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Retire early? Work from remote? Here’s how to choose and apply for the right visa.

Larry found he could afford to retire at age 52 by building a home in Los Barriles on the coast of the Baja Peninsula. For fun money, he works part-time as a ghostwriter for a US publisher.

Patty quit her job 23 years ago and drove to Sayulita, a coastal town just north of Puerto Vallarta. She opened a business on the beach where you’ll still find her every day of the week.

Bob, a stage designer from Boston, drops in on the Romantic zone in Puerto Vallarta for two months every winter so he can enjoy the lively atmosphere and burlesque shows. His boss is cool and lets him work remotely.

These are Americans I’ve met in my travels, and they represent a growing breed of people who are living and working in Mexico. For as short as a few weeks to as long as the rest of your life, you too can enjoy the benefits of a beautiful climate, low cost-of-living, friendly people, and top-notch healthcare.

Living and working in Mexico is easy if you follow the rules, but you can get into some real trouble if you don’t.

Here’s how it can work for you.

Why Mexico?

Mexico is the 13th largest country in the world, offering a broad selection of warm beaches, snow-dusted highlands, lakes, jungles, and deserts. Eight million people visit Mexico each year on vacation, and some decide they like it so much they want to stay.

Estimates vary, but most agree there are over 1.5 million expatriates from the USA living in Mexico full or part-time.

Why?

There’s a multitude of reasons, but one of the most common is the cost of living. At less than half the cost of the United States, Mexico offers a tantalizing bargain for retirees, sun worshipers, vagabonds, remote workers, and chronic travelers who value a flexible lifestyle on a tight budget.

You’ll find a rich history and heritage, with festivals and holidays at every turn. People of all economic means, religions and ethnic backgrounds welcome travelers with open arms. The climate is pleasant year-round, and traveling within the country is easy and inexpensive. The curious will find fascinating ruins, exotic flora and fauna, cenotes, beaches, and a seemingly endless list of things to see and do.

Some come to retire and rest. Others come to work hard while working remotely. Like the people I introduced you to in the opening, there are as many reasons as there are expatriates.

What is important is how long they can stay, what benefits they need, and what they’re permitted to do while living in Mexico.

Three types of entry visas

First, a disclaimer: There are specific laws that govern immigration, but Mexico applies its immigration laws with some flexibility. I’ve heard numerous stories of people being turned down by one consulate but accepted by another, so consider the statements below to be guidelines. Further, laws differ for foreign nationals of some countries. Be sure to check with your local consulate and call them before you go so you know exactly what they’ll need from you.

There are three categories of visas, based primarily upon how long you intend to stay. You can find variations of these, such as a visitor permit specifically for adoption, but they all fall in these general categories.

1. Visitor Permit: For stays of 180 days or less.
2. Temporary Resident Visa: At least 6 months but no longer than 4 years.
3. Permanent Resident Visa: No time limit.

Citizenship is a fourth option, and I’ll cover that in a future article.

1. Visitor Permit

This is the default visa you receive when you travel to Mexico. No pre-planning is required, and everyone allowed into the country automatically receives a 180-day permit by filling out a simple form on the plane, boat, or at customs. The cost is about $25 US and is usually included in the cost of your flight if that’s your method of entry.

This visa is a simple permit intended for tourists and business trips. You’re not allowed to receive a paycheck from a local company, but you can work remotely for a company outside Mexico while you’re there. Unpaid volunteer jobs are fine with this permit, but you won’t receive healthcare or other benefits. The moment you leave, the permit is revoked.

• Automatically issued for about $25 US
• Tourism and short business trips
• No longer than 180 days
• Immediately revoked when you leave
• No income from local work allowed
• Not eligible to enroll in the national IMSS healthcare program
• Property ownership is allowed

In theory, you can go into the country for 180 days, leave, turn around and go back in on a new permit. This loophole is often abused, and the immigration agents are cracking down on it now. If you intend to stay longer, you should apply for a different visa.

2. Temporary Resident Visa

A Temporary Resident Visa allows unlimited entry and exits for a year, with the option of annual renewals for up to a total of four years. Some who plan to live in Mexico long term will start with this visa, as it has a lower income requirement and can be easily upgraded to a Permanent Resident Visa after four years.

3. Permanent Resident Visa

A Permanent Visa is the right choice for you if you plan to spend an indefinite time in Mexico. You will effectively become a Mexican national but not a citizen. Many who seek citizenship will begin with this type of residency.

Qualifying for either of these visas is based largely on your income or assets, which must be above a basic threshold set by the government. The objective is to ensure you have sufficient resources to support yourself while in the country.

There are two steps to establishing a temporary or permanent residency.

1. You must apply for these visas outside of Mexico by visiting a Mexican Consulate website and filling out an application (here’s an example). You’ll need to schedule an appointment and bring the required documents they list on their website. The process isn’t difficult, but it involves a lot of paperwork, some in Spanish. If you prefer, you can hire an immigration lawyer to do this on your behalf. You’ll pay about $50 the US to apply.
2. Enter Mexico within 180 days, and no more than 30 days after that, you must visit an immigration office and apply for your residency card. After paying the equivalent of about $250 US, you’ll have an official card that proves your residency status. Keep it safe.

Along with the privilege of unlimited border crossings, with either of these visas, you can open a business or take a job with a Mexican firm. You’ll pay taxes in Mexico and be eligible for healthcare benefits.

• Available from consulates outside of Mexico
• Total costs are about $300
• Must prove sufficient income, assets, or a Mexican residence
• Unlimited entry and exits are allowed
• You may earn money from local firms or open your own business
• Eligible to enroll in national IMSS healthcare program

Income and asset requirements

(Approximate amounts are shown in US dollars)

Temporary Visa: You’ll need to show a year’s history of over $1,600 per month of income to qualify. Add $550 a month for your spouse and $550 for each dependent child. Alternatively, if you can demonstrate you have savings in excess of $28,000, you’re good to go.

Permanent Visa: The income requirement for permanent residency is about $2,700 a month plus $550 each for a spouse and children. If you can’t show enough income, you’ll have to prove you have more than $110,000 in savings.

Money isn’t the only measure. If you plan to invest in a community or business, own a home, or have family ties in Mexico, you can pursue residency from other angles.

Healthcare and its cost

Healthcare in Mexico deserves its own article since it can be quite complicated. Luckily medical care and pharmaceuticals in Mexico cost far less than in the USA. So much less that many people choose to simply pay out of pocket for all their medical needs.

If you’re on a visitor permit, you’ll either pay out of pocket, use your US health insurance (if it covers Mexico — Medicare does not), or purchase private travel insurance for your stay.

If you’re a temporary or permanent resident, you’re allowed to participate in the national private healthcare program, IMSS. Certain preexisting conditions may be excluded temporarily or permanently, and some (ex: cancer or alcoholism) will disqualify you from enrollment entirely. If you are disqualified, you may be able to enroll in the less desirable public healthcare program, ISSSTE.

If you’re employed by a Mexican firm, they may pay your IMSS premium. If not, you’ll have to pay between $35 and $75 US a month, depending upon your age. It covers medications, surgeries, hospital, maternity costs, and doctor visits. Supplemental coverage is available at an additional cost, and many ex-pats purchase private coverage for the very best care.

Quality of care in Mexico is considered very good, though quality will vary somewhat, with the best found in the larger cities. Many of their providers (dentists, docs, etc.) are educated in the US, and they have highly respected teaching schools in Guadalajara and Mexico City.

When is the best time?

If someone offered you an opportunity to work or retire in a tropical paradise at half the cost, with the ability to jet in and out at will, you’d consider it carefully, wouldn’t you?

Now imagine you’re fully equipped with all the immigration information you need to make this dream a reality.

Are you ready? How about right now?