Mexico has become one of the fastest-growing expat destinations in the world, drawing a new generation of remote workers, retirees, entrepreneurs, and lifestyle seekers alongside its long-established communities of American and Canadian residents. For British expats, it offers an intriguing combination: one of the world's great cultures, an extraordinary cuisine, a varied and dramatic geography, a cost of living substantially below the UK (in most contexts), and increasingly, the infrastructure — co-working spaces, international schools, modern healthcare — that internationally mobile professionals expect.
Visa Routes
Tourist Permit (Forma Migratoria Multiple — FMM). UK passport holders can enter Mexico as tourists for up to 180 days without a visa. The FMM is issued at the port of entry. This is not a residency permit and does not permit employment or self-employment in Mexico.
Temporary Resident Visa. For those planning to stay more than 180 days (including lifestyle expats, remote workers, and those with income from abroad). Applied for at a Mexican consulate in the UK before travelling. Requires proof of sufficient income or savings: the thresholds are linked to Mexico's UMA (Unidad de Medida y Actualización) and rose sharply from 1 January 2026 — broadly a monthly income or pension of around USD 4,300–4,400 per month (up from roughly USD 2,800 in 2025), or savings/investment balances of roughly USD 74,000+ (the exact figures vary by consulate and with the exchange rate, so confirm with the specific consulate before applying). Initial validity is one year, renewable for up to three further years, then convertible to permanent residency.
Permanent Resident Visa. Available after four years of temporary residency. Also available directly if you can demonstrate a higher income threshold (as of 2026 broadly USD 7,300–7,400 per month, or savings balances of around USD 300,000 — again UMA-linked and consulate-dependent, so verify current figures). Retired individuals with sufficient pension income often qualify. Permanent residency holders are not required to renew their status.
Digital Nomad/Remote Worker Considerations. Mexico does not have a specific digital nomad visa, but the Temporary Resident Visa effectively functions as one for remote workers employed by foreign (non-Mexican) companies, as working for a foreign employer online is generally tolerated under temporary resident status. Working for a Mexican employer would require a work permit.
Investment Route. Foreign investors acquiring real estate or investing in Mexican companies may qualify for residency through economic ties, though this route is less straightforward than in some other countries and requires specific legal structuring.
The RFC — Registro Federal de Contribuyentes
The RFC is Mexico's tax identification number. It is required for financial transactions, opening a Mexican bank account, signing a lease, and many other administrative purposes. Residents register for an RFC with the SAT (Servicio de Administración Tributaria — Mexico's tax authority). The process can be done online or at a SAT office. The RFC is distinct from the CURP (Clave Única de Registro de Población), a biometric identifier issued to all residents and foreigners with valid status.
Mexican Tax for Foreign Residents
Mexico taxes residents on their worldwide income. However, the definition of "resident" for tax purposes requires either establishing your habitual residence in Mexico (your primary home) or spending more than 183 days in Mexico in any twelve-month period. Foreign residents with income entirely from overseas sources and who have not registered as Mexican tax residents may be able to manage their obligations carefully, but this is an area where specialist advice is necessary — Mexican and UK qualified.
The UK and Mexico have a Double Taxation Agreement that provides mechanisms to prevent double taxation on most income types. Mexico's income tax (ISR — Impuesto sobre la Renta) rates are progressive to 35 per cent. Mexico also levies a Value Added Tax (IVA) of 16 per cent on goods and services, though basic food items and medicines are zero-rated.
Healthcare: IMSS and Private Options
IMSS (Instituto Mexicano del Seguro Social). Mexico's public health and social security institute. In principle, foreign residents can enrol voluntarily in IMSS healthcare and access the public system at low cost. In practice, the voluntary enrolment process and IMSS healthcare quality vary significantly by region. In major cities, IMSS facilities are adequate; in rural areas, considerably less so.
Private healthcare. The majority of long-term expats in Mexico use private healthcare — and it is one of Mexico's genuinely compelling advantages. Private hospitals and clinics in Mexico City, Guadalajara, and tourist/expat hub cities are modern, well-staffed, and operate at international standard. Costs are a fraction of US private healthcare: a GP consultation might cost £20–£40, a specialist £40–£80, and major surgery a fraction of US or UK private rates. International health insurance covering Mexico is widely available and recommended.
Medical tourism is a significant industry in Mexico — particularly dental work, cosmetic procedures, and orthopaedic surgery. Prices are 50–80 per cent below comparable UK private costs, and the quality at reputable private clinics is high. This is relevant to expats living there, not just visitors.
Safety Considerations
Mexico's security situation is complex and regionally highly variable. Parts of Mexico — particularly certain border areas, parts of Guerrero, Michoacán, Sinaloa, and Tamaulipas — have serious, ongoing security concerns related to organised crime and cartel activity. Conversely, the areas most popular with expats — Mexico City (CDMX), Guadalajara, Oaxaca, San Miguel de Allende, Puerto Vallarta, and the Riviera Maya — are substantially safer and have large, settled international communities with comparatively low crime rates affecting foreign residents.
Practical precautions are standard advice for any major developing-world city: avoid ostentatious displays of wealth, use authorised taxis or ride-share apps (Uber, DiDi) rather than street taxis, and exercise normal urban awareness. The UK government's foreign travel advice for Mexico provides specific regional guidance and should be reviewed.
Choosing Your Location
Mexico City (CDMX). A megalopolis of approximately 22 million people, one of the world's great cities — extraordinary museums, restaurants, culture, and neighbourhood diversity. Strong tech and creative industries; a large and active expat community, particularly in Condesa, Roma Norte, Polanco, Coyoacán, and San Ángel. Altitude (2,200 metres) affects some arrivals initially. Excellent international schools. More expensive than most of Mexico but still significantly cheaper than London for quality of life.
Guadalajara. Mexico's second city and tech hub ("Silicon Valley of Mexico"). A more traditional, manageable city than CDMX. Strong business culture, good infrastructure, more conservative social norms. Growing expat community. Significant tequila country context (Jalisco state).
Puerto Vallarta. Pacific coast resort city with a large, established LGBT expat community and a charming Old Town (Zona Romantica). Excellent restaurants, beaches, and a relaxed pace. Strong short-term rental market; popular for semi-retirement and remote work.
Riviera Maya (Playa del Carmen, Tulum, Cancún). Caribbean coast, world-class beaches and cenotes, growing international communities. Tulum has become particularly popular with digital nomads and wellness tourists. Infrastructure is developing rapidly but remains uneven. Playa del Carmen is more established and family-friendly.
San Miguel de Allende. A UNESCO World Heritage colonial city in the Bajío highlands. Very large American expat community (and growing British and European presence). Excellent art scene, cooking schools, and a genuinely walkable historic centre. Altitude (1,900 metres). Property prices have risen sharply.
Oaxaca. Southern Mexico's cultural and gastronomic capital. Smaller, quieter, and cheaper. Known for mole, mezcal, and extraordinary indigenous artisan traditions. Growing digital nomad and lifestyle expat community. More limited international school provision.
Banking
Mexican banking is served by BBVA México, Banorte, Citibanamex (transitioning to a new ownership structure in 2024–2025), Santander México, and HSBC México. Opening a bank account requires RFC, proof of address (typically a utility bill), and residency documentation. The process can be slow and document-heavy.
Fintech options have grown rapidly in Mexico — Nu (Nubank's Mexican operation), Albo, and Hey Banco offer faster onboarding with strong English-language digital interfaces. Many expats maintain a UK or international account alongside a Mexican one.
How Global Investments Can Help
Mexico offers a compelling combination of lifestyle, affordability, and cultural depth for internationally mobile individuals. Navigating Mexican residency requirements, the RFC registration process, tax residency interactions with the UK, and healthcare planning all benefit from specialist guidance.
Global Investments can connect you with trusted advisers across property, tax, and immigration for Mexico-bound clients, and help ensure your relocation is structured to protect your assets and meet your compliance obligations on both sides. Contact our team to discuss your Mexico plans.
This guide is for general information only and does not constitute financial, legal or tax advice. Rules, fees and regulations change frequently; verify current requirements with a qualified adviser before acting.