that you should know about before deciding to move here. Here are five things to know before moving to Mexico.

Mexico Is Massive

Mexico is most famous for its beach resorts, but it’s a massive country—the 13th biggest country in the world, with a population of over 130 million people. A huge amount of diversity—of landscapes, biomes, climates, cultures, cuisines, and more—is a given in a country this size.

For prospective expats, this translates to a wide range of lifestyle options, from Spanish-colonial ambiance in colorful highland cities like San Miguel de Allende to buzzing metropolises like Mexico City to Wild West-style desert surroundings in Durango.

Don’t make the mistake of assuming that Mexico is homogenous or that what you may have experienced while on vacation there is all that it has to offer. Just as the way of life in Maine is starkly different from the way of life in Mississippi, each region of Mexico should be considered individually.

It’s also worth bearing in mind the country’s size when it comes to safety concerns. Naturally, in Mexico, as anywhere, bad things can and do happen, but they’re typically confined to certain areas. It’s difficult to make generalizations about any aspect of life in Mexico, including safety. And, in fact, the U.S. Department of State issues its Travel Advisories by state in Mexico rather than issuing a blanket safety level for the entire country. A good approach is to speak to locals and expats about how secure they feel in whichever area of the country you’re considering moving to.

Life Can Be Much Less Expensive Here

Most goods and services cost less in Mexico than they do in the U.S., including accommodation, health care, gas, groceries, cell phone plans, restaurant meals, and more.

Moving to Mexico can be an opportunity to slash your monthly expenses or allocate more of your budget to discretionary spending (i.e., “fun money”) and less to basic necessities.

The exchange rate between the U.S. dollar and Mexican peso often works in your favor, enhancing the savings opportunity. At almost 20 pesos to $1, it feels like everything is half-price.

For prospective property owners, taxes and utilities (water, electricity, etc.) are low relative to the U.S. Exact tax rates vary from state to state but generally fall between 0.05% and 1.2%.

One of my contacts owns two properties: one in Mazatlán, Mexico, and the other in California. Both are new-build apartments with ocean views, and they’re of a similar size. He pays about $87 per year in property tax for his Mazatlán apartment. Property tax for his California apartment is about 80 times this amount.

The low overhead costs of property ownership can make Mexico an attractive choice for property investors looking for second homes and rental income opportunities.

Amazon And Uber Are Available In Mexico

Service providers that might have become part of your everyday life in the United States are also available in Mexico. You can’t take this for granted in every international haven.

U.S. expats in Mexico report that Amazon.mx is convenient and reliable. In some cases, delivery drivers go the extra mile and call you to let you know that they’re outside your home.

Uber is available in many popular Mexican cities, but not all of them. In some cases, where it is available, certain routes are restricted. In Mazatlán, for instance, Uber pickups are not currently allowed at the international airport. Do a bit of research about what’s possible in the city that you’re considering if you use Uber. If not, rest assured that taxis are plentiful across Mexico.

Streaming services like Amazon Prime Video and Netflix are also available in Mexico.

Big-Box Stores And Familiar Brands Are Here

Some cities and towns in Mexico have big-box stores like Walmart, Sam’s Club, Costco, AutoZone, and The Home Depot. If shopping at these kinds of superstores is part of your routine, their availability in Mexico can help ease the transition to your new life there.

Other shopping options exist in Mexico, including local shops and traditional markets that, in some cases, have been operating for centuries.

Regardless of where you shop, you’ll find that many of your preferred brands from back home are available in Mexico. In fact, they may even be made in Mexico. Everything from your Ford car to your Oreo cookies may have been made in a factory in Mexico.

You don’t need to keep a shopping list of items to bring back with you each time you return to the States for a visit.

Financial Thresholds For Residency Have Gone Up

Gaining residency in Mexico is still feasible, but the financial thresholds that you need to meet to qualify increased significantly.

Mexico’s president, Andrés Manuel López Obrador, has raised the minimum wage during his tenure. The thresholds to qualify for residency in Mexico are broadly aligned with the minimum wage. They are based on multiples of it.

For example, to qualify for temporary residency in Mexico using your monthly income as proof of your financial solvency (i.e., your ability to support yourself), you will need to show that you earn at least 300 times the Minimum Daily Wage. This is now set at 248.93 Mexican pesos ($12.69), so you will need an income of at least 74,679 ($3,808.57) per month to qualify for temporary residency.

Note that the exact amounts required to qualify for any type of residency in Mexico can vary from consulate to consulate, as each uses its own calculation.

Despite the price hikes, Mexico offers a few specific benefits when it comes to residency. First, it allows you to use your savings to demonstrate economic solvency, which is rare among independent means visas. Most countries only accept income (pension income, passive income, etc.) as proof of your financial means.

Second, Mexico allows you to jump straight to permanent residency if you can meet the higher financial thresholds, bypassing the temporary residency stage completely. This is a benefit because permanent residence is valid indefinitely, whereas temporary residence permits need to be renewed regularly.

Third, Mexico doesn’t stipulate a physical presence requirement in order to maintain residency. Some countries require you to spend six months per year there to maintain residency. Mexico doesn’t, which makes it a good choice for someone looking for a backup residency but not necessarily looking to relocate.

Kathleen Peddicord