Why Canada and the U.S. Dominate the Expat Market
Geographic proximity, direct flights of 3–4 hours from major North American cities, the dollarized real estate market, the established community and dramatic cost-of-living savings make the Riviera Maya the number-one destination for North American retirees and buyers outside their home country. Over 400,000 Americans and 150,000 Canadians reside permanently in Mexico.
For Americans: Specific Considerations
Taxes (IRS)
- U.S. citizens are taxed on worldwide income regardless of residence
- Mexican rental income must be declared in the U.S. (ISR paid in Mexico can be credited)
- Mexican bank accounts over USD 10,000 must be reported via annual FBAR to FinCEN
- Foreign properties over USD 200,000 (singles) must be reported on Form 8938 (FATCA)
Health Insurance
Medicare does NOT cover medical expenses outside the U.S. Options for Americans in Mexico:
- International health plan (Cigna Global, AXA, GeoBlue): coverage in Mexico + U.S., USD 200–500/month
- Voluntary IMSS (for residents): USD 450/year — basic coverage, useful as supplement
For Canadians: Specific Considerations
Taxes (CRA)
Unlike the U.S., Canada taxes residents (not citizens by citizenship). If you establish Mexican tax residency and cease being a Canadian tax resident, you generally don't pay Canadian tax on foreign-source income. Key points:
- Formally notify the CRA of your residency change
- There may be a "deemed disposition" of Canadian assets upon departure
- Canadian-source income (OAS, CPP, RRIF) remains taxed in Canada with source withholding (typically 15–25% under the Mexico-Canada treaty)
OAS and CPP in Mexico
OAS and CPP can be received in Mexico. The Mexico-Canada tax treaty establishes 15–25% withholding on these payments. Many Canadian retirees maintain a Canadian bank account for these payments and transfer funds to Mexico as needed.
Direct Flights to the Riviera Maya from North America
- Miami: 1h45 | Dallas/FW: 2h30 | Houston: 2h15 | New York: 3h45
- Toronto: 4h15 | Montreal: 4h30 | Vancouver: 6h
At L'Agence MX we have extensive experience working with Canadian and American buyers. Email bonjour@lagencemx.com or WhatsApp +52 56 3370 9470.