Mexico Cost of Living 2025: A Detailed Budgeting Guide

Mexico's lovely landscapes and rich culture draw many travelers and expatriates. A key factor attracting over a million expats is the lower cost of living in Mexico compared to other Western countries.

Living costs vary greatly depending on location and lifestyle, from bustling Mexico City to beach towns like Playa del Carmen. Some areas cater to expats, while others offer a more local experience, affecting expenses.

That being said, let’s explore the overall costs in various categories to help you assess how much you'll need to live comfortably in Mexico.

The Cost of Living in Mexico Explained

One important factor when calculating your daily life expenses in Mexico is the exchange rate. The Mexican peso (MXN) fluctuates against currencies like the US dollar (USD), euro (EUR), and Canadian dollar (CAD).

Your cost of living in Mexico may vary depending on currency exchange rates. Therefore, it's a good idea to monitor fluctuations and use local bank accounts or international transfer services to minimize exchange fees.

Without further ado, let's discuss the various living costs in Mexico:

1. Visa and Residency Costs

If you plan to stay in Mexico for a longer period, you’ll need to understand the visa and residency requirements. The two main types of visas include:

• Temporary resident visa: Ideal for those staying more than six months but less than four years. You typically need to prove a steady income or savings.

• Permanent resident visa: This is designed for retirees or long-term residents with higher financial requirements, but it allows indefinite residency.

Visa application costs vary but typically range from $50 to $300, depending on the type and processing fees.

2. Housing Costs

Here's a breakdown of the housing costs in both smaller and major cities, including the average rent in popular places:

Renting (Apartments, Houses, Condos)

Housing is often the biggest expense for most people living in Mexico. In most cities, lower rents can be found compared to many Western countries. Renting is a popular choice for both locals and expats, with prices depending on whether you live in a big city, a smaller city, or a beach town.

• San Miguel de Allende: Popular among many expats and retirees, rental prices range from $700 to $1,500 for a comfortable home.

• Playa del Carmen & Riviera Maya: Beachfront rentals tend to be more expensive, with prices around $1,000 or more for a decent apartment near the coast.

• Puerto Vallarta: A favorite among retirees, rent ranges from $700 to $1,500, depending on proximity to the beach.

• Smaller cities: In places like Merida or Guanajuato, you can find decent apartments for $300 to $600 per month.

Buying a Home (Property Prices, Mortgage Options, Taxes & Fees)

If you’re planning to stay long-term, buying a home might be a better financial decision. Property taxes in Mexico aren't as high as in many Western countries, making homeownership attractive.

A decent home in a big city center might cost $250,000 to $350,000, while a nice house in a smaller city could be under $200,000. However, foreigners buying beachfront properties in Mexico or near borders should use a trust (fideicomiso) or establish a Mexican corporation.

All in all, Mexico’s real estate market offers affordable options for those looking to invest, relocate, or retire affordably. Compared to cities like New York or London, there's a big difference in savings.

For example, if living in New York City costs over $8,000 per month, you can enjoy the same comfort in Cancun, one of the best cities to live in Mexico, for just $2,200 per month—a 75% saving!

Moreover, with the Mexican peso fluctuating, buying property at the right time can boost your investment. Most real estate transactions in Mexico happen in cash, meaning no high-interest mortgage payments. Investing here offers not just affordability but also financial freedom.

With that in mind, now is a good time to invest in real estate in Mexico. From Playa del Carmen and Tulum to Cancun and Puerto Vallarta, Mexico’s real estate market is thriving, and property taxes aren't high. Whether you want a beachfront property, a rental investment, or a cozy retirement home, Zisla makes the process easy.

Why Choose Zisla?

Buying property as a foreigner can be tricky, especially if you don't know the risks of buying real estate in Mexico. Luckily, we specialize in helping international buyers purchase property in Mexico with ease. We offer:

• Access to the best properties in Mexico

• Expert advice on closing costs and legal requirements

• Turnkey and pre-sale property options

• Smooth and transparent transactions

Investing in Mexico isn’t just about saving money—it’s about improving your quality of life while making a smart financial choice. Whether you’re ready to buy or just starting your research, Zisla is here to help every step of the way.

Contact Zisla today to explore the best real estate opportunities in Mexico. Your dream home is just a conversation away!

3. Construction Costs (Land Prices, Materials, Labor)

Now, let's discuss the construction costs in Mexico.

• Construction cost per square meter: 15,423 MXN (~$90,000–$100,000 for a 100-square-meter home).

• Building materials: Cement and steel aren't scarce in Mexico, making costs significantly lower than in the United States.

• Labor: A skilled worker can be hired for 200–600 pesos per day (~$12–$36).

4. Utilities (Electricity, Water, Gas, Internet, Home Maintenance)

Utility costs depend on location and usage. If you use air conditioning, especially in warm climate areas like the Riviera Maya, expect higher electric bills.

• Without air conditioning: $30 to $60 per month.

• With air conditioning: $150 and more per month.

• Internet and cable TV: Plans range from $30 to $60 per month.

• Streaming services: Many expats prefer Netflix or other online services over traditional cable TV.

• General upkeep: $50 to $200 per month, depending on the home’s size and maintenance needs.

5. Food Costs

Mexico offers delicious and affordable food. You can find meals to fit any food budget, from street food to high-end dining.

• Street food: You can get tacos, tamales, or tortas for $2 to $5 per meal.

• Local mercados: Meals at local markets often cost $3 to $6. Shopping at local mercados and local markets helps keep costs low. Supermarkets carry international brands but at higher prices. On average, a single person can spend $150 to $300 per month on groceries in local markets. The same food will cost you more money in many Western countries.

• Mid-range restaurant: Dining out at a mid-range restaurant costs around $10 to $20 per person.

• Italian restaurant and international cuisine: Fancy dining can be $30 to $50 or more per meal in both small and major cities.

Prices of Common Groceries in Mexico

A single person spends about $150 to $300 per month on groceries. Here’s a breakdown of common items contributing to the cost of living in Mexico:

• Tortillas: $1 per kg

• Beans and rice: $1–$2 per kg

• Eggs: $2–$3 per dozen

• Chicken (per kg): $3–$6

• Beef (per kg): $8–$15

• Fish (per kg): $6–$12

• Vegetables and fruits: $0.50–$3 per kg

• Cheese: $4–$10 per kg

• Bread: $1–$3 per loaf

6. Transportation Costs

Public transportation in small and major cities is generally lower in cost compared to many Western countries. In Mexico City and other major cities, public transport options include buses, metro systems, and taxis.

• Mexico City metro: $0.30 per ride

• Bus fares: $0.50 to $1.00 per ride

• Colectivos (shared taxis/minibuses): $1 to $3 per ride

• Gasoline: ~$4.50 per gallon. Expect to spend around $100 to $300 per month on gas and insurance.

• Car insurance: $500 to $1,000 per year

• Routine maintenance: $50 to $150 per month

• Ridesharing (Uber, Didi, InDrive): Short trips cost $3 to $7, while longer trips cost $10 to $30, depending on distance and city.

• Bus fares: In most cities, bus rides cost $0.50 to $1.00.

• Taxis and ride-sharing: Uber and Didi operate in many cities, with short trips costing around $3 to $7.

7. Healthcare Costs

Mexico has both a public healthcare system and private healthcare options.

• Public healthcare: The public healthcare system is accessible to both locals and many expats who obtain residency. However, wait times can be long.

• Private healthcare: Many choose private healthcare for faster service and higher quality care. Private health insurance costs around $50 to $300 per month, depending on age and coverage.

If you’re retiring in Mexico, your retirement check may cover private health insurance comfortably. Social security benefits from some countries may also be used to cover medical costs.

Common Medical Expenses (Doctor Visits, Medications, Dental Care)

• Doctor visit (private clinic): $30 to $50 per visit

• Specialist visit: $50 to $150 per visit

• Medications: 30% to 60% cheaper than in the U.S.

• Dental cleaning: $30 to $60

• Basic dental filling: $50 to $100

8. Entertainment and Leisure

The cost of living varies based on lifestyle. Some easily spend more in expat communities, while others prefer a more affordable lifestyle.

• Gym membership: Depending on the gym’s facilities and location, monthly memberships range from $20 to $50 for standard gyms, while high-end fitness centers with premium amenities can cost $60 to $150 and more per month.

• Nightlife: Drinks at a bar typically cost $3 to $6, depending on the city and venue.

A single person can live comfortably in most Mexican cities with a budget of $1,500 to $2,500 per month, depending on lifestyle choices and location.

Cinema, Streaming Services, and Travel

• Movie ticket: $3 to $8

• Netflix, Disney+, HBO Max, etc.: $8 to $15 per month

• Domestic flights: $50 to $150 one-way

• Bus travel between cities: $10 to $50

• Guided tours & excursions: $30 to $100 per person

9. Education Costs

Many Western countries don't have affordable education. Here's a summary of the education costs in Mexico:

• Public schools: Free but mostly Spanish-speaking.

• Private schools: $200 to $1,500 per month, depending on the school and city.

• Public universities: $500 to $2,000 per year

• Private universities: $5,000 to $15,000 per year

10. Personal and Household Expenses (Mobile Plans, Clothing, Appliances, Pets)

Here's a breakdown of mobile plans, clothing, and other personal and household expenses:

• Prepaid mobile plans: $10 to $20 per month

• Unlimited data plans: $25 to $50 per month

• Casual clothing: $10 to $50 per item

• Men’s haircut: $5 to $15

• Women’s haircut & styling: $15 to $50

• Salon treatments (coloring, manicure, etc.): $20 to $80

• Small appliances (blenders, microwaves): $30 to $100

• Refrigerators & washing machines: $300 to $800

• Veterinary checkups: $20 to $50 per visit

• Pet food: $20 to $50 per month

11. Miscellaneous Costs

Setting up a Mexican bank account can make daily life easier, especially when it comes to paying rent and utilities or using public transportation. Many expats keep accounts in both their home country and Mexico.

• ATM fees: Withdrawing money from foreign accounts can come with high fees. Using a local bank reduces transaction costs.

• International transfers: Services like Wise and Revolut offer better exchange rates compared to traditional banks.

• Credit cards and cash: While you can use cards in most cities, many local mercados and small businesses prefer cash.

12. Safety and Security Considerations

While Mexico is a welcoming country with a reasonable cost of living, safety is crucial for anyone relocating, especially in major cities. Crime levels vary greatly depending on the region. Many expats choose to live in areas known for their safety, such as:

• San Miguel de Allende (one of the best places to retire in Mexico)

• Playa del Carmen (part of the Riviera Maya and one of the best places in Mexico to raise a family)

• Puerto Vallarta (a coastal paradise with a strong expat community and one of the safest Mexican cities)

• Smaller cities in the central highlands offer a quieter, more affordable lifestyle.

As in any country, being aware of your surroundings, securing your belongings, and avoiding certain areas at night can enhance your well-being and sense of security.

Our Conclusion on the Cost of Living in Mexico: Is Mexico Affordable?

Living in Mexico can be as affordable or as expensive as you want it to be. If you're used to a comfortable lifestyle in many Western countries, you can maintain a similar lifestyle in Mexico for a lower cost.

Big city life in Mexico City comes with higher costs but more amenities, while beach towns like Puerto Vallarta and Playa del Carmen can be pricier but offer a resort-like lifestyle. On the other hand, smaller cities in the central highlands, like San Miguel de Allende, provide a lower cost of living in Mexico and a good quality of life.

No matter your budget, you can find a lifestyle that suits your needs and a home within your budget with the help of Zisla. With careful budgeting and smart choices, Mexico offers a great place to live comfortably while enjoying the culture, warm weather, and vibrant communities.