canada africa partner reservation Mexico is the best country to retire for American expats

Mexico is the best country to retire for American expats

0 Comments


The benefits of retiring abroad include the change of scenery, the opportunity to experience new cultures and the lower cost of living. And many Americans — about half a million, according to the Social Security Administration — choose to spend their golden years in another country.

Investopedia ranked the most popular countries for expats and their data showed that most US citizens chose to settle in our southern neighbor, Mexico, because it offers warm weather, affordable housing, a variety of small towns and cities and easy access to the US offers. .

Mexico was ranked as the best country to retire for US citizens

Mexico | Image credit: Spencer Watson/Unsplash

Mexico also has a much lower cost of living – about 21 percent, while health care is as much as 60 percent cheaper than in our country.

Another benefit of moving south of the border is that housing in certain areas can also come with a much more affordable price tag. While homes in popular vacation spots like the Riviera Maya and Cabo San Lucas can cost millions, retirees in other areas like Aguascalientes, a city in central Mexico, need about $900 — and that amount includes rent — to cover their monthly expenses . And in San Miguel de Allende, famous for its food scene, a couple could live on less than $2,000, according to a recent US News report.

Of course, retiring abroad also requires careful financial planning, including research into that country’s income tax. (If you move abroad, you are not excluded from paying taxes in the US.) According to Investopedia, Mexico has the lowest personal income tax of the ten most popular countries for expats: 3.7 percent, compared to GDP. Also the property tax is only 0.3 percent.

For many, legal residence in Mexico is also a problem. U.S. citizens can stay in the country for up to 180 days without a visa, and those who plan to live there full-time can apply for a Mexican Retirement Visa or Mexican Permanent Resident Card, which requires a minimum monthly income of $1,415. Expats who have resided in Mexico for five years or more are also eligible for citizenship.

Canada and the United Kingdom are the second and third most popular countries for expats on Investopedia’s list. However, in Canada house prices are slightly higher than in the US, while in Britain house prices are almost 20 percent lower. Healthcare costs are also much lower in Canada and the United Kingdom. However, income taxes in both countries are only slightly lower than in the US.

You can view the full list of countries at investopedia.com.

shop the best travel experiences here

(Feature Image Credit: ITZEL GARRIDO/TRAVEL + LEISURE)

This story first appeared on travelandleisure.com

Related: This is the best place to retire in 2024, according to a new report