Mexico is the most popular destination for Americans moving abroad, and the reasons are hard to argue with. It shares a border with the US, costs a fraction of the price, and has established expat communities in cities and towns across the country. Mexico City, Oaxaca, San Miguel de Allende, Guadalajara, Puerto Vallarta, Tulum, and Mérida each draw a different type of American expat. All offer a quality of life that's difficult to match at the price.

The move itself is one of the more accessible Americans can make. Flights home take a few hours, the time zone gap is small, and building a life on both sides of the border is genuinely manageable. Getting residency, taxes, and banking sorted before you go means you can focus on settling in rather than catching up once you're there.

Which visa do you need

US citizens can enter Mexico as tourists for up to 180 days without a visa. For longer stays, or for anyone wanting to work or put down more permanent roots, the two main residency routes are:

Temporary Resident Visa (Residente Temporal): The standard route for Americans planning to live in Mexico for more than 180 days. Requirements include proof of sufficient income or savings, typically around $2,500 to $3,500/month in provable income, or roughly $42,000 to $60,000 in savings for a single applicant (2025 INM figures; thresholds are tied to Mexico's minimum wage and updated periodically). Apply at your nearest Mexican consulate in the US before you leave. The initial permit is valid for one year and renewable for up to three additional years. After four years of temporary residency, you can apply for permanent residency.

Permanent Resident Visa (Residente Permanente): Available to retirees and people with higher income or asset levels, or automatically after four years of temporary residency. The income threshold for direct permanent residency is roughly $4,500 to $6,000/month (2025 INM figures). Permanent residents have no renewal requirements and can work in Mexico without additional permits.

The RFC and CURP: get these sorted early

Two IDs matter most for expats in Mexico.

The CURP (Clave Única de Registro de Población) is a population registry number issued to all residents of Mexico, including foreigners. Temporary and permanent residents receive it automatically as part of the INM residency process. You'll need it for healthcare, some government services, and as a prerequisite for the RFC.

The RFC (Registro Federal de Contribuyentes) is Mexico's federal taxpayer identification number, assigned by the SAT (Servicio de Administración Tributaria). You need it to open a Mexican bank account, sign formal contracts, issue invoices, and file taxes in Mexico. Residents can register for an RFC at any SAT office after receiving their CURP. The process takes a single appointment and is free.

Both IDs are straightforward to obtain once you have your residency card in hand. The bottleneck is the residency process itself, not the IDs.

What things cost

Mexico's cost of living varies more by city than almost any other country Americans commonly move to.

Mexico City's most popular expat neighborhoods, including Roma Norte, Condesa, and Polanco, have risen sharply in price over the past few years. A one-bedroom in those areas runs $800 to $1,800/month. Further out in the city, the same space costs considerably less. In Oaxaca and Mérida, one-bedrooms in central areas run $500 to $900. In San Miguel de Allende, expat demand has pushed prices up; expect $800 to $1,500 for a furnished place near the center. Puerto Vallarta and Tulum sit at the higher end of the Mexican market given sustained tourist and expat demand.

Day-to-day spending is considerably cheaper than the US across the board. A full meal at a local restaurant costs $3 to $8 USD. Groceries run roughly 40 to 60% cheaper than equivalent US prices. Public transport in Mexico City costs a few pesos per journey. Utilities for a standard apartment typically come in at $40 to $80/month.

A single person can live comfortably in a mid-sized Mexican city on $1,200 to $1,800/month, including rent. In Mexico City's expat neighborhoods, budget $2,000 to $2,800.

Healthcare

Private healthcare in Mexico is significantly cheaper than in the US and, in major cities, of genuinely high quality. A GP visit at a private clinic typically costs $30 to $60 USD. Specialist consultations run $60 to $120. Private health insurance costs roughly $100 to $250/month for comprehensive coverage, depending on age and plan.

The public system, IMSS (Instituto Mexicano del Seguro Social), is available to temporary and permanent residents who enroll voluntarily. Annual contributions are income-based and can be low for foreign residents. IMSS covers GP visits, hospital care, and most treatments, though wait times can be long and quality varies significantly by region.

Mexico is also one of the most active medical tourism destinations in the world. Dental work, elective surgery, and prescription medications are all considerably cheaper than in the US.

Your US health insurance won't cover routine care in Mexico. Sort private cover before you arrive or immediately after.

Taxes

US citizens are taxed on worldwide income regardless of where they live. Moving to Mexico doesn't change your obligation to file a US return each year. If your foreign bank accounts hold more than $10,000 at any point during the year, you'll need to file an FBAR (FinCEN Form 114). Depending on your asset levels, FATCA Form 8938 may apply too.

The Foreign Earned Income Exclusion lets eligible taxpayers exclude a portion of foreign-earned income from US tax. The Foreign Tax Credit lets you offset US tax liability against taxes already paid in Mexico. The US and Mexico have a bilateral tax treaty that prevents double taxation in most cases. Staying on top of the filings is non-negotiable.

On the Mexican side: spend more than 183 days in Mexico in a calendar year, or establish your primary home there, and you're a Mexican tax resident. Mexican income tax (ISR) is progressive, with rates from 1.92% on the lowest bracket up to 35% on income above approximately 300,000 MXN/year. The interaction between US and Mexican obligations is worth handling with a professional who knows both systems.

A contador familiar with US expat filing handles both obligations. Fees are considerably more affordable than equivalent US rates.

Banking

Opening a Mexican bank account typically requires a valid RFC, proof of address, and your residency card. Traditional Mexican banks, including BBVA México, Banorte, and HSBC México, are accessible to temporary and permanent residents but require in-branch visits and can involve delays while your RFC registration comes through.

Most US expats keep their US account active and rely on wire transfers and card spending for day-to-day life. The main cost of this approach is foreign exchange and ATM fees, which add up fast when most of your daily spending is in pesos.

bunq doesn't currently offer local Mexican bank accounts. But if you're moving to Europe or are already banking with bunq, your account travels with you. bunq is a fully regulated European bank built for people who live internationally. If Mexico is one stop in a bigger move abroad, bunq has you set up from day one.

Finding a place to live

Mexico's rental market is informal by European standards and varies a lot by city. In Mexico City, the main portals are Lamudi, Inmuebles24, and Vivanuncios. In other cities and towns with large expat communities, furnished rentals frequently circulate through local Facebook groups before reaching any portal.

Most landlords ask for one month's rent plus one to two months as a deposit, and in some cases an aval (a Mexican guarantor). Foreigners without Mexican credit history sometimes pay more upfront or sign short-term furnished leases initially. Taking a furnished short-term rental for the first month or two gives you time to learn the city, complete your residency registration, and find a longer-term place on better terms.

Driving

A US driving license is valid in Mexico and generally accepted for the duration of your stay. Mexican law technically requires a Mexican license after establishing residency, but enforcement for foreign residents is inconsistent.

One important difference from driving in the US: your US vehicle insurance does not cover you in Mexico. If you're driving across the border or keeping a car in Mexico, you need Mexican car insurance. It's straightforward to purchase from Mexican insurers or from US-based brokers who specialize in Mexican coverage. Short-term policies work for border crossings; annual policies make more sense for residents.

If you're living in Mexico City, a car is largely unnecessary for daily life. The Metro and Metrobús network is extensive, and ride-hailing apps work throughout the city. Outside the capital, a car is considerably more practical.

Language

Spanish is essential for daily life in most of Mexico, far more so than English is in most European expat destinations. In Mexico City's Roma, Condesa, and Polanco neighborhoods, in San Miguel de Allende, Puerto Vallarta, and Tulum, English is widely spoken in expat and tourist circles. Everywhere else, Spanish is necessary.

Most expats who stay long-term pick up functional Spanish relatively quickly through daily exposure. Formal language classes are widely available and inexpensive. Arriving with at least a basic foundation makes the first few months significantly easier.

Safety

Mexico's safety situation varies enormously by region and is more relevant to daily life decisions here than in most other countries Americans move to. Mexico City, Oaxaca, Mérida, San Miguel de Allende, and Puerto Vallarta are generally considered safe for expats, and hundreds of thousands of Americans live there without incident. Other regions carry significantly higher risk.

The US State Department publishes travel advisories by Mexican state. Reading them before choosing where to live is worth doing. Local expat community groups are also a practical source of current, on-the-ground information for specific cities and neighborhoods.

Getting started

Moving to Mexico from the US is a big step, but managing your money across borders doesn't have to be. With bunq, you can open your account from your phone, send and receive international transfers with transparent fees, and use ZeroFX to avoid markups when spending in currencies outside the Eurozone. Whether you're moving for the cost of living, the culture, or a change of pace, bunq helps you keep your finances organized on both sides of the border.

Ready to make the move? Open bunq and start banking smarter from day one.

This article is for general information only and does not constitute legal, tax, or financial advice. Requirements and thresholds change. Consult a qualified adviser for your specific situation.