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Mexico: Country Overview

The vibrant heart of Latin America

Mexico offers many different landscapes, prospering cities, and some of the most beautiful beaches in the world. Mexico’s warm climate, affordable living costs, and welcoming communities make it a top destination for digital nomads, pensioners and real estate investors. The proximity and similar timezone to the USA and Canada make it one of the most favourite relocation destinations for North Americans.

Mexico – Country Highlights

Economy

GDP (nominal): $1,811bn
Comparable to Russia and Australia

GDP/capita: $13,804
Comparable to Eastern Europe and the world average

GDP growth: 3.2% (annual, 2023)
Steady rate of 2% forecasted (2024-2028)

Population

Size: 127.50 million people

Median age: 30 years
Comparable to Panama and Saudi Arabia

Density: 65.2 people/km²
Compared to 94.9 people/km² in Spain

Climate

Average temperature: 15-27°C
Ø low of 10-18°C and Ø high of 23-32°C

Sunshine hours/year: 2,534h
Compared to 1,749h in Switzerland or 3,314h in Cyprus

Average precipitation/year: 758mm
Comparable to the USA and China

Language

Spanish 94%
5 million Mexicans are also fluent in English (4% of population)
Various indigenous languages include Mayan, Nahuatl, and others regional languages

Religion

Roman Catholic 78%
Protestant 11.2%, unaffiliated 10.6%

Security

Legatum safety ranking: 148th of 167
Comparable to the Philippines and Turkey

Mexican drug war 
Since 2006 the government has been fighting the drug cartel

Several regions are still not recommended to visit

Real estate market

Average Price per Square Meter: $3321 (Puerto Vallarta)

Gross Rental Yield
In City Center: 7.9%
Outside City Center: 7.7%

Diverse market with high demand due to popularity and close distance to the USA.

Government

Partly Free Country
Freedom Score 60/100 according to the Freedom House World Report

Federal Presidential Republic
Executive: President & Cabinet
Legislative: Senate of the Republic & Chamber of Deputies
Judiciary: Supreme Court of Justice of the Nation

Elections are every 6 years.

Taxes

Worldwide tax law
Up to 35% tax on global income for residents
Up to 30% tax on local income for non-residents
16% value added tax

No tax haven
25-35% capital gains tax
up to 35% crypto tax
10% dividend tax
0% inheritance tax

Cost of living

Annual Inflation (CPI): 5.54% (2023)
Latest 4.38% (Feb 2024); forecasted at 3%

Cost of fuel: $1.36/liter

Cost of electricity: $0.10/KWh

Annual cost of food: $1,754
Compared to $2,897 in Germany and $2,656 in Costa Rica

 

Healthcare

Universal healthcare
The majority of Mexican hospitals are excellent and staff is well trained. Doctors often speak English. Private sector is well developed.

Doctors per capita: 2.44
per 1,000 people, WHO Global Workforce Statistics, 2020

Life expectancy: 75.4
(OECD 2023)

Education

Free public school through high school
95.25% adult literacy rate

Tertiary Education attainment: 17.13%
of adult population; Mexico ranks 57th globally

The private school sector is well developed. 

Living in Mexico: Unique Benefits

No real military service

For full citizens in Mexico, the mandatory year of national service for men involves only light weekend duties, offering a minimal commitment rather than actual military service. This is a subtle advantage over citizenships in other countries with much stricter military service such as Switzerland or Singapore.

Retirement income tax exemptions

Mexico offers tax exemptions on foreign retirement income for expats, making it an attractive destination for retirees looking for a high quality of life with favourable tax conditions.

Diverse climate zones

From the snowy peaks of Pico de Orizaba to the tropical beaches of Cancun, Mexico offers a wide range of climates, catering to virtually any climate and lifestyle preferences.

Universal free healthcare

According to the Mexican constitution, every citizen is entitled to free access to healthcare and medication. While this always guarantees a medical treatment, Mexico is also known for its numerous world-class private hospitals and clinics.

Visa-free travel to 160 countries

Mexican passport holders enjoy visa-free or visa-on-arrival access to 160 countries, making international travel easier and broadening personal and professional horizons. The Mexican passport is the 22nd best in the world.

Mexico: surprising must-knows and fun facts

The world’s largest pyramid

The Great Pyramid of Cholula in Mexico is the world’s largest pyramid by volume, surpassing even the Great Pyramid of Giza in Egypt. 

Mexico City aerial view

14th largest economy in the world

 Mexico, which was once started as a Spanish colony, now has a larger GDP than Spain. Mexico’s low production costs and thriving industry continues to grow its GDP at a faster rate than Spain.

Mexican beer

World’s largest beer exporter

Mexico is the world’s top exporter of beer, with brands like Corona, Modelo, and Pacifico. It’s a country with a success story of beer.

Largest Spanish-speaking population

Mexico has, with 130 million, the world’s largest population of Spanish speakers, more than any other country in the world. 

The origin of corn

Corn was first domesticated in Mexico about 9,000 years ago, in the region that is now the state of Oaxaca. Today Mexico still is the 6th largest producer of corn, behind the USA, China, Brazil, Argentina and India.

Discover Mexico: A comprehensive guide to its charms and opportunities

Mexico, a country rich in culture, history, and natural beauty, offers many experiences for travellers and opportunities for investors. From the sunny beaches of Cabo San Lucas to the busy streets of Mexico City, here you can find always find a spot fitting your personal lifestyle whilst having a lower cost of living. That’s why many Americans and Canadians have chosen to live in Mexico or are considering their move right now.

Mexico’s economic landscape: Many opportunities await

With a GDP of $1,811 billion, comparable to nations like Russia and Australia, Mexico’s economy is solid and grows. Its GDP per capita of $13,804 aligns with the world average, reflecting a steady growth rate of 3.2% in 2023. Forecasters predict a consistent growth rate of 2% from 2024 to 2028, indicating a stable economic environment attractive for investors. Especially the real estate market is exciting. Cities like Puerto Vallarta are witnessing a surge in demand, with an average price per square meter in Mexico of $3,321 and gross rental yields up to 7.9% in the city center. Such figures show how attractive Mexico is as a destination for real estate investors, drawn by its proximity to the USA.

Exploring Mexico’s rich culture

Beyond economic figures, Mexico’s soul lies in its culture. The most famous cultural holiday in Mexico is “el Día de los Muertos”, the Day of the Dead, celebrated widely on the streets on November first and second every year. Mexico has a population of 127.5 million people. The population is young and dynamic with a median age of 30 years. Spanish is the primary language, but the country’s indigenous heritage is reflected in the widespread use of languages like Mayan and Nahuatl. Religion also plays a central role, with 78% of the population identifying as Roman Catholic.

Mexico’s premier travel destinations

Mexico offers places to live and stay for every lifestyle. From the crystal-clear waters of Cozumel and Isla Mujeres to the archaeological sites of Tulum and the cosmopolitan energy of Mexico City, there’s something for everyone. Cabo San Lucas and Playa del Carmen offer luxurious resort experiences, while Puerto Vallarta is renowned for attractions like the “Rhythm of the Night.” For those seeking tranquility and natural beauty, Baja California and Oaxaca are unmatched. These destinations are not only breathtaking but also rank among the safest places in Mexico, inviting travellers to explore with more confidence.

Sun, sea, and safety: Enjoying Mexico responsibly

While Mexico’s beauty and warmth are undeniable, travellers and residents prioritize safety. Initiatives to enhance security in resorts and tourist hotspots have proven effective, allowing visitors to enjoy Mexico’s offerings, from its beaches to its nightlife, with more peace of mind. However, it’s still advisable for travellers to stay informed about their destinations and follow local guidance to ensure a safe and enjoyable visit. At Pallas we will personally guide you on the ground in Mexico not only through the immigration and real estate investment processes but also providing guidance how to enjoy the country safely like a local.

A health and education hub

Mexico prides itself on its universal healthcare system, with a well-developed private sector. The country’s healthcare facilities are renowned, staffed by well-trained professionals often fluent in English, ensuring quality care for residents and expatriates alike. In fact, a lot of foreign people travel to Mexico for health tourism: Benefitting from the lower treatment costs in excellent private hospitals there. Education is another pillar of Mexican society, with free public schooling up to high school and a literacy rate of 95.25%. The country’s commitment to education is also evident in its well-developed private school sector and a tertiary education attainment rate that places it 57th globally.

Living in Mexico: Comfortable climate at lower living costs

Living in Mexico offers a unique mixture of traditional culture and modern conveniences. The cost of living is one of the main factors attracting pensioners, with rent being up to 70% cheaper than in the United States. The country’s climate is as diverse as its landscape, offering everything from warm, sunny beaches to cooler, temperate regions in the mountains and highlands. This variety, combined with the welcoming nature of its people, makes Mexico a compelling choice for those looking to relocate or invest.

Conclusion: Mexico’s endless opportunities

Mexico is a country of incredible opportunity. Whether you’re drawn by its tourist destinations like Cancun, Tulum, or Puerto Vallarta, or tempted by the investment opportunities in its growing industry and real estate market, Mexico has something to offer. Its rich culture, commitment to health and education, and the friendliness of its people make it not just a place to visit, but a place to call home. As Mexico continues to grow and evolve, it remains a land of potential, promising a future as bright as its sunniest beaches. Contact us today and we can help you with investing and migrating to Mexico.