Having worked with American and Canadian retirees in Puerto Vallarta for over ten years, I can guarantee that this treasure on Mexico’s Pacific coast has become one of the best-performing retirement destinations in the world. As a real estate expert serving expats, I’ve seen a stream of my fellow countrymen measure their American Dream retirement and live better than most people ever will in their lives.
Assuming clients would like their pension funds to stretch as far as possible, the question I get asked most is: Does
Does Puerto Vallarta offer a comfortable life?
Absolutely, it does! And that’s precisely what I’m going to show you in this article: how you can choose exactly the lifestyle you want to lead in Puerto Vallarta, as well as how much money it takes to achieve it. When compared to cities with an equivalent quality of life in North America, living in Puerto Vallarta is 40-60% cheaper. The secret lies in this: knowing where to live and how to shop, and what kind of costs to expect.
To retire comfortably in 2003, all my clients were couples who needed to budget $7,000-$9,000 per month. And that money should not only provide an acceptable standard of living but also provide plenty of fun. A person living alone would need less for themselves, but can also get by better with what they have.
Based on my calculations of hundreds of Americans living through their middle years, it’s possible for a couple to establish residence in Puerto Vallarta and make ends meet on $1,200-$1,800 a year. But how do you use that money?
There are three levels of living standards I’ve developed over the years, witnessing three types of people based on their income. The first is economic, where one person can live decently on $1,200-$1,500 per month, while a comfortable life ($1,800-$2,500 per month for two) involves regular after-dinner entertainment at restaurants and theatergoing.
Location in Vallarta is very important
Location within Puerto Vallarta is easily the single most important factor in determining your cost of living. Beachfront property prices are obviously higher. However, I’ve found that simply living 10 or 15 minutes from the beach can reduce your housing expenses by 40% without compromising your comfort. Its surroundings are beautiful, you should know the best places to visit around Puerto Vallarta, don’t miss it.
Puerto Vallarta’s infrastructure is another major cost-saver. Direct flights from our more than 30 destination cities in the U.S. and Canada bring visitors to your doorstep at low costs, keeping living costs drastically low.
Housing: Greater Investment, Greater Return
In my experience, housing costs in Puerto Vallarta represent 30 to 40% of a retiree’s total budget. But this is where my professional experience makes the difference: knowing exactly where to look.
In the downtown area, a one-bedroom apartment rents for $800–$1,100 per month. You can get a three-bedroom house for $1,500–$2,500 per month. However, right in 5 de Diciembre, Fluvial Vallarta, or Las Juntas—places that are well-located and have good transportation connections but are outside the main tourist area—I can always help clients find much better options for less money.
If you decide to buy, condos near the beach start at $109,000, but I’ve seen excellent properties for less money in emerging areas. Common amenities include 24/7 security, a pool, and gardening services, which cost more in the U.S. but are covered by monthly maintenance fees here.
A big plus is that all basic utilities (electricity, water, trash collection) for an 84-square-meter apartment cost approximately $70 per month. Compare this to the $200-$300 you’d pay in a similar US city, and it’s easy to see why so many of my clients decide to move here permanently.
It’s important to work with someone who understands the local market. Too many expats don’t have access to good information and, as a result, pay inflated prices. The best deals are often not found on international websites, but in the local market where prices can be negotiated fairly and equitably.
Gastos Diarios: Donde Daily Expenses: Where the Real Economy Begins
In Puerto Vallarta, if you know how to shop, living expenses can be extremely low. A meal at a local mom-and-pop restaurant costs between $5 and $10, and a local shopping street offers a bargain dinner for two with drinks for less than $20.
If you want to compare food prices in the United States, consider this food example: I would pay approximately four times what I paid here! The supermarket is where my clients really notice big savings. A basic grocery basket for a week costs around $50-$70 for a couple; in contrast, these same items in some US cities would cost around $120-$150. Local markets also offer fresh fruits and vegetables at incredible prices. You can buy enough fresh produce for a week for $20-$30.
Public transportation is excellent and cheap. Local buses cost less than $0.50 per ride, while short-distance taxis cost $5-$8. Uber also operates here with fares that people can expect to be discounted compared to what they would pay for regular taxis. Taxi, 5 miles: around $15-$18. With public transportation: less than $2.
Domestic help is another major expense saver. A maid or housekeeper who comes twice a week costs around $120-$180 per month, while a gardener for general maintenance charges around $80-$120. This is part of the typical lifestyle here for retirees. However, it would be a luxury in their home country of the Americas.
One of my clients’ main concerns is healthcare before relocating, in fact, but Puerto Vallarta has a top-notch healthcare system at a third of the cost of the United States.
As an expat real estate expert, I’ve helped numerous clients navigate their medical careers. The results are always excellent.
A typical doctor’s visit costs around $40 USD. This compares to the $200-$400 you’d pay in the United States without insurance. Specialists charge between $60 and $100 per visit. I’ve seen my clients save thousands of dollars on dental procedures: a dental crown that costs $1,500 USD in the United States costs between $300-$500 here, with the same quality.
Retirees who become permanent residents can enroll in the Mexican public health system (IMSS) after paying an annual fee of approximately $400-$600 USD to cover everything. Many of my clients combine this with local private insurance, which costs between $100-$200 USD per month and gives them access to the best private hospitals. Private hospitals in Puerto Vallarta, such as San Javier Hospital and CMQ Hospital, are equipped with state-of-the-art technology and internationally trained doctors. I have seen complex surgeries performed here with very good results.
Medications also represent a huge savings. Many medications that require a prescription in the US can be purchased freely here and at much lower prices. A high blood pressure medication that costs $150 a month in the United States only costs $20-$30 here.
Living on a Budget in Puerto Vallarta: More for Less
Puerto Vallarta also offers an active lifestyle that would be financially out of reach for most retirees in the United States and Canada. After helping thousands of retirees settle here over the past 20 years, I can now categorically say that the quality of life is very high. At a top-notch beach restaurant, dinner for two (including wine) costs between $50 and $80, while in any American coastal city, such a meal would cost between $120 and $200. There are many entertainment venues and bars in town where you can enjoy excellent performances for only $20-$40 per person, one of the reasons why people here never need to be bored.
There are many opportunities for recreational activities in Puerto Vallarta. Golfing on championship courses costs $60-$120 each for a round with a golf cart included, while in the United States you’ll pay between $150 and $300 per round.
Expat social life is very lively. There are dozens of clubs and organizations for retirees from abroad: bridge groups or book clubs, beach volleyball teams, and walking groups. Membership in these clubs typically costs $20-$50 per year, with almost all activities being free.
Puerto Vallarta has a rich and lively cultural scene. Theater tickets cost $15-$30 more; museums have free admission or nominal fees, and cultural festivals abound and are free. On the Malecón, you can see live entertainment almost every night, from live music to dance performances.
Frequently Asked Questions
Is it really possible to live well on $2,000 USD a month in Puerto Vallarta?
It is indeed possible not only to live well, but in luxury… potentially even in very large spaces for that amount of money. In my many years of real estate experience here, I have worked with hundreds of couples living comfortably on budgets of $1,800-2,500 USD a month. This includes rent for a decent apartment or house, utilities, food, entertainment, and basic medical expenses. The key is knowing where the good areas are and shopping like a local.
Are retirement savings safe in Mexico?
Puerto Vallarta is considered one of the safest places in Mexico for foreigners to retire. The city has a solid banking infrastructure, with international banks like BBVA, Santander, and Citibank all having branches or offices in the city. Many of my clients have accounts both in the United States and here in Mexico. They use international debit cards to withdraw their money anywhere, including Mexico. The Mexican peso has been fairly stable in this Mexican economy, which relies heavily on foreign visitors and expats who come and stay.
Do I need private health insurance or can I use the public health system?
A combination of both is recommended. As a Permanent Resident, you can pay a nominal annual fee ($400-600 USD) and access the I.M.S.S., a public hospital that covers emergencies and general medicine. However, many retirees prefer to purchase additional local private insurance ($100-200 USD per month) that provides access to high-end private hospitals, although medical expenses here are so low that the retired aunt down the street can likely afford minor procedures without worrying too much about shelling out a few dollars.
In reality, how much of the purchase price goes toward a retirement home?
Prices depend greatly, of course, on the location and type of property. This can be an advantage, with low housing costs for the future with our annuity sellers. The condos near the beach are from Perla de la Pacifica Real Estate. The cheapest is $109,000 USD, Destino Station Property Development Co. Second- and third-tier units range in price from $80,000 to $90,000 USD. I’ve already found several good options for $80,000-$90,000 USD in well-established residential areas. Depending on the size and location of the single-family homes, prices vary widely, ranging from $150,000 to $500,000 USD.
It costs approximately $1,000 USD annually to maintain a bank trust. Through this arrangement, foreigners can purchase beachfront properties.
How do I navigate the cultural and language differences?
Puerto Vallarta is home to a well-established expat retirement community of over 15,000. There are dozens of organizations, clubs, and support groups that conduct activities in English. Even many services (banks, hospitals, supermarkets) have bilingual staff. However, learning basic Spanish will greatly improve your experience and keep costs down. Friends here are hospitable, friendly, and open to foreigners.
Your Retirement Dream: Closer Than You Think
After working for many years helping people who want to retire in Puerto Vallarta realize their dream, I can tell you that it is possible to live better here and spend less money than in most US or Canadian cities. With a budget of $1,800-2,500 USD per month for a couple, you can enjoy a lifestyle that includes housekeeping, frequent dining out, good healthcare, and constant entertainment.
The key to success is planning ahead with good advice. As a real estate specialist working with expats, I have seen too many cases of people moving abroad without sufficient research and ending up paying inflated prices. With the right guidance, Puerto Vallarta offers the most favorable combination of all: good weather and modern, comprehensive services, but with affordable menu items to live on.
The money you’ll save on retirement expenses means you can now afford the life of your dreams. There’s a beautiful beach here, and the sun shines beautifully, too. Whether you’re here for the sunshine, the great food culture, or the friendly people, this is greatly appreciated. Many other things also fall under the umbrella of sound financial judgment. If Puerto Vallarta remains a center for your retirement, I would ask you to consider me and let me show you how the best life, which once belonged only to dreamers who learned both how to save fruits through smart lifestyles and the bananas from working on plantations, can now be yours, too.