2. Mexico

Mexico moves up from No. 3 to No. 2 on this year’s Index, and now boasts more than 1.6 million Americans and half a million Canadians who call Mexico home. Even more foreigners live part-time in Mexico to escape the snow and cold weather of northern winters. In terms of total numbers, more U.S. expats live in Mexico than in any other country in the world.

IL correspondent Wendy Justice points to Mexico’s convenient proximity to the U.S. The country hosts many international airports offering direct flights to the U.S. and efficient, modern highways connecting it to its northern neighbor.

The country has reliable internet, electricity, and cell phone service. You’ll find familiar brands, such as AT&T, Amazon, Walmart, Netflix, McDonald’s, and Costco.

“Wherever you live in Mexico, you’re likely to find an expat community,” Justice writes. “If you speak a little Spanish, you’ll find that it adds immensely to your experience, but even if you don’t know a word of it, you’ll usually find someone who speaks English.”

If living well for less is an enticement for moving overseas, you will be pleased by Mexico’s low cost of living. Most goods and services are less expensive in Mexico than in the U.S. or Canada. Everything from rents and real estate to healthcare and groceries are cheaper here. Additional savings are available to legal residents age 60 or older through the INAPAM program, which gives seniors discounts on transportation, medical and prescription costs, utilities, taxes, and more.

Your cost of living will vary, of course, depending on where you live and your lifestyle. It’s possible for a single person to live simply, but comfortably, for around $800 per month. It generally costs more to live in popular tourist destinations or areas with a large, established expat presence, while a more local lifestyle can be affordable for even those with modest means. Most couples find that they can live comfortably for around $2,000 to $2,500 per month even in more popular locales. That amount includes everything—even health insurance through Mexico’s IMSS public health plan.

Healthcare costs are at least 50% lower in Mexico compared to the U.S. Modern hospitals have all the equipment and technology you would need or expect, and doctors are qualified. Besides the IMSS health insurance, which costs between $300 and $800 annually depending on your age and has some pre-existing condition exclusions, legal residents can apply for INSABI, the free public health plan, or carry private insurance.

It’s easy to live long-term in Mexico. As a temporary resident, you can remain in the country for up to four years if you renew your visa annually. At the end of four years, you can either reapply for another temporary resident visa or convert your visa to permanent residency.

Temporary residency applicants must show an income of about $2,550 per month, or $45,000 in the bank or in investments. A permanent residency visa is available for people who can show a minimum income or pension of about $4,400 per month or an average bank balance of about $180,000 over the past year. This visa never expires and there is no minimum amount of time that you must remain in the country.

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