Moving to Mexico from the US: Everything you need to know

More Americans are choosing Mexico as their new home because of the lower living costs, friendly culture, good weather, and proximity to the US.

But the decision to move to Mexico from the US comes with practical questions: How do visas work? What will housing cost? How do you handle healthcare and taxes? Can you open a Mexican bank account?

This guide covers everything you need to know before you relocate.

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Quick facts about Mexico

Mexico shares a border with the US and is a diverse country with landscapes ranging from desert to tropical beaches.

There is a growing expat community, especially in cities like Mexico City, Playa del Carmen, and many coastal towns along the Pacific and Caribbean coasts.

Here's a snapshot of some important facts:

If you want to move to Mexico from the US, it's helpful to speak Spanish.

Many Mexicans speak some basic English, especially in the more expat-heavy areas, but a big chunk of your daily life will be in Spanish, so it's helpful to know at least some words and phrases.

Moving to Mexico from the US: can you do it?

Yes, Americans can move to Mexico.

Compared to many other countries, the process is pretty straightforward. You'll need a visa for any stay longer than 180 days, but the requirements are manageable for most US citizens.²

Usually, the most important factor to consider will be proving your "economic solvency," which means showing you have enough income or savings to support yourself while living in Mexico.

Immigration and visas in Mexico for Americans

Mexico offers two main permit types: non-immigrant permits for temporary stays and immigrant permits for long-term residence. Typically, American expats get a temporary, non-immigrant permit.

Americans can also enter Mexico without a visa and stay for up to 180 days. If you only want to spend part of the year in Mexico, you can do this repeatedly without applying for residency.²

Temporary resident visa

This type of visa allows you to live in Mexico for up to 4 years.³ After that period, you can often transition to permanent residency if you want to continue living in Mexico.

You'll need to fill out a visa application and, typically, demonstrate financial stability. You can do this in two ways:⁴

• Show bank statements or investment accounts with a balance of approximately 62,232 USD maintained throughout the past 12 months
• Provide proof of employment or pension income of at least 3,737 USD monthly after taxes for the previous 6 months

Keep in mind that these economic solvency requirements can change over time.

You must apply at a Mexican consulate in the US. Once approved, you have 30 days after arriving in Mexico to complete the process and receive your Temporary Resident permit.³

Permanent resident visa

If you are set on living in Mexico long-term, you'll eventually need a permanent residency permit. You can apply for it if you meet one of these conditions:³

• You have close family members who are Mexican citizens or permanent residents
• You qualify for retirement status with enough monthly income or savings
• You've held Temporary Resident status for 4 consecutive years
• You've held Temporary Resident status for 2 consecutive years through marriage to a Mexican national or permanent resident
• You qualify on humanitarian grounds or for political asylum

Most American expats moving to Mexico won't need permanent residency right away—or at all. Starting with temporary residency gives you time to decide whether you want to stay long-term and to build the qualifications to be approved for permanent residency eventually.

Work visa

A work visa is one type of temporary resident visa.

It's possible to find a job in Mexico, especially if you speak Spanish, but keep in mind that finding a role that matches US salary expectations can be difficult. The average salary after tax in Mexico is around 794 USD per month, which is quite low by US standards.⁵

That said, international companies operating in Mexico may offer higher wages closer to what you're used to earning in the US.

Student visa

You can get a temporary student visa if you want to study in Mexico. However, you'll likely need to cover your own tuition and living expenses, as financial aid is typically not available for foreign students.

Cost of living in Mexico

Your USD stretches further in Mexico, but how much depends on your lifestyle and whether you're willing to live more like a local or prefer to maintain a US-style lifestyle.

On average, a family of 4 can expect monthly costs of around 2,600 USD excluding rent, and a single person's monthly costs average around 700 USD excluding rent.⁵

Here are some averages you can expect:

The more you want an expat lifestyle, the higher your costs will be, especially for rent.

Living like a local keeps expenses low, but you may encounter things you're not used to in the US, such as no hot water, occasional electricity outages, or loud music late at night. Gated communities offer a higher quality of living but come with higher costs.

Food costs largely work the same way. Eating local meals keeps your budget low, and imported products cost more in Mexico than they do in the US.

For families with children, schooling is another big consideration.

Public education in Mexico is underfunded and of relatively low quality. Most expats send their children to private international schools, which cost around 6,720 USD per year on average.⁵ The fancier the school, the higher the tuition.

But overall, even if your cost of living isn't cheap, you get better amenities and quality of life than what you could afford on the same income in the US.

Opening a bank account in Mexico

You can usually open a bank account in Mexico once you have temporary or permanent residency. You'll need pretty straightforward documents to do that, such as:

• Valid passport
• Proof of address in Mexico (utility bill or rental contract)
• Temporary or permanent resident visa
• Minimum deposit

Most Mexican banks can open an account for an American expat, but some popular options include BBVA México, Santander, Citibanamex, and Scotiabank.

If you don't speak Spanish, many branches in larger cities and expat areas usually have English-speaking staff. However, all of your bank-related documents will be in Spanish.

Tax implications for Americans in Mexico

When you move to Mexico, you'll have tax obligations in both Mexico and the US. This is something that comes as a surprise to many Americans, so it's important to educate yourself on the topic.

Mexican taxes

You become a tax resident in Mexico if you spend more than 183 days in the country during a calendar year or establish permanent residence there.⁶

Tax residents must file a tax return on their worldwide income, including the income they get from the US, such as their salary or Social Security.

Mexican tax rates for residents range from 1.92% to 35%, depending on your income level.⁶

US taxes

The US taxes its citizens on worldwide income, even if they don't live in the US anymore.

Luckily, there is a tax treaty between the US and Mexico, which can help you reduce your overall tax liability by preventing double taxation on the same income.

In other words, you still have to file your annual tax return with the IRS, but you may not actually have to pay much or anything at all.

That said, it's worth consulting with a tax professional to make sure that you're taking full advantage of all of the options available to you.

Getting accommodation in Mexico

Most people rent when they first move to Mexico as they get familiar with different neighborhoods and cities. But you can also buy a property in Mexico as an American without any major restrictions.

Renting

Renting in Mexico as an expat is a little different from what you may be used to in the US, but it's usually not a very complicated process.

You can find both furnished and unfurnished accommodations that work for all kinds of different budgets, from basic homes to high-end condos.

Local neighborhoods offer cheaper rent but may come with issues like inconsistent water pressure or higher noise levels. Gated communities and neighborhoods that cater to expats provide more reliable utilities and amenities but cost a lot more.

Landlords sometimes require a fiador (guarantor) who owns property in Mexico with no mortgage. As a foreigner, this can be difficult to arrange, but some landlords accept a larger security deposit instead.

Buying

Foreigners can buy property in Mexico, but wait until you've lived there for a while. Getting familiar with different areas helps you understand what you want and what's realistic for your budget.

For example, many Americans want to buy a beachfront property, but what they often don't know is that salt air causes more wear and tear. This means higher maintenance costs and more frequent repairs. You get the dream location, but it can be pretty expensive.

It's also important to work with a good lawyer who'll verify the property title, make sure that there are no liens or debts, and register the sale.

Healthcare in Mexico

Mexico has both public and private healthcare options.

First, there are public programs like IMSS (Mexican Social Security Institute) and INSABI (Institute of Health for Welfare). Foreigners can enroll in IMSS voluntarily, but you'll have to pay for your coverage.

How much you pay depends on your age, and you can expect to pay anywhere between 350 USD and 1,250+ USD per year.⁷

However, public healthcare has its limitations, and you may have to wait quite a long time for an appointment or struggle to find a quality specialist in some areas.

To get high-quality medical care, many American expats buy private health insurance. Mexican insurance companies have options for approximately 2,250-3,000+ USD per year.⁷

You can also get an international plan that covers you in Mexico and in other countries—sometimes, including the US—but it can be pretty expensive.

Best cities to live in Mexico as an expat

Mexico City

Mexico City is a great place to live if you want to be close to museums, restaurants, and cultural events. There is a large expat community, and neighborhoods like Roma, Condesa, and Polanco are popular with foreigners. You'll also find plenty of international schools.

The cost of living is higher than in other Mexican cities, but still affordable compared to major US cities.

Playa del Carmen

Playa del Carmen is a small town on the Caribbean coast in the Riviera Maya, about an hour south of Cancun. American expats often choose to settle there because of its beaches. The town also has a strong international community, with many restaurants, shops, and services catering to foreigners.

However, you can expect a pretty high cost of living because the town has grown in the last few years.

San Miguel de Allende

San Miguel de Allende is a colonial city in central Mexico where you'll find a lot of beautiful architecture and art galleries. The city is safe and walkable, and it can be a great place for American expats who love art and are looking for milder weather year-round.

The cost of living is moderate, so you may also get more value out of your USD.

Is it safe to move to Mexico?

Mexico does have high crime rates in certain areas, but much of it is related to drug cartels and organized crime. This type of violence typically doesn't affect expats who have nothing to do with it.

Many expats live in Mexico without major safety issues by using common sense, such as sticking to good neighborhoods, avoiding traveling at night in unfamiliar areas, and not flashing expensive items.

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Moving to Mexico has pros and cons, but many Americans are happy there and make their USD stretch further while enjoying a higher quality of life.

However, there's a big cost that many new expats overlook: transferring money between the US and Mexico.

Banks and money transfer providers charge fees, but what costs even more is the currency exchange rate markup. When you send money through a bank or an app, they usually add a margin on top of the mid-market exchange rate.

This markup can add 3% or even 5% to every transfer, which adds up quickly when you need to move money regularly or in large amounts.

It's smart to research alternatives, such as Wise.

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Sources

1. Worldometer - Mexico Population
2. US Department of State - Mexico
3. Mexperience - Guide to Mexican Visas, Residency and Immigration
4. Mexican Government - Temporary Resident
5. Numbeo - Cost of Living in Mexico
6. Greenback Expat Tax Services - Ultimate Tax Guide for US Expats Living in Mexico
7. Donna - Public vs Private Health Insurance in Mexico

Sources checked 03/24/2026