What happens if a US citizen moves to Mexico?
When a US citizen decides to move to Mexico, the process includes complying with the requirements for a visa, getting to know what is expected of them legally, accepting and adopting the local culture, and integrating into a country where the biggest number of people from the US is the expatriate community.
The count of Americans crossing the border and relocating has reached 1.6 million by 2025. On top of the new international lifestyle that comes with switching to Mexico, the warm climate, active local color, and the affordable cost of living also become the main incentives. But, what will happen when they make this huge decision? This thorough travel guide will talk about the legal, financial, and lifestyle modifications which the US citizens will have if they move to the South of the most southern country in America.
Legal Requirements and Immigration Status
The first thing that will happen to US citizens once they have moved to Mexico is that they have to clear the local immigration rules.
Visa Options for Long-Term Stays
However, if one's stay is going to exceed 180 days, then they are advised to have a temporary resident visa. Temporary resident visa permits staying in Mexico for about four years. The first requirement towards this kind of visa is the application which is due at the Mexican consulate in the USA. The following are the documents needed:
Valid passport (original and copy)
Completed visa application
Recent photograph
Proof of maintainable financial status
Documentation that proves your US residency
It is especially important to meet the financial requirements. One of the two is necessary to prove to them:
• A monthly income of at least 300 days of Mexico's minimum wage (approximately $4,125 USD annually as of 2025)
• A savings balance of at least 5,000 times Mexico City's minimum wage (approximately $68,750 USD)
• Property in Mexico
• Investment in the capital of a Mexican company
When the visa is granted (usually 10-15 days later), the temporary visa will be inserted into your passport and you will then need to visit the National Immigration Institute (INM) in Mexico within 30 days to get your residence card.
Path to Permanent Residency and Citizenship
A lot of Americans who have stayed four years in Mexico through a temporary resident visa apply for permanent residency. Permanent residents have almost as many rights as Mexican citizens except for voting and holding some government positions.
The possibility of naturalization is open to those who wish to stay in Mexico, and after five years of residency, they are eligible to apply (or just two years if they are married to a Mexican citizen). There is a citizenship exam that challenges one's knowledge in Mexican history, culture, and Spanish language skills. Also of note is the fact that both the US and Mexico provide for dual citizenship, hence, you don't have to give up your American passport.
Financial and Tax Implications
Individuals who move to Mexico still need to comply with their US tax obligations. As a US citizen, you must file US tax returns even if you live abroad. However, the financial implications can be many, and some are highlighted below:
Expenses for Cost of Living
Once Americans experience the convenience of living at a significantly lower cost, they immediately determine that it is among the most significant changes they have experienced. Housing, utilities, groceries, transportation, and healthcare all cost much less in Mexico as compared to the United States. Most Americans find they can easily spend just half or even less to live comparing the amount from home.
II. Banking and Currency
To live as a resident in Mexico, a financial foundation needs to be set up, such as opening a local bank account. With the withdrawal of dollars using US cards being difficult at times (due to the high foreign transaction fees), having local currency in pesos linked to the local account avoids such struggles and is much more convenient to live comfortably.
Healthcare in Mexico
Mexico's healthcare system is one of the sectors that have brought a positive effect on the Americans living there. Still offering the same quality of care as the US, Mexico charges relatively less for that. The majority of the expatriates decide on either:
Joining the public healthcare system of Mexico (IMSS) at a price of approximately 500 USD per year
Buying a good quality of private Mexican health insurance from 1,000 to 2,000 USD per year
Signing international health insurance that includes Mexico and the USA.
Some kinds of visas can be only allowed with the presentation of health insurance that covers the whole period in Mexico, thus it is important that this is among the factors of consideration when going to Mexico.
Changes in Lifestyle and Cultural
More than legal and financial adjustments, Mexico calls for profound cultural adaptation that forms the core of the expat experience.
Community Integration
Most of the Americans choose to live in communities that are already with an expat population e.g., Lake Chapala, San Miguel de Allende, Puerto Vallarta, and the Yucatán Peninsula. These communities come with a better-integrated service in English, various social clubs, and cultural events than if you are on your own.
However, for someone to become a real part of Mexican society, it is necessary to learn Spanish and be open to local customs. People who do so usually have more fulfilling and joyful experiences.
Safety Considerations
The safety issue is always the major concern for those planning to move to another country. While the Global Peace Index for 2024 shows Mexico on the 138th place out of the 163 countries (6 places behind the US - 132nd place), safety indexes differ greatly depending on the area. American expat communities are situated in the safest parts, uninfected by the criminal activities of the drug cartels.
Among the measures that guarantee safety, we can highlight the following:
Finding and staying in safe places
Staying vigilant of your surroundings
Refraining from flaunting your wealth
Availing registered taxis or rideshares
Being watchful while taking out cash
Daily Life and Infrastructure
Regular activities in Mexico usually mean being confronted with a different infrastructure, significantly different services, and heightened or lowered pace of life. Internet availability, water pressure, and electricity reliability are the most important issues in terms of infrastructure. All these services differ from the ones in the urban centers which are uniformly reliable.
Most of the Americans enjoy Mexico's laid-back attitude and their focus on their families and the community, apart from their jobs. The change of culture can be quite refreshing but it requires one to be very patient and adaptive.
Making the Transition Successful
When it comes to the moving to Mexico decision, a lot of factors can actually make the transition a smooth one:
Before providing a definite answer about moving, check out a few possible places that you might consider as options
Get in touch with groups of people living abroad in Mexico online as well as see them in person
Have an experienced real estate professional or adviser who specializes in immigration as your go-to professional
Before leaving, it would be a good idea to get the basics of Spanish under your belt and if possible, keep on with your studies after arrival
Keep a broad mindset and also welcome the cultural differences
The relocation to Mexico is not just a change of address but it is also a change of lifestyle. Although there are difficulties such as coping with red tape and getting used to cultural differences, that many Americans still feel the benefits of the transition are far greater than the difficulties.
If an American citizen decides moving to Mexico, he/she will have to go through various legal, financial and lifestyle changes which will transform his/her everyday existence. The visa process, the tax laws understanding, the local culture accepting and the bonds establishing are the milestones that have to be gone through, despite the fact that the journey comprises a mix of the challenges and benefits.
A move to Mexico can be a very rewarding experience for those who have thought through it carefully, kept their expectations realistic and shown an explorative spirit. With a lower cost of living, vibrant cultural experiences, and a refreshing lifestyle, Americans have the opportunity to start a new chapter that is anymore than just exciting. Present-day American expats, amounting to 1.6 million, tell the story of the move's charm.
