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News & Views

Baby Boomer Retirement in Mexico

10 | 24 | 2011

by Kathleen Peddicord
Founder and Publisher, Live and Invest Overseas 

Talk about options and opportunity! This big, extraordinarily diverse country offers two long coasts, mountains, and colonial cities...not to mention Mayan ruins, jungle, rain forest, rivers, and lakes.

Next door neighbors Mexico also wins the prize for most accessible to the U.S. You (or your loved ones) could drive back and forth for visits.

For all these reasons, Mexico is home to the biggest established populations of American expats in the world. It's perhaps, therefore, your best choice if you seek an adventure overseas with all the comforts of home.

 

Ajijic, Lake Chapala, Jalisco, Mexico

Ajijic is home to the biggest and most established expatriate community in the world. You could retire here comfortably without learning Spanish and you could spend most of your time, if you choose, among fellow foreign retirees. Ajijic residents enjoy the comforts and conveniences of back home while living at a reduced cost and with great weather.

According to the International Living Magazine (AARP), the fantastic climate, an international English-speaking community, the tranquility of picturesque Mexican villages, the beauty of Lake Chapala and the Sierra Madre mountains, the friendly people, the inexpensive cost of living (including having a maid and gardener if you wish ) and the relatively inexpensive real estate market have made this area one of the most sought after places to retire in Mexico.

The Mexican government, through its FONATUR tourism development agency, has a seriously sound track record developing little stretches of this country's coast. All interested investors have to do is to pay attention to where FONATUR is moving next to cash in.

More and more Baby Boomers on a fixed income are looking at Mexico as a retirement solution.  Why? Because you can live comfortably on considerably less than in the United States!  For many Baby Boomers, relocating to Mexico may be the only viable option for retirement.

Worried about Crime or Violence in Mexico?

According to AARP, A quick word about crime and safety in Mexico: Yes, it's extremely dangerous in the cities bordering the United States and a few places elsewhere. Mexico, however, is also nearly three times the size of Texas, and most of the country is reasonably safe and secure, especially resort areas and tourist destinations.

Population

108.7 million (July 2007)

Gross Domestic Product (GDP)

$1.353 trillion (2007)

GDP Per Capita

$12,500 (2007)

Inflation Rate

3.8% (2007)

Currency

Mexican Peso (MXN)

Exchange Rate Versus U.S. Dollar

10.8 Mexican pesos = 1 U.S. dollar (March 2008)

Languages

Spanish

Capital

Mexico City

Population of Capital City

18.7 million

Time Zone

GMT minus 6

Seasons

Coasts: hot, humid Inland: dry, warm year-round

International Dialing Code

52

Electricity

127V / 60 Hz; Plug Type: A, B (US style)

 

Federal Republic

Name and Party Affiliation
of Current Leader

Felipe Calderon, National Action Party

Income Tax Rate for Residents

3% to 29%

Property Tax

0.275% to 1.350%

Capital Gains Tax

28% of net profit with deduction options OR 25% of gross profit without deduction options

Inheritance Tax

0%

Rental Income Tax

Taxed as regular income

Transfer Tax

2%

Sales Tax

15%

Restrictions on Foreign
Ownership of Property

For property 50 km from ocean or 100 km international border, foreigners must own through a bank trust (Fidecomeiso)

Local Chamber of Commerce

www.ccmexico.com.mx
Paseo de la Reforma 42
06048 MEXICO, D.F.
Tel: (52-5) 592-0371

American Chamber of Commerce

www.amcham.com.mx
Lucerna 78
Col. Juárez
06600 México, D.F.
Tel: (52-55) 5141-3800

Primary Exports

Manufactured goods, oil and oil products, silver, fruits, cotton, vegetables, coffee

Residency and Visa Requirements

Tourist Visa: 180 days
Residency: visitor, student, artist and sports people, distinguished visitor, local visitor, provisional visitor, correspondent/journalist, and religious minister visas; immigrant visas for retirees, investors, professionals
Citizenship: after residency of a continual 5 years with an immigrant visa

Special Benefits for Foreign Residents or Retirees

Valid foreign residents are eligible for Mexican senior citizen benefits that amount to discounts of up to 50% on a variety of goods and services, from health care to movie tickets to hotel rooms

National Airline

Aeromexico - www.aeromexico.com
Mexicana - www.mexicana.com


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