Retiring in Mexico:
A Guide For Expats in 2025

Retiring in Mexico is an increasingly popular choice for Americans and Canadians seeking warm weather, a lower cost of living, and a vibrant culture. It’s estimated that there are over one million Americans currently living in Mexico – and many of those have relocated to spend their retirement years in a warm climate with a cool margarita. 

Mexico, with its affordable healthcare, welcoming communities and diverse landscapes, offers an unmatched retirement experience. Whether you dream of sandy beaches, colonial towns, or urban convenience, this guide will help you understand why Mexico is a top destination for retirees.

The Healthcare System In Mexico

Mexico: Quick Country Facts

• Mexico is a country rich in history, culture, and natural beauty. Located in North America, it shares borders with the United States to the north, Guatemala and Belize to the southeast, and is flanked by the Pacific Ocean to the west and the Gulf of Mexico to the east.
  
• Population: Approximately 128 million people, making it the 10th most populous country in the world.
  
• Capital City: Mexico City, a vibrant and modern metropolis that sits as the political, cultural and economic heart of Mexico.
  
• Climate: Mexico’s climate is diverse, ranging from arid deserts in the north to tropical rainforests in the south. The central highlands, including Mexico City, enjoy a mild, temperate climate year-round.
  
• Time Zones: Mexico spans four time zones: Pacific Time (UTC-8), Mountain Time (UTC-7), Central Time (UTC-6), and Southeast Time (UTC-5). Most of the country follows Central Time.
  
• Languages: Spanish is the official language, but over 60 Indigenous languages are spoken, reflecting Mexico’s rich cultural heritage.
  
• Country Code: The international dialing code for Mexico is +52.
  
• Currency: The Mexican peso (MXN) is the national currency.

With a population of over 21 million, the greater Mexico City area is the third largest city in the world. 

Climate in Mexico: What Retirees Should Know

Mexico’s climate is one of its greatest draws for retirees, offering something for every preference. Understanding regional weather patterns can help you find the perfect spot to enjoy Mexico’s natural beauty year-round.

On the positive side, many coastal areas, such as Cancun and Puerto Vallarta, boast consistent sunshine and temperatures ranging from 70°F to 90°F. This makes them ideal for beach lovers and those looking to escape harsh winters. Cities like San Miguel de Allende and Mexico City enjoy cooler, temperate weather due to their elevation. Daily highs hover around 70°F to 80°F, with cooler evenings, offering a comfortable alternative to the humid coasts. Mexico also offers diverse microclimates, from the dry deserts of Baja California to the tropical rainforests of the Yucatan, allowing retirees to choose a climate that suits their lifestyle.

Mexico has a climate to suit every taste. 

However, there are some negatives to consider. The rainy season, typically from May to October, can bring heavy downpours in tropical areas. While these rains often cool things down, they may also cause flooding and increased humidity. 

While coastal and lowland regions can experience intense heat and humidity, particularly in the summer months, which can be uncomfortable for those not accustomed to tropical climates. Additionally, certain regions, like the Gulf Coast and the Yucatan Peninsula, are prone to hurricanes during the season, which runs from June to November. Planning ahead and securing property insurance is essential in these areas.

Cost of Living in Mexico: What Retirees Should Know

Mexico’s cost of living is one of the key reasons it’s a favorite destination for retirees. With careful planning, many retirees find that their savings stretch further, allowing for a comfortable and enjoyable lifestyle.

Housing is significantly more affordable in Mexico compared to the United States or Canada. Whether renting or buying, retirees can choose from options ranging from modest apartments to luxury beachfront villas. For example, rental prices for a two-bedroom home in popular areas like Puerto Vallarta or Merida can range from $500 to $1,500 per month, depending on location and amenities. If you own your property, property taxes are also low, averaging 0.1% to 0.2% of the property’s value annually.

Everyday expenses like groceries, dining out, and utilities are also more budget-friendly. Local markets offer fresh produce at a fraction of the cost in North America, and dining at a mid-range restaurant can cost as little as $10 per person. Utilities, including electricity, water, and gas, typically range from $50 to $150 per month, though costs can vary with air conditioning use in warmer areas.

Healthcare in Mexico is another significant advantage. High-quality care is available at a fraction of U.S. costs, with many retirees opting for private insurance or paying out-of-pocket for treatments. Prescription medications are often cheaper, and public healthcare options, such as the IMSS system, provide additional affordability.

That said, some retirees note potential downsides. Imported goods, such as certain electronics and specialty foods, can be pricier than in the U.S. Additionally, fluctuating exchange rates can impact monthly budgets, so it’s wise to maintain a buffer in savings.

Overall, the cost of living in Mexico allows retirees to enjoy a high quality of life without overspending. 

Healthcare in Mexico: What Retirees Should Know

Healthcare in Mexico is one of the most appealing aspects for retirees, combining affordability, quality, and accessibility. The country offers a mix of public and private healthcare options, providing retirees with quality care at a fraction of the cost of healthcare in the U.S. 

Mexico’s private healthcare system is highly regarded, with many hospitals and clinics meeting international standards. Cities like Mexico City, Guadalajara, and Monterrey have state-of-the-art facilities, and medical professionals often receive training in the U.S. or Europe. 

Private health insurance is available and affordable, with plans ranging from $1,500 to $3,500 per year, depending on age and coverage. Even without insurance, out-of-pocket costs for treatments and procedures are significantly lower than in the U.S. For example, a routine doctor’s visit may cost as little as $30 to $50.

The public healthcare system offers additional options. The IMSS (Instituto Mexicano del Seguro Social) program is available to residents who enroll and pay an annual fee, which is typically less than $500. This program provides access to public hospitals and clinics, though it may have longer wait times and fewer amenities compared to private care. Another option is INSABI (Instituto de Salud para el Bienestar), which provides free or low-cost healthcare services to those without other coverage.

Prescription medications are also more affordable in Mexico, and many are available over the counter. This accessibility reduces costs and eliminates the need for lengthy doctor visits for common prescriptions.

While healthcare in Mexico has many advantages, there are considerations to keep in mind. Retirees living in rural or remote areas may find fewer healthcare facilities and may need to travel to larger cities for specialized care. Language barriers can occasionally present challenges, though many medical professionals in popular expat areas speak English.

The healthcare in Mexico, including beautiful beach destinations, is so high quality that many in the U.S. travel for treatment. Often, the cost of the care and a vacation after is less than what they would have paid back home.

Safety and Security in Mexico: What Retirees Should Know

Safety and security are common concerns for retirees considering Mexico as their new home. While the country does face challenges with crime in some regions, understanding the realities and taking practical precautions can help retirees enjoy a safe and comfortable lifestyle.

Mexico is a large and diverse country, and safety can vary significantly depending on the region. Popular expat and tourist destinations like Merida, San Miguel de Allende, and Puerto Vallarta are generally considered safe and have low crime rates compared to other parts of the country. These areas often have a visible police presence and strong expat communities, contributing to a sense of security.

The most common crimes affecting tourists and expats are petty theft, such as pickpocketing or bag-snatching. To minimize risks, retirees should follow standard safety practices, such as avoiding flashy jewelry, not carrying large amounts of cash, and staying aware of their surroundings. Many expats also recommend avoiding poorly lit areas at night and being cautious in crowded spaces.

While news reports often highlight issues related to drug cartels and organized crime, these activities are typically concentrated in specific regions and do not target foreign residents or tourists. Avoiding known hotspots and staying informed about local conditions can go a long way in ensuring safety.

Mexico also has a robust legal framework to protect foreign residents, including property ownership rights. Hiring a reputable local attorney for legal matters, such as real estate transactions, can provide additional peace of mind.

In addition to personal safety, retirees should consider health-related security. Natural disasters, such as hurricanes in coastal areas, can pose risks. Planning ahead with proper insurance and understanding evacuation procedures can mitigate these concerns.

Visas and Residency: What Retirees Should Know

Retiring in Mexico is made easier by the country’s straightforward visa and residency options. Mexico offers a range of permits that cater to retirees, making it possible to enjoy a long-term stay without hassle.

Tourist Visa

For short-term visits, retirees can enter Mexico on a tourist visa, which is issued upon arrival for citizens of the U.S., Canada, and many other countries. This visa allows a stay of up to 180 days. While this option is convenient for those exploring Mexico or spending part of the year there, it is not intended for permanent residence.

Temporary Resident Visa

The temporary resident visa (Residente Temporal) is ideal for retirees planning to live in Mexico for an extended period. This visa is valid for one year and can be renewed annually for up to four years. To qualify, applicants must meet financial requirements, such as proof of income or savings. According to recent guidelines, retirees typically need to demonstrate a monthly income of around $2,500 or savings of approximately $43,000, though these figures may vary slightly by consulate.

The temporary resident visa allows multiple entries and exits, providing flexibility for retirees who wish to travel frequently. It also allows the opening of local bank accounts, making it easier to manage finances in Mexico.

Permanent Resident Visa

The permanent resident visa (Residente Permanente) is designed for those seeking to make Mexico their long-term or permanent home. This visa eliminates the need for renewals and offers many of the same benefits as Mexican citizenship, including the ability to stay indefinitely and engage in most activities within the country.

To qualify for a permanent resident visa, applicants generally need to meet higher financial thresholds than those for the temporary visa. Retirees can apply for permanent residency directly or after holding a temporary resident visa for four years.

Whether you are at the beach or a historic colonial mountain town in the interior, there will be a Mexican immigration service office nearby where you can obtain your residence visa.

Application Process

Applications for both temporary and permanent residency visas must begin at a Mexican consulate outside of Mexico, typically in the applicant’s home country. The process involves submitting required documents, including proof of financial solvency, valid identification, and a completed application form. After receiving initial approval, applicants finalize the process at Mexico’s immigration offices once they arrive.

Additional Considerations

Holding a temporary or permanent resident visa does not automatically grant the right to work in Mexico, but retirees typically do not require this. Additionally, Mexico does not tax foreign income, providing a significant advantage for those drawing pensions or retirement savings from abroad.

Buying Property in Mexico: What Retirees Need to Know

For retirees looking to settle down, buying property in Mexico is an attractive and achievable option. With its affordability, diverse real estate options, and clear legal framework, the process is accessible with the right guidance.

Legal Framework

Foreigners can own property in Mexico outright in most areas, just like Mexican citizens. However, there are restrictions for properties located within 50 kilometers (31 miles) of the coastline and 100 kilometers (62 miles) of international borders. In these restricted zones, foreign buyers can still purchase property through a fideicomiso, or bank trust. The trust allows foreigners to enjoy full ownership rights, including the ability to sell, lease, or pass the property to heirs.

Outside restricted zones, foreigners can own property directly with a deed (escritura). This method provides full ownership rights and responsibilities, similar to property ownership in the U.S. or Canada.

The Buying Process

1. Due Diligence: Start by identifying a region that matches your lifestyle and budget. Popular areas for retirees include San Miguel de Allende, Puerto Vallarta, and Playa del Carmen. Work with a reputable real estate agent familiar with local laws and markets.
2. Make an Offer: Once you find a property, you’ll typically sign a promissory agreement (contrato de promesa), outlining the terms of the purchase.
   
3. Legal Checks: A notary public will verify the property’s title, confirm that there are no liens or unpaid taxes, and ensure compliance with local regulations. Hiring a qualified attorney is also advisable to safeguard your interests.
   
4. Payment and Closing: After securing financing or arranging payment, the sale is completed by transferring funds and signing the final deed or trust agreement.

Costs and Taxes

Buying property in Mexico involves additional costs, including:

• Transfer Tax: Typically 2% to 4% of the property value.
• Notary Fees: Around 0.5% to 1% of the purchase price.
• Bank Trust Fees: If purchasing in a restricted zone, annual fideicomiso fees range from $500 to $1,000.

While these costs are important to budget for, overall property prices in Mexico are considerably lower than in many parts of the U.S. or Canada, making ownership highly attainable.

Important Tips

• Always work with professionals, including licensed real estate agents and attorneys, to ensure a smooth transaction.
• Conduct due diligence on the property’s legal status and verify all documents with a notary.
• Consider title insurance for additional peace of mind, particularly in regions with frequent sales to foreigners.

Foreigners buying and owning property in Mexico is a very well-established practice.

Popular Destinations for American Retirees in Mexico

Mexico is home to vibrant and diverse locations that attract retirees from the United States. From charming colonial towns to sunny coastal retreats, here are some of the top destinations that offer a welcoming environment, excellent amenities, and a relaxed lifestyle.

San Miguel de Allende

Located in central Mexico’s highlands, San Miguel de Allende is known for its stunning colonial architecture, cobblestone streets, and lively arts scene. The city is home to a large expat community, drawn by its temperate climate, cultural festivals, and high quality of life. Retirees enjoy a blend of modern conveniences and traditional Mexican charm, with plenty of restaurants, galleries, and social clubs to explore.

Puerto Vallarta

This Pacific coastal city combines breathtaking natural beauty with modern amenities. Puerto Vallarta offers stunning beaches, a vibrant downtown area, and a range of real estate options, from luxury condos to cozy bungalows. The city’s warm weather, lively cultural events, and excellent healthcare facilities make it a top choice for retirees seeking a beachside lifestyle.

Playa del Carmen

Located on the Riviera Maya, on Mexico’s Caribbean coast, Playa del Carmen has grown into one of Mexico’s most popular destinations for expats and retirees. Known for its white-sand beaches and turquoise waters, the city provides a relaxed yet cosmopolitan vibe. Retirees enjoy easy access to outdoor activities like snorkeling, diving, and golfing, as well as a growing number of international restaurants, shops, and healthcare facilities.

Lake Chapala

Nestled in the mountains of Jalisco, Lake Chapala is Mexico’s largest freshwater lake and a favorite among retirees. The region boasts a mild climate year-round, picturesque lakeside views, and a strong expat community. Towns like Ajijic and Chapala offer a peaceful atmosphere with art galleries, cafes, and local markets. Retirees are drawn to the area for its affordability and slower pace of life.

Tulum

Tulum, a gem of the Riviera Maya, has gained a reputation for its bohemian vibe, eco-conscious living, and stunning natural beauty. Retirees are drawn to Tulum’s serene beaches, world-famous Mayan ruins, and thriving wellness scene, which includes yoga studios and holistic retreats. With a range of real estate options, from luxury eco-villas to chic condominiums, Tulum offers an ideal blend of tranquility and modern amenities.

Tulum is famous for its white-sand beaches and its ancient Maya ruins. 

Riviera Maya

Stretching along Mexico’s Caribbean coast, the Riviera Maya includes towns like Akumal and Puerto Morelos, in addition to Playa del Carmen and Tulum. This region is known for its crystal-clear waters, lush jungles, and opportunities for outdoor adventure. Retirees flock here for the natural beauty and diverse real estate options, making it a hub for relaxation and exploration.

Activities and Recreation In Mexico For Retirees 

Mexico offers a wealth of activities and recreational options for retirees and expats. 

Whether you like getting out and exploring nature, diving into history, or staying active with a hobby, Mexico provides endless opportunities for an active retirement. 

Outdoor Adventures

For nature lovers, Mexico is a paradise. The country’s diverse landscapes include pristine beaches, lush jungles, and dramatic mountain ranges. Retirees can enjoy activities such as hiking, birdwatching, and snorkeling. Popular destinations like Cancun and Cozumel are famous for their coral reefs, while the Copper Canyon offers a unique hiking and sightseeing experience.

Cultural Exploration

Mexico’s rich cultural heritage provides countless opportunities for exploration. From ancient Mayan ruins like Chichen Itza and Tulum to colonial cities such as Oaxaca and Guanajuato, history enthusiasts will find plenty to explore. Local festivals, including Día de los Muertos and Guelaguetza, offer a vibrant way to immerse yourself in Mexican traditions.

The Day of the Dead (Día de los Muertos) is one of Mexico’s biggest annual festivals. 

Wellness and Relaxation

Retirement is the perfect time to focus on health and relaxation, and Mexico excels in both. Many towns, such as Tulum and Puerto Vallarta, feature yoga studios, spas, and wellness retreats. Thermal springs, like those in San Miguel de Allende, provide a soothing escape for relaxation and rejuvenation.

Community and Social Activities

Expats in Mexico often enjoy a strong sense of community. Retirees can join local clubs, participate in volunteer programs, or take classes in cooking, art, or language. Towns with large expat populations, such as Ajijic near Lake Chapala, frequently host events like book clubs, trivia nights, and live music.

Golf and Sports

Mexico is home to world-class golf courses, particularly in areas like Los Cabos and Riviera Maya. Retirees who enjoy staying active can also take advantage of tennis courts, pickleball clubs, and water sports like kayaking and paddleboarding. Fishing enthusiasts will find plenty of opportunities along Mexico’s coasts, with charter boats readily available for deep-sea fishing trips.

Food and Dining

Mexican cuisine is world-renowned, and retirees will love exploring the country’s culinary offerings. From street food like tacos and tamales to fine dining experiences, Mexico’s food scene caters to every palate. Many towns also feature lively markets where retirees can shop for fresh ingredients and try their hand at traditional Mexican recipes.

No matter your interests, Mexico’s diverse recreational options ensure there’s something for everyone. With a perfect mix of adventure, culture, and relaxation, retirees can create a lifestyle filled with excitement and personal fulfillment.

From street food to high-end dining, Mexico is a world-class foodie destination. 

Insider Living Tips: Adapting to Life in Mexico

Retiring in Mexico brings many rewarding experiences, but understanding the cultural nuances and differences from U.S. living can help make the transition smoother. Here are some insider tips to help you settle in and thrive.

Embrace the Culture

Mexican culture places a strong emphasis on family, community, and hospitality. Building relationships with locals and participating in community events can enhance your experience. Politeness is highly valued, so greeting others with a friendly “Buenos días” or “Buenas tardes” goes a long way. Learning basic Spanish phrases can also help bridge language gaps and demonstrate respect for the local culture.

Adjusting To The Pace of Life in Mexico

Life in Mexico often follows a more relaxed pace compared to the U.S. Expect a “mañana” (tomorrow) attitude when it comes to appointments or service timelines. This laidback approach might take some adjustment, but many retirees find it adds to the charm of living in Mexico.

Local Mexican Customs

Mexico has unique customs that differ from those in the U.S. and Canada. For example, tipping is customary but not always required. Restaurant servers typically expect 10%-15%, while small tips for grocery baggers or gas station attendants are appreciated. In addition, Mexican holidays like Día de los Muertos and Independence Day are celebrated with enthusiasm, offering retirees a chance to immerse themselves in the festivities.

Utilities and Services in Mexico

Utilities such as electricity and water may not function as seamlessly as in the U.S. Power outages or water shortages can occur, especially in rural areas. Many retirees invest in backup generators, water storage systems, or solar panels to ensure uninterrupted service. Internet and cell service are generally reliable in urban and expat-friendly areas but may be slower in remote locations.

Transportation in Mexico

While major cities and tourist destinations have reliable public transportation, driving in Mexico requires a bit of patience. Traffic laws can be loosely enforced, and road conditions vary widely. Many retirees choose to rely on taxis, rideshare apps, or local buses for convenience. If you plan to drive, be sure to carry Mexican auto insurance, as U.S. policies are not valid here.

If you are a tourist or on a temporary resident visa, you can bring your personal car into Mexico. The limit is the length of your visa. That’s 180 days for a tourist visa and up to four years for a temporary resident. The car must leave the country before the limit is up or it could be confiscated.

The process is simple and done at the border. There is a deposit and fee. Insurance is required and available online.

You can also temporarily import a motorcycle or RV. Commercial vehicles are generally not allowed.

Opening a Mexican Bank Account

Some expats never bother opening a bank account in Mexico—they just use credit cards or ATM cards from their home country account to make purchases and get cash. A local account can be handy, however, especially if you need to write checks or want to wire money to yourself. Major banks with branches all over the country include Banamex, Bancomer, Banco Santander, HSBC, and Scotiabank.

You’ll be asked to show your passport (and residence visa if you have one) to open a bank account. You’ll likely also have to show proof that you have a permanent address in Mexico, such as a telephone or electricity bill in your name.

Note that, if you want to wire money to your Mexican bank account from your U.S. bank, you may need to set up the original authorization in person at your U.S. or Canadian bank. Ask your bank back home what you’ll need to do to be able to authorize transactions online.

Shopping Customs in Mexico

Local markets, or tianguis, are a great place to find fresh produce and artisanal goods. Cash is commonly used in Mexico, especially in smaller towns, so it’s a good idea to keep some pesos on hand. Credit cards are widely accepted in urban areas and larger businesses, but not all establishments take them.