Cost of living
How Mexico compares to the US
🇺🇸 San Diego, California (couple)
2BR rent$2,800/mo
Groceries$600/mo
Dining out$600/mo
Utilities$150/mo
Health insurance$900/mo
Total~$5,050/mo
🇲🇽 Puerto Vallarta, Mexico (couple)
2BR rent$700/mo
Groceries$250/mo
Dining out$200/mo
Utilities$80/mo
Health insurance$150/mo
Total~$1,380/mo
Cost estimates based on Numbeo March 2026 data. Illustrative only — your actual costs will vary by neighbourhood and lifestyle.
Visa for Americans
The main visa pathway for American retirees
Mexico
Temporary Resident Visa (Residente Temporal)
Min. income
~$1,600/mo (single)
PR pathway
4 years of temporary residency
Health insurance
Recommended, not always required
Apply where
Mexican consulate (US)
Permanent residency
After 4 years temporary
Mexico's residency requirements are simpler than most European countries. Income thresholds and requirements are subject to change. Verify with the Mexican consulate. No prior appointment at consulate required for some applications.
Other visa options: Mexico also offers a Permanent Residency option for those with sufficient pension/investment income. Many Americans enter on tourist status initially and convert in-country — verify current rules with an immigration attorney.
US Tax for Americans in Mexico
Understanding your US tax obligations
US still taxes you on worldwide income?Yes — always
US-Mexico tax treatyYes — covers income and pensions
FEIE eligibilityYes — earned income only
Foreign Tax CreditYes — relevant for any Mexico-source income
FBAR required?Yes — if foreign accounts exceed $10,000 aggregate
Mexico territorial taxMexico only taxes Mexico-source income — US pension/SS income typically not taxed by Mexico
Mexico's territorial tax system: Mexico generally only taxes income earned within Mexico. Your US pension, Social Security, and investment income is typically not subject to Mexican income tax. This makes Mexico one of the most tax-efficient options for American retirees. Always verify your specific situation with a cross-border tax specialist.
This is general educational information, not tax advice. Always verify with a qualified US expat tax professional. ExpatAce is not a tax practice.
Safety & healthcare
Safety and healthcare for American expats
Safety
GPI Rank Varies by region
Safety in Mexico varies dramatically by city and region. Expat-popular areas like San Miguel de Allende, Puerto Vallarta, Mérida, and Los Cabos have significantly better safety records than border regions or some urban centres. Research your specific city carefully. US State Dept advisory: Level 2 — Exercise Increased Caution (varies by state).
US State Dept advisory →
Healthcare
🏥 Private recommended
Private healthcare in Mexico is high quality and dramatically cheaper than the US. Many Americans pay out of pocket for routine care and carry international insurance for major events. Specialist care is excellent in major cities.
Medicare abroad: Original Medicare does not cover routine care in Mexico. Plan your healthcare transition carefully before you leave the US.
Top cities for Americans
Where Americans are living in Mexico
🇲🇽
San Miguel de Allende
From ~$1,600/mo (couple)
SafeLarge expat communityColonial city
Consistently rated one of the world's best expat cities. Large, well-established North American community. Mild climate at altitude. Excellent arts scene. Considered one of Mexico's safest cities.
🇲🇽
Mérida
From ~$1,400/mo (couple)
SafeColonialYucatán
The capital of Yucatán — increasingly popular with Americans. Low crime, strong infrastructure, and one of Mexico's most liveable cities. Hot and humid climate.
🇲🇽
Puerto Vallarta
From ~$1,500/mo (couple)
CoastalExpat-friendlyPacific
Mexico's most internationally known beach expat destination. Large American community, good international healthcare, direct flights to major US cities.
🇲🇽
Oaxaca City
From ~$1,200/mo (couple)
CulturalAffordableGrowing expat scene
One of Mexico's most celebrated cultural cities — food, arts, indigenous culture. Growing American expat community. One of Mexico's most affordable major cities.
Get your personalised Mexico score
Take the ExpatAce quiz to see how Mexico cities rank for your specific budget, lifestyle, and family size — alongside 101 other cities across 49 countries.
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Other popular US corridors
Cost data: Numbeo March 2026. Safety varies significantly by Mexican state — research your specific destination carefully. Nothing on this page constitutes legal, tax, financial, immigration, or professional advice.