Long Stays, Retiring & Residency

Beyond 180 days: your options

Mexico has one of the largest communities of American retirees and long-stayers anywhere outside the US, from snowbirds who winter in Mérida or Puerto Vallarta to families raising kids in Mexico City. You have three basic choices:

• Stay as a visitor for up to 180 days at a time. No paperwork beyond entry, but no right to stay longer, to work for Mexican clients or to settle.
• Temporary residency (residente temporal), for stays of more than 180 days and up to four years. You qualify mainly by income or savings.
• Permanent residency (residente permanente), which doesn't expire for adults. Retirees with enough pension income can apply directly; others reach it after four years of temporary residency.

In almost every case you start the residency process at a Mexican consulate outside Mexico, not inside the country. That's the single most important thing to know before you move.

Staying on a tourist permit

When you arrive as a visitor, the immigration officer decides how many days to give you, up to 180. Officers often grant fewer than people ask for, and may ask to see a return ticket, a booking and proof that you can support yourself, so ask politely for the days you need and have those documents ready. How entry works is on the Entry and permits page.

• You can't extend a visitor stay or switch to residency from inside Mexico, except in limited cases such as marriage to a Mexican citizen or resident.
• Back-to-back "visa runs" aren't a right; repeat long-stayers may be given short stays or questioned closely.
• A car on a temporary import permit can stay only as long as your visitor permit. See Driving.

Temporary and permanent residency

Temporary residency

Temporary residency covers stays longer than 180 days and up to four years. The first card is usually valid for one year; after that you renew for one, two or three years at a time. You can come and go freely. Temporary residency doesn't automatically let you work in Mexico; work permission is a separate application with its own fee (MX$4,341 in 2026). After four consecutive years you can switch to permanent residency.

Permanent residency

Permanent residency for adults doesn't expire and includes permission to work. Consulates grant it directly mainly to applicants who are retired and meet the higher income or savings threshold. People with close family ties to Mexicans or Mexican residents have other routes. If you meet the financial test but aren't retired, a consulate will usually offer temporary residency instead.

The 2026 financial requirements

Under guidelines revised in July 2025, the thresholds are set as multiples of the UMA, a peso-denominated unit that Mexico adjusts every January. The 2026 UMA is MX$117.31 a day. These are the resulting peso amounts:

Consulates convert these to dollars at their own exchange rates, so your consulate's figure may differ by 5 to 10 percent. Because the thresholds are fixed in pesos, the peso's climb from about 20 to about 18 per dollar during 2025 pushed the dollar equivalents up noticeably. Income generally means pensions, Social Security, annuities or a salary paid from outside Mexico; savings can sit in bank, brokerage or retirement accounts. Either way, you prove it with monthly statements.

Applying at a consulate and the canje

1. Choose a consulate. Most people apply at the Mexican consulate that serves the area where they live in the US. Policies on out-of-area applicants vary, so check first.
2. Book an appointment through the Foreign Ministry's MiConsulado online system. In busy consulates, slots can be weeks out.
3. Gather documents: your passport, the visa application form, a passport photo, bank or investment statements or pension letters covering the required months, and the visa fee, US$56 in 2026.
4. Attend the interview. If you're approved, the consulate places a residency visa sticker in your passport, often the same day or within a few days. It allows one entry and is generally valid for about six months.
5. Enter Mexico as a resident. Show the visa to the immigration officer and make sure your entry is recorded for exchange (canje), not as a tourist.
6. Start the canje within 30 calendar days at the INM (Instituto Nacional de Migración) office for the area where you'll live. You fill in an online form, write a short request letter in Spanish, pay the card fee at a bank and return for fingerprints and a photo. Miss the 30 days and the visa is void, and you start again at a consulate.
7. Collect your card. Processing times vary by office. If you need to leave Mexico before the card is ready, ask INM for an exit and re-entry permit (MX$591 in 2026).

Once you're a resident, report changes of address, civil status or employer to INM, generally within 90 days; late notices draw fines. Show your card every time you leave and re-enter Mexico, and renew a temporary card in person in Mexico before it expires. Many people hire a local facilitator for the canje and renewals, which saves time if your Spanish is limited.

Retiring in Mexico: the popular places

Retirees cluster where climate, healthcare, airports and an established English-speaking community come together. Each of these has a large one. Advisory levels are the State Department's as of October 2026; see Safety for detail.

Other places with sizable retiree communities include Querétaro, Oaxaca, Puerto Morelos, La Paz and Todos Santos in Baja California Sur, and Rosarito and Ensenada in Baja California (a Level 3 state). Mazatlán is popular too, but check the current advisory for Sinaloa, where US government employees are limited to the Golden Zone and historic center.

What it costs

For a one-bedroom apartment in the city center, average rents in October 2026 were about MX$21,000 a month (about $1,140) in Mexico City, MX$18,000 (about $975) in Cancún, MX$11,500 (about $625) in Mérida and MX$8,100 (about $440) in Oaxaca. Expat-heavy areas of San Miguel, Ajijic and Puerto Vallarta often price furnished rentals in dollars, above those averages. Life still costs well under a comparable life in a US city, though the gap has narrowed as the peso strengthened. The Money page has everyday prices.

Healthcare: IMSS, private insurance and Medicare

Private healthcare in Mexico's big cities and retiree hubs is good and far cheaper than in the US. Many specialists trained in the US or Europe and speak English, and private hospital groups such as Hospitales Ángeles, Star Médica and Christus Muguerza handle complex care. Small towns have far fewer options. Pharmacies and everyday health advice are on the Health page.

IMSS voluntary enrollment

Temporary and permanent residents (not visitors) can buy into the Mexican Social Security Institute's public system through voluntary enrollment, the Seguro de Salud para la Familia. It's inexpensive: someone in their 60s pays roughly MX$18,300 a year (about $995), and the fee rises with age. Coverage starts on the first day of the month after you enroll.

• Pre-existing conditions such as cancer, chronic degenerative diseases, HIV and some mental illnesses exclude you from enrolling; other conditions are covered only after waiting periods.
• You're assigned to a local clinic and see specialists only through referral from your family doctor there.
• Everything is in Spanish, waits can be long, and quality varies a lot by location.
• Coverage is only valid in Mexico.

Many retirees use IMSS as a low-cost backstop for catastrophic care and pay out of pocket at private doctors for routine visits.

Private insurance

Mexican insurers such as GNP, AXA, MetLife and Seguros Monterrey New York Life sell major-medical policies (gastos médicos mayores) with deductibles and coinsurance. Premiums climb steeply with age, many insurers won't take new applicants past their mid-60s, and pre-existing conditions are excluded or delayed. International expat plans cost more but can include care in other countries and, at a higher price, the US. Compare policies with an independent broker who works with retirees.

Medicare

Original Medicare doesn't pay for care in Mexico, apart from rare cases such as an emergency near the border where a Mexican hospital is closer than the nearest US one. Some Medigap plans (C, D, F, G, M and N) cover foreign travel emergencies: 80 percent after a $250 deductible, up to a $50,000 lifetime limit, for emergencies that begin in the first 60 days of a trip. Some Medicare Advantage plans include emergency coverage abroad.

The big decision is Part B. If you drop it and later return to the US, you'll pay a late-enrollment penalty of 10 percent for each 12-month period you went without it, for as long as you have Part B. Many retirees in Mexico keep paying Part B (the standard premium is $202.90 a month in 2026) so they have coverage when they visit or move back. Veterans can get care for service-connected conditions abroad through the VA's Foreign Medical Program.

Remote work, digital nomads and Mexican taxes

Mexico has no digital nomad visa. Visitors may not do paid work in Mexico or for Mexican clients, and the law says nothing explicit about a visitor working online for a US employer. Many people do exactly that, and Mexican authorities have not targeted it. If an immigration officer asks the purpose of your trip, answer honestly. If you'll work from Mexico most of the year, temporary residency is the cleaner route, and remote workers often qualify through the income test. Working for a Mexican company or invoicing Mexican clients requires residency with work permission and an RFC tax number from SAT, the tax authority.

When Mexico can tax you

Immigration residency and tax residency are different things. Under Mexico's Federal Tax Code, you're generally a Mexican tax resident if your home is in Mexico; if you also have a home elsewhere, it turns on your center of vital interests, such as where most of your income comes from. Mexican tax residents owe tax on worldwide income at rates up to 35 percent, with the US-Mexico tax treaty and foreign tax credits meant to prevent double taxation. If you'll live in Mexico most of the year, get an accountant who handles both countries.

The nomad debate

Remote workers poured into Mexico City after 2020, concentrated in Roma, Condesa and Juárez, and rents there rose sharply. In July 2025 anti-gentrification protests in those neighborhoods turned against foreigners, with some shops vandalized. President Claudia Sheinbaum condemned the xenophobic messages while acknowledging the housing problem, and the city announced plans to limit rent increases and tighten oversight of short-term rentals. Learn some Spanish, pay fairly, and look beyond the most saturated neighborhoods; your welcome will be warmer for it.

US taxes for Americans abroad

The US taxes its citizens on worldwide income wherever they live, so moving to Mexico doesn't end your US filing obligations. The basics:

• File every year if your income is above the normal filing threshold. Citizens living abroad get an automatic extension to June 15 to file, though interest on any tax due runs from April 15.
• Foreign earned income exclusion: if you work and your tax home is in Mexico, you can exclude up to $130,000 of earned income for 2025 and $132,900 for 2026 on Form 2555. You must pass either the bona fide residence test or the physical presence test, which requires 330 full days abroad in any 12-month period. Pensions, Social Security, interest and dividends don't count as earned income.
• Foreign tax credit: if you pay Mexican income tax, you can usually credit it against US tax on the same income.
• Self-employment tax: the US and Mexico have no social security (totalization) agreement in force, so self-employed Americans in Mexico still owe US self-employment tax, even on income excluded from income tax.
• FBAR: if the combined balance of your non-US accounts, including Mexican bank accounts, exceeds $10,000 at any point in the year, file FinCEN Form 114 electronically through FinCEN's BSA E-Filing System. It's due April 15, with an automatic extension to October 15. Penalties for not filing can be severe.
• Form 8938 (FATCA): taxpayers living abroad also report foreign financial assets on their return above higher thresholds: more than $200,000 at year-end or $300,000 at any time for single filers, double that for married couples filing jointly.
• Your state: some states keep taxing former residents who keep a home, driver's license or other ties there. Plan your move with that in mind.

A Mexican bank trust (fideicomiso) holding your home isn't treated as a foreign trust for US tax purposes under a 2013 IRS ruling, so it doesn't trigger the foreign-trust forms. Social Security benefits can be paid into a US account or, through international direct deposit, a Mexican one; the Federal Benefits Unit at the US Embassy in Mexico City handles questions.

Banking and moving money

Keep your US accounts: Social Security, pensions and investments land there, and many long-term residents cover daily life with a US debit card that refunds ATM fees (see Money). Keep a US mailing address, and make sure you can still receive text-message security codes; some banks and brokerages restrict accounts when you switch to a foreign address. See Staying connected for keeping a US number.

A Mexican bank account

You'll want one for paying rent and bills by bank transfer, the way most Mexicans pay. You generally need:

• Your residency card (the visa sticker alone usually isn't enough; most banks won't open accounts for visitors).
• Your passport.
• Proof of a Mexican address, usually a recent CFE electricity bill.
• Sometimes your RFC tax number and CURP population registry number; the CURP comes with your residency card.
• An opening deposit, and a visit to a branch in person.

The big banks are BBVA, Banorte, Santander, Banamex (now separated from Citigroup), HSBC, Scotiabank and Inbursa. Individuals can generally hold only peso accounts; some "dollar" products offered to individuals are investment accounts with different protections. Mexican deposit insurance, run by IPAB, covers up to 400,000 UDIs per person per bank, an inflation-indexed unit worth roughly MX$3.4 million (about $185,000) in 2026. Transfers within Mexico use your 18-digit CLABE number and arrive almost instantly through the SPEI system.

Moving money south

Services such as Wise, Remitly and Xoom move dollars into Mexican peso accounts at close to the market rate for a small fee, usually far cheaper than a bank wire. Compare the total pesos received, not the advertised fee. Remember that your Mexican accounts count toward the FBAR threshold.

Buying property

Foreigners buy property in Mexico all the time, legally and safely, but the process differs from the US in ways that matter. Rent first, hire your own lawyer, and never sign or pay anything you haven't had reviewed.

The restricted zone and the bank trust

Article 27 of Mexico's Constitution bars foreigners from holding direct title to land within 100 km (62 miles) of a border or 50 km (31 miles) of a coast. That covers nearly every beach town, including Cancún, Tulum, Puerto Vallarta, Los Cabos and Baja's coasts, and it includes Mérida. There, foreigners buy homes through a fideicomiso, a trust held by a Mexican bank in which you're the beneficiary, with full rights to use, rent, sell and leave the property to heirs you name. Trusts run 50 years and are renewable. Expect roughly US$1,000 for the bank's setup, about US$1,000 for the government permit and US$1,000–2,000 a year in bank fees. A Mexican corporation is another route, mainly for commercial property.

Outside the restricted zone, in places like Mexico City, San Miguel de Allende, Ajijic and Oaxaca City, foreigners can hold title directly with a Foreign Ministry (SRE) permit, agreeing to be treated as Mexican for that property.

The notario and closing costs

A Mexican notario público is a senior lawyer appointed by the state with powers no US notary has. The notario checks title and liens, calculates and collects taxes, prepares the deed (escritura) and registers it with the public property registry. Buyers may choose the notario. A notario represents the transaction, not you, so hire your own bilingual real estate lawyer too.

Budget roughly 5 to 10 percent of the price for taxes and closing costs. The acquisition tax alone is about 2 to 4 percent in most states, with some charging more, and on top come notary and registration fees, an appraisal and, in the restricted zone, the trust costs. Mexican authorities can reassess a sale price they think is too low, so don't agree to a seller's request to declare less than you paid.

Ejido land and other risks

• Ejido land. Much rural and coastal land in Mexico is ejido, communal farmland created by land reform after the Revolution. It can't legally be sold to foreigners unless it has first been converted to private property through the National Agrarian Registry, a long and costly process. Plots sold on the Oaxaca coast, in Baja and around Tulum through a "cesión de derechos" (transfer of rights) give you possession, not title: no mortgage, no title insurance, no civil-court protection. Walk away unless the land is fully titled.
• Pre-construction sales. Off-plan condos in Tulum, Playa del Carmen and Puerto Vallarta can face delays, permit problems or developer failure. Check the construction license and environmental authorization, pay through escrow where possible, and research the developer's finished projects.
• Agents. Real estate agents are lightly regulated in most of Mexico; membership in AMPI, the national association, is voluntary. Prices in resort areas are often quoted in dollars.
• Title insurance is optional but available from US title insurers that write Mexican policies.

Owning and selling

Annual property tax (predial) is usually a small fraction of US levels, often discounted if you pay early in the year. When you sell, Mexico charges capital gains tax: non-residents generally pay 25 percent of the gross price, or 35 percent of the net gain if they appoint a Mexican-resident legal representative. Mexican tax residents with proof of residence can qualify for an exemption on a primary home, so keep official invoices (facturas) for improvements and your utility bills in your own name.

Renting long-term

The best way in is a furnished rental for the first month or two, often an Airbnb with a monthly discount, while you learn neighborhoods. Then sign a 6- to 12-month lease, which is usually much cheaper than monthly short-term rates.

Finding a place

Local Facebook groups for expats in each city are the busiest market. Listing sites such as Inmuebles24 and Lamudi cover larger cities, and in many towns the best places are still found through "Se renta" signs with a WhatsApp number, or by asking around. Local agents help, especially in San Miguel, Ajijic and Puerto Vallarta.

What landlords ask for

• A deposit of one month's rent, sometimes two, plus the first month.
• A guarantor (aval or fiador), traditionally a person who owns property in the same city. Foreigners rarely have one, so landlords often accept instead a póliza jurídica (a legal policy from a firm that vets you and backs the lease), an extra deposit or several months paid in advance.
• ID and proof of income, such as your passport or residency card and bank statements.

Get the lease in writing, in Spanish with an English version if possible, and spell out who pays what: utilities, building maintenance fees (mantenimiento), repairs, and when and how the deposit comes back.

Utilities

• Electricity from CFE is billed every two months. Basic use is subsidized and cheap, but heavy users, typically people running air conditioning all day on the coasts or in Mérida, get moved to the high-consumption DAC rate, which costs many times more per kilowatt-hour. Ask to see recent bills.
• Gas comes from a rooftop tank filled by truck or from delivered cylinders; water is stored in a cistern and rooftop tank (ask about shortages), and drinking water arrives in 20-liter garrafón jugs.
• Internet from Telmex, Totalplay, Izzi or Megacable is fast and cheap in cities; check coverage at the exact address.

Driving and cars

Whether you can keep a US-plated car in Mexico depends on your status.

• Visitors and temporary residents can drive a foreign-plated car outside the border free zones with a temporary import permit (TIP) from Banjercito. For temporary residents, the permit is tied to the residency card, so keep both current.
• Permanent residents can't get a TIP. If you move from temporary to permanent residency with a US car on a TIP, you must take it out of the country and cancel the permit at the border, or legally import it, before the change; otherwise the car is in Mexico illegally and can be seized. Permanent residents can still drive a foreign car within the border free zones, such as the Baja California peninsula.
• Importing a car permanently requires a customs broker, is limited to certain vehicles and model years, and is often not worth the cost. Federal decrees in recent years have let some foreign-plated cars already in Mexico be regularized in certain states, but these programs change often.
• Insurance: US auto policies don't cover you in Mexico; you need Mexican liability insurance. With residency you can buy a car in Mexico and get a state driver's license.

TIP fees, deposits, insurance and driving rules are on the Driving page, and border crossing details on Crossing the border.

Bringing household goods (menaje de casa)

New residents can bring their used household belongings into Mexico duty-free once, under a process called menaje de casa. It covers furniture, kitchenware, books, clothing, tools for personal use and similar items. Vehicles aren't included.

1. Make a detailed inventory in Spanish (a bilingual list is fine), room by room, with brand, model and serial number for appliances and electronics.
2. Have the list certified by the Mexican consulate that serves your US address. Consulates charge a fee and set their own procedures, so contact yours first; many do it at the same time as your residency visa.
3. Use a mover with Mexico experience. Shipments clear Mexican customs through a licensed customs broker (agente aduanal), whom your mover normally arranges.
4. Watch the timing. The exemption is generally available for a limited period after you receive residency, commonly cited as six months. Confirm the current rule with your consulate before you book the move.

New items still in their packaging may be charged duty. Many movers find it cheaper to sell bulky furniture and ship only what matters. Weapons and ammunition are never allowed. For dogs and cats, see Traveling with pets.

A first-year checklist

• Check your statements against the thresholds and book a consulate appointment through MiConsulado.
• Decide on health coverage, including Medicare Part B, before you leave.
• Set up a US mailing address and a way to receive US text-message codes.
• Enter on your residency visa and start the canje within 30 days.
• Enroll in the State Department's Smart Traveler Enrollment Program (STEP).
• Open a Mexican bank account; enroll in IMSS or buy private insurance.
• Keep your residency card and any car permit current, and report address changes to INM.
• File your US return, FBAR and, if needed, Form 8938.

Planning a scouting trip first? Our trip planning service can build a week that shows you neighborhoods, markets and day-to-day life in the places on your shortlist.