Relocation to Mexico for Retirement

by ExPat Guide

Retiring or relocating to Mexico, whether independently or as a caregiver, opens up a world of opportunities. This country’s rich cultural tapestry, stunning architecture, captivating history, diverse cuisine, and affordable living conditions make it an attractive destination for many.

Depending on your and your spouse’s/partner’s age and health, an ideal location would provide the flexibility and range of options more commonly found through a CCRC (continuous care retirement community). This sort of setup would offer a lot of flexibility in both living arrangements and the spectrum of options for care. 

Exploring CCRC Options:

A Continuous Care Retirement Community (CCRC) in Mexico offers a versatile range of options suitable for various stages of retirement. Such a community provides the flexibility to transition smoothly from independent living to more comprehensive care as needs evolve.

Example of Mexican CCRC – Cielito Lindo:

Cielito Lindo, nestled within Rancho los Labradores near San Miguel de Allende, exemplifies a full-spectrum CCRC. It boasts amenities like cobblestone streets, serene water features, cozy cafés, and a hotel for extended stays, all surrounded by affordable and attractive homes. The community provides a blend of independent living spaces and comprehensive care facilities, all within a short shuttle ride to the vibrant heart of San Miguel.

San Miguel de Allende – A Retiree’s Haven:

Relocation to San Miguel de Allende is an extraordinary option.  It is truly a beautiful Spanish colonial city. UNESCO has declared San Miguel to be a World Heritage Site in 2008.

Wikipedia has some great information on San Miguel: https://en.wikipedia.org/wiki/San_Miguel_de_Allende

Travel + Leisure has voted San Miguel as the best city in the world: https://www.travelandleisure.com/worlds-best/san-miguel-de-allende-best-city-in-the-world

The city is so unbelievably charming, beautiful, enchanting, and welcoming. There is a lot of art and culture, and yet, a strong US and Canadian expatriate presence.  And while the cost of living has gone up over the last 10-20 years due to the popularity of the city, it is still profoundly less expensive than living in the US.

Financial Considerations:

One of the primary motivations for relocation to Mexico may be economic, especially for those who have experienced financial setbacks or are seeking to maximize their retirement savings. The cost of living in Mexico is approximately half that of living in the United States, although this can vary depending on your current and future locations.

Addressing Common Concerns:

  • Affordability: Despite the lower cost of living, the move involves additional expenses such as travel and health insurance. However, the reduced yearly living costs, including more affordable assisted living options, can offer significant financial relief.

  • Cultural Differences: While adapting to a new culture can be daunting, the warmth and hospitality of the Mexican people can make the transition a pleasurable experience.

  • Safety: Safety concerns are often overstated. With sensible precautions, similar to those one would take in any new environment, living in Mexico can be as safe as living in the U.S.

  • Food Differences: Mexican cuisine is rich and varied, and while it may differ from American dishes, the regional diversity offers something for every palate.

  • Language Barrier: English-speaking staff in expatriate-focused retirement communities can ease communication challenges, but learning Spanish can enhance daily living and enrich the experience.

  • Complexities and Logistics: While moving to Mexico does present logistical challenges, they are manageable with proper planning and guidance, which this guide aims to provide.

Determining if It’s Worth It:

Ultimately, the decision to relocate hinges on personal circumstances, preferences, and values. The care quality, setting, and affordability in Mexico, particularly for memory care or hospice needs, are compelling reasons to consider such a move. With cities like Puerto Vallarta, San Miguel, Ajijic, Lake Chapala, and Cabo San Lucas offering distinct lifestyles and senior living options, the potential for an enriched and cost-effective retirement is significant.

Relocating to Mexico can offer a fulfilling and financially viable solution for retirement living, providing care in a setting that nurtures both body and soul. Whether for oneself or a loved one, the benefits of a Mexican CCRC can make it a decision well worth considering.

Download

Download the Expatriate Guide for Senior Living in Mexico – For your convenience, the entire 50-page guide is available for download as a PDF. Additionally, give us a call at  +1.888.406.7990 or email us  at information.cielitolindo@gmail.com. We would love to hear from you.

Estate Planning Abroad

by ExPat Guide

You have been spending some time living the expat life in Mexico and you have taken the effort to explore your options before settling down. Now that you are sure you want to stay for a while and where you want to live, you have also decided that you want to invest in a home.

There are compelling reasons to consider making real estate a part of your international investment portfolio. But what is often overlooked is a strategy to pass on the property to your loved ones in the easiest way possible after you’re gone.

Legal Assistance is Key:

  • Hire a Local Lawyer: The inheritance laws in civil law countries can be vastly different from those in common law countries like the U.S. A local lawyer will understand the nuances of property laws and can help prevent your estate from becoming entangled in probate or, worse, reverting to the state.

  • Probate and Inheritance: Even in countries where joint ownership may bypass probate, taxes and fees can be significant, and processes can drag on. Engage with legal counsel to understand the implications and processes in your chosen country.

Understanding Inheritance Tax:

  • Tax Implications: Inheritance tax can vary greatly, often depending on the beneficiary’s relation to the deceased. Spouses and direct descendants usually benefit from lower taxation rates.

Corporate Ownership Considerations:

  • Foreign Corporation or LLC: Holding property through a corporation can avoid probate proceedings and may offer tax benefits. However, this comes with annual costs for maintenance and IRS reporting.

  • Probate for Corporate Shares: Direct ownership of a foreign corporation or LLC may still lead to probate. In some jurisdictions, shared ownership by spouses can provide interim relief, but eventual probate may be inevitable upon the passing of the surviving spouse.

Trusts and Foundations:

  • Fideicomiso for Beachfront Properties: In Mexico, foreign citizens often hold beachfront properties through a fideicomiso, which can facilitate inheritance and offer asset protection.

  • Foundations for Asset Protection: Similar to trusts, foundations in some civil law countries can simplify inheritance procedures and protect assets.

Optimal Ownership Structures:

  • Domestic LLCs and Living Trusts: Holding foreign real estate directly through a domestic trust or LLC can consolidate your global estate and simplify administration. However, registration requirements in the property’s country can pose challenges.

Registration Challenges:

  • Foreign Entity Registration: Registering a foreign entity, like an LLC, to hold real estate can be complex and costly, and local authorities may not be familiar with certain types of entities.

Conclusion:

International real estate can be an excellent investment and living choice, but it’s imperative to prepare for the eventual transfer of the property to ensure minimal hurdles for your beneficiaries. This preparation includes understanding local laws, considering the cost of maintaining corporate structures, and possibly using a trust or foundation for ease of transfer.

By navigating these considerations with a skilled attorney and ensuring you have a solid plan in place, your investment in Mexican real estate can be both rewarding in your lifetime and a generous legacy for your beneficiaries.

Disclaimer

Please note that this guide is offered to help you in your planning and decision-making by presenting the author’s personal findings and insights based on firsthand experiences and observations. Before making financial, legal or medical decisions, you should consider counsel from the appropriate professional.

Download

Download the Expatriate Guide for Senior Living in Mexico – For your convenience, the entire 50-page guide is available for download as a PDF. Additionally, give us a call at  +1.888.406.7990 or email us  at information.cielitolindo@gmail.com. We would love to hear from you.