Top Tips for Remote Workers in Mexico

Top Tips for Remote Workers in Mexico

 

The allure is real: sitting on a pristine beach, keeping tabs on the surfers as they carve their way along the waves, tapping away on your laptop until you can end the day with a cool margarita under a palm tree. We’ve all had this screensaver-as-real-life daydream, and it has propelled many of us south of the border.

Even pre-pandemic, the number of non-retiree foreigners living in Mexico was growing, and when COVID forced much of the world to embrace remote work, Mexico’s open borders became an irresistible draw. And it just keeps growing. The number of Americans living in Mexico grew 70% from 2019 to 2023, according to El País.
The vibrant, affordable, and culturally rich environment, coupled with the opportunities of remote work, makes Mexico an attractive option for anyone looking to upgrade their life. My husband and I made the move in 2018, and as remote workers, we’ve learned a ton about living and working in Mexico. Here are our top tips for those considering the move.

 

1. Choose the Right Location for You

 

Mexico is big — about one-fifth the size of the US — and incredibly diverse, with varying climates and vibes. Beach towns like San Pancho offer a laid-back, slow pace of life, while cities like Mexico City and Guadalajara are faster-paced with more business opportunities, co-working spaces, and culinary and nightlife scenes. Mountain towns like Mazamitla focus on getting out into nature.

Be honest with yourself about what environment suits you. Can you handle 100% humidity for months at a time living at the beach? Will your job tolerate WiFi issues? Do you sleep well in the heart of a bustling city? Many foreigners romanticize both beach and town-center living, only to relocate inland or farther out from the action a few months after a move for more moderate weather / quieter surroundings. Take time to explore different places before making your move.

 

2. Have More Than One Backup WiFi Plan

 

Reliable WiFi is key for remote work. While Starlink has been a game-changer for expats, it’s not 100% dependable. It’s wise to have two internet providers and a solid cell plan to use as a hotspot in case of outages. If you’re in a city, explore co-working spaces as a stand-in or primary workspace.

If you’re living in a lush, beachy area, remember that humidity, salt air, and power fluctuations can shorten the life of your tech. Be prepared for the occasional replacement, and be aware that hardware is typically more pricey in Mexico as well as Spanish-language based.

 

3. Keep it Legal

 

First things first: tourist visa holders are generally prohibited from engaging in employment activities in Mexico, which includes remote work for foreign companies. Residents, on the other hand, have the legal right to work in the country (temporary residents can do so with a work permit) and are allowed to engage in remote work for foreign companies while residing in Mexico.

Technically, as a remote worker in Mexico, you’re working “in Mexico,” but most likely not making money “in Mexico.” This puts you in a bit of a legal gray area. For foreign employees of a non-Mexican company, you generally pay taxes in your employer’s country and don’t need a work permit in Mexico. However, if you’re self-employed, you may be seen as a contractor, which means you’ll need residency, a work permit, and a tax ID, or RFC number.

You can opt to speak with a tax professional to navigate your particular situation. A potential workaround could be establishing a company in your home country and treating yourself as an employee, avoiding the need to pay Mexican contractor taxes.

 

4. Set Boundaries for Work-Life Balance

 

One of the most appealing aspects about living in Mexico is the focus on living over working. When you meet people, they will often ask one of my favorite questions, “What do you dedicate your time to?” as opposed to “What do you do for a living?” A subtle difference that isn’t so subtle at all.

In addition, you may be living in a vacation destination, meaning the potential for regular visitors and lots of people just sort of hanging out all the time. This is great incentive to wean off a workaholic lifestyle if that’s your current default. Or if you’re easily distracted and an expert procrastinator, this setting might be a challenge for you. Either way, it’s going to be important for you to set boundaries around work, whether they’re to prevent you from working too much or not enough.

Ideally the slower pace contributes to a more balanced life that helps you avoid burnout while increasing productivity.

 

5. Stay On Top of That Money

 

If you’re spending significant time in Mexico, you might want a local bank account. Banks like BBVA, Banorte, and Santander allow residents to open accounts with identification, proof of address, and a resident ID number (CURP). Non-resident foreigners can also open accounts with Intercam.

To lose the least amount of money possible on an international transfer, use services like Wise or XE instead of bank transfers. Bonus — Wise even offers interest on USD, GBP, and EUR held before being converted into pesos.

Keep in mind, as a U.S. or Canadian citizen, you still need to file taxes in your home country. Fortunately, Mexico has tax treaties with both countries to avoid double taxation through mechanisms like the Foreign Earned Income Exclusion or the Foreign Tax Credit. Additionally, U.S. citizens with over $10,000 in any combination of foreign financial accounts throughout the year must file an annual FBAR (Foreign Bank Account Report). Stay on top of your balances to avoid penalties.

Logistics aside, Mexico is an ideal place to live and work, with so much to offer beyond tacos and sunsets — though, those are pretty great too. With the right mindset, planning, and flexibility, remote workers won’t have a problem thriving in this beautiful and vibrant country.

Shari Margolin has been a resident of San Pancho since 2018 and is the co-author of new book, The Young Expat’s Guide to Mexico: A Practical & Brutally Honest Handbook for Moving To & Living In Mexico for Non-Retirees

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