A Guide to Investing in Mexico (2024)

FAQs

Is it a good idea to invest in Mexico? ›

Mexico offers an attractive real estate market with various properties, including beachfront, high-end, and rural investments. With its low cost of living and relatively low taxes, Mexico is a great option for investors looking to maximize the return on their investment.

The easiest way to invest in the whole Mexican stock market is to invest in a broad market index. This can be done at low cost by using ETFs. On the Mexican stock market you'll find 2 indices which are tracked by ETFs. Alternatively, you can consider indices on Emerging Markets.

Mexico is one of the most competitive countries for productive investments worldwide due to many factors, such as: A strategic geographical position. Competitive costs, with a young and talented population. Size and strength of its internal market.

There are still many obstacles to investment in Mexico: The country relies heavily on its partnership with the United States and is therefore vulnerable to any changes to the free trade agreement. The level of corruption is high and the crime rate is rising.

The best currency to take to Mexico is the local currency, the Mexican peso. US dollars are also highly exchangeable at local banks and currency exchange offices.

It is perfectly legal for an American to own property in Mexico. Beyond the somewhat tedious process of setting up a bank trust (fideicomiso), buying property in Mexico as an American or Canadian is fairly straightforward.

Today, Mexico has a large, diversified, and strong economy with its oil sector, remittances from the United States, exports, agriculture, mining, tourism, and industrial activity playing the most significant roles in its growth.

In Mexico, you can live a comfortable life on $1,000 a month. The average cost of living for expats, digital nomads and retirees varies between $600 to $2,000 depending on one's lifestyle choices and their location. Baseline costs in Mexico are around $750 a month.

The United States is Mexico's top source of foreign direct investment (FDI) with USD 100.9 billion (2019 total per the U.S. Bureau of Economic Analysis), or 39.1 percent of all inflows (stock) to Mexico, according to Mexico's Secretariat of Economy.

Why living in Mexico is better than the US? ›

Mexico Has a Low Cost of Living. The biggest benefit of living in Mexico is the fact that pretty much everything costs less. Rent, food, transportation, and entertainment are all absolute bargains if you are used to paying American or Canadian prices. Your dollars go much further in Mexico than in the U.S. or Canada.

The national currency in Mexico is the Mexican Peso (MXN). However the US Dollar is widely accepted across Mexico especially in the more touristic places like Playa del Carmen. In fact most tour companies, restaurants, and even some shops will have their prices in both pesos and dollars.

Mexico investment incentives

Mexico offers numerous investment incentives for various industries, both for local and foreign investors. It provides a wide variety of tax exemptions and grants to stimulate investment, reduce unemployment and advance cross-border trade.

The real estate market in Mexico is promising and the time to buy is now. Mexico has a growing economy and a stable political environment, making it an attractive destination for investors. Real estate prices are still low in many parts of the country, providing buyers with the opportunity to buy at a discounted rate.

The economy has recovered its employment and Gross Domestic Product (GDP) pre-pandemic levels. Mexico's stable macroeconomic framework, the U.S. dynamism, and solid manufacturing base will support economic growth.

Annual pre-tax income needed to be in the top 10%: $51,709

As of March 2021, Mexico had an unemployment rate of 4.43%.

Is $100 a lot of money in Mexico? Yes. $100 USD goes a lot further in Mexico than in the United States and in other western currencies.

If you own property in Mexico, you'll pay property taxes. If you rent out that property or own a business, have a job, or have interest-bearing bank accounts, you'll owe income tax. Even if you have none of these, you'll still pay sales tax (known as Value Added Tax or VAT) on most retail goods and services.

A two-bedroom house in Mexico City can range anywhere from $100,000 to $500,000, while a similar property in Tulum may cost upwards of $1 million. In Cancun, a two-bedroom home can range from $200,000 to $800,000, depending on the location and amenities.

How long can a US citizen stay in Mexico? ›

General Information. A visitor visa allows you to stay in Mexico for a period of up to 180 days, provided that you are not carrying out any paid activities.

The government of Mexico establishes that Mexicans must get paid in Mexican pesos through government approved banks. Employees may convert their salaries afterwards but cannot receive payment in American dollars.

Portfolio loans

In this option, the concept is the same as was just discussed, except an investment portfolio is used as collateral instead of a home, and no assets need to be sold taxably to access cash. In fact, this is often what billionaires do — take loans against their company stock.

Contribute to Your Retirement Accounts

Investing in retirement accounts eliminates capital gains taxes on your portfolio. You can buy and sell stocks, bonds and other assets without triggering capital gains taxes. Withdrawals from Traditional IRA, 401(k) and similar accounts may lead to ordinary income taxes.

Note: if you die intestate, with no Will (Canadian or Mexican), your estate will pass to your legal heirs. In Mexico, this does not include a common-law spouse, which comes as a surprise to many.

Puebla is one of the cheapest places to live in Mexico. The monthly cost of living in Puebla starts from around $1,150 USD depending on your lifestyle choices. This includes rent, groceries, eating out, activities, coffee, and more. If you're a couple, it's more like $1,900 USD.

The city in Mexico considered the safest with the lowest crime rate is Merida, located in Yucatan. It's also one of the most affordable cities in Mexico, making it a popular destination for retirees and expats. Merida's low crime rate makes it an excellent choice for visiting or living.

How to retire to Mexico. A basic visa will allow you to stay 180 days in the country, but to establish residency you'll have to visit an immigration office. You'll start with a temporary visa permit, which can allow you to live in Mexico up to four years.

Where do the billionaires in Mexico live? ›

In 2021, state-owned Mexican oil company Petróleos Mexicanos, known as Pemex, was the leading Mexican company based on net revenue, with roughly 1.5 trillion Mexican pesos generated. América Móvil ranked second that year, with a revenue of around 855 billion pesos.

To enter, you will only need a valid passport issued by your home country. Most people who are moving to Mexico will need a temporary resident visa, which is good for stays between 180 days to 4 years.

In addition to lower living costs, Mexico offers a varied climate, from tropical heat along the coasts to cool mountain air inland, and a wide range of places to live, from beach resorts and modern metropolises to old historic cities and quiet small towns where expatriates can experience an authentic Mexican lifestyle.

1 USD = 17.9883 MXN May 23, 2023 16:18 UTC

Check the currency rates against all the world currencies here. The currency converter below is easy to use and the currency rates are updated frequently.

A good rule of thumb is to bring 25% of your overall budget in cash to avoid carrying around huge wads of money. What is this? For example, if your daily budget is $50 and you'll be in Mexico for six days, you should plan to bring $60-70 in cash.

It is safe to buy property in Mexico! Foreigners can buy and sell property with ease, there are only a few special rules you need to follow when buying property, and strictly from an investment point of view, Mexican real estate has a great deal of upside potential.

Why should I retire in Mexico? ›

Mexico is a retiree's paradise. You get a relaxed lifestyle with world-class healthcare and good weather at much lower prices than in the U.S. or Canada. But it's also not everyone's ideal retirement destination.

The median sale price of a home in Mexico was $104K last month, down 13.8% since last year.

Buying a condo in Mexico offers investors the opportunity to own property at a relatively affordable price in one of the world's top vacation destinations. For buyers looking to own their own home in the sunshine, Mexico is a fantastic choice which has long been popular with property buyers.

Corruption and administrative inefficiency have also been major issues and the business climate continues to suffer from safety risks in the country. According to the Economist Business Environment, Mexico ranks 42 out of the 82 countries reviewed for their investment climate.

The answer is yes – if you pick the right location. Like many other countries, some cities and towns in Mexico are safer than others. If you're looking to retire in a foreign country or are looking for a lifestyle change with fresh job opportunities, Mexico can be a great place to live.

April 4, 2023

Mexico's proxy for monthly GDP growth averaged a 0.4 percent increase in the first two months of 2023. Nevertheless, the economy is expected to slow considerably this year because tight monetary conditions will likely weaken domestic demand and slower U.S. growth will affect Mexican manufacturing exports.

Answer and Explanation: Mexico is not a socialist country, but rather employs a free market, capitalist economic system. It is considered an emerging market economy, meaning it is making strides in growth and GDP, but still falls short of being classified as a developed country.

The real estate market in Mexico is promising and the time to buy is now. Mexico has a growing economy and a stable political environment, making it an attractive destination for investors. Real estate prices are still low in many parts of the country, providing buyers with the opportunity to buy at a discounted rate.

In Mexico, you can live a comfortable life on $1,000 a month. The average cost of living for expats, digital nomads and retirees varies between $600 to $2,000 depending on one's lifestyle choices and their location. Baseline costs in Mexico are around $750 a month.

The current exchange rate in Mexico is 18 to the US dollar — so with that in mind — the average house in Mexico can range anywhere from 1.3-million pesos to 18-million pesos, depending on its location, size and amenities.

What's the average rent for a house in Mexico? ›

The “Temporary Resident Visa” is recommended for those who choose to own property in México. After four years it can be converted into a “Permanent Resident Visa”. This visa allows you to stay in Mexico for as long as you like without a restriction on foreign travel.