Relocation intelligence

🇲🇽 Moving to Mexico: tax, residency and cost of living

Top rate 35%, no wealth or inheritance tax

Thinking of moving to Mexico? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.

Key facts

Top income tax
35%
Corporate tax
30%
Capital gains
10%
Wealth tax
No
Inheritance tax
No
Cost of living index
40
Safety
4/10
Internet quality
7/10
Visa-free destinations
157
Foreigners can own property
Yes
Residency in
0 months
Citizenship in
0 years

Taxes

Mexico taxes residents on worldwide income, progressively from 1.92% to 35% (the top rate only above ± MXN 5.1 million ≈ € 250,000 per year; brackets were inflation-adjusted by 13.2% for 2026). Dividends carry an additional, definitive 10% tax, including foreign dividends; stock-exchange gains are taxed at 10%. There is no wealth tax and no inheritance or gift tax: inheritances are exempt. VAT (IVA) is 16%, 8% in border zones. There is no special expat regime.

Residency and visas

The residency route is among the fastest in the world: the consulate only tests 'economic solvency'. Temporary residence (1 to 4 years) requires ± USD 4,400 net monthly income over the last 6 months, or ± USD 74,000 in savings; permanent residence is possible right away (mainly for retirees) with ± USD 7,400 per month or ± USD 300,000 in bank balance. Thresholds vary by consulate. No investment requirement, processing in weeks rather than years; after 4 years temporary, permanent follows as an option.

Property ownership

Inland, foreigners buy property in full freehold in their own name. In the 'zona restringida' (50 km from the coast, 100 km from the border, i.e. virtually all popular coastal spots) ownership runs through a fideicomiso: a renewable 50-year bank trust carrying all ownership rights, including use, rental, sale and inheritance. Setup costs ± USD 2,000-3,500, then ± USD 500-800 per year to the bank. Avoid ejido (communal) land without a regularised title.

Cost of living and quality of life

Mexico hosts the world's largest expat community, with complete infrastructure in hubs like Mexico City, Mérida, Lake Chapala and the Riviera Maya. The cost of living (Numbeo index ± 40) is less than half of Western Europe, private healthcare in the big cities is good and affordable, and fibre is standard. The flip side: safety varies strongly by region and demands a deliberate choice of location. Outside the expat hubs, Spanish is close to indispensable.

Passport and mobility

The Mexican passport ranks 21st on the Henley index 2026, with 157 visa-free destinations, including all of Schengen, the UK and Japan; the US still requires a visa. Citizenship is attainable after 5 years of legal residence (2 years if married to a Mexican), with a Spanish language and history test, and Mexico allows dual nationality.

Residency and visas

  • Residente temporal (consulaire solvencia-route: ± USD 4.400 netto-inkomen/mnd over 6 mnd óf ± USD 74.000 spaargeld; 1 tot 4 jaar, drempels verschillen per consulaat) · €48,000/j · Residency in 4 years
  • Residente permanente direct (vooral gepensioneerden): ± USD 7.400 netto/mnd óf ± USD 298.000 banksaldo · €81,000/j
  • Huwelijk of gezinsband met Mexicaan(se): residente temporal zonder solvencia-drempel, naturalisatie al na 2 jaar · Residency in 2 years

Why people move to Mexico

  • Residency in weeks, no investment required

    The Mexican consulate only tests whether you can support yourself: a stable income (± USD 4,400 per month) or savings (± USD 74,000) suffices for temporary residence, and retirees can even apply for permanent residence right away. No investment, no points system, no multi-year queue. After 5 years of legal residence, citizenship is attainable while keeping your own nationality.

  • No wealth, inheritance or gift tax

    Mexico does not tax wealth as such: no wealth tax, no inheritance tax and no gift tax within the immediate family (reporting is required). Stock-exchange gains are taxed at a flat 10% and dividends at a definitive 10% on top of income tax. The 35% top rate only applies above ± € 250,000 of taxable annual income; below that, rates remain moderate.

  • Low cost of living with complete expat infrastructure

    With prices at less than half of Western Europe (Numbeo index ± 40), your purchasing power rises sharply without giving up comfort: good private clinics, international schools, fibre internet and daily flights to the US and Europe. Millions of expats went before you, so from Mérida to Lake Chapala there is a complete English-speaking network of doctors, notaries and rental agents.

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Sources

Other destinations

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