Many vacationers every year flock to Mexico, and plenty wish they could stay, but is that legal? As a US citizen, the travel policy is incredibly generous. However, permanent moves are more complicated. Fortunately, there are several ways to spend most or all of your time in Mexico. Armed with the right information and qualifications, you can look forward to a life in Mexico. I’ll explain four legal ways to live in Mexico, and how that relates to work, Social Security, and Taxes.
Can you be a US citizen and live in Mexico? You can be a US citizen and Live in Mexico. There are four different ways to live in Mexico, either part or full-time, while remaining a citizen here. You can even choose to hold dual citizenship if you prefer.
Three Ways to Live in Mexico as a US Citizen
Living in Mexico as a US citizen can be as easy as getting a passport or more complicated such as choosing to hold dual citizenship. Below I’ll outline each method so you can choose which is the best option for you. Some of these methods are faster than others and may require more steps.
Snowbird or Vacation
Since the visitors’ policy is so liberal and foreign citizens have the right to own land in Mexico, you can choose to live part of the year in Mexico without additional paperwork. Once you have a passport and any necessary insurance or travel papers, you can stay up to one hundred and eighty days in Mexico
. That is six months.
If you want to spend time in Mexico, it’s easy to pack up and go for half the year. Numerous snowbirds and gap-year students do exactly that since it’s so simple. Moreover, you can buy real estate in Mexico without becoming a citizen.
Additionally, you can apply for permission to work even within such a short stay. You do not need to be in Mexico for more than half a year to do a paid or volunteer project. However, you will have to prove that you’ve been invited to work by a Mexican company or show that you are a part owner in a business.
Although you have to exit the country and re-enter after your hundred and eighty days expires, you can often do this multiple times. Unfortunately, border agents have the right to refuse entry to anyone. Thus this is the least reliable method. Still, many people each year have no trouble making these extended or repeated visits.
Temporary Residency
Temporary residency is granted to those who wish to stay more than a hundred and eighty days, but less than four years. An excellent example of this would be when an archaeologist. These highly-skilled, specialized workers travel to work on a historical site or a student who has been accepted to university. Fortunately, you don’t have to have exceptional circumstances such as these to apply as a temporary resident.
If you desire to work in Mexico, you still need to apply for a work permit when you get a temporary residency. You will also need an official ‘offer letter’ from the company that intends to employ you, plus a hundred and fifty-five dollar fee. There are other ways to become a temporary resident in Mexico.
Proving that you have sufficient savings or income to remain in Mexico is one way to obtain a temporary residency. The exact amount varies, but in general, this will be a multiple of the annual income of Mexican citizens.
Currently, you need to make around nineteen hundred dollars per month to qualify due to the exchange rate or have approximately a hundred and twenty thousand dollars in savings. You will also need to prove this with official bank documents. However, you can circumvent those minimums in a couple of ways as well.
If you are related to a Mexican citizen or permanent resident, you may be able to get your temporary residency for an extended visit. Alternatively, you can invest in Mexican real estate by buying a home or investment property or by purchasing a business. There is a minimum investment, but it’s a great way to own a home and become a resident at the same time.
Applying at the Consulate
There are different categories for permanent and temporary residents. These differences have to do with your work statuses such as non-working, volunteering, or paid employment. However, it is worth noting that you need to apply for either temporary or permanent residence at a consulate outside of Mexico. Once approved, you will get a stamp inside your passport, which indicates that you are pre-approved.
Once you arrive on Mexican soil, you will have thirty days to go to the consulate to finish your paperwork. Failure to do this may result in the loss of your resident status. Furthermore, you will likely get deported.
Permanent Resident
Permanent residency is granted on its own, without needing temporary residence first in some cases. Often people need to live in Mexico for two years on a temporary residency permit before they can apply for permanent residency. However, those who buy real estate and businesses over a specific value may qualify automatically.
Similarly, if you are under eighteen and your parents or guardians are Mexican citizens, you may qualify. Spouses of Mexican nationals and those seeking political asylum also have the option to forgo the temporary status.
Becoming a Naturalized Citizen of Mexico
Naturalization in Mexico requires five years of residence in the country. Whether you had temporary or permanent resident status, you must live in the country for at least this long before you can apply as a citizen. You are not required to give up your US citizenship and can hold both passports at the same time.
If you plan to expatriate and become a citizen in Mexico, you can opt to do all the paperwork yourself. However, its probably a better idea to hire an immigration lawyer to assist you in the process. Because of their expertise in the field, they can make sure you don’t miss out on any crucial steps.
Buying a home in Mexico is a fantastic way to help yourself qualify for eventual citizenship. Even if you’re not married or related to a citizen, owning enough property in Mexico will help increase the chances that you are eligible. You will need to check with a consulate to find out how much your home must be valued at to qualify.
Notably, some things may prevent you from being approved as a naturalized citizen. For example, if you are a convicted felon, your chances of becoming a citizen in Mexico or most other countries in the world are slim to none. Before you decide to move, it’s essential to understand the minimum qualifications to apply for residency or citizenship, so you don’t waste time and money.
Social Security & Taxes in Mexico
When US citizens live in Mexico, it’s important to understand your tax obligations and Social Security. The former is more complicated. Fortunately, Social Security is relatively simple.
Where Social Security is concerned, you can collect your benefits if you are a citizen of the US. However, some special rules apply if you are no longer a US citizen, or if you’re collecting the benefits from a deceased spouse or worker from the USA. However, in general, you will still get your check.
Taxes still happy to US citizens living abroad. Whether you work here or there, your income is subject to taxation. However, there are some incentives and tax breaks for citizens working abroad. For example, if you live and work in Mexico, you may be able to pay fewer taxes for owning a Mexican business.
The tax break in Mexico is as follows. You get ten years of altered tax dues. In the first year, you pay zero percent. Every year after that, your taxes increase by ten percent of what’s ordinarily due until you owe the full amount. However, it’s best to work with a tax lawyer if you need to handle income and tax issues across international borders.
Social security income is not taxed. Moreover, many retirement plans have their own unique tax rules. IRA’s, for example, may not be taxed until you make a withdrawal. Regardless, it is a wise plan to discuss your financial situation with a specialist before moving abroad permanently.
Final Thoughts
Choosing to move to Mexico as a US citizen is a big step, but ultimately one that can lead to a wonderful life. From deserts and sandy beaches to rainforests and mountaintop pueblos, Mexico is diverse and welcoming. You’ll find you’re in good company. Both the locals and other ex-pats tend to be incredibly friendly.
Whichever method you use, I recommend staying for a while to make sure you enjoy the area you’ve chosen before you buy a home in Mexico. With so much diversity, there’s a place for everyone. Whether you like the hustle and bustle of Mexico City, a more spread out and bohemian atmosphere in San Miguel de Allende, or a quiet ranch in the countryside, you’ll find it in Mexico.
Winters or year-round, Mexico is a delightful place to live. Best of all, you will be close enough to visit friends and family in the USA anytime you like while still reaping all the benefits of living in Mexico.