Are you considering a move to Mexico? Mexico is becoming more popular every year amongst expats. As remote working becomes more common more and more people are looking for tax friendly havens with good weather and a low cost of living. Mexico offers all of this and more. Mexico is a huge country. It’s the largest Spanish speaking country in the world with a rich culture. Whatever lifestyle you’re looking for you can find it in Mexico.
Lower Taxes when you Move to Mexico
Unlike other Latin American countries such as Costa Rica and Panama, Mexico is not territorial tax country. Mexico has high tax rates of up to 36% on worldwide income. In practice, however, the taxes that you are liable to pay in Mexico will be limited to income generated in Mexico or remitted to a Mexican bank.
Mexico has no taxation on investment income generated outside Mexico. This would cover any profits generated from trading stocks, forex or cryptocurrency.
Mexico also does not have inheritance tax or capital gains tax on assets outside Mexico.
Provided you’re not a corporate employee you’ll be able to live in Mexico without paying taxes.
US citizens are subject to worldwide taxation based on their citizenship. However you can take advantage of the foreign income tax exemption which is over $220,000 per year for a couple.
Citizens of anywhere else in the world can simply move to Mexico and, with a little planning, forget about paying taxes.
Get a Second Citizenship of Mexico
When you reside legally in Mexico you’ll be able to apply for Mexican citizenship and get a Mexican passport after 5 years.
If you have a child born on Mexican soil the child will be Mexican by birth. The parents can claim Mexican citizenship in only 2 years.
You must have some knowledge of the Spanish language to apply for Mexican nationality.
Citizens of other Latin American countries can get Mexican citizenship fast too.
As we discuss frequently here, a second citizenship means you’re no longer the slave of one government. You can never be prevented from leaving your own country. A Mexican passport is a good travel document offering visa free travel to most of the world, with the obvious exceptions of its more authoritarian North American neighbours.
More Freedom when You Move to Mexico
There’s little doubt that nowadays Mexicans are freer than Americans or Europeans. The surveillance state doesn’t exist in Mexican cities. You’ll mostly be left alone to get on with your life without constant government monitoring. Mexico is independent and doesn’t get involved in foreign conflicts or sanctions.
No Woke, Toxic Culture when you Move to Mexico
Latin America in general and Mexico in particular doesn’t participate in the toxic, woke culture that’s taken over many of the larger western countries. People are left alone to live their lives irrespective of race or sexuality. The toxic culture so prevalent nowadays just doesn’t exist in Mexico.
Low cost of living when you Move to Mexico
The cost of living will depend on which part of Mexico you decide to move to. But it will be significantly cheaper. According to numbeo.com rent in Mexico city is 72% lower than rent in Los Angeles and 68% lower than London. And Mexico City’s likely to be at the higher end of the scale. If you have income in dollars or euros your quality of life in Mexico will be much higher than at home.
Slower Pace of Life When you Move to Mexico
Life in Mexico is more relaxed than in North America or Europe. This can be a good thingor a bad thing depending on your point of view. While you may yearn for a slower pace of life some people get frustrated at how much longer it can take to get things done in Mexico compared to what they’re used to.
Better Weather When you Move to Mexico
Those who move to Mexico from more northern climes will enjoy better weather than they’re used to. Depending ow which part of Mexico you choose to move to, you’ can experience year round sunshine and perfect spring like weather. The area around Lake Chapala is considered to have one of the best climates in the world, never getting too hot or too cold. However other areas of Mexico enjoy an amazing climate too. For those moving to Mexico from Toronto or London anywhere in Mexico will offer a better climate than you’re used to.
Mexico offers many advantages for expats and digital nomads. Large cities in Mexico have every product and service you can find at home. Cost of living will be substantially lower. You can also work towards a valuable second citizenship, while enjoying a higher quality of life.
Alternatives to Mexico in Latin America:
Can I just move to Mexico?
You can enter Mexico for 180 days on a tourist visa. If you want to stay longer you must apply for long term residency. This is easy to do and can be done before you move to Mexico at your local Mexican consulate. It’s also possible to apply for Mexican residency in Mexico.
How much money do you need to move to Mexico?
In order to get legal residency in Mexico you must prove income of around $2,700 per month or savings of $45,000. Many long term residents don’t apply for legal residency and simply leave the country every 6 months and re-enter to renew their tourist visa.
How hard is it to move to Mexico?
Mexico has clear immigration policies. Provided you have the right papers for the Mexican bureaucrats you’ll easily get Mexican residency.
Is Mexico safe to relocate?
On the whole Mexico is safe. Most of the violent crime reported in Mexico is between members of drug gangs.