Mexico vs Colombia: The Best Country for Expats and Entrepreneurs

 Moving Abroad Resources:

👉 Moving Abroad Relocation Roadmap Guidebook that walks you through the five phases of moving abroad ($27): https://www.entrepreneurexpat.com/relocate

👉 Moving Abroad Relocation Blueprint Course which offers step by step guidance on everything from choosing the right country to immigration to taxes and everything in between: https://www.entrepreneurexpat.com/blueprint

👉 Want us to handle the details of your move abroad? Apply for our white-glove relocation services here: https://www.entrepreneurexpat.com/consult

👉 Free Moving to Mexico Guide: https://www.entrepreneurexpat.com/mexico

👉 Free Moving Abroad Checklist: https://www.entrepreneurexpat.com/abroad 

Remote Work and Online Income Resources:

👉 Expat Income Accelerator course which shows you the multiple ways you can make money globally based on our 15+ years of experience in online business, investing internationally and living in multiple countries: https://www.entrepreneurexpat.com/income

👉 Get Your First High Paying Client Online Bootcamp which walks you through the first four foundational steps of creating and monetizing an online business based on 15+ years of experience in online business: https://www.entrepreneurexpat.com/firstclient-yt

👉 YouTube Mastery Workshop which shows you how we’ve built two YouTube channels that bring clients and passive income from digital course sales (including turning Entrepreneur Expat into a six-figure business in six months): https://www.YouTubeMasteryWorkshop.com

👉LinkedIn Mastery Workshop which shows you how to use LinkedIn to find remote work, clients and connect with recruiters based on Justin’s experience building a six-figure business and finding remote work on LinkedIn: https://www.entrepreneurexpat.com/linkedin

👉 Free Make Money From Anywhere Guide: https://www.entrepreneurexpat.com/money-guide 

V I D E O S    T O    W A T C H    N E X T :


Online Business Tips to Working and Traveling In Mexico: https://www.youtube.com/watch?v=9zGH0voCyOc&list=PLh3xKhkMgH_IA6s3KvB_g9Cc9Ze1eji8j&index=2

Moving to Mexico: 10 Reasons Why We Chose to Live in Guadalajara https://www.youtube.com/watch?v=dK23vD8_xjc&list=PLh3xKhkMgH_LAY7UV78YMgms-f2e1UcwN&index=23

Tips for Moving Overseas: Top 5 Remote Work Skills That Make Money: https://www.youtube.com/watch?v=bFzjCrlNAL8&list=PLh3xKhkMgH_IA6s3KvB_g9Cc9Ze1eji8j


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Inquiries: community@entrepreneurexpat.com


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Disclaimer: The information in this video should not be considered tax, financial, investment, or any kind of professional advice. Only a professional diagnosis of your specific situation can determine which strategies are appropriate for your needs. Entrepreneur Expat can and does not provide advice unless/until engaged by you. 

Transcript

Speaker 0:36

If you've been thinking about leaving the US or Canada, there are two countries that come up again and again, Mexico and Colombia. Fortunately, I currently live in Mexico and spent many years in Colombia. So we're gonna talk about which one actually gives you more freedom, better lifestyle, and more opportunity as an entrepreneur. Expat. I've lived and worked across Latin America, and today we're breaking down the real pros and cons of both countries so that you can make the smart move for your life. And for your business. For those of you that are new to this channel, it's Justin Keltner from Entrepreneur Expat, and here we help freedom minded professionals build global lives without sacrificing comfort, income, or security. If you're serious about relocating or getting a second residency or passport, then book a call with our team@entrepreneurexpat.com slash consult and we can help you get everything squared away If you've got a million dollars or more in assets. We can help you come up with a completely customized plan, understand tax implications across different countries, help you get a visa in somewhere like Mexico or like Colombia. And of course, navigate all of the red tape that comes from moving your life, your family, and your business as well. So that's entrepreneur expat.com/console. Let's dive into what really matters, cost, lifestyle, visas, taxes, and overall freedom. So first, of course, the cost of living. Mexico is now 20 to 40% more expensive than Colombia overall. This wasn't the case when I lived in Colombia several years ago. They were on par, or in some cases Mexico was actually a little bit cheaper, but things have turned a little bit. There's a ton more expats just in the last. Five years that have come to call Mexico their permanent home. So if you look at a place like Mexico City, you can typically live comfortably on about 2,500 to$3,000 US per month for a single expat versus Medellin. You're gonna look at closer to around 1800 to 2200. A month for a similar lifestyle. Of course, Mexico still is affordable, especially when you compare it to high cost of living places like the US or Canada or Western Europe. But it's really not the bargain that used to be, especially in expat hotspots like Puerto Vallarta or in San Miguel. Thee. Colombia is still a great value for your money, especially if you earn in USD, you get more apartment for less cheaper labor and great food at half the price. Now there are more and more expats going to places like Metagene as well, but uh, overall Mexico, because of how strong its economy is, has gotten pricier and pricier. So people tend to agree that for most expats, the cost of living is gonna be. A little higher here. Now, in terms of quality of life, Mexico does have more mature expat communities. They've got a little bit better healthcare access. In fact, the private system is top tier and relatively inexpensive, especially when you pin it against places like Canada and Colombia. You've got a slightly less polished infrastructure experience overall. But Metagene is. World class as as a city if you're looking at that, uh, as a place to go. So there's fast internet, great coworking and reliable transportation, including Uber in most places where when I lived there, the internet was still, as we say, ma menos. It was, it was acceptable. But when the pandemic started and everybody was working from home, and most of the infrastructure was based on like old, uh, cable networks. Things started to get slow, right? And you, you would have a little bit of, of contention for internet and speeds would get low and you would drop calls. It's improved a lot and there's much better access to fiber optic internet and things like that. But if you want North American level convenience with, you know, still having that Latin flavor than Mexico, definitely. Wind, if you're after a little bit more creativity, adventure and value, then Colombia kind of has the edge over Mexico. I really, really loved mountain biking in Colombia, down some pretty cool drops there, and just all of the, all of the diversity, all of the nature. It's a little bit more, I wanna say rustic. It's a little bit less developed. Mexico in a lot of places and there isn't quite the same level of, let's say, tourist infrastructure that Mexico has, but it kind of gives Colombia a nice charm. I feel like it's a little bit under-explored when you compare it with Mexico, especially when you get into places like rural, rural Colombia or you look at Fincas and smaller towns like Armenia where I got to live, uh, for a little over a year as well. When you get outside of some of those major cities, there's just. Both are extremely interesting, don't get me wrong, but Colombia has its own sort of special charm. So I would almost say they're, they're kind of a tie there. Now in terms of the climate Mexico's diversity with their highlands, their beaches, and their small quaint colonial towns, uh, versus Colombia Spring-like Metagene. I mean, there was never really anywhere in the world. That I could say had as perfect weather like Metagene does, other than the rains. When it rains there, it's pretty crazy. But Lake Al, where we live now does come pretty close. Uh, I really love Colombia's, uh, Caribbean coast as well. Obviously there's some Caribbean options in Mexico, but it does feel a little bit more off the beaten path in Colombia, especially places like Barcia car, Hena. Of course, it's, it's, it's a tourist trap for sure, but. It just, it just feels under explored and, and still kind of like a different world on its own versus if you go to Mexico on the Caribbean side, whether that's somewhere like Cancun or play El Carmen, it kind of feels more like an American colony with a lot of, a lot of, uh, American brands and fast food chains. Hotel chains and things like that versus truly being a world of its own. So just different strokes for different folks, right? different flavors, if you will. Now we're gonna touch on some of the visa and residency options available in each place. So Mexico is actually the more difficult of the two to be able to get residency in. But it gives you more options for longer term residency and even paths to passports, which is kind of cool. But in terms of just the bare income requirements, temporary residency does start at around$4,200 per month USD of income, or around$70,000 in savings that the consulates are requesting in order for you to be able to get a temporary residence, which is valid for four years, and then after those four years, you can turn that into a permanent residence and have a path. To a passport in Colombia. By contrast, most options short of getting married there, uh, or perhaps investing a large sum of money over 25,000 USD, which for some people is a lot, for a lot of our clients, it's not that much, but you do have to have an actual business. Short of that, if you're just a digital nomad, there are ways to get that visa, but you're not typically put on a path. To actually get a permanent residency in Colombia or a citizenship, that's kind of the difference there. So the digital nomad Visa in Colombia requires$900 US per month of income minimum, and that allows up to a two year stay versus Mexico's four year temporary residence, which is then, convertible to a permanent or a citizenship. So Colombia's program is easier to get started with, and there's a lower barrier to entry, but Mexico's program is easier to actually stay in the country long term. Now we're gonna touch on the taxes and business environment in both countries. So both are going to tax residents after 183 days. Mexico taxes, worldwide income if you're a resident. But there are clear treaties and systems for entrepreneurs. The the other thing I'll say is that in Mexico, for the most part. Expats are not taxed. There's obviously a huge difference between the letter of the law and how it's actually executed and how it's interpreted. Most expats that we know here if they do have small businesses that are based in the US are not really declaring or paying taxes. In Mexico, they say that Mexico is one of the highest tax countries because it's in, you know, it's a, it's a high tax country in Latin America, but it's one of the places where the fewest people actually pay taxes. So due with that information, as you will now, Colombia also does tax income worldwide and their tax proposals there are becoming more aggressive, especially towards high. Income earners. So if you are earning a lot of money even from overseas, like from the US or Canada or Europe, and you're planning on living in Colombia for more than six months a year, that is something to be aware of in Colombia. From my own opinion and what I've seen and what I experienced there, they are much more aggressive. As far as tax collection, we did absolutely have to pay taxes in Colombia. There are certainly some loopholes, especially if you're at, at not as high income levels, but. Factor in that most likely you're gonna be paying a total of 20, 25, 30% on your income or more, versus perhaps less, in the us. And you're always gonna pay taxes to the US or at the very least, have to declare taxes in the us. Of course, consult your CPA for specific advice or if you're interested in learning more about how to take advantage of some of these international tax treaties. Get your Visa in one of these countries, entrepreneur expat.com/consult, and we can actually hook you up with some of the top experts in different countries in Colombia, in Mexico, in the us and they all inter understand international tax treaties and processes and things like that. So if you run an international business, Mexico might give you a, a cleaner structure and easier professional support, but. Colombia's lower cost base might mean more margins if you do stay a non-resident. So maybe you're six months a year in one country, six months, a year in another or something like that. Ideally, you really wanna stay out of any country's tax debt, and that's what we'll help you with on that consult that we mentioned before as well. So we'll touch a little bit now on the freedom, safety, and culture. So both countries, of course, will have areas that you want to avoid. On a day-to-day basis, the media really does exaggerate the danger. In Mexico, you do have strong personal freedoms. You are able to operate a business a little bit easier. there's also less bureaucracy compared to Western countries. Colombia has a very welcoming culture, creative energy, and vibrant cities. But the government unpredictability specifically with perhaps the current regime that's there right now can certainly affect business owners and in some cases, even property owners. It's not unheard of that, in Colombia in the past they've said, okay, you know what? You have this house. Well, we want it now, so it's ours. I'm not saying that's gonna happen to you. In fact, it's very unlikely to happen to foreigners, but there are very left-leaning governments there. Versus in Mexico, the government is a lot more centrist or, or right-leaning. They love money and they love foreign investment more than anything, so they want to keep you and your money. Here. So freedom, infrastructure and proximity to the us, which is another thing that perhaps will help you if you are running a business where you do have to spend time going back to the us. Mexico might win there. And if culture, community and adventure matter more than Colombia's magic is very, very cool. I had a really great time in Colombia. I loved exploring there. It's a place that perhaps I would go back and live at least for a few months, a year at some point in the future after maybe we're done collecting different passports, uh, from other countries as we're working on diversifying our passport portfolio between Mexico and perhaps central Europe. South America and some other places. So really, it's honestly kind of a tie, right? Mexico gives you the convenience and proximity, perhaps a little bit more of the cultural similarity, but Colombia does give you a better value for your money and there's a lot of vibrance there, and it does feel much more like you're in a totally different world. I would say if you're building your business or if you're investing in real estate, start in Mexico. Once you're established, perhaps explore Colombia as your. Second base, unless you're like, Hey, I wanna, you know, do things in Colombia that involve the local economy. Perhaps you want to export coffee there. Perhaps there's another business, that you're thinking about starting, or you just visit and you really, really love it. You can absolutely be successful in either place, but I will caution you, it's definitely more important in Colombia that if you don't wanna fall into that tax net, that you don't spend more than 183 days there per year. If you want help building your expat roadmap, whether that's the taxes, residency, or even property, I'll mention this as well. Just to give you guys a little preview. We do have an international MLS website coming out very, very soon. We've hinted at it before, but it's going to be released to the public soon. So what we're gonna do some, uh, some more with property there in Mexico and overseas. So we're gonna let you know when that's. Done. But until then, if you are looking for help with any of those different things, if you are a high net worth individual, you're looking to perhaps divest from the US or Canada, go to entrepreneur expat.com/consult. We can help you figure out everything A to Z. Get that free strategy call there. We thank you for being the best part of Entrepreneur Expat. Thanks in advance for giving this video a big thumbs up. And also for hitting that subscribe button and that notification bell if you haven't already. We really appreciate it and we look forward to seeing you again very soon.