Thinking of moving to Mexico from the USA? Discover what life is really like through first-hand experiences. Learn about the cost of living, healthcare, visas, safety, housing, taxes, and more to make your move smooth and rewarding.
I didn’t realize I would be moving to Mexico when I visited in 2009. While I was visiting Puerto Vallarta, I became enchanted by the lifestyle, Mexican culture, and the people. My vacation in Puerto Vallarta lasted two years.
A few years later, I sold everything in the United States and moved to Playa del Carmen. After two and a half years of living in a growing beach town, I found myself in Cozumel, where I lived for three years.
Each of these places filled a void in my life. As my Spanish improved, thanks to speaking with locals, I wanted to dive deeper into the culture.
I wanted to find something more authentic, so I made a fourth move to a rural community in Veracruz. I’ve been living here comfortably for more than four years.
Everyone’s idea of living in Mexico is different. Some people want the conveniences of home, while others seek an environment with fellow Americans.
I lived those experiences and found my own place in Mexico, which I adore. I’m treated as one of their own in my small town. It amazes me daily how happy I am after living in many locations in Mexico.
I hope everyone can find their own little piece of happiness in Mexico. In this article, I’ll explain some helpful tips and other things you’ll encounter when moving to Mexico from the United States.
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Contents
- Key Takeaways
- Cost of Living
- Where to Live
- Healthcare
- Should I Keep Medicare in Mexico?
- Housing
- Is Mexico Safe for Americans to Live In?
- Visa and Residency Options for Americans in Mexico
- Dealing with Finance
- Transportation
- Culture
- Food
- Language
- Expat Communities and English Speakers in Mexico
- Challenges of Living in Mexico as an American
- Now on to you
Key Takeaways
- When I moved to Mexico from the U.S., I was surprised at how far my money could go. My living costs dropped by about a third while my quality of life improved.
- Each city I lived in, Puerto Vallarta, Playa del Carmen, Cozumel, and now Veracruz, offered something different. You’ll find your perfect fit depending on whether you want beaches, big-city life, or quiet countryside.
- Healthcare here is excellent and affordable. I’ve had access to good doctors, dentists, and even specialists without breaking the bank.
- Getting residency was a game changer. It made opening a bank account, getting a driver’s license, and handling daily life much easier.
- My Spanish wasn’t great at first, but improving it made everything cheaper and smoother.
- Safety was one of my biggest concerns before moving, but I’ve always felt secure in every city I’ve lived in.
- I still keep a U.S. bank account, but I use local ones for everyday expenses.
- The culture here is vibrant and warm. Every holiday feels like a community celebration, and the food is simply unbeatable.
- Life in Mexico moves at a slower pace, and that took some getting used to. But it’s one of the reasons I’m happier now than I ever was in the U.S.
Cost of Living
One thing is certain about Mexico: you can find a place that fits your budget. You’ll find that living in a beach city or a similar city inland with a sizable population of American expats is more expensive. In these areas, you’ll need between US$1,900 and US$2,500 to live comfortably. Of course, this depends on your desired lifestyle.
The overall cost of living in Mexico is generally 30-35% lower than in the United States. You’ll spend the majority of your budget on rent, groceries, and restaurants.
You’ll find rent is more expensive in heavily American-populated cities like Puerto Vallarta, San Miguel de Allende, Playa del Carmen, Cozumel, and around Lake Chapala. You’ll also pay a premium for a posh neighborhood in Mexico City and Guadalajara. That doesn’t mean you won’t be able to find a comfortable home within your budget.
You’ll find rentals ranging from US$350 to US$3,500 depending on size and location.
Food costs are generally 25-35% lower. Fresh produce and meat are abundant and usually sourced locally.
You’ll find shopping easy with a variety of choices, including neighborhood shops, local markets, produce and vegetable stands, along with big box grocery stores like Soriana, La Comer, Chedraui, Sam’s Club, and Costco in larger cities.
For a list of places to shop, check here.
You’ll pay more for American items and brands. It might take you a bit of time to figure out what substitute items are available in Mexico for your favorite brands.
Cable, high-speed internet and electricity are up to 60% cheaper than in the United States, depending on your use of air conditioning in warmer climates.
Hiring help like gardeners and maids is cheaper, with many service employees available for less than US$12 per day.
Tip: I found that the more my Spanish improved, the cheaper my lifestyle became. Learning Spanish was key in helping me eliminate any budgetary problems.
Find out more:
- How Much You Need to Live in Mexico as an Expat
- The Cost of Retiring in Mexico: How Much Do You Need to Retire
Where to Live
One of the first things you need to decide is where to live. Are you seeking a large or small American community? What type of lifestyle do you want? How well do you speak Spanish? What type of amenities do you want to enjoy? Only you can answer these questions.
I would suggest making a list of these items before visiting. While you’re visiting, fill in the answers.
Next, you can easily choose two or three places to visit before moving to Mexico from the United States. It’s beneficial to visit these places for a couple of weeks or, if possible, several times.
Take mental notes of the things that are important to your lifestyle and well-being. Fill in your list of questions.
The more you know about where you’re moving in Mexico, the better your life will be living in Mexico.
Research the town you’re visiting for grocery shopping, the ease of transportation, and whether your Spanish-speaking ability is sufficient.
I’ve lived in a few places in Mexico over the years. I’ve found that these are the best places to live in Mexico for an American.
Healthcare
Mexico has a modern healthcare system. You’ll be able to find specialists, regular doctors, and dentists, and there are a variety of health insurance plans from reputable companies.
You’ll find a good mixture of public and private hospitals, depending on your health insurance. Cities like Mexico City and Guadalajara have some of the best hospitals and medical research facilities in the world.
Healthcare in Mexico is generally 30-40% cheaper than in the United States. Surgery and hospital stays are also cheaper than in the United States.
Most Americans find it easier to pay out of pocket for regular doctor appointments and most of their medicines or prescriptions. You’ll find prescription drugs 40-60% lower in price than in the United States.
For hospitalization, they get private insurance like Cigna Healthcare or use the IMSS.
Mexico’s healthcare has improved year over year. The country’s healthcare index ranks second in the Americas, slightly above the United States. You’ll find the country’s healthcare experience index is also above the United States.
Hospitals in Mexico
Hospitals in Mexico are not much different than those in the United States. The level of care is similar, but technology isn’t always up to date, depending on where you live.
In towns that have a high density of Americans, you’ll find hospitals use state-of-the-art medical technology. In rural areas, not so much.
Mexico City, Merida, and Guadalajara have some of the best hospitals and research facilities in the world, on par with many in the United States.
Towns with large American populations, including Playa del Carmen, San Miguel de Allende, Cozumel, Lake Chapala, and Puerto Vallarta, have updated or newer hospital facilities that cater to Americans. These facilities also have English-speaking doctors, specialists, and support staff.
Check here for a list of affordable private hospitals in Mexico.
Dentists
Dentists are also cheaper than in the United States. You’ll have no problem finding an English-speaking dentist in Puerto Vallarta, Playa del Carmen, the Lake Chapala area, San Miguel de Allende, or Cozumel.
Dental surgery, including implants, root canals, basic cleaning, or filling a cavity, is 50-60% lower in price than in the United States.
Should I Keep Medicare in Mexico?
Retirees will want to keep their Medicare active. There are several advantages to keeping your Medicare active, including routine medical procedures, such as returning to the United States for non-complicated surgeries or a scheduled physical with your regular doctor.
Your Medicare can be a supplement and backup plan to any type of healthcare insurance you purchase in Mexico, whether you choose a public or private insurance plan.
You’ll find that many preexisting conditions aren’t covered by medical insurance in Mexico. You may be placed on a waiting list, or your coverage may start after several months of monitoring. You may be denied healthcare coverage due to preexisting conditions.
You’ll find paying out of pocket for simple lab tests and doctor visits is more cost-effective. Prescription drugs are generally 40-60% lower in Mexico than in the United States.
Housing
You’ll find that housing in Mexico varies from place to place. Most homes are constructed with cinder blocks and cement. They offer a different feeling compared to wood homes finished with drywall.
You’ll find that these homes are sturdier during climatic events, like hurricanes or tropical storms.
Homes in Mexico tend to be more compact, with every inch of living space being used. You’ll find comfortable interiors along with gardens and patios that increase your living space.
Based on the climate, many homes aren’t furnished with a heat source, but air conditioning is abundant. Keeping your home cool in the spring and summer months is affordable by using mini splits in specific living areas, especially in the bedrooms.
You’ll notice the difference between newer-built apartment complexes and older constructed complexes. Newer buildings usually offer more amenities. Older buildings tend to need more maintenance.
Many rentals within a large American expat community are furnished. Housing for rent in rural areas is generally unfurnished. You should consider the additional furnishings a bonus when paying a higher amount.
Also, check the age of the furnishings. Older furnishings may need to be replaced. If you’re required to maintain the residence under your lease, you’ll pay for the new furnishings.
Other items to understand about housing in Mexico for Americans include the need for a guarantor to sign the lease with you, and you can expect to pay some type of contract fee between US$50 and US$100.
Here is a great guide on securing long-term housing in Mexico.
Is Mexico Safe for Americans to Live In?
Safety is also important. I took this into account when choosing the best places in Mexico for Americans to live. Most cities in Mexico where Americans live are considered safe.
During my time living in Mexico, I have felt safe in every city I’ve lived in. I have never had my life threatened, my house robbed, or had problems with locals wanting to assault me.
You’ll find your neighbors have the same safety concerns as you. You’ll experience a sense of community with each neighbor looking out for their neighbors.
You’ll find that locals watch out for one another in emergencies.
Americans who live in Mexico understand where to go and where not to go within their comfort zone, much like we do in the United States.
There’s petty crime, robbery, and sometimes assault. Most of the time, these crimes are reported, and the municipal police departments investigate.
Mexico’s safety rating can be misleading. Most Americans don’t live where there is a large concentration of cartels at war with each other. Their actions play an important role in the ranking system.
Visa and Residency Options for Americans in Mexico
There are only a few visa and residency options for Americans living in Mexico. If you’re living in Mexico for less than six months, then a tourist visa will suit your needs.
For Americans searching for residency, there are two options:
- Temporary Residency
- Permanent Residency
Each of these two options is based on financial solvency.
Each American must prove their financial stability based on a formula from the Mexican government. The formula uses the current Mexican minimum wage multiplied by numerous days.
Financial requirements for Temporary Residency are a net monthly income of US$4,185 or US$73,215 in a savings account, 401(k), or Individual Retirement Account (IRA).
For Permanent Residency in Mexico, applicants need to prove a net monthly income of approximately US$7,000 or US$293,000 in a savings account, 401(k), or IRA.
In each case, you’ll need to have bank or brokerage statements for 12 months.
The financial requirements have risen every year. With the expected 15% increase in the minimum wage in Mexico, financial requirements for residency in Mexico are expected to increase by 15% in 2026.
Applying for a Mexican Visa
Americans need to commence the process for residency in Mexico at one of the 49 Mexican Consulate offices located in the United States. Appointments at some Mexican Consulates may take several months. You can go to any of the 49 Mexican Consulates in the United States.
For instance, you might find that setting an appointment in Raleigh, North Carolina, is easier than in Houston, Texas. Be flexible and you’ll have no problem finding the right appointment for you.
The Mexican government makes the rules for resident visas, but each Mexican Consulate may have a different twist or hurdle for you to go through before approving your application.
Applying for your Temporary or Permanent Residency to live in Mexico is well worth the effort and the costs. With one of these visas, you’re not required to leave the country every six months.
Additional Benefits after Getting Residency
When I first moved to Mexico, I didn’t care much about getting residency here since I just kept using the tourist visa. But that was a big mistake. After I got residency here, my life was much easier.
There are lots of additional benefits for an American to receive their Temporary or Permanent Residency. You can open a bank account, have access to Mexico’s healthcare system through IMSS, obtain a Mexican driver’s license, and bring your household goods with you without paying import taxes.
Other benefits include buying, registering, and nationalizing your car. If you are thinking about buying a home or property, a Temporary or Permanent Resident isn’t required to pay capital gains taxes when you sell your home.
If you’re a Permanent Resident, you can buy property within 30 miles of the coastline without using a land/bank trust.
Find out more:
- How to Get Temporary Residency in Mexico
- How To Get Permanent Resident Status in Mexico
- Mexico Retirement Visa: Requirements, Costs and Application Process
Dealing with Finance
Temporary and Permanent Residents can open bank accounts in Mexico. You’ll find that savings accounts in Mexico pay a handsome interest rate on your money, but each account has its own rules.
For instance, you might only be able to make a specific number of withdrawals each month. In all cases, you’re required to keep a minimum balance in a savings account, which can vary from banking institution to banking institution.
You’ll need to be aware of the tax implications of having a savings account that pays interest. You’ll need to fill out special tax forms when filing with the United States, and you’ll need to file taxes in Mexico.
When opening a bank account in Mexico, you’ll need a valid Temporary or Permanent Resident card containing your CURP number, a valid U.S. passport, a current utility bill from your home, and a Mexican tax identification number, known as Registro Federal de Contribuyentes (RFC).
Popular Banks for Americans
The more popular banks for Americans include Citibanamex, BBVA Bancomer, Banorte, and Santander. Americans will find these banks in all major cities and towns in Mexico.
Americans like myself, living in smaller rural areas, don’t have many banking options. Rural areas tend to rely on Banco Azteca and BanCoppel.
If you’re receiving Social Security every month as your pension or part of your pension, and have your check deposited into a Mexican bank account, you might not receive a good exchange rate.
Each bank offers different exchange rates for foreign currency exchange. It’s a good idea to check before switching your bank of deposit.
Accessing Money in Mexico
You’ll find accessing your money in Mexico from your American bank account is easy. You’ll have options like ATMs, wire transfers, and plenty of inexpensive money transfer services, including Wise, MoneyGram, Western Union, and XOOM.
I personally use one of these money transfer services regularly. I find the exchange rate and additional fees are competitive between these companies. I’ve found that ATMs can be unreliable and packed with additional fees from your United States bank and the Mexican bank owning the ATM.
If you decide to use ATMs, always decline the bank’s suggestion of currency exchange. It’s generally very poor and to their advantage, not yours.
Check here for keeping your United States bank account.
Keeping U.S. Bank Account
I would suggest keeping your bank account in the United States, along with opening a bank account in Mexico. You’ll have better peace of mind when depositing money from your pension plan or Social Security.
While there are additional costs to keeping a bank account open in the United States, for myself, the advantages of having a bank account in the United States outweigh the disadvantages.
Taxes
Another big thing you should realize is that when you become a Temporary or Permanent Resident of Mexico, you might have to pay federal taxes in Mexico.
Paying taxes is necessary in almost every country around the world, especially if you’re a United States citizen. Paying taxes in Mexico is no different for individuals who have a savings account that accrues interest, work in Mexico, rent property in Mexico, or own a business in Mexico.
Filing Tax in Mexico
I generally file my taxes in Mexico first and the United States second. The two countries share tax information; therefore, it doesn’t matter which country you file taxes in first each year.
My taxes in Mexico are fairly simple. I only pay taxes in Mexico on the interest earned from a savings account. The process is simple and done online. Temporary and Permanent Residents can check here on how to open a tax account with SAT (Tax Administration Service).
I file taxes in Mexico and the United States. Fortunately, taxes are due in both countries during April each year. In the United States, taxes are due on April 15th. In Mexico, taxes are due April 30th.
Filing US Tax
When I file my United States taxes, I include IRS Form 1116, the Foreign Tax Credit Form. The form allows me to claim the taxes I paid in Mexico as a credit against any taxes owed in the United States for the earned income on my savings account in Mexico.
Some Americans who are actively working in Mexico, including Digital Nomads, may find it more beneficial to fill out IRS Form 2555. The Foreign Earned Income Exclusion form is designed to allow United States citizens to exclude up to US$130,000 earned in a foreign country.
Some American expats worry about double taxation between the United States and Mexico. The United States-Mexico Tax Treaty helps alleviate double taxation on taxable income in both countries.
Taxes are always complicated for expats, and it’s best to speak with a professional about your own situation.
For a general overview of income tax for expats in Mexico, click here.
Transportation
Transportation depends on the city or location you plan on moving to. For example, if you want to be in a big city like Mexico City, public transportation there is good. You don’t need a car.
On the other hand, if you want to live around Lake Chapala, Playa del Carmen, Merida, or Puerto Vallarta, you may want or find it essential to have a car while living in one of these cities.
Having a vehicle will increase your cost of living, with expenses such as gas, maintenance, parking fees, and compulsory car insurance.
You’ll also need to get a Mexican driver’s license. Check here for a complete guide on obtaining a driver’s license in Mexico.
If you plan on spending six months as a tourist and want to bring your car, check here for instructions.
Driving with a Foreign-plate Car
Temporary and Permanent Residents are not allowed to drive a foreign-plate car within Mexico. The exception to the rule is if you live in a Free Zone, such as the Baja Peninsula or Quintana Roo.
In these areas, Temporary and Permanent Residents are allowed to drive a foreign-plated car as long as the license plates are current.
Many American expats with cars who live in the Free Zones in Mexico register their vehicles in South Dakota. South Dakota allows United States citizens to register their cars without environmental or safety checks. Check here for more information on maintaining South Dakota license plates.
Nationalizing a Car
Some Temporary and Permanent Residents from the United States decide to nationalize their car in Mexico so that they can use it freely in Mexico.
Nationalizing a car in Mexico can only be done at the border. Not all border crossings have facilities for a person to nationalize their car. It’s not possible to nationalize your car once your vehicle is in Mexico.
You’ll need to hire a customs broker to nationalize your car. Your customs broker will guide you to the best port of entry. The customs broker will assist you with the forms from SAT (Mexico’s Tax Agency) and the inspection process.
After your car is inspected, you can expect to pay Aduana, Mexican Customs Agent, taxes from 10 to 50% depending on the age and value of the car.
The value of the car is determined by Aduana, not by purchase price or Blue Book value.
As of 2025, cars made in 2018 and 2019 that have a VIN starting with a number between one and five are eligible to be nationalized. The VIN determines if the car was made under USMC or NAFTA guidelines.
Newer cars will pay Aduana a 10% fee based on valuation and an additional 16% IVA or VAT. Older cars can expect to pay upwards of 50% of the valuation determined by Aduana and the 16% IVA or VAT.
Find out more: How to Bring a Car to Mexico from the USA
Culture
Mexico’s culture is vibrant, mixing thousands of years of Pre-Columbian civilizations, including the Olmec, Maya, and Aztec, with the post-Spanish period. You’ll find each state has its own traditions and traditional cuisine.
There are thousands of festivals each year, representing the best and sometimes the darker parts of Mexico’s history. Don’t be surprised by loud festivities until the early hours of the morning.
You’ll find a culture that is giving, accepting, and understanding. I’m the only person from the United States to ever live in my rural town. But over the years, I have met several families that have a sister, brother, or relative married to an American and living in the United States.
Around holidays like Easter, Christmas, and New Year’s, these people return from the United States to celebrate alongside family members with smiles and laughter.
Food
Each region and state in Mexico is known for exquisite cuisine. The different dishes are full of flavor and sometimes spicy. You’ll find a variety of traditional tacos, tostadas, empanadas, chili rellenos, and enchiladas, along with specialty items such as pozole, mole, and chile en nogada during the holidays.
There’s a wide variety of international food available in Mexico, which will surely please your palate.
One of the best things, for me, about living in a rural town in Mexico is that I know the food is locally sourced. I know how hard people work to provide food for their communities.
In my eyes, Mexico is the champion when it comes to locally sourced foods. Every city has a local market or several local markets selling fresh fruit, vegetables, cheese, seafood, and meat.
Language
When I moved to Mexico, I understood very little Spanish. I never took a Spanish class in school. Over the years, I learned the language through speaking with bilingual friends who were patient with me. In return, my local friends learned more English, which helped them with their work.
Spanish is the most prominent language spoken in Mexico, but I found that while living in Quintana Roo, Maya was also commonly spoken by both young and old people.
Other language dialects are spoken, including Nahuatl, Mixtec, Totonac, Chinantec, and Zapotec. The Mexican government currently recognizes 67 indigenous languages alongside Spanish.
Be brave and immerse yourself in the different languages wherever you decide to live.
Expat Communities and English Speakers in Mexico
Whether you decide to live inland or along the coastline, you’ll find other American expats offering support. One of the best things you can do when first living or deciding to live in Mexico is to talk with other Americans in your community.
Older expats are usually eager to share information because they understand the trials and tribulations of living in Mexico. You’ll find there is a wealth of knowledge stored in many of their minds.
Whether you’re looking to find an apartment, hire a lawyer, pay your electricity bill, hire a realtor, or find the best place for groceries, someone has advice on how to do it easier.
You’ll also find plenty of ways to give back to your local community. There are plenty of things you can do to make your community a better place.
Volunteering at an animal shelter, reading books in English to students at a local school, helping out the Red Cross, or donating blood.
If you don’t speak or understand much Spanish, a touristy community might be better for you in the beginning. Within these communities, more locals will speak English. Many times, the hospitality industry in specific tourist areas requires employees to speak and understand basic English. You’ll find fewer problems with the language barrier and more opportunities to learn Spanish comfortably.
Challenges of Living in Mexico as an American
Mexico’s not all fun and games, either. There are challenges for American expats.
- Slower lifestyle: The slower lifestyle doesn’t fit everyone who is used to the hustle and bustle of the United States.
- Making friends: Making new friends is always difficult, especially if Spanish isn’t your native language. But you can find ways around the language barrier with a little effort.
- Questions about cartel violence: I’ve felt safe everywhere I’ve lived in Mexico, but I do get tired of the repeated questions about cartel violence. Don’t believe everything you read or hear about Mexico’s crime problem. Other countries have their own problems as well, including the United States.
- The convenience of keeping an appointment: Many times, tomorrow means this week, or in some cases, never. Be patient and remember you’re a guest in Mexico.
Purifying water, vegetables, meats, and just about anything you consume is a necessary routine, and you’ll get used to it.
Now on to you
My life is better in Mexico than in the United States. I don’t feel hurried, abandoned, or scared. I don’t feel financially poor or rich, but I do feel rich for being able to experience this wonderful country.
It’s up to you to decide if you want to move to Mexico. All I can do is try to help make your transition easier by sharing some of my knowledge and experiences.
If you want to move to Mexico after reading this article, check out our step-by-step guide on how to do it.
