How to Move to Mexico in 2024: The Basics
Written by Brandon Rowe | Reviewed by Mark Nestmann
Updated December 9, 2023
- 21 min read
The following primer will help you understand the bigger picture… with enough detail to actually take some action when you’re ready.
Contents
- 1. Is Mexico Worth It? Pros and Cons1. Is Mexico Worth It? Pros and Cons
- 2. Is Mexico Safe?2. Is Mexico Safe?
- 3. Should You Rent or Buy?3. Should You Rent or Buy?
- 4. Do You Need Health Insurance?4. Do You Need Health Insurance?
- 5. Should You Send Your Kids to Public School, Private School, or Home School?5. Should You Send Your Kids to Public School, Private School, or Home School?
- 6. How to Get Mexican Residency6. How to Get Mexican Residency
- 7. Do You Need a Mexican Driver’s License?7. Do You Need a Mexican Driver’s License?
- 8. Moving to Mexico with Your Pets8. Moving to Mexico with Your Pets
- 9. Do You Need to Learn Spanish?9. Do You Need to Learn Spanish?
- 10. Mexican Taxes for Expats10. Mexican Taxes for Expats
- 11. Special Considerations for US and Canadian Citizens11. Special Considerations for US and Canadian Citizens
- 12. The Best Communities and Cities for Expats12. The Best Communities and Cities for Expats
- 13. How to Get Started13. How to Get Started
Is Mexico Worth It? Pros and Cons
Pros:
- Lower cost of living: Housing, food, and transportation are generally more affordable in Mexico than in many other countries, especially the United States.
- Health care: Mexico offers affordable and accessible health care, with many expats reducing their health insurance and medical care costs by 30-60%. However, please note that quality can vary.
- Great for retirees: Because of the low cost of living, affordable health care and an easy flight back to the States to visit family.
- Job opportunities: There are job opportunities for expats in Mexico – from teaching English to highly skilled professional jobs that benefit from American industry’s shift to “friendshoring”.
- Rich culture and lifestyle: Mexico has a vibrant culture, with warm and friendly people, a rich history, and amazing food.
- It’s beautiful: Mexico boasts diverse and stunning natural environments, from rainforests and mountains to beaches.
Cons:
- Safety concerns: While violent crime targeting foreigners is rare, street crime is an issue in Mexico’s cities. Even resort areas can be a problem from time to time.
- Bureaucracy: Administration can be slow and confusing. Outside of the visa application process done at your local Mexican consulate (within the US), you’ll be at a disadvantage without some knowledge of Spanish and/or someone to help you with the paperwork.
- Natural disasters: Depending on where in the country you are, earthquakes and hurricanes are an issue.
- Poor water quality: Tap water is generally not safe to drink in Mexico, and many water resources have become overexploited.
- Language barrier: Spanish is the dominant language in Mexico, and not speaking Spanish can be a major barrier for expats, especially when it comes to bureaucracy as mentioned above.
- Education quality: The quality of education in Mexico can vary greatly depending on the type of school and location, with rural public schools often having lower standards.
- Infrastructure: Basic utilities may not always be reliable, and internet speed may not be as fast as in developed countries.
Is Mexico Safe?
Mexico has gotten a bad reputation as a dangerous place to visit, let alone live. But just like anywhere, there are safer places than others. It’s also important to note that most of the high violence rates come as a result of gang warfare – not against expats.
Still, it’s best to be security conscious. Here are some tips:
Check the US State Department website for travel advisories for specific areas.
Avoid level 4 “Do Not Travel” warnings unless you know the area well.
Source: US State Department.
Stay updated on local safety and security concerns in your favorite areas.
Mexican news outlets can be quite useful. Our favorites:
- El Universal: A Mexico City-based newspaper with a lot of coverage of local events and issues. Published in Spanish.
- Milenio: Publishes a newspaper and operates a 24-hour news channel. Covers a broad range of topic and serves as a good source of insight into Mexico in general. Published in Spanish.
Both of these news portals publish mainly in Spanish, but you can use an online translation service like Google Translate to read the articles in English.
Join Online Expat Communities
There are also numerous online communities to help you get useful insights from other expats already on the ground:
- Internations: Provides news, events, and safety updates for several regions of Mexico, including Guadalajara, Monterey, Puebla, and Puerto Vallarta.
- Expats and Immigrants in Mexico: A Facebook group with nearly 200,000 members.
All these resources will be able to give you a less-biased perspective than any “armchair expert” or sensationalist media report.
Move to a smaller city or community
Just like in the US, smaller towns and communities tend to have less crime than larger metro areas.
Consider a gated community
Considering gated communities or neighborhoods with security guards to provide an extra level of protection if you really feel you need it.
That said, we believe that’s a bit overkill; it robs you of the experience of living in such a unique country.
Learn (basic) Spanish
It’s possible to move to Mexico and never have to learn the language, especially if you move to a larger center or to a popular expat community.
But just because you don’t have to doesn’t mean it’s not worth the effort. It will help you better integrate, feel more comfortable and allow you to get help when you need it no matter where you travel within the country.
Most of all, don’t let fear stop you from following your dream. The Nestmann team has collectively spent plenty of time in Mexico. Our clients have lived all over the country. Although petty crime can be a nuisance, safety – with proper precautions – is not as much an issue as the media sometimes makes it out to be.
Did You Know?
Should You Rent or Buy?
Housing in Mexico is much the same as in the US with apartments, condos, townhouses, standard detached homes and gated communities all being an option.
But as a budding expat, you might be wondering if it’s worth renting or buying.
Ultimately, it depends on a few factors including:
- How much time you want to spend in the country.
- How sure you are that the expat community you’re looking at is where you’ll end up.
- Whether you even want the commitment of holding real estate in a foreign country.
- Whether you can handle living with a landlord.
- What sort of residency permit you’re hoping to get – investment in Mexican real estate can qualify you for a visa.
If you decide to rent…
… at least to start, then you should know that rents vary widely from one place to another. Expat hotspots and cities tend to be more expensive and can even approach US levels.
On the other hand, rural areas that cater to the local population can be quite affordable. The trade-off is usually a smaller expat scene and fewer services.
There’s really no right or wrong answer – it’s what works best for you. But usually, our clients start off renting because:
- They don’t want to commit to any community without first-hand experience. This is an easy low-commitment way to try things out.
- They don’t want to have to deal with the responsibilities that can come with owning real estate in a foreign country.
- They like to keep things simple – ongoing rent for use of a space is simple.
How to find the best place to rent…
The process of finding a location is pretty straightforward.
Step 1: Browse online sites. Here are some places to start:
- InMuebles24 provides rental options across Mexico, catering to Americans and other expats seeking properties in different locations
- Airbnb offers short-term and long-term rentals in Mexico, with options for Americans looking for furnished properties in tourist areas and beyond.
- Lamudi offers a range of rental properties in Mexico, with options for Americans looking to rent in different cities and neighborhoods.
Step 2: Go through a standard due diligence process to ensure the place fits your needs.
Step 3: If you’re happy, sign a lease agreement.
Key Due Diligence Questions
Once you’ve narrowed down your options, these are a few questions we recommend asking as part of your due diligence:
- What is included in the rent (utilities, wifi, parking etc.)?
- What is the total monthly cost including utilities I will pay?
- Is a rental contract required and what are the terms?
- What is the deposit amount and when is it refundable?
- Who is responsible for repairs and maintenance?
- Is the home and area safe and secure?
- Is an agent fee required and if so, how much?
- What are the must-have amenities I want in my new home, like the number of bedrooms/bathrooms, outdoor space, garage, appliances, etc.?
- What services and activities do I want to have nearby my home, and which neighborhoods or areas would provide that?
- Which other retiree expats have bought homes here, and can provide recommendations on good locations and properties?
- Will I be able to thoroughly view properties in person before making a final decision?
Which Expat Community to Pick?
If You Decide to Buy…
It’s a big deal and although the basics are the same, the devil’s in the details. You need to consider things like:
- Where to buy.
- How it may affect your tax situation and estate planning.
- How to hold the property (very important if you want to buy near a beach or a border).
- How you’ll manage upkeep if you’re not living there year-round.
… and a number of factors.
That’s why we’ve created a dedicated page to help you. Please click through to our guide to Buying Property in Mexico.
Do You Need Health Insurance?
Health care is an important consideration that, unfortunately, not everyone gives enough thought to. Even if you’re currently healthy, your situation could change and without proper planning, can become an issue.
More than once, we’ve had clients move to Mexico, build a life for themselves and then have a health crisis that ultimately meant moving back to the US for long-term treatment.
In one particular case, not getting appropriate treatment fast enough resulted in permanent damage.
That said, Mexico offers a number of health care options. In some cases, the same or even better than what’s available here stateside.
Here’s what you need to know.
- Mexico has a universal public health care system that provides access to medical services for all citizens. This system is funded by the government and employee/employer contributions.
- Like other socialized medical systems, the public system can be slow, crowded, and fairly bare bones.
- A private health care system sits parallel to the public one and has a major role. Many Mexicans choose to supplement public coverage with private insurance and services.
- Many doctors are trained in the US or Europe and speak English. This is especially true in the private system.
- Cost of care is generally lower than in the US, both for public and private treatment, but can add up for major procedures.
- Prescription drugs are cheaper than in many countries but only if you use government approved pharmacies.
Your Options as an American Citizen
Public Health Care
Residents of Mexico get access to the public health system through the IMSS (Instituto Mexicano del Seguro Social) program. As a legal resident, you can enroll in IMSS for around $400-600 per year or, if you or a family member work in Mexico, through your employer.
Private Health Care
If you choose to go private, or supplement your public coverage, plans for retirees can range from $150-300 per month depending on coverage. These allow access to private hospitals with shorter wait times.
You may want to consider budgeting an extra $100-200 per month for out-of-pocket medical expenses like co-pays and prescriptions. Some retirees also get dental insurance.
Some other best tips and tricks:
- If you have pre-existing conditions, private insurance can be harder to get after age 70-75. The older you are, the more important it is to get coverage early.
- Avoid hospitals known to overcharge foreigners. Ask local expats for recommendations on reputable hospitals and clinics. (Local expat groups on Internations and Facebook can be good sources of information.)
- Be prepared to pay upfront for care and submit claims yourself later. Many facilities require payment before providing treatment.
- Consider getting an evacuation policy. This covers the high cost of medical transport back home for emergencies.
International Health Insurance Policies
Depending on how long you plan to live in Mexico, one other option to consider is an international health insurance policy. They offer comprehensive coverage worldwide, including in Mexico itself.
International insurers like Cigna and GeoBlue have provider networks in Mexico and worldwide, and will cover inpatient and outpatient care, prescriptions, evacuations, and more. Many include dental, vision, and mental health benefits as well.
That said, you will still have to pay certain out-of-pocket costs like co-pays and deductibles. However, those are often lower than in the US.
Premiums vary based on factors like age, deductible level, and extent of coverage. But you can expect to pay a few thousand dollars a year for a good plan.
Almost as importantly, if you run into a situation where Mexican health care isn’t cutting it, most such policies offer evacuation coverage back to the US.
Should You Send Your Kids to Public School, Private School, or Home School?
Although many of our clients tend to be adults, Mexico can be a great place to raise kids as well. If you have young ones underfoot and are thinking about a move, here’s what you need to know about schooling.
Public Schools
They’re free, but often suffer from lack of funding, resources, and quality instructionn — especially in rural areas. Because everything is taught in Spanish, it’s going to be a tough adjustment unless the wee ones are already fluent in the language. For that reason, most expats opt for private schools instead.
Private Schools
Private schools offer higher quality instruction, smaller classes, and more resources. Many cater to expats by offering bilingual or international curriculums. However, tuition can be expensive, ranging from $2,000-$20,000+ per year. Private schools are concentrated in big cities.
Some of the more well-known ones that cater to native English speakers, include:
The American School Foundation
International school in Mexico City founded in 1888, offering an American college preparatory curriculum from pre-K through grade 12. Student body represents over 40 nationalities.
Located In: Mexico City, Mexico
Approximate Fees: $700-3,200 USD per month
Greengates School
British international school founded in 1951, following the British curriculum. Offers IGCSEs and IB Diploma. Over 1,200 students from 60+ nationalities.
Located In: Naucalpan, Mexico
Approximate Fees: Not publicly disclosed
Edron Academy
Bi-cultural British-Mexican school established in 1963. Offers blend of British and Mexican curriculums. Over 1,000 students, from daycare to grade 13.
Located In: Mexico City, Mexico
Approximate Fees: Not publicly disclosed
Homeschooling
Homeschooling is a popular option for expat families moving to Mexico. Although it’s not directly mentioned in Mexican law, it’s generally allowed and doesn’t come with much government input or oversight.
It can be a good option for expats looking to keep up with a child’s home curriculum, but done in a way that still gives the kiddos good exposure to the local culture and language.
In summary, public schools can work for some but most expats opt for private, international, or homeschooling. Each option has trade-offs between cost, curriculum, language, quality, and location.
How to Get Mexican Residency
Americans (and Canadians) can visit Mexico for up to six months a year on a valid passport alone.
But if you plan to live there, you will need to give some serious thought to what sort of residency permit you’ll need.
Mexico offers quite a few options but they boil down to two main paths:
Temporary Resident Visa
As the name suggests, a temporary resident visa allows you to live temporarily in Mexico – from 1 to 4 years depending on how you do your application.
Permanent Resident Visa
A permanent resident visa allows you to live in Mexico permanently – although you do have to renew that status from time to time.
Generally, the difference between the two options is that a temporary resident visa is easier to qualify for.
So which one is best for you? It depends and it’s why we created an entire page dedicated to taking you through the options.
You can find that resource at: How to Get Residency in Mexico.
Do You Need a Mexican Driver’s License?
Driving in Mexico as an American is pretty straightforward. Although the rules may be different from Mexican state to Mexican state, generally, your US driver’s license is valid for up to six months. After that, you’ll need to trade your US license in for a Mexican one.
You’ll also need to have a dedicated Mexican car insurance policy while driving in the country.
Where to go for Mexican car insurance
Some of the more popular providers include:
Baja Bound
One of the most popular options for expats in Mexico. Offers short-term policies for quick trips across the border as well as longer 6- or 12-month policies for those living in Mexico. Coverage includes liability, collision, comprehensive, roadside assistance, and more. Policies can be purchased online.
HDI Seguros
A major Mexican insurance company that offers policies specifically tailored for expats residing in Mexico. Coverage can include liability, collision, comprehensive, personal accident, roadside assistance, and legal assistance. Policies are sold through local brokers.
MexPro
Specializes in insurance for foreigners in Mexico, including expats. Offers auto, home, life, health, and business insurance. Auto insurance includes liability, uninsured motorist, roadside assistance, vandalism, and more. Policies can be obtained online.
Sanborn’s Mexico Insurance
Provides Mexican car insurance to expats and foreign residents in Mexico. Features liability and physical damage coverage. Policies can be purchased and renewed online.
Clements Worldwide
International insurance provider that offers Mexican auto policies for expats. Features liability, collision, comprehensive, roadside assistance, and personal accident coverage. Policies can be obtained online.
Other (often forgotten) financial considerations
Making a move – whether to Mexico or anywhere else – is a big thing. And it’s not uncommon that little things can fall through the cracks. Here are the most common things would-be expats tend to overlook:
Import taxes and fees on foreign goods
Electronics, appliances, furniture, and cars from abroad can have high import duties, adding 10-20% to costs. Buying locally is usually cheaper.
Travel back home
Moving abroad is great but visiting home is still a must for most people. Once or twice a year is pretty common, at least among our clients.
Visa fees
With government comes bureaucracy and with bureaucracy come fees. When it comes to temporary and permanent resident visas $400-$500 every 1-4 years. Other immigration paperwork adds more cost.
Language lessons
If you don’t already speak Spanish, the best way to learn is by hiring a private tutor and/or taking a class. Online language courses are a good start, but mastery will come with live experience and practice.
Banking / Wire fees
International banking isn’t cheap, unfortunately. If you need to send money through the banking system, expect to pay wire fees of $20-40+ each time. That said, there’s a lot more flexibility than in the old days. Most of our clients just keep their US account and withdraw cash as needed to meet expenses. Some are able to survive without a Mexican bank account at all.
Home maintenance
Unless you live full time on site and like doing everything yourself, plan to spend some money on this. Labor is relatively cheap (compared to US wages, anyway) but parts and materials can be on par with US prices.
Vet costs
Pet care and food is cheaper. But major issues with your furry friend may require trips back home, which can add up.
Moving to Mexico with Your Pets
Pets are part of the family but the rules that govern how they can enter Mexico are different than their human counterparts. If you plan to bring your dogs or cats, here are a few things you should know:
Immigration Process
There is no concept of a “pet passport” in Mexico, but there are requirements to enter the country as outlined below.
- Mexico allows the import of up to two pets (dogs, cats, or one of each) per person without needing special permits.
- Mexico requires a health certificate (in English and Spanish) from a vet issued within 15 days of travel showing vaccinations for rabies and other diseases. The rabies vaccination isn’t strictly required for pets from the US or Canada, but it’s still a good idea to make things easier at the border.
- Pets must arrive in an approved carrier and be inspected upon arrival. Only a day’s worth of food is permitted.
- No quarantine is required for pets from the US, Canada, or other rabies-free countries.
- It’s a good idea to consider parasite treatments before entering Mexico. Your vet is the best one to make the right recommendations.
- Some dog breeds are banned from certain Mexican cities. Do your homework to avoid any problems.
To make things really easy, we recommend going above and beyond to ensure no hassles at the border. That means getting the health certificate, rabies certificate, parasite treatments, up to date vaccination records, and microchip information. And then translate as much as possible into Spanish.
Other Tips
- Mexico has certain diseases that aren’t common in the US. (For example, leishmaniasis for dogs.) Talk to your vet before you leave.
- Make sure your pet’s ID and microchip are up to date and they wear a collar with your Mexican contact info.
- Research quality vets and pet hospitals in your area in Mexico in case your pet needs urgent care, and consider relevant pet insurance.
Do You Need to Learn Spanish?
English is widely spoken within the major cities, tourist areas and expat communities. However, it’s much harder to find in rural areas. For that reason, we recommend learning at least a little of the language.
Not only does it show respect that you’re making an effort, it will make daily life a lot easier – from shopping to filling out paperwork to asking for directions.
Some helpful tips from expats who have gone before you:
“Focus on learning how to hold a basic conversation in Spanish. Learn essential vocabulary and phrases for errands, how to make appointments, get directions, and order in a restaurant, etc. Fluency takes time but a good foundation will serve you well.”
“Start with a language app and practice with Spanish speakers as much as possible before moving to Mexico. Once there, immerse yourself. It speeds up learning, even if awkward at the beginning.’”
“Don’t worry about having perfect grammar. Don’t worry about being perfect. Speaking and understanding are the most important. Locals will appreciate it too.”
“Don’t become dependent on a translation app. Have one for emergencies or when you’re really stuck, but really try to focus on building your language skills.”
It’s worth noting that there are a number of dialects across the country including Northern Mexican, Central Mexican, Coastal Mexican, Yucatecan, and Chiapaneco. But that shouldn’t be a problem if you learn standardized (Mexican) Spanish.
Mexican Taxes for Expats
The United States is only one of a few countries in the world that taxes its citizens by citizenship and not residency. That means that you still need to pay Uncle Sam his due every year no matter how long you live outside the US.
If you do move to Mexico, it’s very important you understand how the taxes will work. You will need to pay tax to the Mexican government, to the US government and then rely on the tax treaty between the countries to avoid double taxation.
Here's some more information:
You are considered resident for Mexican tax purposes if you spend 183 days or more per year in Mexico. You are also considered tax-resident if your center of vital interests is in Mexico. This qualification is met if either:
- More than 50% of your total income received during the calendar year is derived from Mexican sources.
- Your main center of professional activities is located in Mexico.
Tax residents of Mexico must pay tax on their worldwide income at a top rate of 35%. Whatever taxes you pay on your income in Mexico likely can be credited against your US tax obligations.
There is no estate or inheritance tax.
Mexican Citizenship and Taxes
If you become a Mexican citizen, you will be considered tax resident in the country unless you acquire tax residency in another country.
A Mexican citizen who moves to a country that Mexico considers a tax haven will still be considered a tax resident in Mexico for a total of four years after telling Mexican tax authorities of their new tax residency.
What is a tax haven, you ask?
Basically, if your new tax residency home:
- imposes an effective tax rate that is lower than 75% of the tax that would be payable in Mexico,
- has a territorial tax system — a tax system in which only income generated within the country is taxed.*
*This provision is not triggered if Mexico has an Information Exchange Agreement[?] in effect with your new country of tax residency or a tax treaty with an information exchange clause with it.
Special Considerations for US Citizens Moving to Mexico
Although this guide is geared towards US citizens considering a move to Mexico, many such guides out there try to appeal to an international reader. This isn’t such a great idea as Americans (and Canadians) have a different level of access to Mexico than people from other countries.
We’ve talked about that in different ways so far, but here’s a quick summary of key advantages:
Visa-free entry
US and Canadian citizens can enter Mexico without a visa as tourists for up to 180 days. Many other nationalities require tourist visas.
Residency requirements
Due to a higher standard of living, it’s often easier for US and Canadian citizens to meet the income and assets requirements for temporary and permanent resident visas compared to other nationalities.
Importing vehicles
It’s easier for US and Canadian citizens to import cars, RVs, boats, etc. into Mexico than citizens of other countries. Special import permits are generally not required.
Health Care
US and Canadian citizens with legal residency in Mexico can also benefit
from the public health care program, Instituto Mexicano del Seguro
Social (IMSS) for an annual fee.
Note that with IMSS, due to membership status, some patients might receive greater priority than expats.
Travel
It’s easy to travel back to the US and Canada from Mexico. There are great travel connections and visa formalities are straightforward and quite flexible.
Language
Spanish fluency is not required for residency for US/Canadian citizens but can make the transition easier. Other nationalities may have language requirements.
The Best Communities and Cities for Expats
Most expats come in two flavors:
One group wants to assimilate into the culture as much as possible. They immerse themselves in the language, the culture, the food and the day-to-day life of the locals.
Another (much larger) group needs a bit of a bridge from their old life to their new. They love the idea of moving to a new place but want to ease themselves in.
Those people – the majority of would-be expats – are drawn to cities and communities with an established expat community, and seek out people like themselves when in a foreign country.
Because it is so close to the US, Mexico has many such communities. Which one is right for you?
We’ve created an entire resource to help you decide. Please see:
How to Get Started
Go visit
Moving to Mexico – or any country – is not a small thing. Even if you’re an experienced traveler, choosing a place to put down stakes requires getting a good sense of your new potential home before you spend lots of time and effort with the details.
That’s why, when clients ask us about moving, we recommend the following:
Step #1: Do a field trip for a week or two.
Sometimes you’ll feel right at home in a certain spot straight away. Other times, you’ll immediately be turned off and know you can move on.
The key here is to travel. Stay in a place for just a day or two, in a hotel that offers support for tourists. If you like, feel free to take in the sights. But keep in mind that the point of this is to see if it’s a good potential spot to live. So be sure to leave time to do things you would do if you did live there – go for coffee, see where the gyms are, find a local supermarket, see where local expats spend time… and so on.
Step #2: Narrow down your list and live like a local
Your first trip will help you get a sense of the country and create a list of the spots that might be best for you.
With that, we recommend investing at least two weeks “living” in each of those spots like a local. Instead of staying at a hotel, rent an Airbnb in the neighborhood you fancy. Unless you plan to eat out every meal, go shopping at the supermarket.
Do a drop-in at the local gym if that’s your thing. Have coffee with local expats and get their observations on the day-to-day.
Basically, do your best to get a real sense of what it’s like to live in Mexico.
Step #3: Go through formalities
At a certain point, you’ll have narrowed down your options to one or two. Now it’s time to jump in. Pick your favorite spot and start the formalities of moving down there.
This guide has given you a wealth of information on how to do that. But in summary:
- Find a place to live. Renting is advised to start. You can always buy later if you like.
- Get a visa. Which one will depend on your situation. Make sure your passport is valid for at least 6 months beyond your planned moving date to ensure entry to Mexico.
- Figure out health insurance.
- Figure out how you’ll school your kids (if applicable).
- Figure out everything you want to bring with you, the shipping company that will do it and the import duties and taxes that may apply.
And one more thing… It’s very important.
Make sure you understand the tax situation. America is one of the very few countries that taxes its citizens by citizenship. That means you have to keep paying tax to Uncle Sam no matter how long you live outside the country.
But you’ll also need to pay taxes in Mexico – up to 35%.
Now there is a tax treaty between the US and Mexico, which will help avoid double taxation. And the US has certain programs to minimize tax-related hassles Americans face when living overseas.
The key thing here is to understand how that all applies to your situation.
That’s something we can help you with. We’ve been at it for 40+ years now.
More Mexican Expat Resources
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