Where to retire: Spain or Mexico
I originally wrote this post in 2023. Now, in October 2025, I’m revisiting (ie updating) this post. More time spent in both Spain and Mexico as well as recent events have made my feelings about both countries clearer. I’m leaving the original text but you’ll see some updates (clearly indicated) where I thought changes were appropriate.
Mexico is the top retirement destination for Americans and Canadians. I know a lot of people who retire there, including my mother who decided to make Mexico home after 10 years in Thailand.
Update: she died in March of this year. It’s one of the reasons I’m updating this post.
But Mexico isn’t for everyone. Some people (like us) decided to retire in Spain, one of the most popular European destinations for North Americans. But isn’t for everyone either.
This post will compare Mexico and Spain as retirement destinations, weighing the Pros and Cons of each.
I’ve asked Jen, a Canadian expat who’s lived in Mexico, to contribute her thoughts. She’s looking to leave Mexico for Spain.
I weigh in my own opinions further below. I’ve lived in Spain for a few years now but I go to Mexico every year (as I say, my mom lives there) and I’ll admit that there are things about Mexico I really like. Would ever consider living there? Maybe…
There’re no right or wrong answers here, the country you prefer to live in will most likely depend on what’s most important to you. Feel free to share your thoughts in the comments section at the bottom of this post.
A. Thoughts on Mexico from a Canadian expat living in Mérida
Jen and her husband left Calgary in 2020 and moved to Mérida. We ‘met’ on the blog earlier this year when she indicated that they would be looking to move to Spain within the next few years. It led to a wider discussion of “Why Spain? What’s wrong with Mexico?”.
I asked her some specific questions on that subject.
Hi Jen! You’ll lived in Mexico a year now. Can you tell us the Pros of Mexico as a retirement base?
Asides from the affordability of Mexico obviously the number one Pro is the weather. Where I live in Merida the summers can be a challenge but honestly I do not find it as bad as some people make it out to be. Even at its hottest we can still have lovely evenings spent outside either waiting on a patio for supper or walking in one of the many parks around the city. Another pro, there are so many activities to do, just last week we did a tour that took us out at night onto the ocean to a small island so we can see the bioluminescence. Scuba diving is easy to get to from here. We are just a four-hour bus ride from some amazing diving in Isla Mujeres.
Health care here so far has been amazing, and easy to find, my husband needed something done and from doctor to procedure it was just a couple of days which is great (note: we are both 51 and pay $250/month to VUMI for the two of us).
I think when considering a place to retire you need to find a place that feeds your mind – exploring the history and museums here is great for that. The local art scene is thriving so you can always find things to feed your mental appetite.
We also enjoy that Merida has many of the same amenities as in Canada when it comes to retail, maybe one day we will live somewhere that does not have the usual stores. But as our first move away from Canada it was important to us that we knew some of the companies we were buying goods from.
How about the Cons of Mexico as a retirement base. What don’t you like or have had a hard time adjusting to?
The biggest con I have, and some people will come at me for this, is that I was amazed how quickly I got tired of Mexican food. Is it amazing? YES. Can I eat it on a regular basis? NO. Here food from other countries is just not great. An example would be Chinese food. Here it is not good, and it being not good is a common thread in some online expat groups here. I have traveled all over this world and had food from all over the world so yes I can compare Chinese food from China, Canada, the US and even Chinese food made in France.
Another one is the trash and this may be odd but also things like sidewalks*. There is no continuity in the sidewalks here, Centro is beautiful but such uneven sidewalks and such makes it not a great place for older people. I have witnessed people fall and have so myself. In a lot of places that is just not a worry. Trash is an issue as well.
*Editors note: bang on about the sidewalks. For older people, including my mom who lived in San Miguel de Allende, the uneven sidewalks and cobblestoned streets are a real danger. She fell a few times and I’ve seen other expats do the same, sometimes seriously hurting themselves.
Another is transit. Basically nonexistent here in Merida, there is a national bus that is decent for taking to other parts, we have to Cancun a few times now, and they are currently building a train so we shall see how that changes things.
Lastly safety, although Merida lists high on a world index for safety other places here in Mexico so not. We have had local friends tell us that they did not even feel safe in Playa Del Carmen and Tulum recently. Although I know that crime exists in Europe I just know for us it will be a safer choice as we never intended to stay forever here in Merida.
You’ve mentioned Spain. Why Spain? How do you see your life in Spain and how do you think it will be different from your reality in Mexico?
One of the reasons for moving to Spain is the language. I have been learning Spanish for some time now and will continue as long as I am in Merida so it makes sense to me to move to another Spanish-speaking country. Also, something we love about European cities are the transit systems. Europe in general just has a better transportation system within its cities and how easy it is to get to other countries and cities by train. Also we have been looking already at real estate there along the Mediterranean Sea and find it a lot more appealing that ocean living here in Mexico. We want to find a beach town with good access for us to travel all over Europe. It would be easy for us to not have a car. We envision active days of exploring with weekend getaways to other places. That will be the biggest thing for us, having getaways to other countries. Could Spain be our forever? Who knows. We still have the thought that one day we may live in Japan, Thailand or Vietnam. Life is short and I am going to live loads of places on this beautiful planet.
Thanks Jen!
B. My perspective as someone living in Spain
We’ve lived in Spain now for almost 5 years. But over the last 10 years I’ve also done a lot of travelling around Mexico. My perspective has also been shaped by my mother who lives there.
Below are things that come to mind when comparing the Spain to Mexico.
The Pros of Spain as a retirement base
We’re in Europe. We can be anywhere on this continent within a few hours, visiting some of our favorite cities and countries. From Granada we can be in Antequera in 45 minutes, Malaga in an hour and 15 min, Cordoba in an hour and a half, Seville in 2 hours and a half. All thanks to train service. In Mexico things are much more spread out and there is no high-speed rail. Just getting from Mexico City to San Miguel de Allende would take me 5 hours.
We love travel and we love variety so for us that’s a big thing. Europe is incredible …and that includes Spain which has tons of history and amazing highlights.
Healthcare. One of the best and most affordable medical systems in the world. Note: we’re both 58 years old and pay 56 Euros/month each for our private coverage which basically covers us for anything. Foreigners have the option of switching to the public system after a year of temporary residency – a great thing if you have any existing pre-conditions where you can’t get private coverage. It’s known as Convenio Especial. If you’re under 65 you’ll pay 65 Euros/month, if you’re over 65 you’ll pay 157 Euros/month. That’s the maximum you’ll pay for healthcare in Spain.
The important thing is that you won’t go bankrupt in Spain because of an accident or unexpected operation. That’s a big thing as I’ll touch on further down.
Safety. We feel safe in Spain (and Europe in general). Sure, things happen: there are break-ins, pickpocketing (mostly in the bigger cities), and squatters*. But you can walk just about anywhere at any time and you’re safe.
*Did you know that a squatter can come and occupy your home in Spain and you can’t have him/her/them evicted? You’ll probably have to pay them thousands to leave your home. It’s crazy and one of the most ridiculous things I’ve seen anywhere. See this article.
Infrastructure & Cleanliness. Spain is a 1st world country with good infrastructure. High speed trains crisscross the country, the medium and large cities have large airports with plenty of international connections, highways are modern and plentiful. Spain can be considered “clean” by most comparisons – I remember once coming back from Mexico and thinking “wow, I never realized how clean Spain is”. Spending 3 weeks in a developing country will do that to you.
I’ve touched on this and other positives in this post: The Best Things about living in Spain.
A few useful Resources
Private health insurance in Spain. We recommend Innoinsure, they make it easy. And you don’t need a Spanish bank account – you can pay with foreign credit cards. More info here.
Spartan FX. Buying a house or car in Spain and need to transfer and exchange a large sum of money? More here.
Wise. For everyday transfers and exchanges of money from your home country. Nobody should be using banks anymore. More here.
The Negatives of Spain
The biggest problems most foreigners have with Spain are related to taxes and bureaucracy.
Taxes. The greatest complaint I get is about taxes and most of the complainers are Americans. Tax rates in Spain are much higher than in the United States and Americans choosing to reside in Spain will most likely have to file taxes in Spain and pay extra to the Spanish government on the incremental tax rates.
Red Tape. Retirees thinking of starting businesses (either ‘real’ or online) are often frustrated by the bureaucratic red tape and expenses involved in Spain. If you want to be self-employed, for example, you are subject to the autonomo rules which require you to pay social security to the government (about 300 Euros/mo, no matter if you make any money from your business) and present quarterly VAT returns to the Agencia Tributaria (the government tax agency). And you still have to pay taxes which start at 19% and can go as high as 47%. For many people, it’s just not worth even thinking of opening a business.
Service: People complain about service in Mexico which I always find odd (everything is always open in Mexico, even on Sundays). But maybe that’s because I live in Spain where, in addition to poor service, businesses close between 2 – 5 pm, banks literally work “banking hours” (closing at 2pm) and few businesses work on Sundays (even on Saturdays some businesses are closed). I’ll be honest, the worst customer service I’ve experienced has been in Spain and it’s been mostly by large companies and government agencies. Horrible.
Immigrating to Spain: It’s complicated (compared to Mexico) and requires you to apply from your home country. It requires a lot of paperwork, economic means, and you might not be able to work in the country for 5 years (depending on the visa). It’s not easy. See my Guide to the Spanish Non-Lucrative Visa.
I touch on some other negatives in this post: Things I wish I had known before moving to Spain.
The Pros of Mexico as a retirement base
The People. I’ve never met people as friendly as the Mexicans. My mom, who lived there for 11 years, always said that they’re special people: polite, always willing to talk, just really nice people.
Mexico is vibrant. It strikes me every time I go to Mexico. It’s younger, the people are hardworking, markets are colourful. It’s much more business friendly with lower taxes and less bureaucratic red tape. There’s an energy that you don’t see in many places…and it never shuts down. When you leave Mexico you somehow feel that the ‘energy dial’ in your brain has been turned down.
The Food. Fantastic food everywhere. One of the world’s great cuisines.
The Cost of Living. You can live much cheaper in Mexico than you can in Canada, the US or even Spain. Note: Mexico has gotten more expensive in recent years…but it is still inexpensive compared to the countries I’ve mentioned.
Closer to home. For many people being closer to home (ie. the US or Canada) is a huge thing. You’re also in the same time zone. I admit one of the things I miss living in Spain is watching my North American sports. I wish I could watch a hockey game in prime time.
Immigrating to Mexico: Much easier than Spain. You can get temporary residence upon arrival in Mexico and you can even work in Mexico. After 4 years you can apply for permanent residency. Or, if you intend to retire in Mexico (and not work), you can get Mexican permanent residency right away (like in Spain you have to show economic means. But unlike Spain you don’t have to wait 5 years to get permanent residency). More info on immigrating to Mexico.
The Negatives of Mexico
Healthcare. And this all depends on your perspective. If you’re American you’ll probably find private health care in Mexico very affordable and of excellent quality. If getting insurance, expect to pay about $150 US/mo in your 50’s (which can go to $500 US/mo in your 60’s). Many people feel better getting health insurance to cover them for “the big stuff”.
For the “little” stuff, Mexico has a lot of private clinics that are very affordable. My mom has gotten checkups, massage treatments and physiotherapy and it’ll often cost about 900 pesos or $45/US per visit. Medication is also quite affordable. Pharmacies also usually have a walk-in clinic attached to them which are also inexpensive.
Have a look at this video which discusses private health care and costs in Mexico (note: the video is a few years old and costs understated. Pad the costs in the video a little).
As I say, it all depends on your perspective. Canadians or Europeans will find the cost of private insurance and operations in private hospitals very expensive. An operation that includes an overnight stay in a hospital might cost you about 50,000 pesos (or $2500 US) for example if you don’t have any insurance coverage. If you have anything serious the costs can add up fast.
Mexico does have national healthcare but it’s not great and many services are often limited to the bigger cities. You might have to wait a very long time for treatment. For many retirees, as well as Mexicans with the means, national healthcare is not an option.
And what do you do when you’re over 70 and can no longer get coverage from insurance companies? Or if you have pre-existing conditions and can’t get private insurance or IMSS?
This post covers the different heathcare options available in Mexico. It does a good job giving you an overview but again, prices are outdated. Add about 25% to the prices listed there.
My point: healthcare can take a big chunk out of your retirement budget if things go wrong. That’s a scary thing and (from where I’m sitting) a big negative about choosing Mexico as a place to retire.
Update: The worst case scenario happened this year when my mom got sick and had to be hospitalized for 2 days. The hospital billed her $12,000 CAD, that’s about $8,500 US. For 2 days! She got royally screwed and they didn’t want to let her check out until the bill was paid in full. And she didn’t have private health care, primarily because of pre-existing conditions (cancer). My mom always knew Mexico was a risk because of healthcare and, as I say, the worst case scenario happened and it contributed to her death. I write about it on our other blog here. But for me, healthcare is THE biggest problem I have with Mexico.
Safety & Corruption. The media exaggerates the dangers of Mexico. Still, chances of being mugged or broken into are higher than in Spain. And who do you turn to if something does happen? I keep hearing stories of police and/or lawyers who turn a blind eye when foreigners have issues with crime.
Mexico is a developing country. There’s a huge wealth disparity, lots of poverty, towns/cities can be downright ugly. It can get to you after a while.
Homogeneity and distances. I mentioned that I love the variety in Europe and the ability to be in a European country that’s totally different in hours. As much as I like Mexico, I don’t know if I could take just being in Mexico all the time. I know it’s a huge country and I know there’s a lot of diversity between regions. But in comparison to Europe, one part of Mexico is very similar to another part of Mexico. And you have to do so much travelling to get anywhere. I mentioned that it would take me 5 hours to get to San Miguel de Allende from Mexico City. In Spain I could have flown to Prague and be on my 2nd beer in that time.
For me, right now, it’s a big negative.
Sometimes it’s the little things. Lissette is curious about Mexico and she wasn’t too fazed when reading the above. Until I mentioned not being able to flush your toilet paper. “What?! I can’t flush toilet paper? I don’t think I could live with that!”. So it depends on your perspective and what’s important to you.
Summing it up:
This whole section has been updated:
When I think of Spain I think: developed, safe, European history, great wines, old population, bureaucratic, not business friendly and economically stagnant.
When I think of Mexico I think: exotic, dynamic, young, great cuisine, developing, incredibly friendly people, unstable (as opposed to unsafe). A country of the future.
I’ll be honest, my heart is with Mexico. I’ve always loved it but it’s been reinforced with time. I’ve grown to love Mexico. I can’t say the same about Spain. Having said that, Spain is the safer and more logical option, primarily because of factors like healthcare, safety and infrastructure. These factors only become more important as people get older. So if my heart is with Mexico, my brain is with Spain.
The above are what come to mind to me when comparing Mexico and Spain. They’re both great countries to retire for different reasons… but neither place is perfect and what’s best for you might depend on what you’re looking for and/or what you can’t live with.
Your thoughts – Mexico or Spain?
Related: Where to live as a retiree in Spain? Places…and comparing Theory vs Reality
Related: Where to live on the Costa Del Sol
I am in the process to move out of Canada. Yesterday, I am leaning toward Spain but yesterday I was considering Mexico and at the same moment you posted that great article. After reading it, my hearth still goes to Spain or… Thailand. I know you have been in Thailand for many month so you know that country a bit and, I am wondering…
Did you wrote the same kind of article comparing Thailand and Spain and, if not, would you be willing to do so in the future?
I have been reading BBQ Boy and Mapping Spain for weeks now, since I discovered your existence. I even improve my luggage content, thanks to one of your post, for my next trip to Thailand and Laos. I am leaving in two weeks for four months and BBQ Boy has been of a great help to prepare multiple aspects of this new trip.
Thanks a LOT to share your thoughts with us
Pascale
Hello Pascale. Thank you for the very nice comment, very much appreciate. You are now my favorite person 🙂
I think Mexico and Spain have a lot of similarities. Thailand is so exotic and I love travelling there but I don’t know if I could retire there, just because of the very different culture and especially the language. You’ll never integrate in Thailand whereas in Mexico or Spain it’s not impossible to learn Spanish.
By the way, my mom lived 10 years in Thailand and now has lived 10 years in Mexico. She’ll say the same: culture and language but the biggest thing for her was the annual burnings of the fields in the north which gave her a lot of health problems. In the end, that’s why she left for Mexico.
But you know, maybe it’s a post for another day 🙂