Moving from Canada to Mexico in an easy way is one of the priorities for those Canadians looking to retire to Mexico.
First of all, you have to consider many things to change residence and especially if you decide to move to another country with a totally different culture and language.
Many foreigners see Mexico as an excellent option for retirement because of how cheap and accessible it can be to live in the country compared to their own countries. However, others still fear that the transition from their place of origin to Mexico is difficult due to the lack of quality services or businesses.
That was in the past. In fact, as we explained in the best places to retire in Mexico, the country is so diverse and wide that you can choose the city or region that best suits your needs: Tulum and the Riviera Maya to be close to the beach and the nature or Merida to enjoy the best of culture and urbanization in the southeast.
Besides, there are large communities of retirees in Mexico, so language is not a problem. If you move to a city like Mérida or Playa del Carmen where English is part of everyday life thanks to tourism, we know that you will have no difficulty adapting and enjoying your money and retirement to the fullest.
Why do Canadians choose to retire to Mexico?
Mexico is a country that has a lot to offer. Its natural beauties, its colonial architecture -depending on the area you visit- and the hospitality of its inhabitants are some of the factors that make the country very attractive.
However, one of the main reasons why Mexico is a very attractive country for Canadians is the climate. Yes, we know that not all regions of Canada are the same, but the extreme cold in the country is usually intense during the winter, so it would not even be possible to start a car. The cold can be as extreme as it is dangerous and many Canadians dream of being able to enjoy the beach and the sun instead of the snow.
Also, retirement does not have to be synonymous with leaving your country completely. For example, one of the most common practices among foreigners, as in this case that we refer to Canadians, is to reside six months in Mexico and six months in Canada. This allows them to continue enjoying their country and take refuge in ours when the cold reaches its maximum level.
That is why many people consider Mexico as an excellent place to increase their quality of life. And even more when they choose to live in one of the safest areas of the country like the southeast.
We cannot ignore the level of quality of life that can be obtained in Mexico is a lower cost than in Canada. The equivalence of the Canadian dollar in Mexico is approximately between $ 16.00 and $ 17.00 pesos, which makes living costs cheaper. For example, suppose that in Canada the rent of a one-bedroom property costs you $ 1,200 Canadian dollars -although we know it can be more- in Mexican pesos the cost would be approximately $ 19,000 or $ 21,000, with this amount of money you can find best residences located in the most exclusive areas.
Many ecotourism experiences turn out to be cheaper in Mexico, which will allow you to explore areas such as cenotes and archaeological sites for a good price. So even when you live on a budget, you can always enjoy walks and have access to natural wonders closer to you.
Not to mention that buying a property in Mexico as a foreigner is simpler and obviously cheaper. So you can not only buy a home but you can also invest in real estate in the country and increase your income, and you also have the possibility to start your own business since, in the same way, the costs for payment of services and income are Lower.
At the same time, residing for 6 months in your country allows you to keep your medical insurance – in case you have it – this helps many people avoid all the paperwork and legal migration process because the visitor visa only allows them to stay 180 days in Mexico.
Another reason why Mexico is attractive is that the pace of life in the country is calm and relaxed compared to Canada or the United States. Of course, it depends on which part of the country you decide to move but places like Playa del Carmen, the Mayan Riviera, and Merida has a large flow of tourists, and industries still have a relaxed pace compared to Mexico City where the lifestyle is faster.
Moving from Canada to Mexico in an easy way
There are some points you should consider if you are thinking of moving to Mexico, especially in visa and paperwork issues.
Do the research
Knowledge is power. And one of the keys to moving from Canada to Mexico in an easy way is to have absolutely everything prepared: your documentation, the place where you will live, the services you need to acquire, etc.
However, one of the first steps you should take is to research Mexico. The Internet can be an excellent ally for this process, investigate what are the best cities to live in Mexico, thinking about what you would like to enjoy in your retirement. For some, having a life on the beach is a dream and for others, the proximity to the beaches is important but not as much as having shopping centers or varied nightlife.
You can also contact expat communities to tell you about their experience in the country. They can also help you solve your doubts: about the budget, the visa process, and the migration. We recommend you ask all the questions you need to have a clear idea if Mexico is really the best option for you.
Assign a budget
You already have an idea of what you need and where you could move. Some of your doubts about the country and the process have been clarified. Now it’s time to make a budget.
As we already told you, living in Mexico may be cheaper than living in Canada, however, more than economic issues, retiring to Mexico from Canada requires conscious decision making since despite being closer than other countries, in the end you will only be changing your residence, but you will be immersed in another culture with totally different traditions, customs, and food.
For many Canadians to be close to their family is a priority, so within their budget they usually consider a quantity of money to come and go at a certain time.
You should also consider taxes. Regardless if you live or work outside of Canada, if you are still a resident you have to pay taxes. This amount will depend on the type of resident you are, which is based on the significant ties you have with the country, for example:
• If you have a house or residence in Canada
• If you have a partner, either because you are married or by common law (that is, if you have a child or have lived with a person for at least one year and have a “break” period of fewer than 3 months.
• If you have dependents in Canada, as children.
Taxes living outside of Canada
There are 4 types of Canadian residents. It is important that before moving or leaving the country for a while, you advise the Canada Revenue Agency – in its acronym CRA – so they can help you determine the type of resident you are and can determine the taxes that you have to pay.
You are a factual resident if you continue to maintain constant ties with Canada. This type of residence is usually assigned or applied to people who spend a short time outside of Canada, whether they are exchange students, those who go on vacation abroad, or work outside temporarily or who travel constantly between the United States and Canada if your work is there.
This type of residence applies to people who are related to the armed forces.
You are considered nonresident if you spend less than 183 days of the fiscal year in Canada. Many Canadians who spend 6 months in Mexico and 6 months in Canada fall into this category. This does not mean that you do not have to pay taxes. What happens is that your taxes will be proportional and will be extracted on certain income from Canadian sources such as pensions or real estate income.
There are two types of taxes that may apply to you in this case, the Part XIII tax and the Part I tax. The first is related to the rent of real estate and pensions while the second applies to those who have businesses or receive money working for Canadian companies in jobs located in Canada.
Deemed non – resident
This type of tax applies to those who reside in another country but are at the same time considered factual residents or deemed residents but are residing in another country that has a tax treaty with Canada.
Having a budget will also help you determine what is best for you. For some residents who want to continue generating income, real estate developments in the Riviera Maya can not only serve to spend their retirement but also to have an extra income and rent it for the time they are not there.
Other people when making their budget discover that in the long run, it is cheaper for them to acquire property than to rent one. And even they can buy more than one or invest in residential or industrial lots to better secure their money. If you want to learn how we recommend you read 10 tips to invest in real estate and not die in trying your purchase.
Exploring on the Internet is not the same as visiting the country and for that reason, another of our tips to facilitate the transition is to make a trip to the city of your choice so you can resolve some questions in person.
Part of the fear that some Canadians have is not being able to adapt to Mexico, so one of our first tips is that before you anticipate deciding if Mexico is the ideal option for you, visit the city in which you want to move.
You can understand much better what is in it and how it works. For some people, the shopping centers and the convenience of having everything in big grocery stores like Costco or Walmart are very important. For others, for health reasons, having a quality health care center is a more important priority. You can explore the city and ask in the area what the residential areas are.
This can also give you an idea of what the city is like, the lifestyle and the opportunities you can develop in it. Especially because Mexico is a high tourist country and there are always Canadians or foreigners visiting the city, so language is not a problem either, and as we said in places like Merida and the Mayan Riviera there are already groups or expatriate colonies.
In addition, several of the reasons to live in Mexico is that it has a lot of culture, celebrations, good food, an excellent atmosphere, and a lot of areas to explore.
The legal process
If Mexico seems like an ideal option, it’s time to start the process to move. Before talking about the move it is very important that you decide what your stay in the country will be like. As we said some Canadians choose to spend half of the year in Mexico and the other half in Canada this allows them to keep the tourist visa without having to complete the entire immigration process.
Mexico and Canada are friends and business partners so there are many treaties and alliances between these two countries. Moreover, as a Canadian, you can enter the country only with your passport, without having to process a visa.
There are many ways to do the legal process – and as we said the expatriate communities are a great help. Migration laws make the process of visiting and residing in the country easier and easier, but you must consider what your objective is.
If you want to be a resident of Mexico you can apply for a temporary resident visa which is valid for one year and extended 3 more years. This is until you turn 4 years old, then you can even be a candidate for naturalization as a Mexican, although of course, you need to pay taxes in your country during this time.
Another very easy way to process a visitor’s permit is the FMME Aérea or Migratory Electronic Multiple Form which facilitates the process of entering and leaving the country -without engaging in any activity paid for 180 days-.
Although you can perform this process alone, we recommend you go to the embassies of Mexico in Canada to resolve all your doubts.
What is the next step to move from Canada to Mexico?
Moving from Canada to Mexico is easy, but it requires a lot of planning and having everything in order.
For example, you not only need to have your documents and certificates in order but also make a list of the things you will take with you. It is not advisable to take electronic devices such as televisions, even your car, if you plan to stay as a permanent resident in Mexico, you can sell it in Canada and get one here.
However, we are aware that there are things you want to take with you such as photos, electronic devices such as computers or iPads and especially important elements of your family your pets.
One of the biggest fears that some Canadians have, those who have pets are not being able to take them, this should not be a problem since if it is possible to move the pets to Mexico, it is necessary that they have all their vaccines and papers in order.