"When they venture off the beaten path to these lesser-known communities, retirees also enjoy another one of Mexico's attractions: a low cost of living. With a wide choice of restaurants (many of them owned by expatriate Canadians and Americans) and with multi-course meals still available for 90 pesos (approximately $10 Cdn), it is not unusual to find Canadians dining out most nights. For those who like to cook, a basket of goods is generally priced at one-half to one-third of most Canadian retail prices.
The more ambitious retirees can pursue another cost-savings aspect of Mexico. Those who take the trouble to establish residency in Mexico (by completing a process of severing Canadian ties and establishing new, Mexican ties), can achieve a significant reduction in personal income tax."
Taxes on interest, dividends and capital gains are mi nimal and usually withheld at source. Should you decide to work or do business in Mexico, you will be subject to income tax.
But whatever your income, be assured it will go further in Mexico. Food, labor and goods manufactured in Mexico are extremely affordable. For instance, you can have a maid or gardener for the equivalent of US$2.50 to $3.00 an hour. A man’s haircut for $40 pesos ($3.80 US), high speed broadband for $340 pesos ($32 US) a month and best of all property taxes for about $550 to $2200 pesos a year ($50 to $200 US). Transportation is another real bargain with bus fare in Lake Chapala around $7 pesos ($0.64 US). Eating out is also a real bargain.
COST OF LIVING IN MEXICO
"The lower cost of living in Lake Chapala and the Ajijic area of Mexico is one of the Major Attractions."
Other than excellent climate, the reason many North Americans have for moving to Mexico is the cost of living. Most prices are lower compared to those "back home". It is hard to understand why so many people on small pensions or Social Security will struggle with miserable climates, high utility and medical bills, and other services, when they could live better in Mexico. Here are some random samples of prices: (All prices in US dollars.)
Automotive
Premium gasoline - $2.44 a gallon.
Regular $2.06
Wash auto - From $2.00 to $5.00
Lubricate auto, change oil and filter - $18
Car Insurance - 35 per month 5 year old car
Medical and Dental
Clean teeth - $15.00
Tooth filled - $20.00 Porcelain.
Doctor's office visit including EKG - $30.00
Health insurance 23/month per person
Personal Care
Ladies haircut and permanent - $25.00
Mens haircut - $4.5
Utilities
Electricity - $20.00 for two months.
Propane gas for cooking - $15.00 per month
Telephone basic service - $16.00
Water for drinking - $5.5 per month
No heating or air conditioning required
Internet - 19 USD per month
Entertainment
Cost for ticket to movie theater
(first run film) $3.0
Maid
Basic thorough house cleaning one day
(4 - 5 hours) each week - $8.0
Laundry and Dry Cleaning
Clothes for two people at commercial laundry (washed, dried and folded) $7.00 per week
Dry clean trousers or skirt - $3.00
Food
The following are prices per pound for fresh meat, vegetables and fruit.
Chicken, whole - $2
Beef Fillet - 2.92
Tomatoes - $0.29
Potatoes - $0.37
Oranges - $0.18
Bananas - $0.17
Flour - $0.87
Eggs (doz.) - $0.94
Bottled Drinks
Six-pack of Corona beer (325ml) - from $3.15 to $3.70
Coca-Cola (1 1/2 lt plastic bottle) - $1.09
Milk (2 lt) - $1.25
Fruit Juice (1lt carton) - $1.15
Assorted soft drinks
(355 ml aluminum can) - $0.45
