Retire in Mexico
To retire in Mexico most people get a temporary resident visa from a Mexican consulate by showing economic solvency, then a residence card for up to 4 years. Prices run at about 59% of the US, and US Social Security is taxed only in the US.
What it takes, what it costs, and where retirees settle, from Mexico's law and official data. Checked on Oct 8, 2026.
- Retiree visa
- From MXN 79,771/mo (about $4,410) A job or pension paying more than 680 days of the UMA a month, free of liens, over the las…. SRE; INM; Visa guidelines 2025; INEGI; San Diego consulate. Checked Oct 8, 2026.
- Price level
- ~59% of the US Household consumption, 2025. World Bank. Checked Oct 7, 2026.
- Tax on a foreign pension
- Up to 35% Foreign pensions taxed; US Social Security is not. PwC Tax Summaries; US-Mexico tax treaty. Checked Oct 7, 2026.
- Travel advisory
- Level 2 of 4 Exercise Increased Caution. US State Department. Updated May 28, 2026.
- Health spending
- $761/person Per year; US $13,473. World Bank. Checked Oct 7, 2026.
- US tax treaty
- Yes An income tax treaty with the US is in force. IRS. Checked Oct 7, 2026.
Do you qualify?
Most retirees start on Mexico's temporary resident visa, issued by a Mexican consulate abroad to people who show economic solvency, either a steady income such as a pension or savings and investments. It allows a stay of more than 180 days and less than 4 years, and work is allowed only if the pay comes from abroad.
Temporary Resident visa: documents and feesRetiring in Mexico, topic by topic
Visa
Temporary Resident visa requirements
Documents, government fees and the other routes to residency.
Healthcare
Healthcare for retirees
The hospitals retirees use, what insurance covers, and Medicare abroad.
Money
Banking, pensions and tax
How US, UK and Canadian pensions reach a local bank, and what you report at home.
Budget
Cost of living
Official prices and a budget built from your own rent.
What it costs
Household prices in Mexico run at about 59% of US levels. Rent is the line nobody publishes officially, so the cost of living page builds your budget from your own rent; food starts from the official basket.
Build your budgetOfficial food basket, one person, August 2026
INEGI. Checked Oct 8, 2026.
Where retirees settle
Mexico City
- Capital, about 9.2 million people (2020)
- 2,240 m above sea level
- Médica Sur, JCI accredited
Ajijic, Lake Chapala
- Lakeside town of about 11,400 people (2020)
- 1,551 m above sea level
- Nearest listed hospital: Hospital San Javier, Guadalajara
San Miguel de Allende
- Colonial town of about 70,000 people (2010)
- 1,900 m above sea level
Mérida
- Capital of Yucatán, about 922,000 people (2020)
- Near sea level, about 14 m
Wikidata; Médica Sur; Hospital San Javier. Checked Oct 7, 2026.
Mexico compared
More guides on Mexico
Visiting Mexico first
Most people spend a few weeks in Mexico before they apply for anything. Two things to sort out for that trip:
Kiwi.com
Flights to Mexico
Compare routes and dates before a scouting trip.
Airalo
eSIM for Mexico
Mobile data from the day you land, without a local SIM.
Partner links: we may earn a commission if you book, at no cost to you. How this works.
Retiring in Mexico: questions
Is Mexico safe for retirees?
The US State Department rates Mexico Level 2, exercise increased caution.
Do I pay tax in Mexico on my pension?
Yes. Mexico taxes residents on worldwide income, so a pension from abroad is taxed at 1.92% to 35%. US Social Security is the exception: under the US-Mexico tax treaty it is taxable only in the US. US citizens still file a US return.
What are the best places to retire in Mexico?
Retirees settle mostly in Mexico City, around Lake Chapala in towns such as Ajijic, in San Miguel de Allende and in Mérida. Mexico City and Ajijic sit high, at 2,240 m and 1,551 m; Mérida is near sea level.
How do you retire in Mexico as an American?
Most people apply at a Mexican consulate for a temporary resident visa, showing economic solvency, then collect a residence card from INM within 30 days of arrival; pensioners can ask for permanent residence from the start. US Social Security is taxed only in the US.
