Retire in Mexico
Your complete guide to financial independence in Mexico for 2026
Low cost of living and very easy residency for those with savings.
💰
45%
Cost of Living
vs NYC baseline
🏠
$850
Average Rent
per month
📊
10.0%
Capital Gains Tax
on investments
🛡️
5/10
Safety Score
security rating
How Much Do You Need to Retire in Mexico?
Lean FIRE
$339,429
For $900/mo lifestyle
Moderate
$509,143
For $1,350/mo lifestyle
Comfortable
$678,857
For $1,800/mo lifestyle
Luxury
$848,571
For $2,250/mo lifestyle
Note: These calculations use the 3.5% safe withdrawal rate and include Mexico's 10.0% capital gains tax.
Visa & Residency Options
Available Visas
Temporary Resident Visa (Solvency based)
Cost by Location Type
Urban
$1,105
30% more
Suburban
$850
baseline
Rural
$510
40% less
Cheaper Alternatives to Mexico
Compare with More Expensive Countries
Frequently Asked Questions about Mexico
Geo-arbitrage is the strategy of earning a strong currency (like USD or EUR) while living in a country with a lower cost of living. In 2026, this is the fastest way to achieve FIRE, allowing you to reduce expenses by 40-60% without lowering your quality of life.
The Freedom Clock calculates your exact 'Freedom Date' based on your savings, income, and the real-time cost of living in your target country. It accounts for 2026 inflation rates and tax laws to give you a precise timeline for early retirement.
For 2026, Temporary Residency requires proof of ~$3,500/month income or ~$60,000 in savings.
Expat hubs like Merida, San Miguel de Allende, and Puerto Vallarta are considered very safe.
If you don't earn Mexican income, you generally only pay tax in your home country (check the US-Mexico treaty).
Foreigners use a 'Fideicomiso' (bank trust) to hold property within 50km of the coast.
Major cities have JCI-accredited hospitals that offer care comparable to the US for a fraction of the cost.
Fiber optic (Totalplay/Izzi) is common in cities with speeds up to 1Gbps.
Yes, your US or Canadian license is valid for driving in Mexico.
A single person can live very well on $1,800/month in most inland cities.
No, everyone (locals and expats) uses 'garrafones' (20L purified water jugs).
The FMM (tourist permit) is granted for up to 180 days, though the exact duration is at the officer's discretion.
Calculate Your Personal Freedom Date
Use our interactive calculator to see exactly when you can retire in Mexico based on your current savings and income.
Try the Freedom Calculator →