About the Area

Lake Chapala: 
This place is Lake Chapala, Mexico's largest natural lake located in eastern Jalisco state, 50 kilometres south of Guadalajara, the country's second-largest city. Ajijic (pronounced aah-hee-HEEK), a cute little village complete with boutiques, art shops, quaint restaurants sits at 1,535 metres surrounded by the foothills of the Sierra Madras Mountains  on narrow cobblestone streets!  Once a quaint fishing village, Ajijic and 14 other north shore villages strung from Chapala in the east to Jocotepec in the west -- collectively referred to as Lakeside or the Chapala Riviera -- have, since the 1980s, become increasingly popular with retired Canadians and Americans and are now home to 10,000 full time expats, the largest number anywhere.  In addition to the homeowners, many  more vacation or spend the winter. The home we purchased is in Chapala - a nice residential mature neighbourhood in a cottage like setting.  Lots of trees, birds and nature.  The Lakeside area also has a large number of "sun-birds" as they are referred to.  Sun-birds are Americans from the hot south who choose to spend their hot humid summers here at Lake Chapala instead.  This affords a very good set up for folks wanting to rent their home out both winter & summer!
This area has one of the world's best climates. With a semi-tropical average temperature of 20 C and a year-round variation of just 8 C, plus low humidity it was the perfect choice for us.
"Mexico is home to 700,000 U.S. and Canadian citizens, who have decided to exchange the cold weather and high cost of living for a more affordable, easy way of life retirement.
Chapala is No. 1 for North American expats. In addition to climate,  its popularity to its proximity to Guadalajara -- with its big-city facilities including hospitals, stores like Costco and Wal-Mart, and renowned Mexican handicraft markets -- and the beach resorts of Puerto Vallarta and Manzanillo are only a 3-4 hour drive away!  We felt this was a perfect mix - same driving distance as from home to the cottage!

Health Care:  Foreigners qualify to join IMSS (National Health Care System) at a cost of approximately $300 a year (less than $1 a day) and there is no age limit (covers everything). Excellent, well-equipped hospitals and well-trained Doctors in Mexico; many trained north of the border and speak English. International private insurance is half the cost if you live in Mexico (and outside the U.S. or Canada more than 6 months a year). Alternative health care is abundant and affordable.  Our OHIP will continue to cover us for an extended period of 2 years out of country.

Immigration Visas:   The Mexican government has made it super easy for foreigners to obtain residency visas in Mexico.   We are able to bring in our furniture and vehicles Tax FREE.  Shipping costs to move our house full of stuff is expensive.  We are told by many that the cost of quality furnishings in Mexico are quite expensive (as most things are imported) so we will ship our favourite things down.

Pets:    It's easy to bring the pets as well.  Only thing required is an international health certificate from your vet proving that the pets are current with shots and are parisite free.  There are many excellent vet clinics in the area - prices for vet care are about 1/3 the cost of Canada.  Premium pet foods are readily available in many of the local stores.  And, there's always Costco not far away!

The Cost of Living in Lake Chapala is one of the lowest retirement locations in Mexico. Just a few examples of the costs :   Rib eye steak and all the trimmings at a nice restaurant  for under $10. A nice bottle of Chilean wine in a restaurant for $12 ($4 in the liquor store). Five-day trips to the beach for $300 (includes transportation in first-class bus, 5-star hotel on the beach and food and drinks). You can live here well on under $2000 a month.  You can have  maid and gardener ($3 an hour). Manicure and pedicure (both for under $15) or a 50-minute massage for $20.  With the high Canadian Dollar, money goes even further now. 

Mexico offers Retiree Benefits Program. Anyone 60 years or older (including foreigners with a valid visa) are eligible to join the Personas Adultas Mayores program with discounts all over Mexico. Discounts can range from 5% to 50% and some services are FREE, like museums. From doctors (many specialties), hospitals, laboratories, dental and pharmacies, airline, bus tickets and car rentals, hotels, theater, furniture and clothing, and even lawyers (now that's a nice touch). In Mexico, foreign retirees are treated like Mexican nationals; that means foreigners are eligible for the same benefits that Mexican nationals are.

Taxes -  We no longer shutter when the bills arrive!  . Property taxes on a house worth $200,000 are under $100 per year!!  . As expats we are exempt from Capital Gains and retirees pay no taxes on the money they bring into Mexico.
You can work in Mexico (some exceptions). The expansive infrastructure in Lake Chapala is partly due to retirees deciding they wanted to do something, so they looked for something missing and filled in. Many have started businesses that add additional services to the area.  That certainly becomes an intersting option for us younger ex-pats!  You simply apply for a "work permit" and pay Mexican Income Tax on your earnings.

Canadians living in Mexico can choose to become non-residents of Canada for Tax purposes and never file income tax again. 15% withholding tax on pensions and RRSPs. You don't give up your Canadian passport; you maintain your Canadian citizenship as well as becoming a resident of Mexico.   There is alot to consider before making this decision, we are planning on working with a Canadian Tax Professional to get the best advice.

Legal System - You are doubly protected by NAFTA in Mexico. You get a Direct Deed to your property when you buy real estate (just like back home). And you can name your children beneficiaries in the deed.  All you need to do is have a Mexican Will drawn up.  Super simple!

Well friends, that gives you a little overview of the important issues we have researched and learned about the area - stay well!
Lori