Retire in Mexico: temporary residency requirements 2026, income vs savings
Written by Hans Goldstein, licensed insurance agent · CA 4273294Short answer: To retire in Mexico in 2026, temporary residency (the visa most American retirees use as a “Mexico retirement visa”) asks a single applicant for about $4,500 to $4,630 a month of income over 6 months, or a balance of about $76,000 to $78,000 over 12 months, depending on the consulate. For a couple, the Las Vegas consulate adds about $1,498 a month per family member ($6,128 a month in total on the income route), and a spouse of a Mexican citizen is exempt from the solvency test. Annuity income counts as income, but here savings is far cheaper: keeping about $78,000 on deposit beats roughly $700,000 to $800,000 of premium for $4,630 a month at 62.
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Mexico temporary residency requirements in 2026
Mexico sets its solvency thresholds in pesos, as multiples of the UMA (Unidad de Medida y Actualización), which is MXN 117.31 per day in 2026. Temporary residency is 680 UMA a month of income or 11,460 UMA of savings. Each consulate converts to dollars at its own rate and rounds, which is why you see different numbers online, and some consulate pages still show older sheets. Two US consulates’ 2026 sheets:
| Source | Income route (monthly, last 6 months) | Savings route (monthly balance, last 12 months) |
|---|---|---|
| UMA formula (680 / 11,460 × MXN 117.31) | MXN 79,771 (about $4,343 at 18.37) | MXN 1,344,373 (about $73,188) |
| Consulate in San Diego (2026 sheet) | $4,510 | $75,950 |
| Consulate in Las Vegas (2026 sheet) | $4,630 per person | $78,025 per person |
| Permanent residency (formula, retirees) | MXN 133,733 (about $7,280) | MXN 5,378,664 (about $292,800) |
FX assumption: USD/MXN 18.3688, the Banxico FIX of October 1, 2026, published in the Diario Oficial on October 2. Check your own consulate’s current sheet; that is the number your officer will use.
- You must meet one route on its own. You cannot add half the income to half the savings.
- Temporary residency starts with a 1-year card, renewable in Mexico up to 4 years total, then you can move to permanent. Retirees who meet the higher permanent bar can apply for permanent residency directly.
Single or married: how much you need for Mexican residency
| Household | Income route (6 months) | Savings route (12 months) | Who must show it |
|---|---|---|---|
| Single | $4,510 to $4,630 a month | $75,950 to $78,025 balance | The applicant |
| Couple, spouse joining as a family member (Las Vegas) | $4,630 + $1,498 = $6,128 a month | $78,025, plus an average balance of $1,498 for the spouse as the sheet reads | The main applicant, supporting the spouse |
| Each additional family member (Las Vegas) | +$1,498 a month | +$1,498 average balance | The supporting resident |
| Spouse of a Mexican citizen | Economic solvency does not apply (Las Vegas sheet, family unity with a Mexican national) | Marriage certificate and proof of the spouse’s nationality | |
The Las Vegas sheet states its $4,630 and $78,025 figures “per person,” so a spouse can also qualify independently on the same bar. Other consulates handle families differently; ask yours before you book.
When only one spouse has the income
The spouse with the income or the savings is the main applicant; the other joins on the family-unit route, and on the Las Vegas sheet the main applicant then shows about $1,498 a month more (or the matching balance) for that spouse. The sheet states its bars per person and does not let you add one spouse’s income to the other’s to reach one bar. The cheap fix is still savings: put about $79,500 in the main applicant’s name for 12 months. If you want the income route anyway, the annuity goes in the main applicant’s name, priced on that spouse’s age and sex, bought while you are both still US residents.
Gift note (general information, confirm with a tax adviser): moving savings or an annuity purchase into the applying spouse’s name is a gift. Gifts between spouses who are both US citizens are unlimited. To a spouse who is not a US citizen, the 2026 annual exclusion is $194,000 (Rev. Proc. 2025-32); above that you file Form 709, and generally no tax is due until the lifetime exemption is used up. IRA money cannot simply be moved to a spouse.
Example: a 62-year-old American retiring in Mexico (savings usually wins)
This is the one country guide where I tell most readers not to buy an annuity for the visa. Payouts at 62 from the September 9, 2026 ImmediateAnnuities.com survey, life-only, per $100,000 of premium per month: man $603 average ($660 best quote), woman $582 average ($637 best). Premium needed = monthly bar divided by payout per $100,000, times $100,000. Illustrative, not a quote. Bars use the Las Vegas sheet.
| Who | Savings route (stays yours) | SPIA premium for the income route, average payout | Best quote |
|---|---|---|---|
| Single man, 62 ($4,630 a month) | $78,025 | About $768,000 | About $702,000 |
| Single woman, 62 ($4,630 a month) | $78,025 | About $796,000 | About $727,000 |
| Couple, both 62 ($6,128 a month) | About $79,500 | Over $1 million on a single life; joint and survivor costs more | |
| Single man, 62, with $1,500/mo Social Security ($3,130 gap) | $78,025 | About $519,000 | About $474,000 |
If you can show a $78,000 balance for a year, do that. You keep the money, and Mexico’s renewals happen inside the country without the consulate’s 12-month statement test. Social Security can start at 62 and shrinks the income gap, but even then the savings route is cheaper by hundreds of thousands. The same logic holds for permanent residency: about $293,000 of savings beats roughly $1.06 million of SPIA premium for $7,300 a month at 65.
Why I write about this. My mom is Norwegian, my dad is American, and they’re planning the move from the US to Norway. My mom is the sponsor (the host, or “reference person” in UDI’s words), so Norway’s income test falls on her income, not my dad’s. UDI told us in writing that money in an account does not count as income, and only lifelong income does. Their savings were not the problem; the paperwork wanted a monthly number in the host’s name. The rules in Mexico are different, but the problem is the same one many retirees hit: the income test, not the net worth. I’m writing this to help others in the same boat as my parents. Read how we worked through the Norway income requirement.
In the same boat? Let’s run your numbers
See roughly what a lifetime annuity would cost to close your income gap, then get my personal read by email. I can help while you still live in the US.
Estimates use the September 9, 2026 ImmediateAnnuities.com payout survey (life only) and a 15% cushion. Illustrative, not a quote.
When an annuity does make sense for Mexico
A lifetime annuity is the right tool when you want lifetime income anyway, and the visa is a side benefit. Mexperience notes that consulates treat annuity income as income, not as savings. Three situations where that matters:
- You are already planning to annuitize. If you want a paycheck that never stops while you live on pesos, a SPIA bought while you are still a US resident does that job. Use its income for the visa and keep your savings for everything else.
- Your money is mostly in IRAs. Some consulates accept IRA balances as savings and some do not. An annuity paying from an IRA rollover is plainly income, and that question goes away. Note the ages: before 59 and a half, see moving abroad before 59 and a half.
- You plan to stay long-term in more than one country. The same lifetime income counts for Belize, Panama or Costa Rica if you change plans; a one-time balance does not.
Which annuity counts
Consulates look for income deposits on 6 months of statements, documented with a pension voucher; the sheets I checked do not demand lifetime wording, and retirees are also asked for an official document stating retirement. A life-only or joint and survivor SPIA, or an existing deferred annuity or MYGA converted to lifetime payments, shows up as steady income. A MYGA still accumulating is savings, and some consulates may count its balance toward the savings route; an income rider (GLWB) you have not switched on is savings too. Ask your consulate how it treats each.
How the annuity is taxed if you live in Mexico
Holding a residence card does not by itself make you a Mexican tax resident; under Article 9 of the Federal Tax Code, tax residence follows where you have your home, and if you have homes in both countries, where your center of vital interests is. Once you are tax resident, Mexico taxes worldwide income, with rates up to 35% (PwC). Mexico’s income tax exemption for pensions (LISR Art. 93, fraction IV) covers pensions under Mexico’s own social security laws, not a policy bought from a US insurer, and the tax authority has published no rule on how a US purchased annuity is classified, so get a Mexican adviser’s written view.
- Treaty. Article 19 of the US-Mexico income tax treaty covers pensions and annuities. US Social Security is taxable only in the US (Art. 19(1)(b)). Annuities paid to a Mexican resident are taxable only in Mexico (Art. 19(2)), but the treaty defines annuities as “a stated sum paid periodically at stated times during a specified number of years,” so whether a life-only contract fits is for an adviser.
- Saving clause. Article 1(3) lets the US tax its citizens as if the treaty did not exist, and the annuity paragraph is not among its exceptions. Article 24(4)(c) then treats the income as arising in Mexico to the extent needed, so a US citizen can credit Mexican tax on Form 1116.
- US side. On a non-qualified SPIA only the part above the exclusion ratio’s return of premium is taxable; a SPIA bought with IRA money is fully taxable. The foreign earned income exclusion does not apply to annuity income (IRC 911(b)(1)(B)(i)), and US withholding on the payments is a prepayment of your US tax, not an extra tax.
Net result: once you are a Mexican tax resident, the higher of the two countries’ tax on the annuity is roughly what you pay, because the credit removes the overlap. That is one more reason the savings route is usually the better fit for Mexico.
Does Mexico have a wealth tax?
No. PwC’s 2026 summary states plainly that there are no net wealth or net worth taxes in Mexico, so neither your savings balance nor an annuity is in any wealth base. Income tax, above, is the only question for the annuity.
Practical rules if you do buy one
- Buy while you still have a US address. US insurers generally will not issue to someone already living abroad.
- Bank statements. The consulate wants original statements with your name and street address, no P.O. box.
- Plan for US withholding. Since January 1, 2026, a US citizen whose residence address on file is outside the US cannot opt out of federal withholding on annuity payments, even if the payments go to a US bank account (IRC 3405(e)(13), Treas. Reg. 31.3405(e)-1). Withholding is a prepayment of your US tax, not extra tax; you settle up on your return. Consulates read the deposits, so size the annuity so the net deposit still clears the bar.
- Start payments at least 6 months before the appointment, since consulates want 6 months of income history.
- Size with 10 to 25% headroom. The UMA rises every year and the peso moves; San Diego and Las Vegas are already $120 a month apart.
A US SPIA is not FBAR or Form 8938 reportable and is not a PFIC.
How the paperwork works
Mexican residency is a two-step process. First, the consulate in the US reviews your solvency and, if approved, places a visa in your passport. Then you enter Mexico and, within 30 days, finish the process at the immigration office (INM) to receive the resident card. The 2026 in-country fees run from MXN 11,141 for a 1-year card to MXN 25,058 for 4 years (Ley Federal de Derechos, Art. 8, fraction VI). Statements must be originals with the bank’s stamp or a bank letter, and every consulate reserves the right to ask for more. Book only when your file is complete; the processing fee is charged whether or not the visa is issued.
If you are using income, every source has to show up on the statements: Social Security deposits, pension deposits, annuity deposits. Mixed income is normal; mixing income with savings is not allowed.
The trade-offs, once
A SPIA is irrevocable, level unless you add a cost-of-living rider, paid in dollars against a peso cost of living, and backed by the issuing insurer’s claims-paying ability. For Mexico’s temporary residency alone, savings usually win; buy an annuity only for the income you want for life.
Married? Make the income outlive either of you. In Mexico the main applicant shows the income and the spouse joins as a family member, so the annuity sits with the main applicant. If a single-life annuity is on one spouse and that spouse dies first, the payments stop, and the surviving spouse may have to show income of their own at the next renewal. A joint and survivor annuity, which keeps paying until the second death, or a separate annuity on each spouse closes that gap. Joint and survivor pays less per dollar than single life, so ask for both quotes and compare.
Frequently asked questions
Free annuity gap analysis for Mexico. Tell me your ages, your Social Security or pension, and whether you are single or a couple. I will show how far your income is from the Mexico requirement and what a lifetime annuity would cost to fill the gap, in the sponsor’s or main applicant’s name where that matters.
Related reading
- Moving abroad on a fixed income: hub
- Retirement visa income requirements compared
- Retire in Belize: QRP income requirement
- Panama pensionado visa
- Costa Rica pensionado
- Moving abroad before 59 and a half
Sources
- Consulate General of Mexico in San Diego: temporary resident visa, economic solvency (2026)
- Consulate of Mexico in Las Vegas: temporary residence visa, solvency and family unit (2026)
- MEXLAW: 2026 economic solvency (UMA multiples) and fees
- Mexperience: qualifying for legal residency in Mexico in 2026
- PwC Worldwide Tax Summaries: Mexico, taxes on personal income
- PwC Worldwide Tax Summaries: Mexico, other taxes (no net wealth tax)
- US-Mexico income tax treaty (IRS text: Art. 1(3) saving clause, Art. 19 pensions and annuities, Art. 24 relief)
- INEGI: Unidad de Medida y Actualizacion (UMA) 2026
- Banco de Mexico: FIX exchange rate
- Ley Federal de Derechos (2026 immigration card fees, Art. 8)
- Codigo Fiscal de la Federacion, Art. 9 (tax residence)
- Ley del Impuesto sobre la Renta, Art. 93 (pension exemption)
- 26 U.S.C. 3405 (withholding on pensions and annuities)
- Treas. Reg. 31.3405(e)-1 (T.D. 10008): no withholding opt-out for a foreign residence address from 2026
- IRS Rev. Proc. 2025-32: 2026 inflation adjustments (gifts to a non-citizen spouse)
- ImmediateAnnuities.com: immediate annuity rates by age (survey of September 9, 2026)
Goldstein & Co. LLC dba Goldstein Insurance Services · Hans Goldstein, licensed insurance agent, CA lic. #4273294 · NPN 20602398 · 213-414-2808 · hans@hansgoldstein.com
Education, not tax, legal or immigration advice. Rules, thresholds and exchange rates change; confirm with the consulate or immigration authority and a local tax adviser before you act, and get answers in writing. Hans Goldstein is a licensed insurance agent (CA 4273294) and can only offer annuities to residents of states where he is licensed. Annuity payments are guaranteed by the issuing insurer’s claims-paying ability, not by any government. Payout figures are illustrations from a published survey, not quotes. Immediate annuities are generally irrevocable.