In the last years, Mexico has become a popular destination not only for the 1,598,000 Canadian tourists that visited, but also for the more than 125,000 Canadians that have decided to stay for longer periods of time.
Every year, there are more and more snowbirds; retired or semi-retired citizens that decided to live in Mexico for part of the year, mainly the cold months of winter. It is hard to define how many people reside at least part of the year in Mexico, but Mexican authorities estimate it might be around 50,000 people per year.
Advantages to Retiring in Mexico:
Some of the reasons why Mexico is becoming such a popular destination are the low cost of living, health care and real estate, the rich culture and history, and the beautiful colonial and beach towns. A retired person can live decently and obtain a retiree visa through proof of a $2,000 USD monthly income and investments, or half that amount if you own a property in Mexico.
Retirement-friendly Immigration Laws:
Mexico has a very retirement friendly immigration law that allows international retirees to establish a second home in the country. Canadians can get a tourist visa and stay up to 180 days. Lengthening this time is very easy, all you need to do is leave the country for a few days and re-enter Mexico with a renewed tourist visa.
If you plan on staying a longer period of time, there are different visas available, depending on the activity you will be doing in Mexico. It differs if you are retired, or if you are considering getting a job in Mexico. Recently, the immigration laws changed and with them the names of the visas; but in essence they are very similar to the previous FMT, FM2 and FM3 visas.
Check our visa chart:
OLD VISAS | NEW VISAS |
FMTFMT is the tourist visa that is obtained when first entering into Mexico. These can continually be renewed by simply leaving Mexico within the allotted six month period, and then reentering. | VISA DE VISITANTE SIN PERMISO PARA REALIZAR ACTIVIDADES REMUNERADASVISITOR VISA / Not allowed to get wages
This visa allows you to visit Mexico for activities that do not involve receiving remuneration, such as: tourism, transit through Mexico, businesses (like attending meetings, supervisory visits, training or consultancies in Mexico), activities related to the exercise of ministers worship, technical jobs in companies (without pay in Mexico), philanthropic activities, sport activities, medical treatments, attending fairs and / or conferences as well as courses or seminars involving no more than 180 days. |
FM3FM3 is a document for a person who wants to live at least part time in Mexico, but does not necessarily intend to make it their permanent home. To be granted an FM-3 status, you must prove you have sufficient resources to be financially independent, or meet certain requirements to be able to work or own a business in Mexico. FM-3 “Rentista” status is available to anyone with a monthly income (from investments, social security or other retirement) of more than $1,000 USD plus an additional $500 USD for each dependent. If one owns property in Mexico, the amount of income required is reduced by nearly one-half. | VISA DE RESIDENCIA TEMPORALTEMPORARY RESIDENCE VISAApplicable to foreign nationals who intend to stay in Mexico for longer than 180 days but less than four years.This type of visa can be obtained directly from any Mexican consulate and it allows you to work in Mexico, as long as the wage received is paid abroad. In the case of having a job in Mexico and receive wages in Mexico, the company or individual must directly contact the National Migration Institute and ask for authorization to issue a visa abroad.
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FM2FM2 is a document for a person who intends to permanently reside in Mexico, with qualifications only slightly more stringent than FM-3 status. After five years of successfully meeting the requirements of FM-2, one may apply for “Inmigrado” status, which allows you to enjoy most of the rights and privileges of a Mexican citizen, the primary exception being the right to vote. Inmigrado status does not require you give up your native citizenship, but holders may freely work and remain in Mexico without annual renewals of the visas. | VISA DE RESIDENTE PERMANENTEPERMANENT RESIDENT VISAIf you intend to stay in Mexico for more than four years, it is necessary to apply for a permanent resident visa.The residence card proving their legal stay and designed to remain in national territory must be processed within 30 calendar days from entry into the country.
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Cut Tax Expenses:
A retiree living in Canada has to pay about 15% of their income in taxes, plus property taxes.
Most Canadians moving to Mexico will save on taxes as Canada charges nothing to retirees living in Mexico. They won’t require a tax collection. Property taxes in Mexico are very low – only about .05% of the value of the property. This is based in the “Valor Catastralâ€, an estimated value made by the government, much lower than the market price.
If you own a beautiful $300,000 USD property on the beach, the property tax would be a little less than $200 USD ($2,300 mxn) per year. The government has special deals for paying early and discounts for retired people, so the taxes might be even less than that.
Mexico is an increasingly popular destination for tourists and retirees alike. There is plenty of information on the internet about the best areas to retire, the best health plans available, and anything else you need to know. Keep posted for further articles regarding retiring, living and working in Mexico.
Now if you have any question about how to move to Mexico or any of the TOP MEXICO REAL ESTATE properties, please feel free to contact any of our TOP BUYER’S REPRESENTATIVES and we will be glad to help you find your very own piece of paradise.
And remember, here at TOP MEXICO REAL ESTATE…
We make it happen!
We would like to thank Quetzal for sponsoring this blog. Quetzal is a new development in Bahia Principe. To learn more about Quetzal, please click here.