Contents
Mexico is a top destination for retirees looking for a warm climate, affordable living, rich culture, and proximity to the United States and Canada. With its diverse landscapes, welcoming locals, and vibrant cities, it’s no wonder so many foreigners choose Mexico for their retirement years. Whether you’re drawn to the beaches, colonial towns, rural life, or modern cities, Mexico have plenty of gems to offer.
Retiring in Mexico offers an incredible blend of affordability, beautiful landscapes, and rich cultural experiences. With accessible residency options and a variety of locations to suit different lifestyles, Mexico is a top destination for retirees seeking a slower pace of life and a warm and sunny climate. By carefully planning your finances, healthcare, and residency requirements, you can enjoy a smooth and rewarding transition to life in Mexico.
Why is Retiring in Mexico Popular?
Every foreign retiree have their own blend of reasons to pick Mexico over other possible retirement locations, but some themes tend to come up more frequently than others when we talk to foreign retirees in this country. Below, we have listed a few common reasons as to why foreigners move to Mexico for their retirement.
Proximity to the U.S. and Canada
It comes as no surprise that many of the foreign retirees in Mexico arrived from either Canada or the United States. Staying on the same continent, and in the same or roughly the same time zone, makes it easier to go back and forth, e.g. to visit family or spend part of the year in the old country. Mexico is well connected by air to both the United States and Canada, it is also possible to drive the Pan American Highway.
Pleasant Climate – and Several Climates to Chose FromMexico offers diverse climates, from tropical beaches and rainforests to deserts and cooler highland areas. Whether you’re looking for year-round warmth or prefer somewhat cooler temperatures, you can find a location in Mexico that suits your preferences.
Affordable Cost of Living
One of the reasons retirees flock to Mexico is the low cost of living in comparison to the United States, Canada, and many parts of Europe. Housing, utilities and food tend to be significantly cheaper here, allowing you to stretch your retirement savings further. Many retirees find that they can even can afford to hire someone to help them with household tasks, gardening, or driving.
High-Quality Healthcare
Compared to the United States, Mexico offers high-quality healthcare at a fraction of the cost. There are many well-equipped hospitals and highly trained medical professionals, especially in major cities like Mexico City, Guadalajara, and Monterrey.
Private healthcare is quite affordable, and expats can purchase comprehensive health insurance plans to cover their medical expenses. Some retirees hailing from Canada or Europe prefer to use private health care options in Mexico instead of waiting to be seen by the tax-funded healthcare system in their native country.
Cultural Richness
Mexico boasts a rich cultural heritage, with ancient ruins, colonial architecture, vibrant festivals, and a world-renowned food scene. From traditional Mexican cuisine to bustling markets, there’s always something to experience here.
Residency and Visas
Mexico offers several options for foreigners looking to live in the country long-term. Retirees usually apply for either a Temporary Resident Visa or a Permanent Resident Visa. Exactly what you can qualify for depends on your individual circumstances. Consulting an imigrant lawyer specializing in Mexico can be a good idea to find the best option for your particular situation.
Temporary Resident Visa (Visa de Residente Temporal)
This visa is designed for people who want to live in Mexico for more than six months but less than four years. Many retirees start with a temporary visa and later apply for permanent residency. The temporary resident visa is valid for one year and can be renewed annually for up to four years. After four years, you can apply for permanent residency.
Examples of requirements that must be fulfilled:
- Proof of sufficient income or sufficient savings. At the time of writing, it is usually around $2,100 USD/month for an individual or $2,700 USD/month for a couple, if you apply based on income. If you apply based in savings, the requirements is generally around $36,000 USD.
- Valid passport
Permanent Resident Visa (Visa de Residente Permanente)
For retirees looking to settle in Mexico indefinitely, the Permanent Resident Visa is a popular option. Once granted, it does not require renewal, and you can live in Mexico permanently.
Examples of requirements that must be fulfilled:
- Proof of sufficient income or sufficient savings. At the time of writing, it is usually around $2,700 USD/month, if you apply based on income. If you apply based on savings, the requirements is generally around $108,000 USD.
- Proof of financial stability
- Clean criminal record
- Valid passport
Taxes for Foreign Retirees in Mexico
Mexico has a tax treaty with several countries, including the United States and Canada, to avoid double taxation on pensions and other income. As a Mexican resident, you may be required to pay taxes on worldwide income, but there are specific rules and deductions available. It is a good idea to consult with a tax advisor who specializes in international tax law to ensure compliance with both countries’ tax regulations.
If you’re a U.S. citizen, you’ll still need to file taxes in the U.S., but you may be able to take advantage of the Foreign Earned Income Exclusion (FEIE) or claim a credit for taxes paid in Mexico.
Canada has a tax agreement with Mexico, which may allow for pension income to be taxed in Canada rather than Mexico. Conditions apply.
Cost of Living in Mexico
One of the biggest draws for retirees in Mexico is the affordable cost of living. While exact costs depend on where you choose to live and what your lifestyle looks like, we have compiled a little overview of typical expenses that can serve as a rough guide. Of course, it is possible to live in a penthouse in Mexico City and eat at luxury restaurants each night, spending vastly more than in this guide. There are also plenty of examples of retirees who settle down in a humble beach shack somewhere, live on rice and beans, and have monthly expenses well below these numbers.
- Housing: Renting a one-bedroom apartment in a smaller city or town can cost between $400-$700 USD/month, while in larger cities or beach towns, prices can range from $800-$1,500 USD/month. Purchasing property can also be affordable, but prices varying widely depending on location.
- Food: Groceries and eating out are very affordable. You can enjoy a meal at a local restaurant for around $5-$10 USD, while a couple’s monthly grocery bill may be around $200-$400 USD.
- Utilities: Electricity, water, and internet services are inexpensive. Expect to pay around $50-$100 USD/month for electricity and water, depending on usage and location. Internet costs vary but average $20-$50 USD/month.
- Transportation: Public transportation is very affordable, with bus fares typically costing less than $1 USD. Taxis and ride-sharing services like Uber are widely available in larger cities, and driving is also an option for retirees with a valid driver’s license.
Healthcare in Mexico
Mexico offers a robust healthcare system with both public and private options. Many expats purchase private health insurance and use private healthcare for faster access to specialists and shorter wait times.
Mexico’s public healthcare system, Instituto Mexicano del Seguro Social (IMSS), is available to residents for a low annual fee. While public healthcare is generally good, it may not be as quick or convenient as private care.
Private healthcare is affordable and of high quality in Mexico. Many hospitals and clinics in larger cities are equipped with modern facilities, and the cost of care is significantly lower than in the United States.
Private health insurance is recommended for retirees in Mexico, and there are many affordable options available. The cost of private insurance can range from $100-$300 USD/month depending on age, coverage, and health status. Some retirees also opt for international health insurance plans, especially if they do a lot of touristing outside Mexico, e.g. travelling down to Central- and South America.
Popular Retirement Destinations in Mexico
Mexico offers a wide variety of cities and regions that cater to different lifestyles and preferences. Here are just some examples of popular areas for retirees:
Lake Chapala and the City of Ajijic
Located near Guadalajara, Lake Chapala is home to one of the largest expat retirement communities in Mexico. The area boasts a mild climate year-round, a beautiful lakeside setting, and a strong expat presence. Ajijic, a town on the lake’s northern shore, is particularly popular among retirees. Ajijic (formerly spelled Axixic) means “place of water” or “place where water bubbles up” in Classical Nahuatl.
Ajijic is located 1, 538 metres (5,046 ft) above sea level and enjoys a moderate climate year-round. Just like in the rest of the Chapala Lake basin, the average temperature here is 19 °C (66 °F). Since Ajijic is in the tropics but at a fairly high elevation, it rarely gets very cold or very hot here. The rainy season is in June – September/October, with rain typically falling in the evening and night. During the coolest months, which are December and January, temperatures can drop down to a few degrees above freezing temperature at night.
At the 2020 census, roughly 11,500 people lived in Ajijic, but this number does not include the many Mexican families who live and work in Guadalajara but spend their weekends and holidays in Ajijic. Foreign artists and writers began arriving to Ajijic as early as the 1890s, and the novel “Village in the Sun” was written here by Nigel Millet and Peter Lilley under the penname Dane Chandos. “House in the Sun” are from the same authors and also concerns life in Ajijic.
Aijic is big on celebrating festivals and other events, and you can expect at least one major event each month. There is the National Chili Cook-Off, the foot race Chupinaya Carrera de Montana, and the hot air balloon event Regatta de Globos – just to mention a few. Ajijic´s patron Saint, San Andreas, is celebrated with much pomp for more than a week in late November.
San Miguel de Allende
A UNESCO World Heritage city, San Miguel de Allende is known for its colonial charm, artistic community, and cobblestone streets. It’s home to a large foreign retirement community and offers a temperate climate and a lively cultural scene. In the early 20th century, this mountain city was on the brink of becoming a ghost town, but foreign artists began to arrive, attracted by the well-preserved baroque and neoclassical architecture. Art schools were established, which in turn attracted former U.S. soldiers studying on the G.I. Bill after World War II.
Puerto Vallarta
For those who want to retire by the beach, Puerto Vallarta is a top choice. It’s a vibrant city with excellent amenities, beautiful beaches, and a strong expat presence. The cost of living is higher here than in inland areas, but the beach lifestyle is worth it for many retirees.
Offshore from Mismaloya, just 12 km south of Puerto Vallarta, you will find Los Aracos National Marine Park, which as been a protected National Marine Park since 1984. It is a popular spot for enjoying nature both above and below the surface, and you can for instance go snorkeling here. The park is an important breeding ground for various birds, including pelicans.
Mérida
Located on the Yucatán Peninsula, Mérida is a historic city known for its colonial architecture, rich Mayan heritage, and cozy pace of life. It’s safe, culturally rich, and offers easy access to the Gulf of Mexico beaches. Mérida is considered one of the safest cities in all of Mexico, and was certified as an International Safe Community in 2015 by the Karolinska Institute of Sweden. Forbes has ranked Mérida as one of the best Mexican cities to live in, and in 2022, the United Nations Habitat´s City Prosperity Index recognized Mérida as the Mexican city with the highest quality of life.
Mexico City (CDMX)
For those who prefer a more urban lifestyle, Mexico City offers world-class amenities, a vibrant food scene, and access to excellent healthcare. While the cost of living is higher than in other regions, Mexico City offers unparalleled culture, entertainment, and services.
Cultural Adaptation
Mexico is known for its friendly and welcoming culture. However, adjusting to cultural differences is an important part of retiring abroad. Patience, flexibility, and an open mind are key to successfully integrating into life in Mexico. Red tape issues may move slower than what you are used to, and in some smaller towns, businesses still observe a siesta period in the afternoon.
While many Mexicans in tourist areas and expat communities speak English, learning Spanish is highly recommended to fully integrate into your new life in Mexico. Knowing at least basic Spanish will help you navigate daily life, communicate with locals, and enjoy the culture more deeply. Many retirees take Spanish classes both before they move and once they arrive. Finding tutors and language schools is not difficult, and online options are available.
Family plays a central role in Mexican culture, and community events and gatherings are common. As an expat, you’ll likely find locals very welcoming, but showing respect for traditions and customs is essential.