Cost of Living in Mexico

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The cost of living in Mexico is affordable compared to its North American neighbours. That being said, the capital, Mexico City, is much pricier than the rest of the country, and the cost of living in the city is on the rise.

Nevertheless, many foreign retirees find that their pension stretches much further in Mexico than it would back home. For this reason, along with the relaxed and high-quality lifestyle, the country has become an increasingly popular destination for those relocating abroad.

Your cost of living in Mexico will vary substantially depending on where you choose to live. It’s possible to live inexpensively in the country’s rural areas, but life in the cities is considerably more expensive.

Cost of accommodation in Mexico

Expats living in Mexico will likely find accommodation to be their most significant monthly expense. This naturally depends on where they live in the country, as property prices and rentals can vary considerably. In general, expats will find good value for money when it comes to renting or purchasing property, particularly in the more rural areas. Cities, resort towns and beachfront locations tend to be costlier.

Both furnished and unfurnished accommodation is available. Standalone houses and apartments are often equipped with fully functional kitchens, which may help expats save on startup costs. While most long-term rentals will not include utilities in the monthly rental price, utilities are largely affordable so this isn't a major additional expense.

Accommodation in Mexico

Cost of transport in Mexico

Mexico has an extensive public transport system that is affordable and reliable. Buses travel between most towns, so travelling around the country is easily done without a car.

Many towns are easily navigable on foot or by bicycle, which are low-cost and free options that have many health benefits, but driving does provide you with more freedom. Many expats prefer to drive and must budget for purchasing costs, as new vehicles are typically expensive. Other costs to keep in mind are maintenance, insurance, and fuel costs.

Transport in Mexico

Cost of groceries in Mexico

If you’re considering Mexico as your new home, the affordability of groceries will often be a pleasant surprise. While the cost can vary by region and shopping preferences, your overall grocery expenditure will tend to be significantly lower than in many Western European and North American countries. Shopping at local markets and small grocers, rather than at supermarkets oriented towards international residents, will allow your budget to stretch further.

The abundance of fresh produce, often sourced from Mexico’s rich agricultural regions, ensures that your meals can be both nutritious and economical. Staples such as rice, beans, and corn products are particularly inexpensive. While imported goods do carry a higher price tag, local equivalents are readily available and are a cost-effective alternative.

Cost of entertainment and eating out in Mexico

The cost of leisure and dining varies widely across Mexico, but it remains accessible compared to many expats’ home countries. Mexico offers a broad spectrum of entertainment options that cater to all budgets. Cultural activities, such as museum or historical site visits, are reasonably priced, providing affordable enrichment opportunities.

Eating out is a favourite pastime in Mexico, with a range of choices from street food vendors to high-end restaurants. Street food, in particular, is not only a taste of authentic Mexican cuisine but also an incredibly budget-friendly way to dine. Mid-range establishments offer diverse menus at reasonable prices, and even in tourist areas, you can find eateries that offer excellent value for money.

Cost of education in Mexico

While public schooling in Mexico is free, with expenses limited to school supplies and textbooks, private and international schools are often preferred by expats due to their higher standard of education and facilities. Expats can choose from a range of private schools that offer a familiar curriculum taught in their family's home language, helping to ease the transition process for their children.

International schools also provide a multicultural space for children from all over the globe to get to know each other. Although the costs are high, expats generally find international schooling to be a worthwhile investment.

International Schools in Mexico
Education in Mexico

Cost of healthcare in Mexico

Public healthcare facilities in Mexico vary in quality, although some provide good care. That said, many expats prefer private hospitals, but these come at a heftier price. If you have an international medical scheme, you must ensure that your insurance covers the specific hospital you visit.

Healthcare expenses quickly add up with check-ups, medication and additional support, so it’s important to research the best insurance companies.

Healthcare in Mexico