What Does Mexico's Growing Economy Mean For Residency Seekers
And Why You Should Apply Now
Yes, Mexico allows Americans to spend upwards of 180 days in the country without a tourist permit. Because of this, many people don't see the value of going through the application process for a 4-year residency card. Life has been easy for Americans visiting and living in Mexico, but I have a feeling things will change.
I applied for Mexican Residency in 2021 when the monthly income requirement was $2300 Dollars. In early 2023, I released the guide below and noticed that as of November 2022, the requirement was raised to $3200.
Why was the requirement raised?
The residency requirements are based on the minimum wage daily multiplied by 300.. Additionally, applicants have the option to meet the income requirement through a specific sum of cash or assets in their account, which must remain there continuously for 12 months. The income requirement also stipulates that the $3200 sum must be consistent across 6 months. This means that if the applicant fails to meet the income criteria for even one of those months, they may not qualify for residency. Moreover, if their savings account balance falls below the required amount for any of those 12 months, they may also be disqualified.
For many Americans who may be facing financial challenges, such as being laid off or needing to dip into their savings, meeting these strict residency requirements become a hurdle.
The Mexican Economy
Of course, things could change at the drop of a dime and the Mexican economy could collapse, but at the moment, that’s very unlikely.
Over the last year, the peso has been consistently gaining strength. This growth can be attributed, in part, to the efforts of the current Mexican President, who has initiated significant developments, including regaining control of the country's oil resources and increasing production. The implementation of industrial projects, such as the construction of new airports and the Maya Train, has further contributed to additional funding and job opportunities for Mexican citizens. Moreover, Mexico has ambitious plans to capitalize on its vast lithium reserves, amounting to 1.7 million tons.
Collectively, these initiatives, coupled with favorable bank policies, have fostered a stronger economy in Mexico, leading to increased average earnings for the country's population. The positive economic trajectory reflects the government's commitment to boosting various sectors and leveraging its natural resources to drive growth and prosperity.
180 Day Tourist Visa are not guaranteed.
As Mexico's economy booms, it will become a lot harder for the average American to be granted residency. This also gives Mexico more bargaining power to limit tourist permits. There was a point in 2022 where tourists were given time limits less than the typical 90 days, some as short as 2 weeks. Despite tourism being a large percent of Mexico's economy, you can't be surprised when they take advantage of this fact and either grant shorter permits or do what Europe is doing and put an additional fee on the permit.
What does this mean for Americans?
There has been a significant decline in the US minimum wage (a 14% decrease), coupled with record-breaking inflation. In contrast, Mexico's minimum wage experienced substantial growth during the period between December 2020 and May 2023, with a remarkable increase of 43.6%. This increase represents the highest among all the countries in the Organization for Economic Cooperation and Development (OECD).
Furthermore, it appears that the positive trend continued with another 11.2% increase in Mexico's minimum wage between June 2022 and June 2023.
Mexican Minumum Wage Tweet
Based on the information provided, it seems like there are predictions that the income gap will get smaller in the future. Additionally, it is anticipated that the requirements for entry (possibly for residency in a particular location) will become more stringent and detailed.
If you have the means and desire to apply for residency in a specific location, it is suggested to do so as soon as possible. This is to take advantage of the current situation before the opportunities become scarcer or geopolitical circumstances may make the process more challenging.
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