Mexico
Capital Mexico City
What it actually costs to live here
Directional monthly estimates by city and lifestyle (USD). Not gospel — your numbers will vary.
| Category | Mexico City | Mérida | San Miguel de Allende | vs Miami |
|---|---|---|---|---|
| Rent (1BR) | $650 | $450 | $550 | $2,200 |
| Groceries | $250 | $200 | $220 | $450 |
| Dining | $200 | $150 | $180 | $500 |
| Transport | $60 | $80 | $50 | $350 |
| Health insurance | $100 | $80 | $90 | $450 |
| Total | $1,260 | $960 | $1,090 | $3,950 |
What the indicators say
Normalized cost-of-living, tax burden, property rights, and economic freedom (0–100, higher is better).
- Crypto Currency Status
- Legal to use/Undefined
- Currency
- Mexican Peso (MXN)
- Economy
- Manufacturing, services, agriculture
What you owe, and to whom
US tax-treaty status, residency triggers, and state-exit considerations.
Mexico has a tax treaty with the US, in force since 1994. Tax residency triggers on 183 days of physical presence; worldwide income applies only if you become tax resident. Plan B holders with no presence owe Mexico nothing — but US filing obligations (including FBAR/FATCA) always remain.
The Plan B tax advantage
FavorableMaintain residency without 183 days of presence and you owe Mexico nothing. Permanent residents with no presence = zero Mexican tax. US obligations remain in full.
Dual taxation treaty
ManageableCovers income, capital gains, and social security totalization. Credit Mexican taxes against US liability. Doesn't eliminate filing — you file in both countries.
State exit considerations
ComplexLeaving CA, NY, or NJ? Mexican residency supports severing state tax domicile. But states fight back. Get a cross-border CPA.
RFC & CURP
SituationalActually living in Mexico? You need an RFC (tax ID) and CURP (identity). Plan B holders not residing don't need either.
Americans should know
- You file US taxes regardless — Mexican residency doesn't change that
- Mexican bank accounts over $10K trigger FBAR reporting
- The treaty doesn't cover state taxes — your state may still claim you
- Permanent residents who work in Mexico face rates up to 35%
Several immigration fees and reference thresholds are expressed in UMA (Unidad de Medida y Actualización), which is updated once a year and published in the Diario Oficial de la Federación. Amounts denominated in UMA move when the UMA is revised. Verify the current fee schedule before budgeting an application.
Mexico's proof-of-income and savings thresholds for temporary and permanent residency are set as multiples of the national minimum wage, which is revised each year (effective in early January). When the base figure rises, the amounts an applicant must show at the consulate rise with it. Confirm the current consular figures before applying — the multiples, not a fixed peso amount, are what the rule fixes.
Could Mexico be your next move?
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