Things you need to know before relocating to Mexico

If you are considering changing your life and relocating to Mexico, you are certainly on the right track to making a great decision for your future. However, there are some things you need to know before relocating to Mexico that will help your transition.

Currency

The currency in Mexico is the Mexican Peso $MN. Although dollars are accepted in many establishments located in the tourist destinations, the official form of payment is in pesos. You may see high value goods such as property, cars and art advertised in dollars, though you will most probably be expected to pay in pesos at the current exchange rate depending on the seller.

Visas

You will need visa to live and work in Mexico if you are not a Mexican national. This is easy to do if you have a job lined up in Mexico, although you will be required to start the process outside of Mexico in your home country. Visas for retirees is even easier, and you will simply need to prove your regular income from your pension upon relocating to Mexico.

Healthcare

When arriving to Mexico to work, your employer will make sure that you are paying your social security quotas to cover basic healthcare. However, most foreigners are encouraged to purchase private healthcare insurance which will give you access to some of the best facilities in the world.

Schools

While there are “free” public schools for your children to attend, class sizes are very high and the level of schooling may not compare to the standards you are used to back home. Private schools are affordable when earning a professional wage in Mexico and most foreigners are advised to consider private education for bilingual children when relocating to Mexico.

Buying property

Relocating to Mexico and buying property is similar to Canada and the United States, although there are restrictions when purchasing property within 50km of the beach or the borders. In these cases, you will need a fideicomiso trust from one of the leading banks to back your purchase as a foreigner.

Taxes

You will be expected to pay taxes in Mexico if you are working or have your own business. Mexico has agreements with many countries to avoid double taxation, meaning that you will only have to pay tax in one country. You should consult your tax adviser on this topic before relocating to Mexico.

Insurance

Not having car insurance is illegal in Mexico, and you must have the minimum coverage in the event of injury or death of a third party. Property insurance and health insurance is optional but highly recommended.