Move to Mexico to Work Remote?

Here's what to consider...

May 03, 2024

1,158 Words | 4 Min 51 Sec Read

Welcome to another issue of Passionate Income.

Today we’ll be discussing the Pros and Cons of working remotely from Mexico.

In particular, what criteria you should consider depending on your personal preferences and what type of job you have / business you run.

Let’s dive in.

This issue is sponsored by us - Passionate Income!

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In the past we've published multiple issues related to ​saving money​ by leaving the US and moving to a ​foreign tax haven​ (legally of course).

In today's issue, we'll dive deep into what is by far one of the most popular relocation destinations for Americans, Canadians and Europeans who work remote: Mexico.

Whether you're interested in relocating for pleasure, tax savings or some other motive, life is multi-faceted. And because of that, there are a multitude of factors you need to take into consideration, from timezones to how much it will cost (and how much of a hassle it will be) to fly back to your home country.

Let's dive in.

If you freelance of offer some kind of client service, odds are you're holding multiple calls/Zooms per week (and potentially per day).

And because of that, living somewhere that overlaps with US timezones is critical. As someone who's lived in Thailand and even Europe, having to hold calls at 6:00am or 8:00pm can be a major buzzkill.

Especially in Asia, where Friday afternoon calls in the US require you to get up early on Saturday mornings.

And because of that, both Mexico and the rest of Latin America are ideal for anyone who provides client services and/or needs to speak with suppliers, logistics companies, etc. (for those of you involved in e-commerce).

Second, while it's the most expensive country in Latin America, Mexico is cheaper than most American cities.

Sure, Mexico's most expensive beach cities (Cancun, Puerto Vallarta, etc.) may be more costly than living in the middle of nowhere in the states.

But given most people live in a major city, or in the suburbs nearby to a major city, it's safe to assume Mexico is cheaper than both the US and Canada.

Third, flying back to the US is a breeze, with most cities having nonstop flights to major hubs like LA, Miami, Houston, etc. And even flying back to Europe is easy, with Cancun offering low cost, nonstop flights to Spain (as an example).

Last, some Mexican cities (like Playa del Carmen and Mexico City) have huge expat / digital nomad communities. Which can provide comfort if you're looking for someone to watch UFC with (or just reminisce about all the yummy food you miss from back home).

The downsides?

Mexico is hot. And in some places, really hot.

Even high altitude cities like Monterrey, Mexico City & Queretaro can average 85-90+ degrees Farenheit (34+ Celcius) for six months out of the year.*

*Technically Mexico City's averages are much lower, but they're experiencing serious climate change right now, with daytime highs average 5-10 degrees Farenheit above their historical averages.

Further, in addition to the heat, the beach towns in Mexico (which are even hotter than the cities listed above) have serious humidity from April to October.

Not to mention a heavy presence of mosquitoes. Which if you're a mosquito magnet like me, can seriously impact your day-to-day quality of life.

Next, Mexico's taxes are relatively high.

While moving overseas allows you to take advantage of the FEIE rule (explained in this ​issue​), technically speaking you're supposed to pay taxes in whatever country you move to.

So, while you may avoid federal tax on your first $130,000 in income, in reality you'll have to pay federal tax to Mexico's government. Which, when all is said and done, could actually turn out to be more than you'd pay in the US.

Of course, you can always try to get away with not paying. Plenty of people go this route, and 99% never have any problems.

Just don't point the finger at us if you end up in a Mexican jail for tax evasion!

Another thing to consider is the culture.

While it's impossible to sum up in one short paragraph, as you can imagine, Mexican culture is plain different. From expected dress codes to work hours and noise tolerance, you can't move to Mexico and expect the same customs, laws and rules you have back at home.

In addition, gentrification is a serious issue in the more well-known hotspots.

And because of that, there's a bit of anti-gringo sentiment growing. Especially as it relates to housing (AirBnb effect) and dining (Western tipping culture) driving up prices to the point locals can't afford to live there anymore.

Last, you have to be realistic about violence and corruption.

While hotspots like Mexico City and Puerto Vallarta are fairly safe, getting too far outside the tourist bubbles can be dangerous.

Just this week, three well-known surfers ​went missing​ in Ensenada, with evidence pointing to them having been abducted and killed.

In addition, cell phone robberies are commonplace in cities like Guadalajara.

And while they may not be common, cartel shoot outs have claimed the lives of many Western tourists over the years, with the ​most recent death​ happening just eight short weeks ago.

In conclusion, every country on planet Earth has its Pros and Cons.

Literally nowhere is perfect. And because of that, every choice you make will involve some type of sacrifice.

For some, the natural beauty, closeness to the US and (semi) low cost of living make Mexico highly attractive.

For others like me, the heat, presence of mosquitoes, and overall culture were a major turn off, leading to me to pursue greener pastures elsewhere.

Either way, you'll never know until you give it a shot.

And remember: Few things in life (except tattoos and babies) are permanent.

So if you give it a shot and it doesn't work out, you can always move somewhere else.

💡 Takeaway: As a Westerner, Mexico is highly convenient for a variety of reasons. At the same time, it has it's fair share of downsides. What matters most is identifying which criteria are important to you, then getting out of your comfort zone while understanding you can always leave if you're not happy.

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