If you’re an American thinking about moving to Mexico, you likely have many questions about the big move. What are the investment challenges? What would happen to your retirement funds? How would taxation change? Can you buy property? What are the most popular destinations for American expats? Do you hope to find a local immigrant community that understood your worries about moving to a new place?
At Remitly, we understand your concerns. We prepared this guide to help you settle in and find your community to make a home away from home.
Overview of current statistics
Mexico is a popular destination for American expats because of its accessibility and affordability, among other advantages. This means that Americans make up the largest proportion of expatriates in Mexico.
Latest census data and estimates
In a 2022 report, the US government states that approximately 1.6 million American citizens live in Mexico.
However, Mexico’s 2020 census report suggested that the number of American expatriates was 797,000, making up 66% of the total immigrant community.
An additional 25 million American citizens visit Mexico as tourists annually. This is probably how some people get a feel for the country before they move permanently.
Comparison with previous years
Mexico conducts a census every ten years. The last three censuses were conducted in 2000, 2010, and 2020. The table below shows the growth in American expats in Mexico as reported in the official census data.
| Census year | American expats in Mexico |
| 2000 | 342,591 |
| 2010 | 738,103 |
| 2020 | 797,000 |
Source: BBVA Research
Trends and patterns in US-Mexico migration
If we take a look at the historical and current migration trends, it’s clear that the American immigrant community is growing, and it’s likely we’ll continue to see this growth in the coming years.
How do these numbers compare to Mexican migration to the US?
Comparison of Mexican migration to the US
Mexicans and Americans have one thing in common: they make up the largest immigrant communities in both countries.
To compare, let’s look at the Mexican immigrant population in the US in the past three censuses. Like Mexico, America conducts a census every 10 years.
| Census year | Mexican expats in the United States |
| 2000 | 9.2 million |
| 2010 | 11.7 million |
| 2020 | 35.9 million |
Source: Census.gov (2020), (2010), (2000)
Demographic changes and their impact
So, while both immigrant populations are growing, the Mexican immigrant community in America is growing faster than the American expat community in Mexico.
The Mexican community has historically moved to America for several reasons:
- Accessing better job opportunities and pay.
- Pursuing higher education.
- Boosting family ties, to join and connect with family members already living in the US.
Mexicans have boosted the American labor market, economic activities, and remittance revenue. They have also improved America’s multicultural landscape, enriching food, music, language, and traditions.
Reasons Americans are moving to Mexico
Although the US-Mexico migration is slower, experts expect these numbers to grow in the coming years for various reasons, grouped into three main categories.
Economic and lifestyle factors
Mexico can offer its citizens a better lifestyle due to its lower cost of living compared to many American states. A dollar goes a long way here.
Living in Mexico means that you can now access better-quality healthcare, housing options, food, and entertainment and still have enough money to send to family members in other parts of the world.
The lower cost of living is particularly attractive to retirees who are looking for a slower pace of life.
An expat community is the cherry on top, and means you get the social support you need to flourish in a new country.
Remote work possibilities
Mexico also boasts great work-life balance. Moving there is likely to give you more time to spend on the things that matter, like spending time with family and friends.
You can also work from home. The surge in remote work opportunities allows Americans to move to areas or countries with lower expenses while accessing remote jobs tailored for American citizens.
You can also work remotely as a contractor or employee for a Mexican company—just make sure your immigration status allows you to work.
Cultural and environmental attractions
Mexico is a cultural and environmental haven. The country’s vast landscape is a beautiful blend of deserts, lush forests, ocean, mountains, coral reefs, natural sinkholes, a canyon deeper than the Grand Canyon, majestic cliffs, and butterfly reserves.
The cultural influence is also mesmerizing. There’s the cultural richness of the Maya and Aztec civilizations, spectacular festivals like Dia De Los Muertos celebrating life and death, flavorful Mexican dishes, and holiday traditions like Las Posadas and Kings Day.
And the romantic Spanish language? Consider learning it because it will be helpful when it comes to navigating daily life in Mexico.
Popular Mexican destinations for US expats
American immigrants are drawn to particular Mexican cities for their unique appeal.
Mexico City
Mexico City is the country’s capital and largest city. It’s also an important global financial and cultural center, making it a top choice for American expatriates.
I’d argue that Mexico City is the next best thing after New York. It offers an equally vibrant multicultural setting, world-class amenities, a great urban experience, bustling work and investment opportunities, and a diverse food culture, but with more affordable living options.
Mexico City is also a short flight to the US of between five and six hours, making it easy to visit home if you feel homesick.
Other popular cities and regions
Americans also consider settling in:
- Puerto Vallarta is a coastal resort town famous for its beaches, lively nightlife, and beautiful restaurants and bars.
- Riviera Maya is a resort district on the Caribbean coast that includes Cancun, Tulum, and Playa del Carmen, a popular location for retirees and digital nomads. You can rest, work, and play as you explore the beautiful beaches and laid-back entertainment joints.
- San Miguel de Allende attracts history, architecture, and art lovers with its Spanish architecture and cultural festivals.
- Lake Chapala area is the location of choice if you love great sunny weather, affordable lifestyle and healthcare, and relaxing lakeside shores.
- Huatulco’s commitment to environmental sustainability makes it a haven for eco-conscious people. It also offers a relaxed lifestyle, with a small-town feel, providing an opportunity for close-knit immigrant communities.
- Monterrey is an economic hub for steel industry workers. It is better suited for young, working individuals because of the faster pace of life and large population.
Emerging destinations for American expatriates in Mexico
American immigrants increasingly seek affordable Mexican destinations, smaller towns, and multicultural experiences.
This means that a few cities are emerging as new favorites:
- Oaxaca
- Guadalajara
- Ensenada
- Mérida
The role of the Mexican government and regulations
Mexico warmly welcomes American immigrants, but you must be of legal immigration status The government provides three visa options for foreigners:
- A visitor visa allows stays in Mexico for up to 180 days, for tourism, short-term studies, or business meetings. However, US citizens don’t require a visa to stay in Mexico for less than 180 days.
- A temporary resident visa lets you stay in Mexico for up to four years.
- You can stay in Mexico indefinitely if you hold a permanent resident visa.
Residency and visa requirements for American expats in Mexico
The Mexican government requires you to apply for and obtain a Temporary Resident Visa to live and work in Mexico for up to four years.
To get a work permit:
- Submit your temporary residency work visa application with a request to work to Mexico’s National Immigration Institute (INM).
- If your application is successful, request and book a consular interview at the Mexican Embassy or the nearest Mexican Consulate in the US.
- After a successful interview, you’ll receive a visa. The length of stay depends on your contract or employer’s request.
- Remember to exchange your work visa with a work permit within your first 30 days of living in Mexico.
The Temporary Resident Visa also allows you to live in Mexico, without working. However, you must show proof of financial capability to support yourself, through monthly income, investment portfolios, or bank statements.
The general rule is that you need a minimum of $73,235.29 USD in a bank account or $4,394.11 USD monthly pension for temporary residency.
The Mexican government also offers American citizens pathways to permanent residency, allowing you to stay in Mexico indefinitely.
- You can apply for permanent residency if you’ve had a Temporary Residence Visa for four years. You’re eligible for permanent residency after two years if you have a spouse visa.
- Anyone with close family ties一spouse, child, parent, or sibling一to a Mexican citizen can apply for permanent residency.
- Retirees must meet financial requirements: a minimum $292,941.17 USD in a bank account or a monthly pension of $$7,323.52 USD after taxes.
Influence of Mexican policies on US migration
Mexican migration policies are favorable to Americans, and American citizens don’t need to obtain a visa to visit Mexico. So, you can enter the country and scout cities you may want to live in before applying for your temporary resident visa.
However, you must fill out a Forma Migratoria Múltiple (FMM), which allows you to stay in the country for up to 180 days. Apply for the document online or at the border.
You are also required to present a valid US passport.
This relaxed attitude to immigration makes it easy for Americans to settle in Mexico.
The future of American migration to Mexico
The future of American migration to Mexico is promising. As more Americans want a shift in lifestyle, the Mexican and US governments are working closely to support migration.
Potential challenges and opportunities of the American migration to Mexico
However, there are a number of challenges and opportunities for the two governments.
Challenges
- Possible inflation. Migration results in competition for jobs, housing, and other amenities, which may increase prices.
- Cultural and language differences. Spanish is the most spoken language in Mexico, followed by Nahuatl, and Yucatec Maya. English is mainly spoken in tourist areas and border towns.
- Probable negative social and economic effects when US migrants move back home, closing businesses that may have supported the local community
Opportunities
- American immigrants positively contribute to the Mexican economy by boosting entrepreneurship, creating jobs, and improving the property market
- Cultural diversity enriches Mexico’s art, food, music, language, and social scene
- Improved labor force by bringing in skilled employees for the Mexican labor market
- Improved tourism and investment, promoting Mexico’s economy
How this impacts US-Mexico relations
The US and Mexico have a history of partnership and business, which defines the relationship between these neighbors.
Immigration of American citizens into Mexico promotes stronger ties, with both countries cooperating to support their citizens’ welfare in either country.
FAQ
How many US citizens are living in Mexico?
The US government reports that approximately 1.6 million American citizens live in Mexico. However, Mexico’s 2020 census states that 797,000 US citizens live in Mexico.
Why are so many Americans moving to Mexico?
Americans are attracted to Mexico’s slower lifestyle, cheaper cost of living, great weather, remote work possibilities, and mesmerizing culture.
What is the population trend of Mexico?
Mexico’s population is increasing. More Mexicans are moving to the United States, while more American citizens are moving to retire, live, and work in Mexico.
What is the trend for Mexican migration to the United States?
More Mexicans are moving into the United States than Americans are moving into Mexico. There are currently over 35 million Mexican expats in the United States.
What percentage of the US used to be Mexico?
55% of the US, including present-day states like California, Nevada, Utah, New Mexico, most of Arizona and Colorado, and parts of Oklahoma, Kansas, and Wyoming used to be in Mexico, before the Mexican cession of 1848.
How many Mexican-Americans are there?
Mexican-Americans are either US citizens born to Mexican parents, or Mexicans who migrated into the US and gained citizenship. There are 38 million Mexican-Americans, comprising 11% of the US population.
What is the population of Mexico in the latest census?
126 million people are living in Mexico, according to its latest census, which was conducted in 2020.