MEXICO

   Mexico, Mexico, Mexico. Who can deny that the USA and Mexico, NAFTA or no NAFTA, are both joined at the border and joined at the hip?

Most of the noise in the media is about the immigration—legal and otherwise—of Mexican nationals to the USA. But there is also movement in the opposite direction, and not surprisingly, economics is a key motivator here too.

For many Americans Mexico is not an exotic country, and it is so very, very close. Again, no surprise at all that Mexico is the number one choice for Americans retiring abroad, and there is no sign of that letting up.

Besides the location, there are other happy attractions: varied destination choices, considerably lower cost of living, wonderful food (it is so much more than tacos!), friendly people, and a relatively easy-to-learn language, Mexican Spanish.

The most popular area is the Guadalajara/Lake Chapala region which enjoys one of the most pleasant climates in the entire world. Other popular American expat spots include San Miguel de Allende (colonial mountain town which is more upscale), Cuernavaca (closer to Mexico City), Merida (in the Yucatan), Oaxaca, and the beach resorts of Acapulco, Puerto Vallarta, and Mazatlan. Choosing a specific place to retire to in Mexico can be a task, and many people who have decided on Mexico try to tour many areas to make a wise selection.

Since Mexico is so close, and it is so easy to hightail it back home if there's a problem, Mexico attracts a higher than average number of what you might call "casual early retirees", with no real visas, only tourist cards, which can be for as long as six months per arrival.

Retirees who seriously want to settle in Mexico are going to tire of that sort of runaround muy rapido. Happily, the Mexican government is at the ready with an attractive retirement visa program.

It is is called the rentista FM-3 visa and requires a minimum of $1500 per month (the exact amount changes). This can be from a pension or social security and you only need half of the required amount if you buy a home in Mexico. As many with pensions get them before social security age, this could work for some early retirees. It may be possible to qualify on dividend earnings from investments; it is best to contact the Mexican authorities for the latest policies (the base investment funds might need to be held in a Mexican bank).

There is a way to apply to become a more permament resident of Mexico after staying there for 5 years (FM2). This gives the holder a lot more rights in Mexico but don't worry, it does not change your American citizenship.

In summary, Mexico is there with open arms for American retirees, should you choose to accept the invitation. Chances are, if you do, you won't be short of gringo neighbors!

Rentista FM3:
http://www.consulmexny.org/eng/visas_fm3_retirees_all.htm