How to Legally Work or Run a Business in Mexico and Build a Life You Love

If you’ve ever imagined living in Mexico while continuing your career, launching a new venture, or settling into retirement, the good news is this. It’s absolutely possible. And it’s more straightforward than you might think.

I’ve done it myself, and I’ve helped many others do the same. Whether your income is foreign or local, here’s what you need to know to make your move legally and successfully.

1. Understand Where Your Income Comes From

Before anything else, understand how your income is earned. This will determine your visa path, tax requirements, and legal obligations.

If your income is from outside Mexico, like freelance work or a remote job based in another country, you’re treated differently than someone earning money from Mexican sources.

If you plan to work with local clients or open a business within Mexico, that counts as Mexican-sourced income. You’ll need to be registered appropriately.

2. A Tourist Visa Is Not Enough

It’s a common misconception that remote workers can live in Mexico on a tourist visa. But the truth is, if you plan to stay long term or earn any income, you need more than that.

A Temporary Resident Visa with work permission is the proper route. It gives you the legal ability to stay in Mexico beyond a few months, open a bank account, register with the tax authorities, and operate with peace of mind.

3. Starting a Business in Mexico Is Possible

You can absolutely own a business in Mexico as a foreigner. Many people do, across all kinds of industries.

Here’s what it takes:

• Set up a Mexican corporation
• Register with SAT, the national tax authority
• Obtain your RFC, which is your taxpayer ID
• Work with a notary to formalize your structure
• Partner with an accountant to stay compliant

This is exactly how I built my own real estate business here. I’ve also helped others launch everything from hospitality ventures to consulting firms.

4. Understand Your Tax Responsibilities

Even if your income is entirely foreign, you may still be required to register with SAT and file regular reports.

A trusted accountant is key here. They will help you:

• Choose the right tax structure
• Avoid double taxation
• Keep up with monthly and annual filings
• Stay fully compliant with Mexican law

5. Retiring in Mexico Is Easier Than You Think

For retirees, Mexico is one of the most welcoming countries in the world.

• Many qualify for permanent residency based on pension income
• Foreign pensions are generally not taxed in Mexico
• You gain access to healthcare and a high quality of life

The result is a peaceful, affordable lifestyle in one of the most beautiful and vibrant places in the world.

6. Legal Compliance Is Worth It

Cutting corners can cost you. Working without a proper visa, ignoring tax obligations, or staying on a tourist visa for too long can all lead to serious issues. That includes fines, visa denials, or problems at reentry.

Doing it the right way creates stability, peace of mind, and the foundation for something real and lasting.

Final Thoughts

You can live, work, or retire in Mexico. And you can do it legally. All it takes is the right visa, a clear understanding of the process, and a local team you can trust.

I’ve been through it, and I’ve guided others through it too. If you're thinking of making a move or starting something new here, I'd be happy to help.