Retiring in Mexico: the pros and cons

If you’re seeking an affordable option for your retirement and want to move outside Europe why not consider Mexico? Not only does life in Mexico offer a unique experience and wonderful climate, but the cost of living is cheaper than in the UK.

Below are examples of prices in Mexico in August 2024 compared to the UK converted to £:

As well as enjoying a higher standard of living in Mexico your pension will go a lot further than it will in the UK.

You’ll get more for your money too if you’re planning to buy a property and retire in Mexico. For example, the price per square metre in Augustr 2024 to buy an apartment in a town outside the city in the UK is £3,813 compared to £926 in Mexico. This means that buying property in Mexico is 75% cheaper.

If you’ve spent your working life dreaming of living next to a sandy beach with the ocean lapping at the shore you could turn that dream into reality by retiring to Mexico.

Rental prices are also cheaper in Mexico which means if you don´t want to buy you could still afford to rent a nice property. In August 2024, property prices in Mexico are 66% cheaper than in the UK, with the average rent in Mexico for an 85m2 costing £517 compared to £2,071 in the UK.

If you live in Mexico you only pay tax on income sourced from Mexico. Plus you won’t be working, as you’ve retired. You may consider renting out your property for part of the year. The amount you are taxed will depend on your income, at a progressive rate ranging from 1.92-35%.

To reduce the tax rate you can deduct expenses such as repairs, cleaning or furniture.
Whilst you may not wish to think about it, it’s worth knowing that there is no inheritance tax in Mexico. So whoever you leave your property to will receive its full value.

You don’t have to be a sun worshipper to enjoy the climate when you retire in Mexico. Mexico enjoys a warm and sunny climate year-round, making it an ideal destination if you want to escape the British weather.

The average temperature year-round is a pleasant 20.6°C, with the north being dryer and hotter than the coastal areas.

The Mexican lifestyle is generally relaxed and laid-back, offering a welcome change of pace for many retirees. If you’ve worked hard all your life and want to chill with new friends from all over the world, Mexico is the place to do it.

One day you could be on the beach, the next walking around Lake Chapala or taking a trip to see the Mayan ruins in Tulum. It’s also easy to reach other locations from Mexico such as the US or the Caribbean.

The Mexican people are friendly and will be delighted if you practise your Spanish with them. There are plenty of apps you can download to help you learn, or you could attend classes and meet other people who have chosen retirement in Mexico.

Mexican retirement means the chance to sample and linger over the mouthwatering food. With it being so cheap to dine out you can eat tacos or enchiladas every night if you wish, washed down with a few bottles of Mexican beer**. There are also plenty of fresh ingredients to cook with – avocados, limes, chilli peppers, coriander, tomatoes – being retired in Mexico will give you the time to improve your cooking skills.

Dealing with Mexican bureaucracy can be time-consuming and frustrating. Obtaining visas and residency permits, and communicating with government offices is challenging, especially if you don´t speak Spanish. The secret is to be patient and always allow more time than necessary for any appointment or process.

You will need private healthcare insurance when you retire in Mexico as you won´t be entitled to care under the Mexican Social Security system. The standards may vary, according to where you live, and might be different to what you’re used to in the UK under the NHS. Always take an interpreter with you when visiting a doctor or hospital to ensure nothing is ‘lost in translation’.

Mexico has a reputation for being unsafe and home to cartels and thieves. However, as in any country, being vigilant and avoiding certain areas should ensure you stay safe when retiring to Mexico.

While improving, the infrastructure in some areas of Mexico may not meet the standards of the UK. This can affect things such as reliable internet, transport and public services.

While English is widely spoken in tourist areas, learning Spanish will significantly enhance your daily life. Not only will this help you in many situations, but it will also give you a sense of achievement. Mexican people will welcome you trying to speak their language, which will widen your network of acquaintances.

As with retiring abroad to any country, there will always be pros and cons. The trick is to weigh up both and decide if the positives outweigh the negatives, which they often do. You can overcome most cons by understanding that Mexico is a completely different country from the UK with a fascinating culture.
You don´t have to be an adventurer to retire in Mexico. An open mind and a willingness to embrace a new lifestyle are enough to ensure you’re happy in your new home.

Allow iad Overseas to help you find your dream retirement property in Mexico. Our team of property experts has access to numerous properties for sale in Mexico and we can guide you through the purchasing process.

** Alcohol abuse is dangerous for your health. Drink in moderation.