Key Takeaways
- Legal Status: You can work for a US company while in Mexico on a standard tourist permit (FMM) for up to 180 days, provided you are paid in USD to a US bank account. For longer stays, you need a Temporary Resident Visa.
- Time Zones: Mexico aligns with US Central, Mountain, and Pacific time zones making synchronous work incredibly easy compared to Europe or Asia.
- Taxes: You still owe US taxes. However, you might qualify for the Foreign Earned Income Exclusion (FEIE) which can save you a bundle if you stay out of the US for 330 days a year.
- Internet: Fiber optic is common in major cities (Mexico City, Guadalajara, Merida). Starlink is now available and works great in rural beach towns.
- Cost: It is cheaper than the US, but the "Super Peso" has made it more expensive than it was two years ago. Budget accordingly.
The Short Answer: Can I Do It?
Yes, you absolutely can. In fact, thousands of Americans are doing it right now. If your company allows you to work from home, working from Mexico is usually a breeze because the time zones overlap perfectly. You don't need a special work visa if your income comes from the US and goes into a US bank account, and you stay for less than 6 months.
But, if you want to stay long term (more than 6 months) or want to do everything strictly by the book regarding tax residency, you need to apply for a Temporary Resident Visa at a Mexican consulate before you go.
Here is the deep dive on how to make this happen without losing your mind or your job.
1. The Visa Situation: Tourist vs. Resident
This is the first thing everyone asks about. "Do I need a work visa?"
Technically, a work visa in Mexico is for people working for Mexican companies. Since you are working for a US company, you fit into a different category.
The Tourist Permit (FMM)
Most digital nomads start here. When you land in Mexico, you get an FMM (Forma Migratoria Múltiple). Historically, immigration officers gave everyone 180 days automatically. However recent crackdowns mean they might ask for proof of accommodation or a return ticket. If you look like you're moving in with 5 suitcases, they might give you less days. Always show a return ticket booked for a later date to get the full 180 days.
The Rule: You cannot engage in "remunerated activity" within Mexico. This means you can't sell tacos or work for a local firm. But logging into your laptop to email Bob in accounting in Chicago? That is generally considered gray-area compliant as long as the money never touches a Mexican bank.
Temporary Resident Visa (Residente Temporal)
If you love it and want to stay longer than 6 months, or you just want the security of being legal, you apply for Temporary Residency. This lasts for one year and is renewable for up to four.
Economic Solvency Requirements: You have to prove you have enough money so you wont be a burden on the state. According to most consulates in 2024, you usually need to show:
- Monthly tax-free income of roughly $3,200 - $4,500 USD over the past 6 months (bank statements or pay stubs).
- OR a savings balance of roughly $54,000 - $75,000 USD held for the last 12 months.
Note: These amounts fluctuate based on the exchange rate and the specific consulate you visit.
2. Taxes: The Elephant in the Room
I’m not a CPA, and you should definitely talk to one, but here is the lay of the land based on how most expats handle it.
US Taxes
The US is one of the only countries that taxes based on citizenship, not residency. If you are a US citizen, you owe the IRS a tax return no matter where you live. Even if you live on the moon.
The Good News (FEIE): The IRS has something called the Foreign Earned Income Exclusion. If you are out of the US for 330 full days in a consecutive 12-month period, you can exclude the first $120,000 (approx, it adjusts for inflation) of your income from federal income tax. This is huge. It basically means you could pay $0 in federal tax.
However, you still have to pay Social Security and Medicare taxes (FICA) if you are a W2 employee.
Mexican Taxes
Mexico considers you a tax resident if your "center of vital interests" is in Mexico. Usually, this kicks in if you spend more than 183 days there in a year or if your main center of professional activity is there.
However, there is a tax treaty between the US and Mexico to prevent double taxation. Most nomads on a tourist visa fly under the radar and don't file in Mexico. If you get your Temporary Residency, it's smarter to consult a Mexican accountant (contador). Many expats on the Temporary Visa still only pay US taxes because their income source is foreign, but the interpretation of this law is tightening.
3. Pitching It To Your Boss
If your company is "remote-first," you might just need to tell them where you are for security reasons. If they are hesitant, here is how to sell it.
- Availability: "I will be in the Central Time Zone. I’ll be online at the exact same time as the team. No 3 AM Zoom calls."
- Reliability: "I have verified fiber-optic internet and a backup Starlink connection."
- Cost Savings: If you are a contractor, you can mention you don't need a raise because your cost of living is lower (careful with this one, don't undervalue yourself, but it works for negotiation).
- Security: Promise (and actually use) a dedicated VPN so company data is encrypted.
The "Don't Ask, Don't Tell" Method: A lot of people just use a VPN router and pretend they are in Ohio. I don't recommend this. If your IT department is competent, they will know. And if you get caught lying, you get fired. Just be honest.
4. Logistics: Internet and Infrastructure
You can't work if you can't connect. Mexico's internet infrastructure has improved massively in the last five years.
Fiber Optic is King
Look for accommodations that have Telmex Infinitum (fiber) or Totalplay. In major cities like Mexico City (CDMX), Guadalajara, and Monterrey, getting 100Mbps to 500Mbps is standard and cheap.
Tip: When booking an Airbnb, do not just ask "Is the internet good?" Ask for a screenshot of a speed test. "Good" is subjective. To a host, "good" might mean they can check Facebook, while you need to push code or host video conferences.
Power Outages
In beach towns like Tulum, Playa del Carmen, or Sayulita, power outages happen. They just do. If you have a critical job, you need a laptop with a good battery and a mobile hotspot (Telcel is the best carrier) to tether to when the lights go out. In CDMX, this is rarely an issue.
5. Money Matters
Accessing your cash is easy but fees add up.
Schwab is your best friend. If you don't have a Charles Schwab High Yield Investor Checking account, get one. They reimburse all ATM fees worldwide. Since Mexican ATMs can charge $5 to $10 USD per withdrawal, this saves you hundreds of dollars a year.
Transferring Money: If you need to pay a landlord, don't use your US bank wire transfer; the fees are terrible. Use Wise (formerly TransferWise) or Remitly. You send USD, they deposit Pesos into the landlord's account usually within hours.
The Super Peso: Keep an eye on the exchange rate. For a long time, it was 20 pesos to $1 USD. Recently it has hovered around 16 or 17. That means your dollar buys 15-20% less than it used to. Mexico is not the dirt-cheap bargain bin it was in 2019, specially in gentrified areas.
6. Best Cities for Remote Work
Where should you actually go? It depends on your vibe.
Mexico City (CDMX)
The Vibe: Cosmopolitan, massive, endless food options, museums, and parks. It feels like a mix of Paris and New York but with tacos.
Pros: Incredible internet, world-class dining, easy to walk in neighborhoods like Roma and Condesa.
Cons: Traffic is a nightmare, air pollution, and it's getting expensive.
Merida
The Vibe: Safest city in Mexico. Colonial architecture, hot weather, and very relaxed.
Pros: Extremely safe, great food (Yucatecan), close to the beach (Progreso).
Cons: It gets HOT. Like, melt-your-face-off hot in May and June.
Puerto Vallarta
The Vibe: Beach town that is actually a city. Great LGBTQ+ scene, mountains meeting the ocean.
Pros: Great infrastructure, direct flights to most US hubs, solid expat community.
Cons: High humidity in summer.
Playa del Carmen
The Vibe: Party town meets digital nomad hub.
Pros: Walkable, beautiful Caribbean water, hundreds of coworking spaces.
Cons: Can feel a bit too touristy/Americanized, seaweed (sargassum) season can ruin the beach days.
7. Healthcare
Do not rely on your US health insurance unless it specifically covers international emergencies. Even then, Mexican hospitals often want payment upfront.
You should buy Expat Health Insurance (companies like Cigna Global or SafetyWing). SafetyWing is popular because its a monthly subscription designed for nomads.
For small things (flu, stomach bug), many pharmacies have a doctor attached (Consultorio) who will see you for about 50 pesos ($3 USD). It's incredibly convenient.
8. Safety
I have to mention this because your mom is going to ask about it. "Isn't it dangerous?"
Mexico is a huge country. Saying "Mexico is dangerous" is like saying "The US is dangerous" because of crime in one specific neighborhood in Detroit. Most violence is cartel-on-cartel and happens in specific regions (border towns or rural poppy-growing areas) that you have no reason to visit.
In places like CDMX (Roma/Condesa/Polanco) or Merida, you are generally very safe. Use common sense: don't buy drugs, don't walk alone drunk at 3 AM, and don't flash expensive watches. Pretty much the same rules as New York or London.
Frequently Asked Questions
Can I just drive my car into Mexico?
Yes, but you need a Temporary Import Permit (TIP) for the vehicle if you are going outside the "Free Zone" (mostly the border area and Baja). You pay a deposit, which you get back when you drive the car out of Mexico. Also, your US car insurance is invalid. You must buy Mexican liability insurance by law. It's cheap and easy to buy online.
What if my company sends me a laptop?
Getting electronics shipped into Mexico is a headache. Customs (Aduana) often holds packages and charges high import taxes (sometimes 19% or more of the item's value). If your laptop breaks, it is often easier to fly back to the US, buy a new one, and fly back, or buy a Spanish-keyboard laptop locally.
How much does it cost to live there?
It varies wildy. You can survive on $1,000 USD/month in a small town, but a comfortable "expat" lifestyle in a trendy neighborhood of Mexico City will likely cost between $2,000 and $3,500 USD/month depending on your rent. Rents in places like Roma Norte have skyrocketed to nearly US prices.
Do I need to speak Spanish?
In tourist bubbles (Cancun, Puerto Vallarta), you can get by with English. In Mexico City, you need at least the basics for restaurants and Ubers. But honestly? Learn the language. It opens up the culture, helps you make local friends, and keeps you from getting ripped off. It's just respectful.
Is the water safe to drink?
No. Do not drink tap water anywhere. Even locals don't drink it. You buy "garrafons" (20-liter jugs) or get a filter installed. Brush your teeth with tap water is usually fine in major cities, but if you have a sensitive stomach, use bottled water for that too.
Final thought: Working from Mexico is an adventure. You'll deal with loud noises, weird bureaucracy, and occasional chaos. But you'll also get amazing culture, warm people, and the best food of your life. Just pack your patience along with your laptop.