Why do people move to Mexico?
Their reasons differ, some are ready to escape the fast pace of life up north. Others are looking for a place they can live like a millionaire for the cost of a middle-class existence at home. Still others are searching for a safe haven, a place where the crime rate is low and they can enjoy a “small-town” lifestyle.

In Mexico you’ll find all those things and more. Everyone seems to agree: the quality of your life improves in Mexico. Things take longer, so you’ll need to learn to slow down. Goods and services cost less, so you can afford the kinds of luxuries only the very wealthy enjoy up north like a maid, a cook, and a gardener. And in Mexico you have the good fortune of giving up very little when you make your move. You’re heading to a near neighbor where you can get Internet, cable TV, and all the other comforts you’re used to in a stable country where you won’t face riots in the streets.

Safe streets, great climate, and affordable living
On the contrary, despite what you may see or read in the mainstream media, most of Mexico is very safe, especially in areas like Huatulco. Residents say it’s like going back in time to a kinder, gentler way of life.
In much of Mexico, the health care is first rate. Private clinics and hospitals are staffed by U.S.¬trained physicians. And not only that, but medical care and prescription drugs will cost you a fraction of what you’d pay in the U.S. or elsewhere.

Climate is an important consideration for many expats, and Mexico’s colonial heartland boasts some of the best weather in the world. Spring-like year-round, flowers bloom from January through December. You’ll find you can golf 12 months a year. And while the sun is shining, it’s never too hot.
Sure, you’ll find the slow pace of life frustrating at times…and the pace is slower. As U.S. expat Karen Blue says, “Mañana does not mean tomorrow—it means not today.” Yet local transplants insist the pluses of life in Mexico far outweigh the negatives.

Enjoy a "Rolls Royce” lifestyle on a “Honda Civic” budget
“It’s the quality of life,” is what we hear most often when we ask expats to tell us what they most appreciate about Mexico. Some talk of the slow pace and the smiling faces...others mention the small-town feel and the comfort of safe streets. But whatever their initial remarks may include, they all agree: Your money buys more south of the border and that makes for decidedly comfortable living.

When it costs $150,000 for a house you’d pay $300,000 for back home, you’re left with savings you can spend on living well, and you may be hard-pressed to spend it all. You can employ a maid for about $2 an hour and a gardener for $3. Pamper yourself with a manicure, pedicure, and haircut and pay less than $30. For a small home, you can expect your annual property taxes to come to no more than $200. Your electricity bill will likely cost between $25 and $50 a month, gas about $25 a month, cable TV about $40 a month, and basic telephone service about $30. You can eat out at a nice restaurant for $12 a person (or much less!) or grab a quick lunch at a local place for $3 to $5.

You’ll pay $1 or less a kilo (that’s about 2.2 pounds) for fresh fruit like mangos or oranges. A kilo of avocados sells for about $1.55 which is roughly what you’ll pay for one avocado in the northeastern United States. You can buy a dozen eggs for less than $1.

The key to smart shopping in Mexico is local shopping. While it is true that you can find just about any product you’re used to having up north—from Campbell’s soup to Tide. It’s also true that you’ll probably pay more for the convenience of a brand name. But if you shop at the local produce markets and the stores where locals buy, you’re sure to pay less for your goods.

A very comfortable lifestyle with all these amenities, including the maid, gardener, and a car for travel—can come in at about $2,200 a month for a couple. You probably would have to pay twice this amount to have this lifestyle in the U.S.

One of your main concerns when considering a move should be health care. In general health care in Mexico is very good—and in many places it is excellent. Most doctors and dentists in Mexico receive at least part of their training in the U.S. (And many U.S. doctors have trained in Mexico, notably in Guadalajara.) Many of them continue to go to the U.S. or Europe for on-going training. Every mid¬size to large city in Mexico has at least one first-rate hospital. And a big plus is that the cost of health care in Mexico is generally one-half or less of what you might expect to pay in the U.S. The same goes for prescription drugs. Prescription drugs manufactured in Mexico cost, on average, about 50% less than the same drugs in the U.S.

Of course, the costs of medical care will vary by physician, hospital, and the gravity of your condition. Don’t hold us to this, but on average, a visit to a doctor—specialists included—will cost 350 to 500 pesos (about $26 to $38). A house call—yes, doctors in Mexico still make house calls—will cost about the same. Lab tests will cost about a third of what they cost in the U.S. A CAT scan often costs about 25% of what it does in the U.S. An overnight stay in a private hospital room costs about 350 to 500 pesos ($26 to $38). A visit to a dentist for cleaning costs about 250 to 400 pesos ($19 to $30).

Yes, in the major cities of Mexico, you can get good-quality medical care for serious medical conditions...including dialysis, major surgery...even live-in, 24-hour care...for a fraction of what you might pay in the U.S. But please, think twice about moving to Mexico if you have a serious medical condition that requires special equipment. The stress of being seriously ill in a foreign country can be more difficult than you think.

Prescriptions: As we mentioned before, pharmaceuticals made in Mexico cost about 50% less than the same drugs in the U.S. On the other hand, drugs imported from the U.S. can cost 50% more. Fortunately, you can almost always find a Mexican-made substitute for U.S.-manufactured drugs. Be sure to consult with your doctor, though, before making a change in your prescriptions. The best advice is to go to Mexico with a good supply of the drugs you are already taking, then find a physician and discuss your needs. Many drugs that require a prescription in the U.S. or Canada are available over-the-counter in Mexico. The exception is narcotics, sleeping pills, strong pain pills, and the like (prescriptions are required).

Alternative health care: In nearly every Mexican town, you will find healers and medicine men and women offering natural and herbal remedies and treatments from chiropractic, Reiki, massage, homeopathy and more. In indigenous areas, shamans are the most revered of community leaders...and quite often they are willing to take on foreign clients. Mexico also has many natural hot springs and spas that offer nutritional, relaxation, and body cleansing programs and more, at a fraction of what you would pay for similar programs at home. In general, you may feel healthier living in Mexico. Fresh fruits and vegetables, healthy seafood, and, most importantly, a lack of stress may contribute to an overall sense of health and well-being.

AA and other 12-step programs: Every town of any size in Mexico has an Alcoholics Anonymous chapter, and many also have Narcotics Anonymous and other 12-step programs. Al-Anon, for instance, is almost everywhere. In some places with large foreign populations, meetings are even held in English. Even if they are in Spanish, however, you will be welcomed and encouraged. Look for the AA symbol inside a triangle and a circle, usually on a blue background—or look in the local newspaper or phone book.

Health insurance: Keep in mind that Medicare and Medicaid do not travel with you outside the United States. Neither does Canada’s health care insurance. But you will find that some providers in Mexico accept Blue Cross and other U.S. insurance providers.

If you’re in Mexico on a valid FM-T, FM-3, or FM-2 visa, you can apply for enrollment in the government’s national health plan. This plan includes medical, dental, and vision coverage and costs between $160 and $230 per year, depending on your age. While the program offered through the Instituto Mexicano del Seguro Social (IMSS), covers you for everyday illnesses, you’ll find that the physicians in the program don’t necessarily speak English, and that you may have to wait a few days before you get an appointment when you’re sick. For more information (in Spanish) about the IMSS health care program, visit this website: www.imss.gob.mx.

Given the potential inconveniences of IMSS insurance, most expatriates use IMSS insurance only for catastrophic medical problems. They either pay out of pocket to visit a private clinic when they’re sick (and simply keep the IMSS coverage as back-up in case of a major medical emergency), or they skip the IMSS program altogether and buy insurance through a private company.

Rates for private insurance coverage vary (just as they do in other countries) depending on your age, your preexisting conditions, the deductible you choose, and so on. But to give you a generous guideline, expect to pay between $500 and $3,500 a year for your premium. And note that you generally cannot apply for a new private health insurance policy once you reach age 65—most health insurance companies don’t accept new policy-holders after age 64. It would be wise to consult with expats in the area you are considering to get their recommendations. Several private insurers in Mexico will insure foreign nationals living in Mexico.You will pay much less in Mexico than for a comparable policy in the U.S. The largest private health insurer in Mexico is Grupo Nacional Provincial (GNP); website: www.gnp.com.mx.

Other private insurers offering plans that may be suitable for expats include MetLife Mexico, web-site: www.metlife.com.mx, and Monterrey-New York Life, website: www.monterrey-newyorklife.com.mx.

January 1:               Año Nuevo, New Year’s Day—An official holiday with little public celebrations. Special masses are held.

January 6:               Los Santos Reyes, Three Wise Men—Day of giving Christmas presents to chil­dren in accordance with the arrival of the three Magi to infant Jesus. This day culminates the Christmas-time festivities.

February 2:             Día de la Candelaria, Candelmas Day—Plants and seeds are sold in plazas and streets. This coincides with Aztec New Year’s Day, which is also dedicated to fertility.

February 5:             Día de la Constitución, Constitution Day—Official holiday. Governmental offices, schools, and banks are closed on this day.

February 14:           Día del Amor y la Amistad, Valentine’s Day

February 24:           Día de la Bandera, Flag Day—Civic ceremony honoring the Mexican flag.

Early March:           Carnaval—Carnivals take place at many places in Mexico and begin a five-day celebration before the Catholic Lent. Parades, floats, and dancing in the streets make for a great party. Port towns such as Mazatlán, La Paz, and Veracruz are excellent places to watch Carnaval festivities.

March 21: Benito Juárez—Birth of Benito Juárez, a famous Mexican president and national hero. It’s an official holiday. Governmental offices, banks, and schools are closed. Also, Beginning of Spring Season—For the Aztec culture this day was cele­brated as New Year’s Day. At archaeological sites, such as Teotihuacán, special ceremonies take place to celebrate the equinox.

March/April:           Semana Santa, Holy Week—Mexico’s second-most important holiday season of the year, behind only Christmas. In addition to attending Mass on Good Friday and Easter Sunday, many Mexicans will also take advantage of the holiday to go on vacation. If you are planning to visit Mexico during Semana Santa, make sure you check availability in advance.

April 30:         Día del Niño, Children’s Day—Festivals are offered to kids at schools, with small presents and games.

December 12:          Virgen de Guadalupe—This day is celebrated with a feast honoring Mexico’s patron saint, Our Lady of Guadalupe.

December 16–24:    Las Posadas—Translated as “The Inns,” this is a traditional Mexican festival that re-enacts Joseph’s search for a room at the inn. Each Christmas season, a proces­sional carrying a doll representing the Christ Child and images of Joseph and Mary riding a burro walks through the community streets. The processional stops at a previously selected home and asks for lodging for the night. The people are invited in to read scriptures and sing Christmas carols called villancicos. Refreshments are provided by the hosts.

December 25:          Navidad—Christmas Day.

December 28:          Día de los Santos Inocentes—The Holy Innocents Day is a religious commemo­ration of King Herod’s ordering the slaughter of all male infants in his kingdom, intended to include the Christ Child.

While Mexico does not market a full-blown program designed to entice foreign retirees to its shores, this country is nevertheless a friendly haven for retirees and others from the U.S., Canada, and beyond.

As an expat on one of two types of visa, you can bring your household goods in duty-free, and, as long as you can prove you have a steady non-Mexican-generated income, the proper visa will allow you to come in and out of the country as many times as you like.

If you plan to spend just a small part of the year in Mexico and rent a furnished place, you may not even want to bother getting a visa. Your tourist card, the FM-T, is good for six months.

However, if you do plan to live in Mexico full time or even for six months a year, you may want to investigate your other options. We’ll outline them for you here. Please consider the material in this chapter a guideline. As we go to press, all these facts and figures are correct, but regulations and fees regarding visas change fairly regularly.

The National Immigration Institute of Mexico

The Instituto Nacional de Migración (INM) is the governmental body that issues visas and immigration papers within Mexico. It is also the organization that sets the rules for the consulates (though, as we’ve noted elsewhere in this chapter, the consulates seem to run little domains of their own, each one with slightly different visa requirements). 

Immigration—what kind of visa do you need?

FMT Tourist Permit: The first time you come to Mexico, you will no doubt do so on a Tourist Permit...an FMT. You will be given one on your flight into the country or at the border when you cross by car or truck. FMTs can also be obtained at any Mexican consulate, although there is really no reason to do this in advance.

The cost of an FMT is automatically added to the cost of your airline ticket. If you are traveling by car, you will pay for it (currently a $27 fee) when you cross the border. Your FMT tourist card (a piece of paper, really) allows you to remain in Mexico up to six months (180 days) without working. You can easily renew your FMT by leaving Mexico within the allotted 180-day period, and then re-entering the country. For this reason, some people never bother getting any other type of visa. However, if you are going to make Mexico your permanent home, and purchase property there, we suggest you get a more permanent visa.

On an FMT, you can bring in a reasonable amount of personal effects. This varies according to the Customs inspector. Yes, there is an official list but it is seldom followed. You can bring in personal communications equipment...cameras and a laptop computer, for instance. If you don’t have a lot of stuff, don’t worry about it. You may have to pay a duty (15% to 20% on a desktop PC, for instance) but if the items are used, you can likely convince the Customs inspector that they are for personal use and not for resale and you will be waved through without any duty owed.

FM-3 Non-Immigrant Visa: There are nearly a dozen different types of FM-3 (officially known as no inmigrante visitante) visas, including business designations that have been created since the pass­ing of NAFTA. Most do not affect retirees or others who plan to spend extended time in Mexico. Don’t let the process intimidate you; obtaining the proper visa is easier than it sounds.

Basically, the FM-3 is designed for those who wish to live at least part-time in Mexico, but do not necessarily intend to make it their permanent home. The specifics change from time to time, so be sure to check with your nearest Mexican consulate for the most up-to-date information.

The most common type of FM-3 is the FM-3 rentista. It is often called the “retiree visa,” though anyone can obtain it. The rentista designation simply means that you are living in Mexico on funds received from abroad.

To be granted an FM-3 rentista, you will need to obtain and complete the proper form from the consulate and provide a passport, five passport-sized photos (three front view and two right profile), a letter (in Spanish) stating why you want to establish residency in Mexico, and statements from your bank, investment company or social security saying that you are financially independent.

You must show that you have a monthly income of approximately $1,000 minimum, plus $500 for each dependent. This required amount can be reduced by 50% if you own property in Mexico. You will also need to provide your marriage certificate (if your spouse also wants an FM-3) and/or a divorce decree if you are divorced. You may also be asked to provide a document from your local police stating that you are not a criminal. The last time we checked, the fee for this type of visa was $140 for most nationalities. Check with your local consulate for the exact fee you will be charged. Don’t forget to save all your receipts and papers related to converting dollars to pesos each month; when you renew your visa, you’ll have to show that you converted dollars to pesos equal to the monthly income require­ments for your type of visa.

Note: Getting an FM-3 should be an easy process, although we know of people who have had dif­ficulties. It can be frustrating to make multiple trips to the consulate only to be told you are missing one critical piece of paper. For this reason, companies providing turnkey immigration services have become popular. Ask your realtor to recommend one in the area of Mexico where you decide to live.

Other sources for assistance (often free) may be found through local American Legion and VFW posts located throughout Mexico.

FM-3 Business Visas: Several FM-3 business designations have been created since the passing of NAFTA. For short business trips, a 30-day visitante representative comercial visa can be obtained for free at the border or airport. If you will be in Mexico longer than 30 days, or repeatedly, get the visitante hombre de negocios FM-3 business visa from any Mexican Consulate. You will need a letter from your company outlining your business in Mexico. Present this in person, along with your pass­port, five passport-size photos (three front view and two right profile) and your company’s articles of incorporation. This visa is good for one year and entitles you to conduct business but not work or earn wages in Mexico.

The current fee is about $100. There are several other types of FM-3 Business Visas, including those for technicians, investors, artists, athletes, students, etc. Check with your local consulate for more details.

FM-2 Immigrant Visa: The FM-2 (inmigrante rentista) visa is designed for those who intend to permanently reside in Mexico or seek Mexican citizenship. You must show a higher monthly income ($1,500 and half that for each dependent), although again, if you own property in Mexico, that amount can be halved.

Years ago, FM-2s were the only visas available to foreigners who wanted to work in Mexico. To­day, thanks to NAFTA, the FM-3 replaces the FM-2 as a working visa. Essentially, the FM-2 is like a green card, or resident alien visa. It entitles you to many of the rights of a Mexican citizen (except voting) and entitles you to work. The FM-2 is now the visa for those who ultimately want to obtain Mexican citizenship. It strictly limits the amount of time you’re allowed outside Mexico while you have the FM-2, whereas the FM-3 allows multiple entries and exits.

The laws regarding time requirements to apply for FM-2 status are changing. For years you needed to have five consecutive years of FM-3 status to go to FM-2. Now FM- 2 status can be applied for im­mediately. However, we’ve heard from local authorities that this varies from state to state and immigra­tion office to immigration office, so make sure you check with the local Mexican immigration office in the area you want to settle.

After five consecutive years of FM-2 status, you can apply for permanent inmigrado status. Inmi­grado status does not require you to give up your native citizenship, but holders may freely work and remain in Mexico without renewing immigration papers annually. The drawback is that with this status, you are only able to drive a Mexican-plated vehicle and there is a limit on how much time you can be out of Mexico.

FMG Transmigrante Visa: The FMG visa is for people traveling through Mexico to Central America, particularly if you are taking a lot of stuff with you. This visa costs $150 or more, and you will most likely be required to produce a police letter stating that you are not a criminal as well as documentation that proves that your vehicle is not stolen.

Missionaries: To work as a missionary in Mexico, you must have a special visa that entitles you to preach or work at a specific church. To get this, apply at a Mexican consulate and present the same documentation as for other visas along with a letter from the church or location in Mexico where you will be working.

Don’t plan on bringing a lot of clothes, medicines, etc. with you unless you are willing to pay the Customs duty on them.

Working in Mexico

Yes, you can work in Mexico, but unless you own your own business there, it won’t be easy and probably not very lucrative. Remember, the average minimum wage in Mexico is half or less of what it is in the U.S. Many workers in Mexico earn much less than minimum wage. There is stiff competition for jobs, and you will not be allowed to do a job that will take work away from local employees.

Many people work off the books (illegally) in Mexico, keeping a low profile until they become legal. We do not recommend this because if you are caught, you can be deported and everything you own can

be confiscated. There are ways, however, to work legally in Mexico. The simplest way is to do so as a consultant...via the Internet...with money paid to you in the U.S. or your official country of residence.

Officially, to get working papers, you must have an FM-3 or FM-2 visa. You can apply for these papers at the same time you apply for an FM-2 inmigrante visa. If you don’t want to wait the five years it takes to qualify for an FM-2, you can either start your own business and set up a Mexican corpora­tion, or you can try to prove that 1) your endeavor is unique and only you are capable of doing it (you’d be surprised at what qualifies) and/or 2) you will be creating employment for Mexicans.

FM-2s can now be applied for immediately upon entering Mexico. You cannot apply for an FM-2 outside of Mexico as you can for an FM-3. You also cannot obtain Inmigrado status from an FM-3—you must hold a valid FM-2 for five years.

Additionally, you’ll have to buy a Mexican-plated vehicle if you want to drive in Mexico on an FM-2 or as an Inmigrado. In your favor, Mexico welcomes foreign investment and offers countless op­portunities for new businesses. A recent law change now allows foreigners to own 100% of a Mexican corporation. Talk to the immigration authorities in your Mexican residence about your options. We also recommend that you consult with a local Mexican attorney. NAFTA has made living and doing busi­ness in Mexico easier than ever before.

Starting May 1 2010, new immigration procedures are being brought into effect in Mexico.
In summary, procedures for tourists who carry a passport from a country on Mexico’s “no visa required” list are virtually unaffected by the new procedures. Business visitors from these countries are now allowed to remain in Mexico for a maximum of 180 days (it used to be 30 days), and a number of procedural changes have been introduced to make the issuance and renewal of FM3 and FM2 visas simpler.

If you plan to be in Mexico for more than 180 days in a calendar year, you should apply for a FM3 or FM2 visa to assure your resident status complies properly with the rules as published.

In addition to visa requirements, you also need to check your residency and tax status if plan to stay in Mexico for more than 180 days a year. Most countries (including Mexico) operate a rule that states if you are physically present in a country for more than 180 days in a calendar year you are deemed resident there and may be subject to local taxes on your income. You should seek professional advice from an immigration lawyer and tax accountant about matters relating to residency and tax in Mexico.