How to Live, Work, and Own Property Legally in Mexico: A Foreigner’s Guide
How to Live, Work, and Own Property Legally in Mexico: A Foreigner’s Guide
Mexico has become one of the top destinations for digital nomads, retirees, investors, and expats. From vibrant cities to peaceful beaches, the country offers affordable living, great healthcare, and a rich culture. But to enjoy these benefits fully, it’s important to do things legally in Mexico.
Whether you’re planning a short visit or a permanent move, following Mexican laws ensures a smooth experience without legal trouble. In this guide, we’ll explain how to live, work, invest, and do business legally in Mexico, covering visas, residency, work permits, real estate, taxes, and more.
Step 1: Entering Mexico Legally
To be in the country legally in Mexico, you must enter with the correct immigration status. There are three main options:
✅ Tourist Visa (FMM)
Granted on arrival at most ports of entry.
Valid for up to 180 days, though the number of days granted is up to the immigration officer.
You cannot work or earn income while on a tourist visa.
✅ Temporary Resident Visa
Valid for 1 to 4 years.
Requires proof of income, employment, or family ties.
Must be applied for at a Mexican consulate before entering the country.
Allows you to open a bank account, rent long-term, and more.
✅ Permanent Resident Visa
Grants indefinite stay.
Ideal for retirees or those with family in Mexico.
No need to renew each year.
Comes with full work rights.
By choosing the right visa type, you begin your journey legally and avoid problems at customs or during your stay.
Step 2: Living Legally in Mexico
Once in the country, you must maintain your immigration status to live legally in Mexico:
Carry your residency card or tourist visa (FMM) at all times.
Update your address with immigration authorities when you move.
Renew your temporary residency before it expires.
Do not overstay your visa—overstaying leads to fines and can affect future entries.
For long-term stays, temporary or permanent residency is the best way to live legally and enjoy full benefits.
Step 3: Working or Doing Business Legally in Mexico
Foreigners can work or run businesses legally in Mexico, but only under the right conditions:
Working for an Employer
Requires a work permit attached to a temporary resident visa.
Your Mexican employer must submit paperwork to the Instituto Nacional de Migración (INM).
Once approved, you’ll receive a residency card with permission to work.
Running a Business
You can start a company with legal residency.
Must register the business with the Public Registry of Commerce.
Obtain a tax ID (RFC) from Mexico’s SAT tax authority.
Issue legal invoices (facturas) and pay taxes.
Freelancing or Remote Work
You can apply for temporary residency using economic solvency (income or savings).
While the law doesn’t explicitly mention remote work, it’s widely accepted if income is earned abroad.
Working or earning money on a tourist visa is not legal and can lead to fines, deportation, or visa denial.
Step 4: Owning Property Legally in Mexico
Foreigners are allowed to own property legally in Mexico, with some limitations:
Inside the Restricted Zone
The restricted zone includes areas within 50 km of the coast or 100 km of borders.
Foreigners must use a fideicomiso (bank trust) to purchase.
The trust gives you full legal rights to use, rent, or sell the property.
Outside the Restricted Zone
Foreigners can buy property directly in their own name.
To ensure legality:
Always work with a licensed notary public.
Perform a title check to verify ownership.
Ensure the property is registered with the Public Registry of Property.
Avoid informal or cash-only deals that aren’t legally registered.
Step 5: Paying Taxes Legally in Mexico
Paying taxes is a legal requirement for anyone earning income in Mexico or owning certain assets.
You must:
Register for a tax ID (RFC) with the SAT.
File monthly and annual tax returns if working or running a business.
Pay property taxes (predial) annually if you own real estate.
Use licensed accountants and issue electronic invoices (facturas) for income.
Avoiding taxes or operating under the radar can result in audits, penalties, or business closure.
Step 6: Driving Legally in Mexico
To drive legally in Mexico, follow these basic rules:
Tourists can use a valid foreign driver’s license.
Residents should get a Mexican driver’s license from their local state office.
All vehicles must be insured with at least liability coverage.
Driving under the influence is strictly prohibited and heavily penalized.
If importing a car, check whether it qualifies for temporary import (TIP) or if it must be registered in Mexico.
Step 7: Handling Legal Disputes or Documents
To remain fully legal in personal or business matters, always work with:
A Mexican attorney for contracts, disputes, or immigration support.
A notary public (notario público) for official documentation like wills, real estate, and corporate registration.
Translators for documents issued in your home country that require Spanish translations and apostilles.
This ensures that your actions and paperwork are valid and recognized under Mexican law.
Final Thoughts
Living, working, and investing legally in Mexico is not difficult—but it requires understanding the local laws and following the proper steps. From immigration and taxes to business formation and real estate, legal compliance brings peace of mind and long-term security.
Mexico welcomes foreigners, but it expects everyone to respect its laws. Get professional advice when needed, stay organized, and enjoy all the benefits of living in one of the most beautiful and opportunity-rich countries in the world.