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Mexico has some of the best cities in the world for expats looking to work or retire abroad. It also boasts beautiful beaches, majestic mountains, nature reserves, and metropolises.
But you may be struggling to pick which Mexican city is right for you. After all, there are so many to choose from.
That said, this guide covers the best Mexican cities that expats can call home, the cost of living in each, and what to expect as far as housing, food, and amenities.
Contents
- Key Takeaways
- Where Do Expats Live?
- Quick Comparison: Which Mexican City Fits You Best
- Puerto Vallarta
- Los Cabos
- Merida
- Mexico City
- San Miguel de Allende
- Playa del Carmen
- Lake Chapala
- Can Foreigners Buy Property in These Cities?
- How Safe Are These Cities, Really?
- Now, on to You
- Frequently Asked Questions
- Do I need a visa to live in these Mexican cities long-term?
- Which of these cities require a fideicomiso to buy property?
- How much does private health insurance cost for expats in Mexico?
- Do I need to speak Spanish to live comfortably in these cities?
- Is the tap water safe to drink in these cities?
- Which city on this list is best for families with kids?
- When is hurricane season for the coastal cities on this list?
- Sources Cited
Key Takeaways
- Mexico has expat-friendly cities for every style, from quiet beach towns to a giant capital.
- Puerto Vallarta is the easy all-rounder, with a comfortable budget of about US$1,100 to US$1,800 a month.
- Merida is the cheapest big city and one of the safest, livable on under US$1,500 a month.
- Mexico City has the most jobs, transport, and culture, but also pollution and crowds.
- San Miguel de Allende and Lake Chapala (Ajijic) are longtime favorites with retirees.
- Beach spots like Los Cabos and Playa del Carmen are pricier and very touristy.
- Rents in trendy nomad neighborhoods like CDMX’s Roma and Condesa have jumped sharply.
- Visit your shortlist before committing, since each city suits a different kind of expat.
Where Do Expats Live?
Mexico has a population of over 130 million people, 10 cities with over one million inhabitants, and over 30 cities with over 500,000 inhabitants. So, narrowing down the best cities in the country is difficult to say the least.
However, the following places are the most expat-friendly and have some fantastic things going for them when compared to other Mexican cities.
Quick Comparison: Which Mexican City Fits You Best
Before you read through all six cities in detail, here’s how they stack up side by side. Treat the budget column as a single expat’s comfortable monthly spend (rent, food, transport, and going out), not just rent.
| City | Best For | Comfortable Monthly Budget (Single) | Coastal (Fideicomiso Needed) |
|---|---|---|---|
| Puerto Vallarta | Easy all-rounder, beach life | US$1,200 to US$2,000 (about MXN 20,300 to MXN 33,850) | Yes |
| Los Cabos | Beach bums, proximity to the U.S. | US$1,500 to US$2,500 (about MXN 25,400 to MXN 42,300) | Yes |
| Merida | Lowest cost, safety-conscious expats | US$1,200 to US$1,700 (about MXN 20,300 to MXN 28,800) | Unclear, check per address |
| Mexico City | Jobs, culture, big-city life | US$1,200 to US$2,200 (about MXN 20,300 to MXN 37,250) | No |
| San Miguel de Allende | Colonial charm, retirees | US$1,300 to US$2,200 (about MXN 22,000 to MXN 37,250) | No |
| Playa del Carmen | Laid-back beach town | US$1,500 to US$2,300 (about MXN 25,400 to MXN 38,900) | Yes |
These are ranges, not fixed numbers. Rent in the trendiest neighborhoods of any of these cities can push well past the top end, so treat this table as a starting point for your own budget, not a promise.
Puerto Vallarta
Puerto Vallarta is a beachside city that is home to about 40,000 expats, or around 16 percent of the city’s population.
The city has excellent public transportation, lively nightlife, beautiful beaches, and sound infrastructure.
Why it’s a Top Choice: Best City for Expats Overall
Expats will find many comforts from back home in this small city, such as Walmart, Costco, and tons of imported products from the U.S. and Europe. This is the number one expat city in Mexico because living here is easy, laid back, fun, and safe.
Cost of Living
Puerto Vallarta is an extremely popular destination for tourists and expats and that’s reflected in the cost of living.
While the small city is generally a much cheaper place to live compared to some of the larger Mexican cities, due to the amount of tourism the city gets, many things can be more expensive.
In fact, a single expat can expect to pay US$1,100 to US$1,800 per month to live comfortably in Puerto Vallarta.
Job Opportunities
Puerto Vallarta is known as a digital nomad haven, so most of the expats living in the city are either retirees or remote workers.
That being said, due to the large population of expats, there is also a need for English speakers in hospitality and tourism.
There are also plenty of English teaching jobs in Puerto Vallarta.
Pros of Living in Puerto Vallarta
- The city has great infrastructure, new roads, public transportation, and wifi.
- Lots of expats living there make meeting like-minded people easy.
- No matter what part of the city you’re in, you’ll be near the beach.
- Great nightlife.
- Good choices for apartments and homes.
Cons of Living in Puerto Vallarta
- It can get scorching hot and humid, up to 100 degrees Fahrenheit and 100 percent humidity in summer.
- Some areas of the city are more expensive than other parts of Mexico.
- It can get very crowded in the high season as many tourists visit the city.
Los Cabos
Los Cabos is a region of Mexico at the very southern tip of the Baja Peninsula. The main tourist center of Los Cabos is Cabo San Lucas, a very tourist and expat-friendly city with over three million visitors per year.
While it’s primarily a tourist city, many expats call Cabo San Lucas home.
Why it’s a Top Choice: Best City for Beach Bums
Most expats in Los Cabos live in San Jose del Cabo, the second largest city in the region and much quieter and less touristy than Cabo San Lucas.
Its proximity to the U.S., great weather, stunning beaches, and high standard of living makes Los Cabos a great place to live as an expat.
Cost of Living
Los Cabos is not the cheapest place to live in Mexico. The city is quite expensive compared to some of the other destinations on this list.
Because it’s essentially a touristy resort city, restaurant prices and transportation costs are hiked up. On the other hand, rent in Los Cabos is much cheaper on average than in Mexico City.
Another reason most expats live in San Jose del Cabo rather than Cabo San Lucas is the cost of living, as San Jose del Cabo is much cheaper.
For example, a one-bedroom apartment costs around US$600 in Cabo San Lucas, whereas the average is only around US$900 per month in San Jose del Cabo. A single expat needs a minimum of US$1,500 to US$2,200 per month to live comfortably in Los Cabos.
Job Opportunities
The most popular expat jobs in Los Cabos are in real estate, hospitality, and teaching English. Los Cabos has a substantial real estate market appealing to expat retirees and investors, so the need for English-speaking real estate agents is high.
Los Cabos also has countless resorts, so many expats who have experience working in the high-end hospitality field come to Cabo San Lucas to work in tourism.
As with anywhere in Mexico, another common profession for expats is teaching English. There is ongoing demand on English programs for children and adults.
As a result, there are many English teaching jobs all over the country, and since Los Cabos is a very touristy destination, there is a massive push for the local community to learn English.
The job market for expats is not the best in Los Cabos compared to other Mexican cities, though. There is a lot of competition, so if you’re looking for a Mexican company to sponsor your residency, I recommend looking elsewhere.
Pros of Living in Los Cabos
- Los Cabos is a safe city to live in Mexico.
- The weather is pleasant all year round, without temperature extremes and only mild seasonal changes.
- Fast Internet speeds.
Cons of Living in Los Cabos
- More expensive than other cities in Mexico.
- The traffic in the region, especially in Cabo San Lucas, can be horrible.
- The education system in Los Cabos is not as good as in other areas of the country, so if you plan to raise your kids here, you may need to look for international schools.
Merida
Merida is the capital and largest city in the Yucatan region of Mexico. Most tourists skip this vibrant city and go straight to Cancun, Tulum, or Playa del Carmen, which is a huge mistake.
Merida has a lot to offer at an incredibly low price.
Why it’s a Top Choice: Cheapest City
Merida has a fascinating blend of cultures and food, and while it’s not directly on the beach, there are beautiful beaches and nature reserves nearby.
Cost of Living
Merida is considered the cheapest city in Mexico for a large city. And because it’s not the most touristy area, prices are lower in almost every category.
Expats looking to get more bang for their buck will adore Merida. You can find a comfortable one-bedroom apartment in the city center for less than US$800, and a single expat can easily live in Merida on less than US$1,500 per month.
Job Opportunities
About 11,000 U.S. and Canadian citizens live permanently in Merida, and the vast majority of the expats here are digital nomads or English teachers.
Since Merida doesn’t get many tourists compared to other regions in Mexico, there are not as many hospitality jobs for expats.
While it’s possible to work as a bartender, hotel receptionist, or English-speaking tour guide in Merida, these jobs are less common among expats.
Pros of Living in Merida
- Very low cost of living.
- Amazing blend of Mexican and Mayan culture.
- Nearby many beaches and tourist destinations.
- Very walkable city.
Cons of Living in Merida
- It can get scorching hot in Merida during the summer months.
- Limited flights compared to other big cities.
- More difficult for expats who don’t speak Spanish.
Mexico City
Mexico City, or Ciudad de Mexico (CDMX), is not only the capital and largest city in Mexico but also one of the biggest cities in the world.
This sprawling metropolis has more to offer than any other city in Mexico in terms of job opportunities, food, and activities.
Why it’s a Top Choice: Best for Big City Lovers and Job Seekers
If you can get past the city’s air pollution and overall crowds, it’s a great place for expats to live. So, if you are a big city-lover who wants to get lost in a massive urban playground, CDMX is the place for you.
Cost of Living
Being the biggest city in the country, Mexico City is a bit more expensive than most other places. The higher cost of living boils down to the higher rent prices in CDMX.
Expats can expect to pay US$800 or more per month for a one-bedroom apartment in the central boroughs of the city. But, if you plan to live outside the city center, rent can be as low as US$400 to US$500 per month.
One recent shift to budget for: the remote-work boom has pushed rents in the trendiest expat neighborhoods well above these averages. In Roma Norte and Condesa, one-bedrooms now commonly run US$800 to US$1,800, after rises of 60 percent or more over three years. That surge has also fueled visible local pushback against gentrification, so it is worth looking beyond the obvious nomad hotspots.
One thing that is considerably cheaper in CDMX than in other cities around Mexico is the cost of groceries and street food. Due to the competition from the vast number of street food vendors, you can find tacos for as little as US$2 in a non-tourist area.
And because the city has countless fresh fruit and vegetable markets, you can buy groceries here on a budget. To live comfortably in Mexico City, an expat would need around US$1,200 to US$2,000 per month.
Job Opportunities
Mexico City is the place to be if you want to find a job in Mexico. Most large local companies and many international corporations are headquartered in CDMX, making it one of the best places to find work in Mexico.
Mexico City is the best place to find a job in fields such as tech, programming, marketing, sales, and management. As with other cities in the country, Mexico City is also a great place to teach English.
Pros of Living in Mexico City
- It has the best public transportation system in the country by a long shot. You’ll have access to the subway and commuter rails, which can get you anywhere in the city.
- It’s the best place in the country to learn Spanish, with many immersion and Spanish language schools.
- CDMX Airport is the biggest in Mexico, with many affordable connections to other cities in the country and international destinations.
Cons of Living in Mexico City
- Bad air pollution. At times, a pollution mask may be necessary.
- Very busy city. Over 20 million people live here, so it’s no surprise that the city is constantly packed.
- While it’s not as dangerous of a place as the media makes it out to be, it’s not the safest city in Mexico.
San Miguel de Allende
Around 160 miles north of CDMX lies San Miguel de Allende, a gorgeous 16th-century colonial town with fantastic weather and rich cultural history.
Approximately 10 percent of the population in San Miguel de Allende are expats, so it goes without saying that this city is very foreigner friendly.
San Miguel de Allende has been named the best city in the world by Travel + Leisure readers several times.
Why it’s a Top Choice: Most Cultural City
This city is much smaller than some of the major centers of Mexico, with only around 160,000 residents. That being said, San Miguel de Allende is a tourist hot spot, especially popular with retirees, and the city center still gets busy and crowded in the high season.
If not being near the beach doesn’t bother you, San Miguel de Allende might be the perfect city.
Cost of Living
San Miguel de Allende is not the most expensive city in Mexico, but it is definitely not the cheapest. As a smaller city, there is more housing competition, so it’s harder to find low rental prices.
The average cost for a one-bedroom apartment in the city center is around US$900 to US$1,200 per month, but if you go outside the city center, you can expect to pay about US$700 to US$900 per month.
An expat living in San Miguel de Allende will need around the same amount of money as an expat living in Mexico City, around US$1,300 to US$2,200 per month. This may not be as cheap as a place like Merida, but it’s still affordable compared to other popular destinations in the country.
Job Opportunities
The most significant industry in San Miguel de Allende is tourism. This small city gets nearly two million visitors annually, so many locals and expats living here work in tourism and hospitality.
Many expats also move to San Miguel de Allende to work in the growing real estate market. This is a result of more and more expat retirees moving to cities across Mexico each year and investing in property.
Companies in San Miguel de Allende generally prefer to hire expats that speak both English and Spanish. Still, as long as you have at least a basic understanding of both languages, you should be able to find a job in this city.
Pros of Living in San Miguel de Allende
- The city boasts warm, dry weather all year round. The wettest month only gets two to three inches of rain.
- A very safe place to live.
- Clean city with very little air pollution or litter.
- More healthcare options (physical therapy, dental, etc.) than in other smaller cities in Mexico.
Cons of Living in San Miguel de Allende
- Tourist and expat areas of the city are quite expensive.
- The city can get very crowded and busy during weekends or on Mexican public holidays.
Playa del Carmen
Playa del Carmen is a small city in the Yucatan province, about a one-hour drive from Cancun. Playa del Carmen has some of the most beautiful beaches in Mexico, if not in the world, with white sand, turquoise water, and warm weather all year round.
The town used to be a hidden gem that was an alternative destination to the much more popular city of Cancun, but nowadays, it’s a bustling tourist town with a constantly growing expat population.
Why it’s a Top Choice: Best City for A Laid-Back Atmosphere
So, if you want to live somewhere with amazing beaches, coral reefs, and a laid-back atmosphere, Playa del Carmen is the place for you.
Cost of Living
The one major setback anyone looking to live in Playa del Carmen will have is the cost of living. This city is very expensive to live in, especially when it comes to rent. The average monthly rental cost for a one-bedroom apartment near the city center of Playa del Carmen is US$1,200.
But with rent prices increasing and more and more expats moving to Playa del Carmen, it may be challenging to find an apartment for less than US$1,100 per month.
This is one city in Mexico where you’ll find that the prices for most things cost nearly as much as they would in Western countries such as the U.S., U.K., or Australia.
My top tip for saving money in Playa del Carmen is to eat and drink local food and beverages, as they tend to be much cheaper than imported items or Western cuisine.
Job Opportunities
Most expats living in Playa del Carmen are retirees or digital nomads, so there is a smaller job market for expats in this city than there is in other cities on this list.
With that said, there are expats that work in the bars, restaurants, cafes, hotels, resorts, and other tourist establishments in Playa del Carmen. As with all other areas of Mexico, there is also a rising need for native English teachers at schools.
So, there are quite a few opportunities to work as an English teacher in Playa del Carmen, but the competition is high for these jobs in the city, so keep that in mind if you plan to apply.
Pros of Living in Playa del Carmen
- Live near immaculate beaches with some of the best snorkeling and diving in the world.
- Very easy to get around the city by walking, riding a bicycle, or taking a short (and affordable) bus ride.
- Playa del Carmen is a very safe city to live in, much safer than most other places in the country, with very low violent and petty crime rates.
- The city is very clean. Law enforcement has recently cracked down hard on littering and public urination.
Cons of Living in Playa del Carmen
- Rent is very high compared to other cities in Mexico.
- Wifi speeds are slower than the national average, so digital nomads may struggle a bit.
- Playa del Carmen frequently gets hit by hurricanes and tropical storms between June and November every year.
Lake Chapala
Lake Chapala is a large lake only around a 45-minute drive from Guadalajara. There are several towns spread around the lake, but the most popular destination for expats is Ajijic.
Why it’s a Top Choice: Best Hidden Gem
Ajijic is a quiet town surrounded by natural beauty, and around 20 percent of the population are expats. Most of the expats here are retirees looking to escape the hustle and bustle of large urban areas and settle in a small charming town.
Cost of Living
The cost of living in Ajijic is relatively high compared to the surrounding areas, which is mainly due to the high number of expats living here.
A comfortable, one-bedroom apartment costs around US$1,000 to US$1,300 per month, but rent can fluctuate from as low as US$900 to as high as US$2,000, depending on the neighborhood and facilities.
A single expat on a budget could survive on as little as US$1,100 per month here, but you’ll need US$1,700 to US$2,000 per month to live comfortably in Ajijic.
Other towns around Lake Chapala, such as Chapala, Jocotepec, and Ocotlan, tend to be much cheaper than Ajijic, with rental prices as low as US$600 per month. So, if you don’t mind being a bit off the beaten track, these towns are also beautiful locations.
Job Opportunities
Being primarily a retirement destination, Ajijic is not the best place to find work in Mexico. Most expats come here to settle quietly, so locals own most businesses.
However, quite a few restaurants and bars in the area require English-speaking staff. Expats commonly work as tour guides or real estate agents in the Lake Chapala region as well.
Pros of Living in Lake Chapala
- Best place for expats to live if you want a quiet, off-the-beaten-track location.
- The weather is mild due to the lake being located at a high elevation of 5,000 feet above sea level.
- Since over 20 percent of the population are expats, there are many comforts such as American and European food and sports bars.
- You get the small-town vibe while still only being a 45-minute drive to a large urban area.
Cons of Living in Lake Chapala
- Living in Ajijic may feel more like living in the U.S. or Canada than in Mexico because of how many expats live here. So, if you’re looking for a more authentic Mexican location, look elsewhere.
- Petty crime has gotten worse in the last few years in the Lake Chapala region, with more reported break-ins and burglaries.
Can Foreigners Buy Property in These Cities?
This trips up a lot of first-time buyers, so here’s how it works. Mexico’s constitution blocks foreigners from holding direct title to land within 50 kilometers of any coastline or 100 kilometers of a border, an area known as the restricted zone.
Puerto Vallarta, Los Cabos, and Playa del Carmen all sit inside that coastal band. If you want to buy there, you don’t get direct ownership; instead, a Mexican bank holds the title in a trust called a fideicomiso, and you get full rights to use, rent, sell, or pass on the property. The trust runs for 50 years and can be renewed.
Mexico City and San Miguel de Allende are both well inland, so foreigners can hold direct title there with no trust required. Merida sits close enough to the Yucatan coast that its status is genuinely mixed. Some addresses fall inside the 50-kilometer line and some fall just outside it, so this is one to confirm with a local notary (notario publico) before you sign anything, not something to assume either way.
- Needs a fideicomiso: Puerto Vallarta, Los Cabos, Playa del Carmen
- No fideicomiso needed: Mexico City, San Miguel de Allende, Lake Chapala/Ajijic
- Depends on the exact address: Merida
How Safe Are These Cities, Really?
Headlines about cartel violence in Mexico are usually about specific states or highways, not the expat neighborhoods in this list, so it’s worth looking at what the official U.S. travel advisory actually says rather than the general news cycle.
The U.S. State Department rates Mexico as a whole at Level 2, “exercise increased caution,” which is the same tier as much of Europe and South America. But the advisory is broken down by state, and that’s where these six cities land:
- Yucatan (Merida): Level 1, exercise normal precautions, the lowest tier the U.S. issues to any country or region.
- Mexico City and Quintana Roo (Playa del Carmen) and Baja California Sur (Los Cabos): Level 2, exercise increased caution.
- Jalisco (Puerto Vallarta, Lake Chapala/Ajijic) and Guanajuato (San Miguel de Allende): Level 3, reconsider travel, statewide.
A Level 3 state rating does not mean the tourist and expat zones themselves are dangerous day to day; it reflects risk somewhere in that state, often along highways or in areas expats never pass through. Puerto Vallarta and San Miguel de Allende both draw large, established expat and retiree communities despite their state-level rating, which tells you something about where the actual risk is concentrated. Still, read the full advisory for your specific city before you commit, since it’s updated regularly and can change.
Related article: Everything You Need to Know About Driving in Mexico
Now, on to You
As you can see, there are plenty of cities to live in in Mexico as an expat. Each city has its own unique charm and attracts different types of expats.
Whether you’re looking for a beach city, culture, or good food, there is a city in Mexico for you. Also, consider job opportunities and the local communities to find the perfect fit.
If you’re still unsure about what city to pick, spend some time on your top picks to really get a sense of what each city has to offer.
What to read next:
- How to Move to (and Survive in) Mexico
- The Complete Guide to Renting an Apartment in Mexico City
- How Much You Need to Live in Mexico as an Expat
Frequently Asked Questions
Do I need a visa to live in these Mexican cities long-term?
Yes. Tourists can stay up to 180 days on a visitor permit, but living somewhere on this list long-term means applying for a temporary or permanent resident visa, and the financial requirements were updated in 2026. Check our full guide before you apply, since the numbers change and vary by consulate.
Which of these cities require a fideicomiso to buy property?
Puerto Vallarta, Los Cabos, and Playa del Carmen all sit inside Mexico’s coastal restricted zone, so you’d buy through a bank trust rather than direct title. Mexico City and San Miguel de Allende don’t require one. Merida is close enough to the coast that it depends on the specific address, so get that confirmed by a notary before you buy.
How much does private health insurance cost for expats in Mexico?
Roughly US$100 to US$300 a month for a solid Mexican private plan in your 40s, more if you want international coverage that follows you outside Mexico, and more again as you get older. It’s a wide range because age, health history, and deductible all move the price a lot, so get a couple of quotes rather than budgeting off a single number.
Do I need to speak Spanish to live comfortably in these cities?
Not to get by day to day in Puerto Vallarta, Los Cabos, Playa del Carmen, or Lake Chapala, where large expat communities mean plenty of English is spoken. You’ll have a much easier and cheaper life almost anywhere in Mexico with even basic Spanish, though, especially in Mexico City and Merida, where fewer people in everyday shops and offices speak English.
Is the tap water safe to drink in these cities?
No, not in any of them. This isn’t a knock on any single city; it’s standard practice across Mexico for both locals and expats to drink bottled water or use a home filter and delivered water jugs (garrafones), which are cheap and available everywhere.
Which city on this list is best for families with kids?
Mexico City has the widest range of international schools by a large margin, since it’s the biggest expat hub in the country. Playa del Carmen and Puerto Vallarta also have a handful of options that cater to expat families. San Miguel de Allende and Lake Chapala skew heavily toward retirees, so school choices are more limited there.
When is hurricane season for the coastal cities on this list?
For Puerto Vallarta and Los Cabos, on the Pacific side, the official season runs mid-May through November. For Playa del Carmen, on the Caribbean side, it runs June through November. Storms don’t hit every week of that window, but it’s worth timing a first scouting trip outside peak hurricane months (August to October) if you want to see a city at its calmest.
Sources Cited
- U.S. Department of State, Mexico Travel Advisory
- Secretaria de Relaciones Exteriores (SRE), Permiso para constituir un fideicomiso en zona restringida
- NOAA National Hurricane Center, hurricane season climatology (Eastern Pacific and Atlantic basins)
- Instituto Mexicano del Seguro Social (IMSS), official site
- Instituto Nacional de Estadistica y Geografia (INEGI), official population statistics
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