Is mexico a good place to invest? (2024)

Is it wise to invest in Mexico?

With its growing GDP, a higher level of foreign direct investment than any other Latin country, and a current political climate that is more pluralistic and open to investment than any other of the last seven decades, investing in Mexico today offers high rewards with limited risk. The peso is strong.

The surrounding infrastructure and amenities. Ease of access and transportation options. Overall costs involved in the buying process. Details related to rental income, capital gains taxes and other future costs and fees.

Owning property in the sunny Riviera Maya is a great way to diversify your portfolio and give yourself a solid nest-egg investment for the future. Even throughout the pandemic, the housing market in Mexico remains strong as the nationwide house price index rose by 5.8% during Q2 of 2020.

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.

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.

Property taxes (predial) in Mexico are very low. It is quite common to have annual property taxes of $100 or less, and they seldom run higher than about $300. If you sell the property, you'll owe capital gains tax.

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

Foreigners can own property in Mexico. It's perfectly legal. Outside the restricted zones—50 kilometers (about 31 miles) from shorelines and 100 kilometers (about 62 miles) from international borders—foreigners can hold direct deed to property with the same rights and responsibilities as Mexican nationals.

Is it safe to live in Mexico?

The short answer is yes. Although there is a high rate of crime it is limited to certain areas of the city. Expatriates and foreigners living in Mexico City are able to enjoy a high quality of life and live safely within the city boundaries. If you move there, you should take precautions as you would in any major city.

You can invest directly in Mexico's stock market by opening an account with an international broker regulated by the U.S. Securities and Exchange Commission (SEC) or with a Mexican stock brokerage.

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.

If your property was purchased legally, The Mexican government has no legal right to take the property, nor do they want to discourage tourism of foreign investments. Under the North American Free Trade Agreement, NAFTA, Mexico may not directly, or indirectly, expropriate property except for a public purpose.

Yes, you can go all in and decide to make your move to Mexico permanent but there are also lots of other options. Think about the lifestyle you want and what makes the most sense for you and your family. We live in Mexico full-time now.

Can a US Citizen Buy a Condo in Mexico? Yes! Buying property in Mexico, including houses, condos and land, is permitted for foreign nationals, as long as the real estate transaction is properly sanctioned through a trust known as a fideicomiso.

Yes, a person of any nationality can legally buy real estate in Mexico. However, to purchase property within the restricted zone, (50 kilometers or 31 miles from the shoreline) foreigners are required to purchase property through a bank trust (fideicomiso) or by establishing a Mexican corporation.

How do you get Mexican citizenship?

Mexican citizenship through residency

If you've been a legal resident of Mexico at least five years you are entitled to apply for naturalization-based citizenship. This is a very common route for US citizens to become a Mexican dual national.

One great advantage to home ownership in Mexico is that renovation and upkeep cost far less due to the much lower cost of labor. Property taxes are low in Mexico. Electricity in coastal areas is charged based on consumption and subsidized during the hottest summer months in coastal areas.

According to US News, AARP, and many other publications, the average social security check is USD 1,543 in 2021. You might never be able to retire on that in the U.S. However, considering Mexico's lower cost of living, retiring in Mexico is absolutely doable!

Here's a summary of the taxation of expats in Mexico. Many of our clients in Mexico are audited each and every year by the SAT (known as Hacienda). This agency is very happy to deny any and all expenses of a business that are not documented or are paid to a tax haven country.

As of this time, Mexico has not entered into a Totalization Agreement with the United States thus there is no opportunity to avoid double taxation of social security income for US expat tax in Mexico.

Causes of poverty. The reasons for poverty in Mexico are complex and widely extensive. There is an agreement that a combination of uneven distribution of wealth and resources sponsored by economic and political agendas to favor the rich and powerful is a major contributor to the millions left behind.

Can a US citizen buy a car in Mexico? A US citizen can buy a car in Mexico as long as they have a permanent address in the country and a Visa.

Article 27 of the Mexican Constitution grants the Mexican Nation ownership of the land and water within the territory and provides that the Nation shall oversee the transfer of ownership rights to individuals, by creating private property.

The cost to build a house in Mexico varies by soil type and by municipality. Here in Chapala and Ajijic, you are looking at about US $385 per square meter ($36 per square foot) for a brick construction with granite countertops, real wood cabinetry, marble tiles in the bathroom, and a covered garage.

Can a dual citizen buy property in Mexico?

Yes, a person of any nationality can legally buy real estate in Mexico. However, to purchase property within the restricted zone, (50 kilometers or 31 miles from the shoreline) foreigners are required to purchase property through a bank trust (fideicomiso) or by establishing a Mexican corporation.

Do US Citizens Have Access to Mortgage Loans in Mexico? In Mexico, both financing and credit options are extended to foreigners. You can access these options by purchasing through a bank. A mortgage loan will give you fixed monthly payments.

Average Cost to Retire in Mexico

A retired couple can expect to retire comfortably in Mexico with an average income of about $2,500 a month, or $30,000 a year, according to InternationalLiving.com. These figures include the cost of a house, a maid service, utilities, groceries, entertainment, health insurance and more.

The most popular and safest places to live in Mexico include Cancun and Tulum on the Caribbean coast, Cabo San Lucas and Mazatlán on the Pacific side, and Lake Chapala and San Miguel de Allende in the interior. We don't recommend border towns such as Tijuana or Laredo as retirement destinations.