Last updated on July 21, 2023
I have lived and worked from around the world for more than 15 years. Before settling on living in Spain, I lived in Chiang Mai, Thailand for five months and loved it enough to move back the following year. Then I lived in Mexico twice—two different spots—for roughly a year. Thailand was the first time I stayed put in one spot and became a semi-expat. As the months passed, I was so surprised by how affordable living there was that I shared a cost of living post … mostly for the readers in the A Little Adrift community who had written me over the years wondering how they could afford to live or retire abroad. Long story short, that post went viral and a million visitors have read about the $650 baseline costs to live in Thailand.
Clearly the financials are interesting. And Mexico is often the first place American retirees and digital nomads consider when looking at places overseas with a lower cost of living. It’s close to the U.S., the food is both terrific and familiar, and it’s fairly easy to make the move. So, with that in mind, this post below outlines my my expat stints across Mexico—from a tiny beach town on the Pacific coast to the food capital of Oaxaca.
Why Move to Mexico?
First off, Mexico is a big country. It’s located below most of the United States, so imagine driving from Texas to Seattle and you have an idea of what it might take to get to another area of Mexico. This is important to understand, because many of the most popular expat spots are about that far removed from the extreme cartel violence you might read about. Expats, retirees, and digital nomads often love living in Mexico because of proximity to the U.S.—all of the country’s bigger cities offer direct flights to the States, and they’re affordable too!
Budget, however, is the driving impetus for a lot of expats moving to Mexico. The average annual wage in Oaxaca, for example, is around $10,500—that’s an average and many Mexicans live on less than that sum (particularly indigenous and rural populations). In fact, try this on for size: The Mexican government raised the 2023 minimum wage to 207 pesos (about $10.82) per day. Before the inflationary pressure of the past couple of years, it sat at just $6.20 per day in 2020.
Why are Mexicans fleeing to the U.S. if expats want to live there?
I am often emailed a question that’s roughly this question. Although it’s mostly online trolls asking it, it’s a good question and one worth answering.
It comes down to social inequality for Mexicans and the sheer amount of money available to those who work in the U.S. and send money home. The U.S. federal minimum wage is $7.25 per hour—and it’s double that in some states—meaning if workers can send even a portion of their daily earnings home to family in Mexico, it represents a huge sum.
Expats occupy a position of extreme privilege, particularly retirees able to use the culmination of a lifetime of working in a more expensive and better paid economy. Americans retiring to Mexico basically use geo-arbitrage to spend their money and social security checks in a country where the USD goes a lot further. Given that the U.S. has its own social injustices, and given that housing is skyrocketing, many expats look to Mexico as a place where they can afford to live a type of life that feels less attainable in the U.S. right now.
But why Mexico and not other popular places in Central America like Costa Rica or Panama? Both of these countries also offer a low cost of living, but each country offers an entirely different culture, food, and also different visa requirements. Americans can easily obtain a retiree visa for Mexico, and digital nomads often take advantage of the automatic six months on-arrival that Americans enjoy when entering Mexico.
Average Cost of Living Across Mexico: $600 – $2,000
My baseline (and total) costs to live in Mexico came in under $745 every month. I’ve also lived in Oaxaca too, and it’s even more affordable (I spent well under $600 per month). Housing is your biggest expense, and even Western-style places are affordable. A single person is hard-pressed to spend more than $1,000 here on a modest budget.
|Monthly Expenses||Cost (USD$)|
|Rent & Internet||$375|
|Electricity & Water||$0|
This post is updated annually with new information. This video shares the costs, style of living, quality of life, and other details about living as an expat in Mexico, with a tour of my studio in a trendy beach town north of Puerto Vallarta:
Cost of a Month of Living in San Pancho, Mexico
This entire post outlines the baseline costs—my fixed monthly expenses for one person living in a beach town on the west coast of Mexico. Living in Mexico is ideal for budget-conscious expats, retirees, and digital nomads. Those living in nearby Costa Rica or Panama tend to have higher monthly cost of living averages, so I found my Mexico living situation ideal. Mexico also has a very generous visa policy—six months on arrival for Americans, which helps keep total living costs low.
The chart shows the basics you’ll need to cover when living in most parts of Mexico. Puerto Vallarta and surrounding communities are generally pricier than spots in Oaxaca, and perhaps on par with places like San Miguel de Allende.
Not included in this breakdown of living costs: medical/health insurance, my plane flight to Mexico, or any expenses I incur outside of living (running this site, insurance, work, etc).
But all the baseline costs are all included in my totals, and really unlike the Thailand post, this total includes toiletries and any expenses inside Mexico that cropped up—I never withdrew more than USD $750 from the ATM each month. And this budget is on the high-end for one person; if I had looked around for an apartment or shared a house with friends my costs would have lowered to $600 (and my friend Earl says that’s about the cost of living in Playa del Carmen on the east coast beaches as well). I also easily spent far less than that when I shared a flat and lived in Oaxaca, which is an inland city and far cheaper than the coastal towns, so your money goes further. I share a heap of Mexico resources at the end.
One of the high points of Mexico, a clear advantage over living in Asia, is the visa situation. As a U.S. citizen, I receive a six month visa on arrival automatically, and this can be reset simply by crossing a border and coming back … indefinitely. For those considering moving overseas without the chance for a retirement visa, the visa policy in Mexico is a big boon. The visa situation in Southeast Asia is a lot trickier, and although I didn’t include the visa runs into my baseline costs in SEA, it was absolutely a big part of living there for six months and it could add up a lot if you were there for years on end.
Right now, the peso is roughly 20 pesos to 1 US dollar, and it’s hovered around there for more than five years (excluding those uncertain months at the start of the pandemic). Use that figure as a guide to the food and transport costs I mention (check that exchange rate here). In the video and these breakdowns, I very specifically quote pesos and not dollars as my costs because the exchange rate may vary, but you will be paying for your life in pesos!
What Did Daily Life Look Like in San Pancho, Mexico?
The various facets of living abroad are part of what makes one place appeal to some expats while others prefer something vastly different. I’m on the fence between Asia and Latin America, I love them both for different reasons, so rather than compare these aspects of life to each other, below is the food, life, and culture you get for that budget living in a beach town on Mexico’s Pacific coast.
A Light, Airy Studio Apartment
I didn’t look very hard for my apartment; in fact, it’s the first one I came across. I loved the family compound I lived within (they had a separate house with three rental apartments within their lot) and it’s one of the things I value living solo … I like having other people nearby who have my well-being in mind in case something happens. So, the apartment was 4,500 pesos per month ( $375 at the time) which is on the high-end for a studio in my town but the price included all utilities and really strong internet, which is essential for my online work.
A high point of living in Mexico is the fact that apartments and houses come with full kitchens (though mine was minus an oven), this is really great if you’re keen to cook—anything you rent here will likely come with a stove and pots and pans if it’s a furnished apartment. Other than the kitchen, it had everything else you would expect in a studio—full-size bed, counter with stools (where I worked from), closet, and a bathroom (a tour is shown in the video above).
Other places in town rent out as vacation rentals or rooms for anywhere from USD $200 per month on the very low-end (likely no wi-fi) to $500+ for 1 and 2 bedrooms. And one town over, in Sayulita (which is bigger and more touristy has a great beach, a lot more food, bars, etc), the apartment prices are actually pretty comparable—ideal if you like the idea of Mexico but think my town was a bit too small! :)
Delicious Vegetarian Eats
It’s no secret I’m a vegetarian, so for me, a country gets bonus points for not only the accessibility of vegetarian food, but the understanding of the concept of vegetarianism. Mexico’s good on both fronts, though not always great. During high season my little town had just enough options to keep it interesting, and as the seasons shifted I cooked in my apartment a lot more using fresh veggies from the markets, which was fun and gave me a kick toward my goal of becoming a better cook (Asia spoiled me because the lack of kitchens and cheap street food meant I never had to learn to cook these past years).
For food costs un Mexico, a cheap quesadilla runs 15 pesos (just over $1) at one of the stands, a nicer taco costs about 40 pesos (about $3.25), and a veggie meal at one of the handful of restaurants in town runs up to $10 or $15 USD. I was lucky to have friends in town so I could split one of the big pizzas for our weekly Friday-night gatherings, and my friends Victoria and Steve often hosted potlucks.
I also drink a lot of coffee; so although I made my own pot each day, the food budget included many espressos each week. My food budget was pretty generous, so if you cook at home, even adding the cost of cooking meat, I think you could get by on 1,000 pesos each week. I often bought organic veggies (expensive) at the Friday market in Sayulita, so the food budget is generous for a range of eating styles.
Getting From Here to There
One of the perks of living in a one-street town is that you don’t need a whole lot of transportation! That being said, I chose to live on the far end of the main street very close the community center where I volunteered (and about a 10-minute walk from the beach). A mere 10 minutes doesn’t seem like much, but in the scorching heat I was happy to have use of a bicycle from the family compound.
And for leaving San Pancho, Puerto Vallarta is about 45 minutes away and costs just a few dollars each way on the bus—this is the closest big city. Sayulita is a perfectly lovely small town (much bigger than mine though) and it was merely 20 minutes up the road. This ride costs $1 each way on the bus or a quick (and easy) hitchhike ride.
Sayulita was perfect to have nearby if I needed to vary up my food, explore a bit, or just get out of town for a few hours. There are many other beaches driveable, some ruins, old stuff to look at, etc if you’re keen to explore. I worked a lot so my bike took me most anywhere I wanted to go.
Nightlife in San Pancho, Mexico
I am not a partier. Whew, glad we got that out of the way. Now, when I say that I have a low-budget for alcohol and partying you can adjust it accordingly for yourself. San Pancho is a great town for nightlife if you like a bit of variety but nothing too crazy—no dance clubs, but we did have two great bars and a lot of live music throughout the week. In fact, during high season there was live music at one of the bars or restaurants nearly every night.
One of the things I loved best about the town was that the pace of partying was a lot closer to what I prefer—everyone chilling, talking, listening to music, and enjoying company. Add to that some game nights at Victoria and Steve’s for Jungle Speed (had never heard of this game but it was fun and hilarious to play in a group), beach bonfires, and conversation … I felt like Goldilocks—San Pancho was just right.
Quality of Life in Mexico
This bit surprised me some, I knew that many Americans headed south of our border to live but I never really understood why until I stopped and spent months on the Pacific coast taking in the truly stunning sunsets, the relaxed atmosphere and the affordable lifestyle. The only thing I expected but never found was the fear and danger.
I’ve honestly discussed the question of safety and danger in travel. Our perceptions and reality of the world are often skewed; that is true of Mexico. While there are certainly dangerous places in Mexico, the country is huge. The people and cultures shift and change with the terrain and there are some surprisingly safe cities throughout the country if you know where to look (look to the blogosphere!). Also know that any safety information you find online can change rapidly, so always source your information from local expats or those who spent considerable time there recently, and really understand the undertones of living in that area.
I really loved the access to affordable healthcare in Mexico (a bonus Thailand had as well), like-minded expats who I now call close friends, and a pace of life that encouraged me to slow down and enjoy the little moments.
The short of it all is that Mexico proved more expensive at daily living than Thailand, but still at least half the rent I paid living in Los Angeles in my pre-travel days. And the flights to Mexico are far cheaper for North Americans. Although it wasn’t as cheap, I have continued to make Mexico a regular stop on my travels in the years since I lived in San Pancho and Oaxaca. The plane flights are affordable, I speak the language, and I enjoy the culture.
It’s a privilege to even have this ability, and I appreciate that Mexico has a lot to offer American expats. And likewise, many of these towns appreciate the influx of money and added services that come with expats moving to town.
It’s the sum total of it all that I love—by living outside the U.S. (I now reside in Barcelona, Spain), I am able to scale back the hours I have to work each week to survive, and instead focus that attention on doing things I love: volunteering in the nearby community center, taking photographs, and having the time to enjoy the friendships I make. No place is perfect, but for $750 a month, nightly sunsets, lots of friends, and tasty tacos … I’ll return to Mexico soon. :)
Relevant Links & Resources for Moving to Mexico
- You will need comprehensive worldwide expat insurance and separate property insurance policy once you’re living overseas—I’ve used IMG Global and Clements for many years now with great success and highly recommend both. I have used these them in tandem since 2008.
- Read The People’s Guide to Mexico: Even if you’re a veteran Mexico traveler, this is hands-down the best guidebook you should use to understand the various regions, the cultural quirks, and all the reasons Mexico is a fantastic place to travel and live. It comes highly recommended by me, and by heaps of Amazon reviewers too.
- Living in Guatemala: This eguide shares the cost of living and what it’s like in one of my favorite spots in Central America, Guatemala. Although different than Mexico’s expat scene, there are some very compelling reasons (great culture and affordability, to name two) to consider moving to Guate.
- A Better Life for Half the Price: A Mexican expat breaks down all the major expat spots in the world with costs, quality of living, and resources. I learned heaps and found a couple countries I hadn’t previously considered. It’s worth buying if you’re still searching out which country is best for the life you want to live.
- Getting Out: Your Guide to Leaving America: There are a lot of these general guides. The book above, Better Life is about where is a good culture fit, whereas this is the better of the lot of “move overseas” books that covers the practicalities and very hands-on information you need as someone considering living anywhere outside the U.S. If you’re new all the researching, this can kick-start your process. And if you are laser-focused on the retirement topic, versus moving overseas at a different state in life, this retirement guide has great advice.
- The Tax Book for U.S. Expats: This is well-priced and unique to expats and retirees filing abroad. It gives a granular look at forms, terms, and sorting out exactly how to file — good for those with complicated tax situations. More recently released, U.S. Taxes for Worldly Americans goes broader and is aimed at younger expats and digital nomads still working and handling how to earn income overseas, pay taxes, and live a nomadic life. It doesn’t explain the terms or niche situations/forms as well as the other book, but instead acts as a guide for younger travelers. Depending on your situation, pick up a copy of one of these guides before you leave so that you will have a tax system in place that maximizes the opportunities to easily file.
- Check out a Facebook group called “On the Road in Mexico” is a good place to ask questions of other expats.
- And dig through the two solid Mexico expat forums here.
Other Mexico Cost of Living Posts
- Couples apartment in San Pancho: A look at another rental property in town.
- Couples budget in Sayulita: A thorough breakdown of how much an apartment and life will cost in Sayulita, which is the larger town 20 minutes from San Pancho.
- Two solo budgets in Playa del Carmen: Nomadic Notes and Wandering Earl break down costs on an east coast beach.
- Family budget in Lake Chapala: While the site is no longer active, this archived version shares a family of three’s budget in the interior.
- Thailand cost of living post: I reference this throughout and thought I’d provide a handy link if you’re keen to compare living costs.
- Oaxaca City, Mexico. I haven’t written up this as a full detailed budget post, but I lived in Oaxaca for six months in 2016. The pace of life is different inland, and the city is at altitude (about the same as Denver). There is also a large expat community of snowbirds. There is a rich cultural and food history. I wrote a detailed guide to visiting Oaxaca. Budget-wise, my rent was half of rent in San Pacho and for more space. If you’re looking at long-term rentals (not the three-month apartment rentals that are quickly filled in winters by snowbirds), you can find a two-bedroom on the edge of Oaxaca Centro for less than USD $300. Food is affordable and the city has some of the most famous restaurants in the country.
San Pancho Travel and Visit Specifics
Airport to SP: Cheapest is the bus, by far. Taxis are going to run you a fair bit more. The bus makes a number of stops, but it’s not so bad. I had a friend who luckily was able to pick me up my first day, but after that I frequently made the trek into Puerta Vallarta via bus. Where ever you book for accommodation will also be able to arrange a taxi pick-up (sometimes for less than the going rate if you hail one) if you reach out beforehand. If you are already in the area, the bus is straightforward and takes 45 minutes to an hour from downtown PV.
Finding Accommodation: I recommend arriving in San Pancho before trying to find a place to stay, otherwise you will only find vacation rentals listed. Once you are in town, you can rent a bicycle for the day or walk around town and you will see many signs for rent. You can also talk with local expats and ask around. With average Spanish, you will have no problem finding something in just a few days, especially if it’s low season (get there before November). If you don’t speak Spanish, or you came in high season, pop into the real estate agencies. They handle rentals too and are fantastic resources on any city mentioned.
For where to stay, there are three tiers of pricing, the Hostal San Pancho or Shaka Surf House if you don’t mind a shared-dorm; these are the two most affordable options in town. Above Hostal San Pancho is an affordable, very nice guesthouse called Refugio de Sol—this is absolutely your best bet for private accommodation that’s still budget to mid-range prices. If that’s booked though, other nice private accommodation in the $60 tp $80 per night range include: Verde Luna, Casa Terraza, and Jardín San Pancho B&B.
If you’re in Sayulita, my friends rented a nice place from Villas Vista Suites for three months— I would start there for online hunting. If you’re using Sayulita as your base, consider the Aurinko Bungalows or Casa Pia as a mid-range option and then daytrip over to San Pancho. These all come recommended, and if you plan to move to the area they are a good base.
For a midrange hotel in Puerto Vallarta, look at Hotel Mercurio.
Working: There are some places that hire expats, though it’s under the table. To get these gigs you will definitely need to be in town and getting to know the people, places, and other expats. I know for sure that some friends worked at the mid-range and high-end restaurants in SP or Sayulita. A few expats also taught English for a small stipend at Entre Amigos, the community center.
Other: For work and living, it really will be so much easier on the ground. It’s a very small town and the expat community is super supportive. It’s a cinch to get the lay of the land once you arrive. Places like Darjeeling have fantastic tea and food, and then live music throughout the week. SP is more low-key than Sayulita, but there is usually something to do two to five nights a week depending on the season, and then you can always go to Sayulita if you need more of a vibe sometimes.
Deciding Where to Live
In response to numerous emails asking about the differences between the handful of towns north of Puerto Vallarta, here’s Cliff’s Notes summary of the differences in case you’re sussing out which is better for you. All three would have similar costs of living. And then I include a couple other towns and thoughts in case you’re looking at other Mexican towns:
Bucerias: Sprawling, no defined downtown area, neighborhoods stacked behind a big road and a beach. Very close to the PV, several big resorts. Less heavy with expats than any other surrounding town. No defined personality.
Sayulita: Very small, beach is very crowded with surfers because the water is good for swimming, entirely walkable within the town. Lots of restaurants, shops, a language school, etc. Touristy but a very clear personality with organic markets, yoga shops, surfers, etc. More of a nightlife than San Pancho (a later nightlife I should say).
San Pancho: Tiny, one main road, a handful of options for restaurants. One, sometimes two, coffee shops. Beach is gorgeous but not very safe for kids swimming (though some do) because of strong waves/undertow. A tight-knit group of expats, can’t leave home without seeing someone you know. Local kids have free reign of the whole town. Lots of musicians and something going on each night of the week in high season at one of the pubs/bars.
Guanajuato/San Miguel: In the interior, these two towns just exude pretty colonial charm. San Miguel del Allende is smaller and more popular with expats, while Guanajuato is a decent sized city with a great vibe, an affordable cost of living, and a decent-but-not-overwhelming expat community.
Oaxaca: I lived here for six months and found it is one of the most affordable expat cities in Mexico. The community is different than what you find in San Miguel or PV, it seems there are more opportunities to integrate into Mexican life. This is the food heart of Mexico, there are many indigenous cultures in and around the city, and the only real drawback is the political nature of the city—there are a lot of strikes and protests from the teachers unions and other groups.
Yucatan: Hugely popular with expats (and spring breakers), a bit pricier than the west coast, gorgeous beaches and diving. Very touristy region in general but convenient and safe.
Cost of Living Comparison
Still researching the right spot to live? Our Cost of Living Guides share extensive resources on all the major expat spots around the world. These guides include thorough breakdowns of the culture, quality of life, vibe, and—importantly—budget breakdowns so you can better plan which spot in the world best meets your needs.