Mexican Temporary Residency Update - Done ✔ Why Mexico, & My Experience Feb'25
The other 'low-hanging fruit' LatAm residency 🌯 the second step in international diversification and my divorce with Australia 🦘 Documenting the process.
As I mentioned in the Feb update - Very happy to have my MXN TR in my hand, finally. A process, & not quite as easy (for an Australian) as all the residency spruikers on X make out, but still a very easy no-brainer residency to obtain, relative to other residency programs.
Mexico was initially going to be my ‘Plan A’ Country, with Paraguay my ‘Plan B'‘/Tax-base.
Things change, essentially it was too hard to commit to a full-time life based in Mexico (w the Mexican ex-gf), given that the main reason for moving to LatAm for me was to escape the Australian financial/tax system, chase more freedom, and attempt starting a new life/business with low/no taxes.
Still a work in progress!
While tax laws etc are very chill towards expats in Mexico, it is still technically not legal to live permanently in the country (as your main base) for more than 6 months, have assets there etc and not get sucked into the tax system.
Living/getting permanently set up in a territorial tax country (Paraguay) is my primary goal for the next few years, as IMO this is the best thing I can do to set myself up for the future. Hence why Mexico has moved to a ‘Plan B’, back-pocket option for me (Mexico is not a territorial tax country).
I do see myself spending decent chunks of time in Mexico over the next decade (I really do love the country), and I’m stoked that I will now always be able to enter as a legal resident and stay for an unlimited period of time.
A whole other topic; but Mexico (at least certain states in the country) was one of the ‘freest’ countries in the world during the COVID madness. Something to keep in mind for the future & when stacking residencies!
Why Mexico? I go a little more in-depth below 👇
Gorgeous country with super diverse geography and culture; mountains, beaches, jungle and historical towns, it is still one of my favourite countries in LatAm.
ZERO physical presence is required to maintain residency (crazy value, will they change the rules in the future?).
While Mexico has problems (not as bad as most of LatAm), it is growing economically, particularly as the US pivots away from China for its manufacturing base.
International and bilingual schools.
Safe in the areas you would want to live.
Affordable, quality healthcare (private).
Possible to not trigger tax residency if you don’t spend more than half the year in Mexico and don’t have the centre of your life interests there.
Low cost of living; Mexico is competitively ranked in the Numbeo Cost of Living Index (Asuncion, Paraguay is #1 in LatAm though!!).
Geographic location – same time zone as the US and Canada & only a few hours flight away, which makes it a great base for work if you’re from N.America/Europe.
Two points I have belabored before I will mention here again:
If this ‘Plan B/Plan A’ / ‘Residency Stacking’ stuff interests you at all, don’t sit on it. You’re probably still working a job on a decent salary in your home country, make a plan for 2025 to take action on getting at least one TR (MXN/PYG are the two easiest 👇). These residencies only become more difficult to get with each passing year (before COVID you could get Panamanian TR for just a $5k USD investment, now it is a $200k real-estate investment!);
Mexico & Paraguay are the two easiest and best Latin American TR’s to get to start with - with both countries offering path to PR that never expires. I wrote about my Paraguyan Residency experience here.
Getting Residency in Mexico
Financial Security - Solvencia Económica
The fastest way, if you have options for a visa based on financial security, is the "Solvencia Económica" (Economic Solvency) visa.
Income Requirements: Demonstrate an income of no less than $4,400 USD per month, for only the last 6 months (2024, slightly more now). For Aussies, this is about $7k AUD per month, which is pretty easy for a middle-class Aussie.
Assets/Savings Requirements (what I did): Show savings or assets such as shares/securities of no less than approximately $74,000 USD in total for the last 12 months - For me this translated to $110k AUD in shares - this is incredible value in my opinion, and such an easy entry to a great residency.
Temporary Residency Process, for me as an Australian
I paid a once-off upfront fee of $700 USD for the whole process. This is one of the best deals I found, though I paid last year and I believe this has increased now. If you are paying more than ~$1300 USD for your TR, I would probably shop around (there are many many agents offering these services).
Firstly: go through a residency agent, they will (should) put you in a whatsapp group with a team of lawerys in Mexico, that will guide you through the whole process. I used World Wise Capital (no affiliation) and they had a good team. The Wandering Investor & The Jerz Way are also two other agents I have heard good things from.
Prove financial solvency by getting a bank manager to stamp and sign monthly portfolio brokerage reports for the past 12 months; showing investments of greater than $110k AUD (~$70k USD).
Fly to Canberra in Australia (pain in the ass) to visit the Mexican Consulate, who authenticates the documents, gets your fingerprints, and will ask you why you want to move to Mexico etc. They will give you a full-page passport visa. The lawyers from your agent will book this on your behalf.
Then, you have 180 days to enter Mexico. Get this visa authenticated by immigration when you enter the country (important, otherwise you have to re-enter again!).
Finally, get an appointment (lawyers book for you) with the Instituto Nacional de Migración, where you finally will get more photos, fingerprints and your official ID card, Residente Temporal.
You then have to return to Mexico in 12 months (within a few months after 12 months), where you get the TR extended for another 3 years. So it’s four years TR in total; not sure why they do this exactly (to encourage you spending more time in country I guess).
After this three-year period is up (zero physical presence required!) you return to Mexico again and upgrade your TR to Permanent Residency, which never expires, you have it for life! Again, incredible value in my opinion.
The next step is citizenship. That means from being a tourist, getting a residency card, and then applying for citizenship, only takes in total five years (at fastest).
The last 2 years before you obtain Mexican citizenship, however, you will need to stay in Mexico. During these two years, you have just 180 days to travel outside of Mexico, and will also need to pass a citizenship exam (in Spanish).
My Spanish is still awful, but you can easily learn a medium/advanced fluency in 5 years, if you put the work in (1hr per day practise minimum, something I am still too lazy to do…).
Consulate Discretion and Expertise - Outside of Australia
Mexico has a very different implementation of laws depending on the consulate/embassy. So it's not like Germany where the rules are going to be the same for every single Embassy in across the world. With Mexican embassies and consulates, it will differ depending for example on if you apply in Canberra or you apply in New York.
That’s it! Below I just go over some points on why you would want to get a legal residence in Mexico 👇
Why Mexico? Why Now?
Some more in-depth points, in no particular order, on why one would/should consider Mexico as a Plan B or Plan A residency option, based on my brief experience living there (mostly in CMDX) and travelling across the country for about ten months during 2023 and 2024.
Affordability 💰
The cost of living in the US, Australia, Western Europe etc has gone exponential since the government-induced crisis of 2020>. Rents in cities from Sydney to Toronto easily top $2k+ a month, for just a one-bedroom.
In Puerto Vallarta, as one random example, a family of four can live very well on $3,000 USD a month, including rent. Try doing that in the US or Australia. Housing is a steal too. A decent two-bedroom condo in Merida in the Yucatan might cost $120,000, while in California, you're lucky to find a broom closet for that. CMDX has become much more expensive since COVID, but still nowhere near as bad as a Western City.
Healthcare is another kicker. Private healthcare in Mexico is of a Western standard at a fraction of the cost. A doctor's visit might run $20 to $40, while major surgeries like a hip replacement might cost $10,000, versus $40,000 in the US.
Lifestyle & Climate
One thing Mexico has over all other Latin American countries (IMO) is the diversity of lifestyle & climate options to suit anyone. It is a mix of Spanish Colonial history with indigenous Mayan and Aztec roots, depending on which state you pick.
Big City Vibes of CDMX & Guadalajara: Trendy cafe spots like La Condesa in CDMX or Americana in GDL, along with enormous USA-style malls and fine dining (Guadalajara one of most underrated cities in LatAm for expats IMO).
Yucatan - Resort Cities & Tropical Jungle: Fully catered tropical beach resorts of Cancun; Merida, the Mayan jungle colonial city and safest city in LatAm; and/or more hippy beach vibes of Playa Del Carmen and Tulum for first-time travellers.
Colonial Mountain Vibes: The art galleries and colonial architecture of San Miguel de Allende and Guanajuato; very safe, cheap and great climate year-round with warm days and cold crisp nights.
Pacific Coast - Surf Towns & Top Quality Beaches: Beach culture of Nayarit and Oaxaca; hot year-round with great beaches, cheap seafood & world-class surf (my favourite part of Mexico).
Chiapas - Southern Mayan Mountain Jungle: San Cristobal in Chiapas (similar to Antigua in Guatemala) is a great spot to base yourself for a few weeks/months and explore Chiapas - cheap, beautiful with a cool mountain climate.
Desert North (I haven’t been): Baja Sur with a similar desert vibe to Western Australia and great surf (initially I was planning on moving here permanently in 2025 with my ex-gf!), or towns like San Luis Potosí, that pull folks who love dry heat and rugged views.
In most of these places, expats still get high-speed internet, modern gyms, and American-style supermarkets such as Walmart if they want it.
Food 🌯
Although Paraguay/Southern Cone is (probably) my favourite country in LatAm for food (purely on the fact that I am a massive meat-eater), Mexico would have to be second, and is number 1 in the world for many of the well travelled (after having been in Colombia for a month, and now appreciate how much I miss Mexican street food..!).
Community
Mexico has large expat enclaves, where you're never alone if you're an extrovert with little Spanish.
Lake Chapala: An hour south of Guadalajara — over 20,000 North Americans.
Puerto Vallarta: On the Riviera Nayarit (& nearby epic little surf town of Sayulita) has miles of coastline with over 10,000 permanent expats; Think boardwalks, cafes, yoga retreats, surfing etc. 🌴
San Miguel de Allende: A colonial mountain town half a day north of CDMX, with another 10,000 expats; a big artisenal scene and very safe.
Merida: Statistically safer than most cities in the USA, Merida has tons of expats in a million-person city with Yucetan jungle vibes.
Final Thoughts
Plan B - A Mexican residency is a no-brainer in 2025 IMO, even if at minimum for a backpocket Plan B call-option. Whether you're a retiree stretching your pension, an online nomad chasing sun, surf, mountains or making your buck go further, or just someone sick of the rat race, there is a place in Mexico that will be suited to you.
Plan A - The affordability, laid-back lifestyle, rich culture, and strong expat communities also make it a top choice for those looking for a Plan A. You'll need to adapt to a different pace of life, a new language, and some cultural differences. But for most, the trade-offs are more than worth it.
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VanDiemen Vagabond? My Story 📖 & How An Average Tasmanian Ended Up Trying A New Life In Latin America 🌎
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Cheers 🍻
That beach looks amazing. Q: If your parents decided to move to Mexico, where would you suggest ? Taking into account their age, lifestyle, amenities, ability to meet likeminded people their age ? We thought about it during covid, but never pulled the trigger. Does the $7000 per month income include salary and wages ? I'm encouraged that your Spanish is still awful :)
Hey do you think if you have PR in Paraguay, you can use the Mexican consulate there?