Yes, you can absolutely live in Mexico for $1500/month. Many people already do it. The trick is having and sticking to a budget. You'll have to set a realistic budget for a rental, health insurance, groceries, eating out, transportation, and entertainment.
Yes, you can claim your Social Security benefits no matter where in the world you live.
Average Cost to Retire in Mexico
A retired couple can expect to retire comfortably in Mexico with an average income of about $2,500 a month, or $30,000 a year, according to InternationalLiving.com. These figures include the cost of a house, a maid service, utilities, groceries, entertainment, health insurance and more.
The minimum monthly requirement is about $1,620 in net income for an individual. You may also choose to provide bank statements for the last 12 months that show an average balance of at least $27,000. If you choose to stay longer than four years, you can apply for a permanent resident visa.
US Citizens Working in Mexico: Taxes for Social Security
For US citizens working in Mexico, taxes for social security should be paid, but it may take a Mexican expert to go over the details of the arrangement and determine to which country social security taxes should be paid.
U.S. taxes when retiring in Mexico
You still pay taxes when retiring abroad. If you retire in Mexico, you will still file a tax return and report income just as you would if you retired in the U.S.
It is possible to get a new three bedroom house for about $60,000 USD. These houses are being sold with a profit, so you know that inexpensive construction is possible here. Most houses built in Mexico cost 1/3 the cost of construction in other countries.
Housing Costs in Mexico
In an average area, the monthly rent for a furnished one-bedroom apartment will cost you about $451 USD. In a nicer area, expect to pay around $772 per month. For a standard WiFi connection, you'll pay $21 per month depending on your provider.
Oaxaca is one of the most affordable expat destinations in Mexico, and food, lodging and transport costs are inexpensive.
Yes, you can go all in and decide to make your move to Mexico permanent but there are also lots of other options. Think about the lifestyle you want and what makes the most sense for you and your family. We live in Mexico full-time now.
If you are a U.S. citizen, you may receive your Social Security payments outside the U.S. as long as you are eligible for them.
As is not the case with Medicare, retirees who decide to move to another country are still entitled to Social Security benefits. Once a retiree has been outside the country for 30 days in a row, he or she is considered outside the United States and the rules for collecting benefits apply.
Americans living in eight other countries — Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan and Uzbekistan — can receive Social Security payments only under certain strict conditions, one of which is agreeing to appear personally at a U.S. embassy or consulate every six months.
Expats tend to flock to the capital, Mexico City (Ciudad de México). With a metropolitan population of over 20 million people, this is not only the most populous city in North America, but also the largest city in the Spanish-speaking world and the sixth-largest city worldwide.
One can live in Mexico on $1,000 a month or even less quite easily. In fact, locals live on much tighter budgets. As a foreigner, you will see that pretty much everything costs less than in your home country. Rent, food, transportation and healthcare in Mexico are much cheaper than in the US, Canada or Western Europe.
So, why are houses in Mexico made of concrete? Houses in Mexico are built with concrete due to factors such as its cost and accessibility, culture and heritage, resilience against the common natural disasters in the country, and its compatibility with the weather.
Overall labor cost are what makes building a house in Mexico much more affordable.
You can find a house for $100,000 USD or more in Mexico!
If you want to buy a small house, then your budget can be $100,000 USD or more. However, if you want a large home with an ocean view and many bedrooms, then your budget can be more than $1,000,000 USD. There are many options in between these two price ranges.
Unless there is a specific plan provision for it, your employer's 401(k) plan cannot expel you as long as you are a plan participant. In many cases, you can keep your 401(k) account with the plan provider even after you leave the company and the country.
Your Mexican bank will have to report the interest on that account to the IRS. It is important to report that interest on your tax return on Schedule B. If your highest balance is under US$10,000 on any day of the year, it is strictly a check-the-box.
If you own property in Mexico, you'll pay property taxes. If you rent out that property or own a business, have a job, or have interest-bearing bank accounts, you'll owe income tax. Even if you have none of these, you'll still pay sales tax (known as Value Added Tax or VAT) on most retail goods and services.