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I am originally from Miami, so I seek comfortable accommodations and amenities, just not at Miami prices. Surprisingly enough, inexpensive luxury is available all over the country, but given my preference for warm weather, I chose Merida as my home base to explore the Yucatan.

Merida is a medium-sized city with a population of about 1,300,000 and the 13th largest city in Mexico. Centro Historico, with its historic colonial buildings, still has a small-town feel. When you walk around, you’ll usually run into friends or at least one person you know.

The affordable quality of life here is attracting more expats, retirees, and digital nomads to the city. Justifying its reputation as Latin American’s new expat hotspot, the amenities here include a reputable hospital system, fast internet, social expat communities, and low cost of living. I find that Merida is conducive to my digital nomad life, and there are so many amazing Merida day trips to take throughout the Yucatan.

While no place is perfect, Merida ticks a lot of boxes. Though not everyone has heard of it yet, this is a very up-and-coming travel destination, especially given its proximity to Cancun, Playa del Carmen, Riviera Maya, and Tulum.

I truly love living here and shining some light on this colorful, tropical city. I’m so excited to share my personal experiences and tell you all about my average cost of living in Merida, Mexico, and the lifestyle here.

Getting To Know Merida

As mentioned, Merida ticks a lot of boxes — but if you don’t like warm/hot weather, and don’t want a relatively slow pace of life — it might not tick your boxes! To find out if it is, you’d first want to visit, maybe even in the hotter months of May-September.

Merida is easy to visit, as Merida International Airport (code: MID) is only 20 minutes from downtown. Currently, there are only direct flights from Miami, Houston, and Oakland in the U.S., but the airport is currently undergoing an expansion, so more will be available in the future. If you can’t get a direct flight, the Mexico City, Guadalajara, and Tijuana Airports have connections.

Airport Pick Up-  Avoid the stress and hassle of finding a taxi in a strange country. Get a safe airport pickup with no hidden costs.

May-September are the hottest months, with normal daytime temperatures of about 90°F (32°C). With the humidity factored in, temperatures often feel 10°F (5°C) warmer. Expect those temperatures to drop at night to around 80°F (27°C). Many residents simply stay indoors during the day.

Though it’s quite hot, some homes don’t have air conditioning, as Yucatan locals actually prefer to live without it. If this doesn’t apply to you, make sure to find a place with AC and even a pool, though both are additional costs.

Tourists can escape North American and European winters here. The cool season from November to February still hits high temps above 87 degrees (30.6°C). January is the “coldest” month with an  average low-temperature of 65.5°F/18.6°C.

With six months available on your FMM Visa, you can explore Mérida, and other Mexican cities, to find a good fit. Mérida is an affordable city with plenty of unique Airbnbs in Merida you can rent for a few months while getting a feel for the city.

After some time in Merida and being in a few foreigner and expat groups, the thing that seems to dissuade people most about Merida is the weather. This city is in the tropics, and the temperature range starts at HOT and rises to REALLY HOT hot during the summer months.

As the expat demographic skews in the 40s-60s range, Merida is not a party town. There are some cool cantinas and hidden speakeasies that only advertise by word of mouth, but this isn’t an all-night town. Even in the hippest of places, I never spent more than $8USD on a drink in Merida.

My favorite? Thursday Expat Meet Ups. The entrance is free, and they have live music, dancing, and karaoke. You’ll just need to pay for any drinks and snacks. It’s a great way to meet people and really feel like you’re living in Mexico!

Speaking of Expat meet ups, we had friends invite us to several expat  events held by the Merida English Library, but never had a chance to go. Our loss. Don’t make the same mistake, The Merida English Library hosts luaus, chill cookoffs, drag bingo nights, language exchanges and all kinds of fun and many times free events. 

INSIDER TIP: To help acclimate to expat life, here are a few recommendations for Merida’s best Facebook groups:

• Mexpats Mérida
• Merida Mexico Expat Community
• Expats In The Yucatán

The Yucatan has historically the lowest wages in the country making Merida is  geoarbitrage heaven. Your cost of living in Merida will be staggeringly affordable.  An $1400 per month budget here buys you a very comfortable life. That monthly budget is worth nearly 29,000 Mexican Pesos.

Let’s add some context to the $1400. The cost of living comparison below analyzes a medium-cost US city (Portland) vs. a city in Mexico (Merida).

The Top 4 essential costs in the US are housing, food, transportation, and healthcare. These 4 expenses make up 65% of the average costs in a major city.

What Kind Of Lifestyle Can I Afford On $1400 a Month?

The city has seen its population grow twenty percent in the last decade, with a large influx of both foreign expats and Mexicans from other states drawn to the area’s gorgeous cenotes, proximity to pristine beaches, Mayan ruins, and unique Yucatan cuisine. Combine that with getting voted Cultural Capital of the Americas twice and with a reputation as one of Mexico’s safest cities, Merida is now an established hotspot.

Over 1.3 million people live here, with the expat population somewhere between ten thousand and twenty thousand. Estimates vary because many US and Canadian expats are snowbirds and spend six months here escaping the harsh winters back home. 

With popularity comes increasing prices, with some estimates showing a jump in housing prices of over 15% annually. 

Buying a House in Merida 

Lots of expats purchase a casita or house here. I’ve been exploring the housing market here, and I’ve got to say, I’m not a fan of buying. Purchase prices for a 2 bedroom 2 bath home near the center is around $250,000 -$350,000 USD. When the average price to purchase a home in the US is $420,000, these Mexico home prices aren’t super cheap.

Then we have to talk about the Mexican mortgage market. It’s a bit different from what you might be used to. You’ve got three main options: banks, private lenders, and developer financing.

Banks offer security but have strict eligibility criteria. Private lenders are more flexible but come with higher interest rates. Then there’s developer financing, which are often more expat-friendly, but are only applicable for brand new housing.

And if you come from a “low” interest rate country like the US, you’ll be shocked when you see interest rates for foreigners in Mexico hit 9 to 12% interest rate. 

I’m not keen on debt at those rates, which means I would need to cash in a significant portion of my retirement savings to pay for a quarter million dollar home. 

Yeah, renting is better for me. I’m not crazy about tying a chunk of my net worth unless this is a forever home. 

I’m finishing up a video of 10 reasons expats should rent vs buy in Mexico. Make sure to like and subscribe so you’ll be notified when the video is released

For all the reasons I just stated, my monthly budget assumes I am renting. 

You can find a cozy little studio in the city center for about $400 to $600 a month. I even found this cute studio in Centro the other day – for under $400, you get air conditioning (trust me, you’ll want that), fast internet, a swimming pool, and a kitchen. Not too shabby, right?

A One-bedroom will set you back between $700 and $850. I lived in this great two-room shared villa for under $700 even when you include utilities, wifi, and a weekly cleaning service. I had a big bedroom with a king-size bed, an office space, and … a hammock! Nothing says “I live in Mexico” like a hammock in your house, am I right?

INSIDER TIP: Swimming Pools In Merida- Make sure your place has a pool. I’m not kidding! I’ve lived in some pretty warm places before – Egypt, Vietnam, Las Vegas – but Merida’s heat is something else. We had a heatwave recently where it hit 110°F for about 2 months straight. Having a pool isn’t just nice, it’s a lifesaver!

Here is another money saving tip. If you haven’t already signed up for Wise, formerly Transferwise, you should do that today. Wise has the lowest rates I could find to send Mexican pesos to our landlords for rent. For example, Wise charged us roughly $10 dollars to convert and transfer the equivalent of a one thousand and fifty five US dollars in Mexican pesos. That is less than 1%.

And if you use my Wise link, you’ll get your first transfer for free. 

I found my apartment in Mérida housing Facebook group; in general, Facebook is the easiest way to network in Mexico. As with my apartment and an Airbnb, rental properties in the city center (Centro Historico) that cater to expats and foreigners will include all utilities (electricity, water, etc.).

Here are a few recommendations for Merida’s best Facebook groups for housing:

• Merida Casitas for Rent for renters
• Merida Casitas for Sale and
• Homes Merida, Mexico, for an affordable property to purchase.

If you plan to rent a home, utilities, aside from electricity, are typically included in the rental price. But, let’s chat about electricity for a sec. It’s almost never included in the rent, and it can get pretty pricey, especially in summer. During that heatwave I mentioned? Cooling just one room for about 20 hours a day cost us around $100 extra a month. Keep that in mind when you’re budgeting.

Additionally, for top-of-the-line internet and WiFi in Merida, figure about $50 USD, and a cell phone with calls and data will run $25-50 USD.

How Much Is Your Monthly Food Budget?

And one of those reasons you likely moved to Mexico is also my favorite topic – food! My food budget in Merida is tough. One of the biggest positives for me about living in Mexico is how similar food shopping is to the US. You have big supermarkets with familiar brands and aisles and even a Costco. I can order anything on Amazon that I can’t find at Walmart or Costco.

While this all sounds great, it does affect your food budget. I like to tell folks that expat life is remarkably cheap. Imported life is shockingly expensive. 

As opposed to when I live in SE Asia or Eastern Europe, it’s too easy to shop like you would back home, rather than like a local.

This means too often, I buy more expensive nice-to-have items, rather than essentials.  

INSIDER TIP: If you stop at local outdoor mercados (markets) over indoor grocery stores, you can save even more.

Eating out in Merida is also a mixed bag. Street food is cheap and delicious. From mouthwatering street tacos for just $1 to Yucatan specialties I’d never heard of before I moved to Merida like polcanes, salbutes, panuchos, you can get a satisfying lunch for under $4.

But I felt like the midrange sit-down restaurants and the international cuisine here were pricey.

For budget-friendly eats in Merida, the ultimate bang for your buck is the famous Mexican street tacos. One of the best places to snag this mouthwatering meal that’ll leave you satisfied without emptying your wallet is La Lupita Taqueria.

La Lupita gained international fame after being featured on Netflix’s “Taco Chronicles” for its delectable Yucatecan tacos. You can get these incredible tacos for a $1. And don’t even get me started on the Yucatan specialties – salbutes, panuchos, polcanes – you can stuff yourself silly for under $5.

INSIDER TIP: Budget Eats In Merida- Typically the most economical and local eateries in Mexico are called Fonda, Cocina Economica, or Loncheria. These are smaller family owned eateries that serve simple lunches or daily meals that cater to workers in the immediate area. They are about as local as you can get for food.

One of my favorite hidden gems is El Marlin Azul, which serves up generous portions of fish, shrimp, and octopus.  This unassuming restaurant maybe the best value for taste restaurant in Merida. Unpretentious and affordable, you can get a delicious seafood lunch for 100 pesos or about $5.

But my food budget wasn’t all about cheap eats. While international restaurants here were a bit on the pricey side, there were times when I needed a break from Mexican food. I typically headed to my Italian foodie fav, Vana, about once a month. This chic Italian/Mexican fusion restaurant is a great date night spot, where a main course is still an affordable $15. 

How much should I
budget for Entertainment?

Now, let’s chat about the fun stuff – what is there to do in Merida? This is where things get really good, especially if you’re watching your budget.

First off, gym memberships are super cheap. I’ve been going to this place called Monster’M Gym. It’s open until 10 PM, which is great for working out at night when it’s cooler. And get this – it only costs me about $15 a month. Can you believe it?

But maybe lifting weights isn’t your thing. No worries! You can find yoga classes for about $12, CrossFit for $55-$65 a month, or boxing classes for $25 a month. And if you’re really pinching pennies, there are outdoor fitness parks with free equipment. There’s this place called La Planche that has a great setup.

Now, I’ll be honest with you – Merida isn’t exactly party central. Most of the expats here are between 40 and 60, so if you’re looking for wild nightlife, you might want to check out Mexico City, Tulum, or Playa del Carmen instead. But that doesn’t mean there’s nothing to do!

I usually set aside about $50 a month for fun stuff. That covers happy hour with friends, maybe a movie or two, and a night out with drinks and snacks. Cover charges are often free, or around $5-$10 for special events. Beers are cheap – $2-$3 at local bars, maybe $4-$5 at the fancier places. Cocktails are a bit more, usually $5-$8.

But here’s the best part – there’s tons of free stuff to do! Merida’s been named the Cultural Capital of the Americas twice, and it shows. You’ve got free walking tours of the old town (just tip your guide), weekly shows in the main square, free art exhibitions, and even a Mayan sporting event reenactment call Pok Ta Pok which historically was played with a human head lit on fire. 

INSIDER TIP: Day Trips: Merida is centrally located for many cheap day trips. 

Progreso is a popular destination 60 minutes north of Merida for beach lovers. This coastal town boasts beautiful sandy shores and inviting waters, perfect for a relaxing day by the sea. You can also savor fresh seafood at the local restaurants lining the beach. Bus tickets cost a whopping 50 pesos round trip, making this day trip less than $2.50. For a quieter beach, there’s Sisal, Telchac, San Crisanto, and Chicxulub. A little further down the coast, there’s Bacalar Lagoon, known as “the Maldives of Mexico,” and Holbox Island, an up-and-coming Caribbean Island destination

For those interested in natural wonders, Merida is located in Mexico’s Ring of Cenotes, which contains an estimated 10000 cenotes. These natural sinkholes filled with clear, fresh water are ideal for swimming, snorkeling, and cooling off from the Merida sun. Many of these can be visited for under $5. Even the popular Santa Barbra cenote complex with 4 cenotes is about $20. 

History enthusiasts will find the ancient Mesoamerican ruins around Merida fascinating. The Mayan ruins of Uxmal and Chichen Itza are both within a couple of hours’ drive from the city. Chichen Itza is one of the New Seven Wonders of the World, but Uxmal, only an hour-ish from Merida, is closer, less crowded, and is free for foreign legal residents on Sundays. 

You’re no more than two hours away from Tulum, Cancun, Playa del Carmen, or the neighboring colonial cities of Valladolid and Izamal.

What
Does Transportation Cost?

Getting around Merida is pretty easy, and it won’t cost you an arm and a leg, either. I mostly use Uber, and each ride costs me about $2-3 on average. It’s super handy, and I don’t have to worry about parking or maintaining a car.

If you want to go even cheaper, there’s this bus system called Va y Ven. These are new, clean buses with air conditioning that’ll get you around for less than a buck. The routes are a bit limited, but if you live near a stop, you’ve hit the jackpot.

For the true local experience, try the combis or collectivos. These are these colorful little buses that zip around the city. They’re super cheap at just 40 cents per ride. But fair warning – they can get pretty crowded and sweaty on hot days!

And if you want to explore outside of Merida, the ADO buses are your best bet. They’re comfy, air-conditioned, and perfect for day trips.

If you need a beach day, there is a less fancy Bus called Autoprogreso, where a roundtrip to the nearest beach town, Progreso only costs about 2.50 USD. Rides take 55 minutes one way.

INSIDER TIP: As with most things in Mérida, luxury comes at a reduced cost. Though there’s no big spa scene, there are several beautiful, restored haciendas located just outside of town with excellent spas. These hacienda-hotels are about $100USD per night; a spa day pass is about $30USD.

Now, let’s talk about healthcare. This is a big deal for a lot of people thinking about moving here, and I’m happy to tell you that medical care here is both good quality and affordable. Health insurance is way cheaper than in the US, and even paying out of pocket for doctor’s visits or tests won’t break the bank.

• X-rays range from 10  – 82 USD depending on complexity. 
• I had a dental cleaning for 38 – 48 USD 
• You can find quick doctor visits for as much as 2.50 USD 

Getting sick when you first arrive in Mexico is sometimes unavoidable. It’s not unusual to pick up a cough, upset stomach, or bug. It kinda makes sense. Your body is stressed out from moving, you likely haven’t eaten properly, and your system is still adjusting to unfamiliar health conditions. From suspect street food, undrinkable local water, extreme heat, or disease-carrying mosquitoes, Montezumlas Revenge is very real for many expats.

For anything serious, you can get expat health insurance for about $100 to $200 a month. You can get free insurance quotes from several international plans using this link.

If you want to find more ways to save on health insurance, check out my article on how you can save up to $4000 annually on international medical insurance.

Here is an insider tip on healthcare.

Beyond routine medical care, Merida has excellent Health care. There are several world-class hospitals and medical facilities in Mérida. In fact, the Secretary of Tourism in Yucatan state has initiatives to position Mérida as a top medical tourism destination in Mexico. 

EDITOR’S NOTE: Mexico has a highly regarded healthcare system and inexpensive local health insurance, but premiums vary significantly based on coverage area, benefits, age, and health.

If you become a legal resident of Mexico, you can access IMSS, the country’s affordable public healthcare system (Instituto Mexicano del Seguro Social or IMSS). IMSS costs depend on age. A foreign resident under 60 can apply for local medical coverage for 13700 MEX / ~$660 USD annually.

The Mexican government does not follow a strict 183 day rule for tax residency. The country considers you a resident for Mexican tax purposes when you establish a home in Mexico. If you have a home in another country, then Mexico uses a “center of vital interests” test. 

The law here states your center of vital interests is considered located in Mexico if either

1. more than 50% of your income comes from Mexican sources in a calendar year or
2. The country is the primary place of your professional activities.

Your tax liability in Mexico is calculated on your total worldwide income. In the case of foreign income, taxes paid abroad are generally credited against taxes payable in Mexico. 

The US has a double-taxation treaty with Mexico, but as a US Citizen still required to file a US tax return each year, regardless of where you live. Expat taxes are complicated, but the IRS has options to reduce the tax you need to pay, including the exclusion on foreign income, and the tax credit. Speak with a tax advisor for details

What are
The Visa Requirements for
Mexico?

The good news is that visitors from nearly all countries get a 180 day (six-month) FMM Tourist Visa for free upon entering the country. Passport holders from almost all North American and European countries will not need a visa to travel to Mexico, and you can check here to see if you’ll need one. 

EDITOR’S NOTE: What is an FMM? – Though most Americans casually refer to the FMM as a tourist card or tourist “visa,” it is not officially a visa. Forma Migratoria Multiple (FMM) is a document allowing some nationalities (including Americans) to enter Mexico without a visa. Mexico’s INM (Instituto Nacional de Migración) stamps the form when you enter the country.

FMM prices depend on how you enter. As of January 2020, US citizens flying in pay $30 / 575.00 pesos. Land border crossings are ~$22. Save time getting stamped at immigration by completing the application form online.

FMMs cannot be extended or renewed. After six months, you will need to leave the country for a visa run.

Key Takeaway: Expat Life In Merida, Mexico

When compared to Miami, I describe my daily life in Mérida as laid back and relaxed. There are great cafes to start the day at or use as a workspace for digital nomads. In Mexico, as long as you buy something, you can stay in a cafe all day because the culture is incredibly hospitable.

With so many expats, retirees, and digital nomads, there are regular meetups in various cafes all over Mérida.

I’ve attended everything from social coffee club meetups just to hang out and meet others living in Mérida and digital nomads groups to socialize with other professionals.

There are often nighttime and weekend festivals in Plaza Grande (Main Plaza) in Centro Historico, like Merida en Domingo (Merida Sunday Market). Head to Plaza Grande in the center of the city on Saturday nights for a video mapping display on the Mérida Cathedral and to see a traditional Pa Ta Pok Mayan ball game.  

COMPARE COST OF LIVING IN MERIDA MEXICO

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EXPAT INSIGHTS

I have traveled to over 40 countries to give you the best ways to save, invest, and live overseas for less cost than in the US. After five years of traveling, my list of places to live keeps getting longer. To give you more information on the best places to live abroad, I partner with experts from the expat community.

You want insider information from people with feet in the street? I only work with expats with real-life experience living in countries you want to know about. Together you get updated info on the best neighborhoods, detailed Cost of Living examples, money-saving advice, and recommendations on the local places to eat, drink, and see.

Are you a travel blogger with information you can share on living in another country? Contact me and let’s talk about collaborating on a guest post. 

EXPAT CONTRIBUTION BY: Shelley Marmor

Shelley is a former Miami travel magazine editor who ditched the office for the world! After traveling solo to 14 states in Mexico, she decided to live in Merida, Mexico full time. Shelley now helps other women cross Solo travel and Mexico travel off their bucket list through her Travel Mexico Solo blog and Dream To Destination podcast. Head to her Instagram to see lots of amazing Merida, Mexico photos.