How to move to Mexico from the US: A practical step-by-step guide

With approximately 1.6 million US citizens already calling Mexico home, drawn by its warm climate, rich culture, and significantly lower cost of living - the country has become the most prominent American expat community in the world. Whether you're dreaming of a beachfront retirement, planning to work remotely while embracing a new culture, or simply seeking a change of pace, this comprehensive guide will walk you through everything you need to know when considering moving to Mexico from the US.

Why should Americans move to Mexico?

• Lower cost of living: Mexico offers a substantially more affordable lifestyle compared to the US. Housing, groceries, transportation, and healthcare typically cost 50-60% less than in major American cities. This means your dollar stretches further, allowing many expats to upgrade their quality of life.
• Warm climate and beautiful scenery: From pristine beaches along both coasts to charming colonial towns and majestic mountain ranges, Mexico's diverse landscapes and consistently pleasant weather are major draws for Americans seeking to escape harsh winters.
• Rich culture and lifestyle: Mexico's vibrant culture, delicious cuisine, colorful festivals, and welcoming locals create an enriching environment for newcomers. The relaxed pace of life and emphasis on family and community appeal to many Americans tired of the fast-paced US lifestyle.
• Proximity to the US: Mexico's location makes it easy to visit friends and family back home, with direct flights to major US cities often taking just a few hours.

Step 1 - Learn about the legal requirements for moving to Mexico

Understanding Mexico's immigration rules is essential when relocating from the US. While Americans can enter Mexico for up to 180 days on a tourist visa, this isn't suitable for permanent relocation.

Visa types for US citizens

• Tourist visa (FMM): Valid for up to 180 days; this isn't a long-term solution, but it can give you time to explore regions before committing to a move.
• Temporary resident visa: This is the most common option for Americans who move to Mexico. It's valid for up to four years and allows multiple entries and exits. To qualify, you'll need to demonstrate:
  - a monthly income of at least 300 times the Mexican minimum wage (approximately $4,100)
  - OR savings of about 5,000 times the minimum wage (approximately $69,000) maintained over the past 12 months
• Permanent resident visa: For those planning to stay indefinitely, this visa has more stringent financial requirements but never needs renewal. You'll typically need:
  - a monthly income of about 500 times the Mexican minimum wage (approximately $6,800)
  - OR retirement income or pension above threshold amounts
  - OR substantial savings/investments
• Work visa: If you plan to work for a Mexican company, they'll typically sponsor your temporary resident visa with permission to work.

Application process and timeline

The visa application process generally follows these steps:

1. Apply at a Mexican consulate in the US before moving. This requires:
- valid passport
- completed application form
- proof of financial solvency (bank statements)
- payment of visa fees (approximately $40-60)
- recent photos
- proof of residence in the US

2. Once approved (usually within 2-4 weeks), you'll receive a provisional visa valid for 180 days.

3. After arriving in Mexico, you must visit the National Immigration Institute (INM) within 30 days to complete the process and receive your resident card.

Path to permanent residency and citizenship

After holding temporary residency for four consecutive years, you can apply for permanent residency. Mexican citizenship becomes possible after five years of legal residency or just two years if you marry a Mexican citizen. The naturalization process requires:

• proving Spanish language proficiency
• passing a test on Mexican history and culture
• demonstrating integration into Mexican society

Step 2-  Evaluate the cost of living in Mexico

One of the biggest advantages of moving to Mexico as an American is the significantly lower cost of living. Your financial planning should account for these general guidelines, though costs vary by location.

Average monthly living costs in Mexico (in USD)

While Mexico City stands as the most expensive area, it remains remarkably affordable compared to major US cities while offering comprehensive big-city amenities and cultural experiences. Tourist destinations like Puerto Vallarta and Cancun have slightly higher costs but provide excellent infrastructure and services catering to foreigners.

Merida offers lower living expenses with strong expat communities and quality healthcare facilities, while San Miguel de Allende maintains mid-range costs with its appealing colonial charm that attracts many retirees. For those seeking maximum affordability without sacrificing rich cultural experiences, Oaxaca presents some of the lowest costs of living among popular expat destinations.

Step 3 - Choosing the right place

Mexico offers diverse locations suitable for different lifestyles and preferences. When relocating to Mexico from the US, consider these popular expat destinations:

Mexico City (CDMX)

At a glance:

• perfect for urban enthusiasts, professionals, and digital nomads
• mild year-round climate (60–75°F/15–24°C)
• large, diverse international population
• highest cost in Mexico, but still 50–60% lower than major US cities

The capital offers a cosmopolitan atmosphere with world-class dining, museums, and excellent public transportation. Its cultural richness and modern amenities attract those who appreciate big city energy with Latin American charm.

Puerto Vallarta

At a glance:

• perfect for beach lovers, retirees, LGBTQ+ community
• tropical climate (75–90°F/24–32°C), rainy season June–October
• substantial American and Canadian presence
• moderate costs; higher in tourist zones

This coastal paradise balances beautiful beaches with vibrant nightlife and excellent healthcare facilities. Its welcoming atmosphere and established expat community make for an easy transition to Mexican coastal living.

San Miguel de Allende

At a glance:

• perfect for retirees, artists, and culture enthusiasts
• mild, dry climate (60–80°F/15–27°C)
• large, well-established American community
• mid-range costs; popular with affluent retirees

This UNESCO World Heritage site captivates visitors with stunning colonial architecture and a thriving arts scene. Its beauty, walkability, and cultural richness create an inspiring environment for creative types and history lovers.

Merida (Yucatan)

At a glance:

• perfect for families, safety-conscious expats, and history buffs
• hot and humid climate (75–95°F/24–35°C)
• growing American population
• very affordable housing and living costs

Often cited as Mexico's safest major city, Merida offers colonial charm and proximity to Mayan heritage sites. Its combination of authentic Mexican living, modern amenities, and family-friendly atmosphere continues to attract expats.

Lake Chapala/Ajijic

At a glance:

• perfect for retirees, quiet lifestyle seekers
• "eternal spring" climate (60–80°F/15–27°C)
• predominantly American and Canadian retirees
• affordable with good infrastructure

Mexico's largest expat retirement community surrounds this beautiful lake region. Its temperate climate, established foreign community, and relaxed pace of life make it ideal for those seeking comfort and tranquility.

When selecting your ideal location, consider your lifestyle priorities, climate preferences, and budget. We suggest you visit potential areas before making your decision, ideally during different seasons, to experience the full range of conditions and lifestyle options that each Mexican destination offers.

Step 4 - Find a place to live in Mexico

Finding suitable housing is a crucial part of moving to Mexico from the US. Whether you plan to rent or buy, understanding the local real estate market is essential.

Renting vs. buying

Renting is recommended initially to explore different neighborhoods and find the best fit. Prices are affordable (compared to the US), with typical lease terms ranging from 6-12 months. Landlords usually require a security deposit of 1-2 months’ rent.

Foreigners may need a Mexican guarantor (fiador) or pay a higher deposit. Utilities are often not included in the price, so factor this into your budget.

While US citizens can buy property in Mexico, there are some restrictions (e.g., properties within 50km of coastlines or 100km of borders require a fideicomiso or bank trust) - legal assistance is highly recommended.

While there are no property taxes at all in some areas, when applicable, they're much lower than US rates. Financing options are available, but typically with higher interest rates.

Online platforms and local agents

Online resources:

• propiedades.com
• inmuebles24.com
• lamudi.com.mx
• Airbnb (for initial temporary housing)
• Facebook Marketplace and expat groups

Working with agents:
Be aware that real estate agents aren't strictly regulated in Mexico, it’s advised to seek recommendations from established expat communities. You should consider bilingual agents who understand both markets. The typical commission is around 5-7% and is often negotiable.

Temporary housing for newcomers

Airbnb, VRBO, and extended-stay hotels can provide flexible short-term options, ideally for 1-3 months, while exploring neighborhoods. Many expats start in tourist areas before moving to more local neighborhoods.

Step 5 - Take care of finances and taxes

As an American, you remain obligated to file US taxes regardless of where you live. However, several provisions can help reduce double taxation:

• Foreign Earned Income Exclusion (FEIE): Excludes up to $128,000 (2024) of foreign-earned income from US taxes
• Foreign Tax Credit: Credit for taxes paid to Mexico
• Foreign Housing Exclusion: Deduction for qualified housing expenses

Mexico taxes residents on worldwide income and non-residents on Mexican-source income. Tax residency is generally established when:

• your permanent home is in Mexico
• the center of your vital interests is in Mexico
• you spend more than 183 days in Mexico during a calendar year

Banking options and money transfers

Mexican banking

You will find major banks like BBVA, Santander, and Banorte, which are well-represented in Mexico. Opening an account typically requires you to have your temporary or permanent resident visa, passport, proof of address (utility bill), and your tax ID number (RFC).

Managing US banking

We suggest you maintain your US bank account for recurring payments and especially consider banks with international ATM fee reimbursement. You can use money transfer services such as Wise and Revolut for better exchange rates.

Money transfer tips

You should avoid exchanging large amounts at airport kiosks or tourist areas. Make sure you compare rates between banks and online services; timing transfers when exchange rates are favorable can save you a lot in the long run.

Step 6 - Ensure health coverage

Public vs. private healthcare system

Mexico offers three main healthcare options, which we’ve compared below:

Choosing the right expat insurance

Many US citizens choose international health insurance plans that offer:

• coverage in both Mexico and the US
• access to private Mexican hospitals and clinics
• emergency evacuation coverage
• options for worldwide coverage
• lower premiums than US health insurance

Popular providers include Cigna Global, IMG Global, GeoBlue, and Allianz.

Finding doctors and clinics

• major private hospital networks include Star Médica, Angeles, and ABC
• many doctors in private practice are trained in the US and speak English
• pharmacies often have attached consultation rooms with doctors (farmacias similares)
• dental and vision care is very affordable and high-quality
• prescription medications are generally much cheaper than in the US, and many are available without a prescription

Step 7 - Secure employment or plan retirement

Remote work, freelancing, or local jobs

With fiber optic internet available in most urban areas, remote work has become increasingly popular among Americans moving to Mexico. Digital nomad communities are flourishing in Mexico City, Puerto Vallarta, and Playa del Carmen, offering networking opportunities and support systems for remote workers.

If you prefer local employment, you'll need a work permit as part of your temporary resident visa. Be prepared for generally lower salaries compared to the US. Bilingual skills are highly valued in the Mexican job market, opening more opportunities.

The most common sectors for expat workers include tourism, education (particularly teaching English), IT, and positions within multinational corporations. When job hunting, useful resources include OCC Mundial, Indeed Mexico, and LinkedIn.

Mexico offers a growing freelance market, especially in creative fields. Business incorporation requires residency status, so plan accordingly if you intend to establish a formal company - consult with a local attorney regarding specific regulations.

Work permits and business setup

Work permission must be requested as part of your visa application process. Typically, the employer initiates this process with Mexican immigration authorities.

Business setup generally requires obtaining a tax registration (RFC), having notarized articles of incorporation, and local permits (depending on your business type - also varies by location and industry).

Bringing US Social Security to Mexico

US Social Security benefits can be received while living in Mexico, but be aware that you may need to provide annual proof of life to continue receiving benefits.

Step 8 - Learn Spanish language and Mexican culture

Best ways to learn Spanish

While many Mexicans in tourist areas speak English, learning Spanish will significantly enhance your experience.

Consider in-person immersion classes or apps like Duolingo, Babbel, or iTalki. Language exchange meetups offer authentic conversation practice. Taking community college courses before leaving the US can also give you a solid foundation.

Watching Mexican TV shows with subtitles, listening to Spanish-language music and podcasts, and labeling household items in Spanish can accelerate your progress.

Cultural etiquette and tips

Mexican greetings typically involve handshakes and sometimes kisses on the cheeks. Personal space is generally closer and more intimate than in the US. Family holds central importance in social life.

In business culture, relationships come before transactions, with multiple meetings typical. Hierarchy plays an important role, and it's advisable to avoid scheduling meetings during meal time (2-4 PM).

Daily life requires some adjustment. Siesta time remains observed in some areas, and the main meal typically occurs mid-afternoon. Mexico maintains a more cash-based economy than the US. Services may take longer than expected, reflecting the generally slower pace of life.

Everyday challenges and how to handle them

Bureaucracy can be confusing and time-consuming. Understanding Mexican Spanish slang and idioms takes practice. Different attitudes toward time and schedules require flexibility.

Cultural misunderstandings inevitably happen. Have a bit of patience, and learn to accept cultural differences without judgment - this goes a long way.

Step 9 - Build your community

Building a social network is essential when relocating to Mexico from the US. For meeting expatriates, utilize city-specific Facebook groups, InterNations events, Expat Forum boards, American Society organizations, international charities, English-language religious communities, and digital nomad coworking spaces.

To connect with locals, join language exchange events, community classes in cooking or arts, neighborhood festivals, sports clubs, local volunteer opportunities, and university courses.

Weekly meetups offer consistent social connections. Participate in cultural celebrations, join neighborhood WhatsApp groups, attend language-based events, and consider house-sharing initially to expand your network quickly.

Also, it’s important to maintain regular contact with family back home. Simple things like celebrating American holidays with fellow expats and finding stores with American products can provide some much-needed comfort. Embrace the move and try not to isolate yourself.

Step 10 - Prepare for the move

Essential documents

 

Shipping your belongings (and pets)

Moving household items

• temporary residents can import household goods duty-free within six months of visa approval
• a detailed inventory in Spanish is required for customs
• consider whether items are worth shipping vs. buying in Mexico
• reliable moving companies include International Van Lines and Atlas International

Bringing pets

While it is possible, make sure you consider your pet’s well-being (for example, temperatures during the summer months). Airlines have varying pet policies and fees, so shop around before booking flights for the whole family. Be aware of typical requirements like:

• health certificate from a veterinarian (within 10 days of travel)
• proof of rabies (and possibly other) vaccinations
• parasite treatment(s)

Mobile phone plans and internet setup

Major mobile providers in Mexico include Telcel, AT&T Mexico, and Movistar. Setting up prepaid plans is straightforward, requiring only your passport for identification. Contract plans offer better rates but need residency documentation.

For home internet, popular options include Telmex, Izzi, and Totalplay, which provide varying speeds and coverage. Consider installing a VPN service to access US streaming content that might otherwise be geographically restricted.

Emergency contacts and healthcare access

• program local emergency numbers (911 works in Mexico)
• locate the nearest private hospitals and clinics
• register with the US Embassy through the STEP program
• identify English-speaking doctors before needed
• keep digital and physical copies of insurance information

Get personalized tax help for your move to Mexico

Moving to Mexico presents unique tax considerations for citizens of the US. Our team of specialized expat tax professionals can guide you through the complexities of maintaining tax compliance in both countries.

We help ensure you take advantage of all available tax benefits while avoiding common pitfalls when filing US taxes from abroad. From the Foreign Earned Income Exclusion to reporting foreign bank accounts, our experts will provide personalized assistance tailored to your specific situation.

Contact our specialists today for a consultation and enjoy peace of mind as you embark on your Mexican adventure.