Moving to Mexico: The American's Guide (2026)
Mexico is home to more Americans than any other country — and it's the cheapest of the major destinations to live in. This hub gathers our source-checked 2026 guides on Mexican residency, cost of living and taxes for US citizens.
Can Americans get Mexican residency?
Yes. Temporary residency needs about $4,400/month of income or ~$74,000 in savings; permanent residency needs about $7,430/month or ~$299,000. You apply at a Mexican consulate in the US, then complete the INM "canje" within 30 days of arrival.
What does it cost, and how are you taxed?
A single person lives well on about $1,890/month in Mexico City or $1,375 in Mérida. Residents are taxed on worldwide income, but the US–Mexico treaty and the foreign tax credit mean most US retirees owe little Mexican tax on US retirement income; freelancers can use the low-rate RESICO regime.
- Cheapest cities: Mérida (~$1,375/mo) and smaller towns undercut Mexico City.
- Taxes: the US–Mexico treaty and foreign tax credit shield most US retirement income.
- Freelancers: the RESICO regime offers very low income-tax rates.
Which Mexican residency fits you?
Residency is granted on income or savings — the two routes side by side (2026):
| Type | Monthly income | Savings alternative |
|---|---|---|
| Temporary (1–4 yrs) | ≈ $4,400 | ≈ $74,000 |
| Permanent | ≈ $7,430 | ≈ $299,000 |
Check the US State Department's Mexico country information for entry rules and travel advisories before you go.
Our Mexico guides
Health cover for your first months in Mexico
Residency by income doesn't mandate insurance, but you won't have IMSS on day one — a nomad/expat travel-medical policy bridges the gap until you enroll locally.
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