Baby Boomer Retirement in Mexico

by Kathleen Peddicord

Talk about options and opportunity! This big, extraordinarily diverse country offers two long coasts, mountains, and colonial cities...not to mention Mayan ruins, jungle, rain forest, rivers, and lakes (including our favorite, Lake Bacalar, in the Yucatan).

Mexico also wins the prize for most accessible to the U.S. You (or your loved ones) could drive back and forth for visits.

For all these reasons, Mexico is home to the biggest established populations of American expats in the world. It's perhaps, therefore, your best choice if you seek an adventure overseas with all the comforts of home.

Ajijic is home to the biggest and most established expatriate community in the world. You could retire here comfortably without learning Spanish and you could spend most of your time, if you choose, among fellow foreign retirees. Ajijic residents enjoy the comforts and conveniences of back home while living at a reduced cost and with great weather.

According to the International Living Magazine (AARP), the fantastic climate, an international English-speaking community, the tranquility of picturesque Mexican villages, the beauty of Lake Chapala and the Sierra Madre mountains, the friendly people, the inexpensive cost of living (including having a maid and gardener if you wish ) and the relatively inexpensive real estate market have made this area one of the most sought after places to retire in Mexico.

Top Health Insurance Options For The Retiree Abroad

The Mexican government, through its FONATUR tourism development agency, has a seriously sound track record developing little stretches of this country's coast. All interested investors have to do is to pay attention to where FONATUR is moving next to cash in.

Puerta Vallarta is as touristy a location for a second home at the beach as Lake Chapala (in our opinion) is one of the least-appealing developed expatriate communities in the world. Colonial San Miguel de Allende, on the other hand, is charming.

More and more Baby Boomers on a fixed income are looking at Mexico as a retirement solution. Why? Because you can live comfortably on considerably less than in the United States! For many Baby Boomers, relocating to Mexico may be the only viable option for retirement.

Worried about Crime or Violence in Mexico?

According to AARP, A quick word about crime and safety in Mexico: Yes, it's extremely dangerous in the cities bordering the United States and a few places elsewhere. Mexico, however, is also nearly three times the size of Texas, and most of the country is reasonably safe and secure, especially resort areas and tourist destinations.

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Mexico at a Glance

Population	108.7 million (July 2007)
Gross Domestic Product (GDP)	$1.353 trillion (2007)
GDP Per Capita	$12,500 (2007)
Inflation Rate	3.8% (2007)
Currency	Mexican Peso (MXN)
Exchange Rate Versus U.S. Dollar	10.8 Mexican pesos = 1 U.S. dollar (March 2008)
Languages	Spanish
Capital	Mexico City
Population of Capital City	18.7 million
Time Zone	GMT minus 6
Seasons	Coasts: hot, humid Inland: dry, warm year-round
International Dialing Code	52
Electricity	127V / 60 Hz; Plug Type: A, B (US style)
	Federal Republic
Name and Party Affiliation of Current Leader	Felipe Calderon, National Action Party
Income Tax Rate for Residents	3% to 29%
Property Tax	0.275% to 1.350%
Capital Gains Tax	28% of net profit with deduction options OR 25% of gross profit without deduction options
Inheritance Tax	0%
Rental Income Tax	Taxed as regular income
Transfer Tax	2%
Sales Tax	15%
Restrictions on Foreign Ownership of Property	For property 50 km from ocean or 100 km international border, foreigners must own through a bank trust (Fidecomeiso)
Local Chamber of Commerce	www.ccmexico.com.mx Paseo de la Reforma 42 06048 MEXICO, D.F. Tel: (52-5) 592-0371
American Chamber of Commerce	www.amcham.com.mx Lucerna 78 Col. Juárez 06600 México, D.F. Tel: (52-55) 5141-3800
Primary Exports	Manufactured goods, oil and oil products, silver, fruits, cotton, vegetables, coffee
Residency and Visa Requirements	Tourist Visa: 180 days Residency: visitor, student, artist and sports people, distinguished visitor, local visitor, provisional visitor, correspondent/journalist, and religious minister visas; immigrant visas for retirees, investors, professionals Citizenship: after residency of a continual 5 years with an immigrant visa
Special Benefits for Foreign Residents or Retirees	Valid foreign residents are eligible for Mexican senior citizen benefits that amount to discounts of up to 50% on a variety of goods and services, from health care to movie tickets to hotel rooms
National Airline	Aeromexico - www.aeromexico.com Mexicana - www.mexicana.com