Moving to Mexico: A Complete Guide

Why Mexico Is a Popular Choice for Expats

Quality of Life

Mexico offers a lifestyle that appeals to many who want a slower pace, cultural richness, and access to modern conveniences. You will find a wide range of wellness activities, from coastal yoga studios in Tulum to organic markets in San Miguel de Allende. Walking through a central plaza or spending the day at an outdoor café is a common part of life in many Mexican towns.

Many expats report improved mental and physical health due to the outdoor lifestyle and access to fresh food. Streets in smaller towns tend to feel more walkable, which encourages regular physical activity. The emphasis on family and community values also plays a major role in making people feel included and supported.

Climate and Lifestyle

Mexico’s diverse geography allows you to select a climate that suits your health and preferences. The coastal cities offer warm weather year-round, while higher elevation towns like San Cristóbal de las Casas provide a cooler and more temperate environment.

Expat Community

Mexico is home to hundreds of thousands of foreign residents, many of whom are retirees or remote professionals from the United States and Canada. Cities like Ajijic and San Miguel de Allende have active expat groups that host language exchanges, book clubs, and volunteering opportunities. These social structures make it easier to build new friendships and integrate into local life.

Newcomers often find that the established expat community offers trusted recommendations for everything from dentists to dog groomers. The shared experiences among expats also create a strong sense of connection and mutual assistance.

Political Stability

Mexico maintains a democratically elected federal government and a legal system that shares some structural similarities with those of the U.S. and Europe. The country has consistently maintained diplomatic and trade relationships with major global economies which contributes to general economic and political stability. Understanding the difference between national headlines and local realities can help form a more accurate perspective.

Visa and Residency Options

Tourist Visa Rules & Duration

  • Most travelers from the U.S., Canada, and EU do not need a visa to enter Mexico.
  • You receive a 180-day tourist permit upon arrival (FMM – Forma Migratoria Múltiple).
  • This permit is non-renewable within Mexico you must exit before it expires.
  • Overstaying may result in fines or future entry issues.
  • Ideal for exploring Mexico before applying for residency.

Long-Term Residency Options


Temporary Residency

  • Valid up to 4 years.
  • Requires proof of income/savings (approx. $2,700 USD/month for retirees).
  • Great for retirees, remote workers, and extended stays.

Permanent Residency

  • Offered to retirees, spouses of citizens, and those with higher financial means.
  • Also available after 4 years of temporary residency.
  • No renewal needed once granted.

Investor Residency

  • Valid up to 4 years.
  • For those opening a business or investing $225,000+ in Mexico.
  • Grants legal residency benefits and permits financial operations.

Required Documents

  • Valid passport.
  • Bank statements or pension letters (must be recent).
  • Passport-sized photos.
  • Letter of intent or proof of Mexican ties (varies by consulate).
  • Criminal background check (often required).
  • Official translations for non-Spanish documents.
  • Requirements can differ by consulate. Always verify locally.

Application Process & Fees

  • Start the process at a Mexican consulate outside of Mexico.
  • Approved applicants receive a visa sticker in their passport.
  • Within 30 days of arrival in Mexico, convert it to a resident card at your local immigration office.
  • Temporary residency fees range from $150–$300 USD.
  • You don’t need a lawyer, but many use immigration consultants.
  • Book appointments early in busy areas—slots fill up fast.

Renewals & Timelines

  • Temporary residency starts as a 1-year permit.
  • Renewable annually for up to 4 years.
  • After 4 years, you may transition to ermanent residency without leaving.
  • Permanent residency has no renewal requirement.
  • Report address changes to immigration.
  • Keep copies of documents and travel records.
  • Some cities offer online renewals, but not all.

Cost of Living in Mexico

The cost of living in Mexico is one of the primary factors that draws international residents. Day-to-day expenses are often much lower than in North America or Europe, particularly in mid-sized cities and towns. Affordability varies significantly by region, with beachfront destinations generally costing more than inland communities.

A modest but comfortable lifestyle is attainable on a budget that includes housing, healthcare, food, and local transportation. You can also access a variety of international products and private services, though these may come at higher prices. Overall, budgeting and location choice have a major impact on monthly living expenses.

  • Housing and Rent Prices

    • Mexico City: A one-bedroom apartment in a safe neighborhood like Condesa or Roma Norte can cost between $800 and $1,200 per month. A one-bedroom apartment in a central zone of Mexico City can range from $850 to $1,200 USD.
    • San Miguel de Allende: You might pay $600 to $900 for a similar unit in the historic center.
    • Mérida: Rents for one-bedroom apartments in central areas often range from $400 to $650.
    • Many rentals are furnished and include utilities such as water and gas.
    • Air conditioning is less common in higher-altitude towns which helps keep utility bills low.
    • Real estate agents and online platforms can help you compare different areas and housing types.
  • Utilities and Internet

    • Monthly utility costs are generally low, though they can vary based on climate and usage. In a temperate climate like San Cristóbal, electricity bills may stay below $25 per month. Coastal towns that require regular air conditioning may see monthly bills closer to $100.
    • Water, garbage, and gas typically cost less than $40 combined.
    • High-speed internet is available in most cities for about $25 to $50 per month.
    • Mobile phone plans with data are also affordable and widely used for day-to-day communication.
  • Dining, Groceries, and Entertainment

    • Dining out is often a major benefit of life in Mexico due to the affordability and quality of local cuisine. A full meal at a sit-down restaurant may cost $6 to $10, and tacos from a local stand may cost less than $1 each.
    • Groceries from local markets tend to be fresh and inexpensive such as fruits, vegetables, and meats. Imported products and specialty goods from foreign brands will cost more.
    • Entertainment options such as cinema, live music, or gym memberships are available at much lower rates compared to other countries.
    • Many cities also offer low-cost cultural events and public festivals throughout the year.
  • How much does it cost to live comfortably in Mexico?

    • Living comfortably in Mexico typically requires between $2,000 and $2,800 USD per month for a couple depending on lifestyle and location. This estimate includes rent, food, utilities, healthcare, and entertainment. Those seeking more luxury or living in premium neighborhoods may spend closer to $3,500 monthly.
    • Healthcare insurance and travel costs may add additional expenses if you travel frequently or require specialized care.
    • Owning a car is not necessary in many cities due to affordable public transportation and walkability.
    • Building a lifestyle that includes both local experiences and modern comforts is attainable on a moderate budget.

Best Places to Live in Mexico

Popular Expat-Friendly Cities or Towns

Mexico boasts several cities and towns that have become popular among expatriates due to their amenities, climate, and vibrant communities.

Puerto Vallarta offers a coastal lifestyle with beautiful beaches and a well-established expat community.
San Miguel de Allende is renowned for its rich cultural scene and colonial architecture.
Mérida provides a blend of historical charm and modern conveniences, along with a reputation for safety.
Lake Chapala is home to Mexico's largest expat hotspot, offering a tranquil lakeside environment.

Each of these locations offers unique benefits that cater to diverse preferences and lifestyles.

Urban vs. Coastal vs. Rural Living

Choosing between urban, coastal, or rural living in Mexico depends on personal preferences and lifestyle goals.

Urban centers like Mexico City offer a bustling environment with extensive amenities, cultural events, and business opportunities.

Coastal towns such as Playa del Carmen provide a relaxed beach lifestyle with access to water sports and tourism-related activities.

Rural areas offer tranquility, lower living costs, and a closer connection to nature but may lack some modern conveniences.

Evaluating the pros and cons of each setting is essential to determine the best fit for your desired lifestyle.

Community Vibe, Access to Amenities, and Infrastructure

The community atmosphere and available amenities vary across Mexican locales.

Cities like Puerto Vallarta and San Miguel de Allende have vibrant expat communities, offering social clubs, events, and support networks that help with integration.

Access to healthcare, shopping centers, and entertainment is more prevalent in larger cities and popular expat destinations. Infrastructure like reliable internet and transportation tends to be more developed in urban and tourist-heavy areas.

Assessing these factors is crucial to ensure they align with your lifestyle needs and expectations.

Finding a Place to Live

Renting vs. Buying Property

Deciding whether to rent or buy property in Mexico depends on factors such as length of stay, financial situation, and familiarity with the local market. Renting offers flexibility and allows you to experience different areas before committing to a purchase. It also requires less upfront investment and can be a practical choice for newcomers.

Buying property is a significant commitment but can be a worthwhile investment, especially in popular areas where property values are appreciating. It's essential to conduct thorough research and consider your long-term plans before making a decision.

Lease Terms and What to Expect

Lease agreements in Mexico typically range from six months to a year with some landlords offering month-to-month arrangements. It's common for landlords to request a security deposit equivalent to one or two months' rent.

Understanding the terms of the lease such as maintenance responsibilities, utility payments, and renewal conditions is crucial. Make sure all agreements are documented in writing and consider having them reviewed by a legal professional to avoid misunderstandings.

Working with Local Real Estate Agents

Hiring a reputable local real estate agent (agente inmobiliario) can make it much easier to find a suitable home. Agents provide valuable insights into the local market, assist with negotiations, and help ensure that all legal aspects of a rental or purchase are handled appropriately. Many agents specialize in working with foreigners and understand the common concerns of a cross-border move.

When selecting an agent, verify their credentials, ask for references, and ensure they are familiar with the specific area where you intend to live. A good agent will explain how property ownership works in Mexico particularly in restricted zones where a bank trust (fideicomiso) is required for foreigners.

They can also connect you with local attorneys and notaries who are essential for property purchases. Working with a trustworthy agent can reduce the risks of scams and ensure a smoother relocation experience.

Online Resources for Home Hunting

Several online platforms make it easier to search for rental and for-sale properties in Mexico.

Websites like Vivanuncios, Inmuebles24, and Point2Homes provide listings across major cities and smaller towns. Facebook Marketplace and local expat groups often feature short-term rentals or direct listings from owners, which can help bypass agency fees. While online listings are convenient, not all platforms verify their posts, so due diligence is essential.

Always contact landlords directly and arrange in-person viewings before signing a lease or sending money.

Neighborhoods to Avoid or Consider

    Mexico City

  • Recommended: Polanco, Condesa, Roma Norte, (walkable, international, high-quality services)
  • Avoid: Iztapalapa, parts of Gustavo A. Madero (higher crime, limited services)

    Guadalajara

  • Recommended: Providencia, Chapalita (green, secure, residential, vibrant economy)
  • Alternative: Tlaquepaque (affordable, but more touristy and noisy)
  • Avoid: Cerro del Cuatro and Las Juntas, outer zones of Tonalá, Oblatos and parts of Huentitán (high gang activity), Colonia Del Fresno

    Playa del Carmen & Puerto Vallarta

  • Playa Del Carmen recommended: Playacar (gated community), Downtown (5th Ave & nearby blocks, Zazil-Ha & Coco Beach, and some areas of Ejido.
  • Puerto Vallarta recommended: Romantic Zone (Zona Romántica), Marina Vallarta, Conchas Chinas, Versalles, and Amapas
  • Less Ideal: Villas del Sol has a lower cost but inconsistent services.
  • Avoid:in PDC; Colosio Neighborhood (north of CTM Avenue): petty crime and uneven infrastructure. Night-time walks are not advised. 2. Ejidal & Villas del Sol: furthest from the beach, lacks reliable lighting, higher reports of theft yet the affordable rents draw in some expats. 3. Nightclubs near 12th Street, especially after 2 a.m. In PV; avoid: Ixtapa, Las Juntas, or El Pitillal,

    Mérida

  • Top Picks: Altabrisa, Montebello (modern, safe, family-friendly)
  • Avoid: San José Tecoh, Emiliano Zapata Sur (limited services, economic challenges)

    Baja California (Rosarito & Ensenada)

  • Popular: La Misión, San Antonio del Mar (gated, scenic, expat-friendly)
  • Less Ideal: Industrial/inland zones (traffic, reduced emergency access)
  • Avoid: Outskirts and undeveloped subdivisions

Mid-range neighborhoods such as Colonia Americana in Guadalajara or Santa Ana in Mérida strike a good balance between affordability and access to services.

Choosing where to live in Mexico is more than comparing home prices. It’s about safety, access to healthcare and transportation, and your ability to integrate into the community. Visit neighborhoods at different times of day, speak with locals, and ask about daily life, noise levels, and nearby services before making your decision.

** Mexico’s safety is often localized by block, not just by neighborhood. Many expats live peacefully in areas that technically have higher crime stats simply because they take smart precautions:

  • -- Don’t flash wealth
  • -- Avoid isolated roads or walking alone at night
  • -- Ask locals or other expats about current conditions

Phone & Internet

Mobile Plans & Network Providers

Telcel is Mexico’s largest mobile provider and offers excellent nationwide coverage — even in remote areas. AT&T Mexico and Movistar are alternatives, though their service may be patchier in smaller towns.

Prepaid SIM cards are easy to find at OXXO convenience stores and mobile kiosks. Packages often start at around 100 pesos and include several GB of data. WhatsApp is included in many plans and is the preferred app for communication across Mexico.

5G service is rolling out, but for now, it’s mostly available in major metro areas like Mexico City, Monterrey, and Guadalajara. If you're staying long-term, you’ll need your passport to activate your SIM.

Setting Up Utilities & Internet

CFE (Comisión Federal de Electricidad) is the national electricity provider and services nearly the entire country.

For internet and home phone, the most common providers are:

  • Telmex – Widely available, basic speeds
  • Totalplay – Fiber-optic, great for streaming and remote work
  • Izzi – Available in some urban areas

To set up service, you'll need a local address, an official ID (passport or residency card), and sometimes a deposit. Installation wait times are shorter in large cities. Water and trash services are usually managed by the local municipality and included in rent or property taxes.

Most utility bills can be paid at OXXO, banks, or via mobile apps to avoid interruptions.

Best Apps & Tools for Expats

These apps are essential for daily life in Mexico:

  • WhatsApp – Primary method for calling, texting, and making appointments
  • Google Translate – Lifesaver for documents and day-to-day conversations
  • Uber & DiDi – Reliable transportation in most cities
  • Rappi & DiDi Food – Grocery and food delivery options
  • XE Currency – Real-time exchange rates
  • Facebook Marketplace & Airbnb – For housing and furniture
  • VPN apps – Helpful for accessing international banking and streaming platforms

Receiving Mail & Packages

Correos de México is the national postal service, but it’s known for long delivery times and poor tracking. For important packages, expats prefer DHS, FEDEX, and UPS

These companies are more reliable, especially for international shipments. Some expats use U.S.-based mail forwarding services that assign you a U.S. mailing address and forward packages to Mexico.

Customs fees may apply, especially on electronics or bulkier items. Many opt to have deliveries sent to an OXXO pickup point instead of their home to ensure safe arrival. Always confirm import rules and shipping terms before placing orders.

Travel With Family or Pets

School Options for Kids

Families in Mexico have three main choices for schooling:

  • Public schools – Free, but classes are taught in Spanish and may lack resources
  • Private schools – Bilingual education, better facilities, and smaller classes
  • International schools – American, British, or IB curriculums, best for families planning to return to their home country

International tuition can exceed $10,000 USD per year. Many families choose housing based on proximity to quality schools.

Family-Friendly Cities

Popular cities for expat families include:

  • Querétaro – Clean, organized, and safe with modern infrastructure
  • San Miguel de Allende – Walkable, culturally rich, and expat-friendly
  • Mérida – Low crime, strong healthcare, and good schools

These cities offer gated communities, parks, and excellent private healthcare. In beach towns, families often choose communities with pools, 24/7 security, and playgrounds. Always research schooling and medical options before relocating.

Importing Pets to Mexico

Bringing your dog or cat is fairly straightforward if you're prepared. You’ll need:

  • Up-to-date rabies vaccination certificate
  • Health certificate from a licensed vet, dated within 5–10 days of entry

At the airport, your pet will be inspected by SENASICA, Mexico’s animal health agency. There’s no quarantine for healthy, documented pets. However, check with your airline for specific crate and travel rules.

Exotic animals or restricted breeds may have additional requirements or be denied entry.

Childcare & Education Costs

Mexico’s childcare options are affordable and widely available in urban areas. Expect to pay:

  • $150–$500 USD/month for daycare or preschool
  • Monthly tuition for private schools, often with discounts for siblings

International schools are the most expensive but offer high academic standards. Many families also enroll children in affordable extracurriculars like art, dance, or sports.

Healthcare and Insurance

  • Public vs. Private Care

  • Mexico has both public (IMSS or INSABI) and private healthcare. Public care is low-cost but may involve long waits and limited specialists. Many expats choose private hospitals in cities like Mexico City, Guadalajara, and Monterrey for faster, modern care, usually paid out of pocket or via international insurance.

  • English-Speaking Doctors

  • In cities and expat hubs like Lake Chapala and San Miguel de Allende, English-speaking doctors are common. In rural areas, English is less available and facilities may be basic. Urban private hospitals offer better access for ongoing care in English.

  • Medical Costs & Prescriptions

  • Healthcare is far cheaper than in the U.S. Office visits often range from $25–$50 USD, and many meds are affordable and available without a prescription. Brand-name and imported drugs cost more. Pharmacies in expat areas often offer bilingual help.

  • Insurance for Expats

  • Expats can choose public or private international insurance. Many providers offer plans with hospitalization, specialist visits, and emergency care. Local plans are also available if you’ll receive care only in Mexico. Always check provider networks before enrolling.

  • Emergency Services & Hospitals

  • City hospitals have fast response times and quality emergency care. Rural areas may have slower service and fewer resources. Private hospitals in Monterrey, Querétaro, and Cancun meet global standards and offer advanced technology.

Work or Retire in Mexico

Work permits and legal employment options

To work legally in Mexico, you’ll need a temporary resident visa with work rights. Your employer applies for this and must show no local could fill the role. Freelancers also need proper documentation and a tax ID. Applications start outside Mexico at a consulate and are finalized locally with immigration.

Typical Jobs & Remote Work

Expats often work remotely in fields like IT, marketing, and writing. Teaching English is common in cities and private schools. Mexico’s stable internet and low living costs appeal to digital nomads. Earning from abroad may not require a Mexican work permit, but tax rules still apply.

Business or Freelancing Requirements

Freelancers need a tax ID (RFC) and sometimes business registration. A visa that permits self-employment is required. Many expats report income in pesos but charge clients in dollars. Accountants familiar with expat rules can help. Coworking hubs in cities like Mexico City support independent work.

Retirement Visa

Mexico offers a retirement visa for those with income from pensions or investments. You’ll need to show steady monthly income or savings. The visa is renewable and can lead to permanent residency. Retirees can’t work but may own property and access healthcare.

Income requirements for retirees

To qualify, show monthly income of around $2,500 USD or savings near $43,000 USD. These amounts vary with the exchange rate and are verified through bank statements. Income must come from pensions or investments—not employment. If you don’t qualify, other temporary visas may apply.

Spanish and Mexican Culture

Language Challenges

English is common in tourist areas and private hospitals, but not in local government offices or residential areas. Spanish helps with contracts, service, and daily life. Learning the language boosts your experience and opens doors socially and professionally.

Best Methods to Learn Spanish

Spanish classes are offered at community centers and schools. Apps like Duolingo and Babbel are useful, and conversation meetups help with fluency. Watching local TV and hiring tutors can speed things up. Daily immersion builds confidence the fastest.

Customs & Social Etiquette

    Do's

  • Do greet people with a handshake or a light cheek kiss if you're introduced in a social setting. Mexicans value warmth and personal connection.
  • Do make an effort to speak some Spanish, even if it’s just basic phrases. A simple “buenos días” or “gracias” goes a long way in showing respect.
  • Do keep your tone polite and avoid being too blunt. Mexicans tend to favor indirect communication and courtesy in conversation.
  • Do dress modestly, especially in smaller towns or religious sites. Revealing clothing can draw unwanted attention or be seen as disrespectful.
  • Do keep your personal belongings in front of you, especially in crowded markets, buses, or tourist zones like Mexico City’s Metro, Oaxaca’s markets, or Puerto Vallarta’s Malecón. Crossbody bags are often safer than backpacks.
  • Do accept food or drinks offered by your host. Declining can be perceived as rude unless you explain with kindness.
  • Do learn and observe local customs during religious holidays like Semana Santa or Día de los Muertos. In Oaxaca and San Miguel de Allende, cemeteries become sacred spaces—be respectful if you visit or take photos.
  • Do tip generously. In tourist-heavy areas like Playa del Carmen or Tulum, 10–15% is standard for restaurants and even small services like bagging groceries or pumping gas.
  • Do learn the art of saying “ahorita.” It doesn’t always mean “right now” and can be a soft “maybe later”—understanding this helps with managing expectations.
  • In places like San Miguel de Allende and Lake Chapala, do take time to learn the local rhythm—over-scheduling or rushing often clashes with the slower pace of life.
  • Don'ts

  • Don’t raise your voice or act aggressively in public. Confrontational behavior is frowned upon and could attract negative attention and physical actions from others.
  • Don’t assume all of Mexico is the same as customs and attitudes can vary widely between regions like Yucatán, Oaxaca, and northern cities.
  • Don’t flash expensive jewelry, phones, or designer bags particularly in city centers, buses, or nightclubs. Even in safe zones like Condesa or Roma Norte, it’s wise to stay low-key.
  • Don’t joke about religion, the Virgin of Guadalupe, or national pride. These are deeply held values and mocking them can instantly ruin rapport.
  • Don’t toss toilet paper in the toilet unless you know it's okay. In many older buildings and towns like Oaxaca or Sayulita, it can clog pipes so use the bin.
  • Don’t expect strict punctuality at social events. Being “late” by 15–30 minutes is the norm, especially in the south.
  • Don’t take photos of Indigenous people, local rituals, or ceremonies without permission. In Oaxaca or Chiapas, this is not only rude, it may be seen as exploitation.
  • Don’t assume every taxi or rideshare is safe, particulraly in Mexico City. Use registered apps like DiDi or Uber and avoid hailing off the street late at night.
  • In beach towns like Tulum or Puerto Escondido, don’t treat local vendors like nuisances. A firm but kind “no, gracias” is the norm. Do not ignore them as if they don't exist.
  • Don’t assume locals share the same political views or lifestyle ideals as expats. Cultural sensitivity matters. Avoid loud debates on immigration, drugs, or politics.

Cultural Involvement: Holidays and Traditions

To fully experience Mexican culture, participate in local fiestas, explore historic towns, and consider engaging in community volunteer efforts that offer genuine connections with residents. Mexico’s rich cultural blend of Indigenous, Spanish, and regional traditions is showcased in its festive calendar and everyday life:

  • Benito Juárez Day (March 21): A national holiday celebrating the life of the reformist president, with ceremonies and cultural programs.
  • Semana Santa (Holy Week – March/April): A major religious holiday with elaborate processions, passion plays, and rituals in cities like Taxco, San Miguel de Allende, and Puebla.
  • Guelaguetza Festival (July): Held in Oaxaca, this Indigenous cultural festival includes traditional dances, music, and artisanal showcases from different regions of the state.
  • Grito de Dolores / Independence Day (September 15–16): Marked with fireworks, parades, and patriotic shouts of “¡Viva México!” in plazas across the country, especially vibrant in Mexico City’s Zócalo.
  • Día de los Muertos (November 1–2): One of Mexico’s most iconic holidays, celebrated with altars (ofrendas), marigolds, sugar skulls, and cemetery vigils to honor deceased loved ones. Cities like Oaxaca and Pátzcuaro are known for especially vivid celebrations.
  • Día de la Revolución (November 20): Commemorating the 1910 revolution with parades, school performances, and traditional dress.
  • Día de la Virgen de Guadalupe (December 12): Honoring Mexico’s patron saint, this religious holiday features pilgrimages to the Basilica of Guadalupe in Mexico City and mass celebrations nationwide.
  • Las Posadas (December 16–24): A Christmas-season tradition reenacting Mary and Joseph’s search for shelter, celebrated with nightly processions, songs, candles, and piñatas.

More ways to get yourself integrated into the Mexican culture:

  • Attend a local feria or town fiesta with rides, food, live mariachi, and traditional dances.
  • Try iconic dishes like mole poblano, tacos al pastor, and tamales.
  • Join workshops in Mexican folk dance, piñata making, or traditional cooking.
  • Visit artisan markets for handmade textiles, ceramics, and silverwork from towns like Tlaquepaque or Taxco.

Transportation

Public Transport Options & Costs

Public transportation in Mexico is affordable and widely accessible in urban centers and slightly less in non-uburban areas. Major cities like Mexico City, Guadalajara, and Monterrey have metro systems with fares typically costing less than $1 USD per ride.

Local buses and "colectivos" follow set routes and are commonly used although they may lack posted schedules. A colectivo (AKA peseros or combis) is a privately owned microbus or ride-share van.

  • Most drivers and locals are helpful if you need assistance knowing your stop.
  • Keep small cash (bills and coins) on hand for fares.
  • The system may feel unstructured if you're used to more formal transit networks.

Buy or Ship your Vehickle

In most cases, buying a car locally is easier than importing one.

  • Used cars are readily available; prices vary by region and condition.
  • Importing a car involves navigating restrictions based on make, model year, and emissions compliance.
  • Temporary import permits may work in some areas, but not for permanent residency.
  • The import process often includes customs brokers, Spanish-language paperwork, and insurance.
  • Local registration and insurance from a Mexican provider are recommended for long-term residents.

Driving Rules and License Conversion

You can drive with a foreign license temporarily depending on your visa.

  • Residents are advised to obtain a Mexican driver’s license.
  • Requirements vary by state but often include:
    • Proof of address
    • Valid ID
    • A written and/or practical exam
    • In some instances, a blood type card
  • Highways are in good condition but rural roads can be rough and poorly marked.
  • Watch out for unmarked speed bumps ("topes").
  • Driving in cities requires alertness due to traffic, motorbikes, and erratic behavior.

Ride-Sharing and Taxis

Ride-share services are widely used and preferred by many locals and expats.

  • Apps like Uber, DiDi, and Cabify are available in many regions.
  • Fares are typically much lower than in the U.S. or Canada.
  • Apps help reduce miscommunication and fare disputes.
  • In areas without coverage:
    • Use official taxis from airports or major stations.
    • Always confirm the fare before getting in.
    • Most taxis don’t use meters; pricing is zone-based or negotiated.
  • In smaller towns, you may benefit from having a regular driver’s contact.

Banks and Money Matters

Opening a Local Bank Account

Having a Mexican bank account simplifies financial transactions.In order to open one, you'll need: residency card, passport, and proof of address (e.g., utility bill)

Some banks may also request a local tax ID. Some popular banks include BBVA, Santander, Banorte and helps you avoid ATM fees and simplifies bill payments. If you don’t speak Spanish, bring a translator or Spanish-speaking friend.

Sending Money Internationally

Many expats maintain overseas accounts and transfer funds as needed. Among the common service provoiders are Wise (formerly TransferWise), Remitly, and Xoom. They offer better exchange rates and lower fees than traditional banks.

For large transfers you should compare daily rates and service fee, and choose services with transparent pricing. Local banks offer international transfers, but require in-person setup and documentation.

Currency Exchange (cambio)

Staying informed on exchange rates helps maximize your money’s value. Money exchange services in tourist zones usually offer competitive rates. Major credit cards (Visa, Mastercard) are accepted in: supermarkets, restaurants, retail stores. Although cash is still preferred in local markets and by small vendors

Consider a credit card with no foreign transaction fees and notify your home bank to avoid blocked charges while living abroad.

Taxes and Legal

Income tax for expats

Mexico considers you a tax resident if you live in the country more than 183 days in a year. Residents are taxed on worldwide income and must register with SAT, the national tax authority. Income tax rates go up to 35 percent. Some deductions and exclusions apply to expats.

If you work remotely for a foreign company while living in Mexico, you may still have local tax responsibilities. All filings are completed online and forms are in Spanish. Keep digital records and work with an accountant who understands international tax laws.

U.S., U.K., and EU Tax Obligations while Abroad

U.S. citizens must file federal taxes each year, even when living overseas. Foreign Earned Income Exclusion and tax credits help prevent double taxation. U.K. and EU nationals may also have reporting requirements, depending on where they live and how much they earn. Each country sets its own guidelines for tax residency and filing status.

Track how many days you spend abroad and keep detailed financial records. Some expats also need to report foreign bank accounts using FBAR forms. International tax planning requires expert advice to avoid penalties.

Legal Services and Guidance

A bilingual lawyer can help you avoid common mistakes. Legal systems in Mexico are different from those in the U.S. and Europe, especially in real estate, business, and contracts. Many cities have law offices that focus on expat support. Some legal matters must be handled through a notary public who is a licensed legal authority in Mexico.

Never agree to any contract you do not fully understand. Legal fees vary but basic advice is usually affordable. Expats often find reliable attorneys through referrals and local groups.

Owning Real Estate or Starting a Business

Foreigners can legally own property in Mexico including in coastal and border areas by setting up a fideicomiso or bank trust. This method is widely used and accepted. To start a business, you must have the correct visa and register with SAT.

Additional permits may be required, depending on the business type and location. Regulations apply to hiring employees and filing taxes on time. Many expats open small businesses, such as short-term rentals or cafés. Always speak with a lawyer and accountant before starting the process.

Common Challenges Expats (Gringos) Face

Missing Your Home Country

It’s natural to feel disconnected during the first few months. Many expats miss familiar routines, family, and close friendships. Staying in touch through video calls or social media can help, though it doesn’t always replace face-to-face connection. Joining local groups, taking classes, or chatting with neighbors adds a social rhythm to your days.

In tourist hubs, it’s easier to meet others with similar backgrounds. Smaller towns may require more effort, but even brief exchanges at the market or coffee shop create a sense of belonging. Keeping a regular routine and setting personal goals supports mental wellness.

Cultural Adjustment

Daily life in Mexico moves at a different pace, and schedules often feel more flexible. Appointments may start late, and long waits are common. For some, this relaxed rhythm brings frustration especially if they’re used to a fast-moving city.

At the same time, most locals are friendly and community-minded. With time, the differences begin to feel less like obstacles and more like part of the experience. Being open, observant, and willing to ask questions helps you adjust faster than resisting change.

Handling Bureaucracy and Shared Issues

Many locals and expats agree that paperwork can feel like a maze. One office might give you different instructions than another. It’s common to be sent back for extra copies or overlooked signatures. The process often requires patience more than perfection.

Hiring a bilingual guide or asking a friend to come along saves time and stress. Tasks like visa renewals, utility setup, or internet installation often involve several steps. The system may feel unfamiliar at first, but persistence usually pays off.

Language Learning Problems

Struggling with Spanish affects even the most basic tasks. Reading signs, ordering food, or explaining a problem can turn into a guessing game. In tourist zones, you’ll hear more English but that changes quickly once you’re off the beaten path. Misunderstandings happen often and can wear on your patience.

Learning essential phrases and using translation apps helps more than you think. Locals appreciate the effort, even when the grammar isn’t perfect. Over time, your ears adjust, and confidence grows word by word.

Final Tips Before You Move

What to pack and what to leave

Bring clothes that fit the climate of your destination. In beach towns, light fabrics and sandals work well. In higher-altitude areas, evenings can be cold, so layering helps. Items like electronics, quality footwear, and skincare products often cost more in Mexico.

Everyday items like cookware or furniture can be bought locally. Pack extras of any personal essentials including prescription medication, favorite spices, or specific books. Surge protectors and plug adapters are also worth bringing.

Resources for expats from the U.S., Canada, U.K., and Australia

Online forums and groups are full of tips from people who’ve already made the move. Facebook groups like “Expats in Mexico” offer daily insights, rental leads, and practical advice. Forums for popular cities like Mérida, Ajijic, or San Miguel are especially active.

YouTube channels and Reddit threads often share first-hand stories and cost-of-living breakdowns. Some resources are tailored to Canadians, Brits, or Aussies, with country-specific tax and visa information. Americans Abroad covers U.S. filing rules. InterNations also hosts events in many cities. You’ll discover your go-to resources as you settle in.