More U.S. citizens moving to Mexico for lower cost of living, scenery, culture

HOUSTON - After years of high inflation in the U.S. and the ability for many people to work remotely, the number of U.S. citizens living in Mexico continues to grow.

One reason is that Mexico offers a much lower cost of living, and the U.S. dollar is strong against the peso, giving Americans more spending power.

The State Department reports that Mexico has the most U.S. citizens living there of any country in the world.  Traveling there also requires only a short trip.  Plus, the country offers beautiful scenery and culture. 

New residents can connect with large communities of Americans already living there

What they're saying:

"We jumped on it and made the offer and the rest is history," said Michael McIntosh, a Louisiana resident, speaking of buying a second home in Mexico.

McIntosh is one of a growing number of Americans setting up homes in Mexico.

"We actually have very good friends, a lot of people that are moving here from New Orleans, and living here, which made it a lot easier. It gave us a sense of stability," he said, speaking with us via Zoom from his home in Puerto Vallarta.  

By the numbers:

The State Department says U.S. citizens living in Mexico jumped 70% from 2019 to 2022 and has continued to grow to a total of 1.6 million.

Not only does Mexico offer warmth and beauty, but a much lower cost of living.

"It’s still in the top 20 places where you can retire for under $2,500 a month.  Super cheap, right?" said McIntosh.

American interior designer established firm to help Americans make transition to Mexico

"This idea of the reverse immigration phenomenon really came about five years ago when people started to work from home," explained Debra Stevenson, owner of Crate Interiors.  

Stevenson launched Crate Interiors 15 years ago, not only to design homes in Mexico, but as a single point of contact to help homebuyers navigate the move to a foreign country.

"You’re dealing with a different country.  You’re dealing with a different culture and language.  You’re dealing with a different currency.  "Literally, almost everything about your lifestyle is different," said Stevenson.

McIntosh says many things don't work the same as they do in the U.S., such as homeowner's insurance, banking, internet service, and utilities.

"Even things like paying the electric bill.  It doesn’t come regularly. It doesn’t come every month. You have to wait for it and ask for it, then pay it. If you don’t pay it, they may cut your power off, they may not," he laughs.

For anyone considering the move, they both suggest hiring an expert that can answer questions and offer advice.  

"You have to have that sense of security that you’re hiring someone that understands what you’re saying, hears your vision, and is going to show you every step of the way," suggested McIntosh.

Big picture view:

"Partner up with a realtor that can provide you with full support here," said Stevenson. "That can be end-to-end logistics for you, help you reach out into the community to make friends, make connection points."

U.S. citizens living in Mexico still must file a U.S. tax return and may have to file taxes in Mexico, too, if considered a resident.

But they may not need a visa if they only stay for six months at a time. Some people travel back to the U.S. or other countries, breaking up their stay in the country.