A comfortable retirement works out cheaper in Cambodia — around £1,400/month for a couple, versus £2,100 in Mexico (about 33% more).
Cost of living, side by side
| Cambodia | Mexico | |
|---|---|---|
| Modest (couple/mo) | £850 | £1,400 |
| Comfortable (couple/mo) | £1,400 | £2,100 |
| Premium (couple/mo) | £2,400 | £3,600 |
Indicative monthly estimates for a couple — real costs vary by location, lifestyle and exchange rates.
Cambodia: Foreigners can own condominium units outright with a strata title, on the first floor and above, capped at 70% of any building and not within 30km of a land border. Land itself cannot be foreign-owned, so houses and villas are taken on long leases (commonly up to 50 years) or through a majority-Cambodian company.
Mexico: Foreigners can own property, via a bank trust (fideicomiso) in the restricted coastal and border zones.
Cambodia: Most retirees use the ER ('retirement') extension of an ordinary E-class visa: broadly for those aged 55+ who are retired, it is inexpensive and renewable yearly, needing proof of retirement and funds rather than a fixed deposit.
Mexico: Temporary and permanent resident visas suit retirees who meet income or savings thresholds.
Cambodia: Public healthcare is limited and private clinics in Phnom Penh and Siem Reap, while improving, still send serious cases to Bangkok or Singapore — so international insurance with medical-evacuation cover is strongly advised. Routine care is cheap and largely cash-based.
Mexico: Private hospitals in the big cities and expat hubs are good and far cheaper than in the US or UK, with English-speaking doctors common in expat areas. Legal residents can enrol voluntarily in the public IMSS scheme for roughly US$500-700 a year, though it excludes some pre-existing conditions, so many pair it with private insurance.
Cambodia: Cambodia operates a territorial system, so a foreign pension is generally not taxed; even resident retirees typically find foreign-source pension income falls outside the local net, while local earnings are taxed progressively up to 20%. Declare your status and take advice to be sure.
Mexico: Temporary residents are generally not taxed on foreign pensions for their first years, and even permanent residents who become tax-resident benefit from double-tax treaties and foreign-tax credits that usually keep the bill low. Whether you are tax-resident turns on your centre of vital interests, so take advice.
Cambodia: Tropical and warm all year; the dry season (November-April, coolest November-January) is most comfortable, followed by a hot spell and a May-October monsoon. Generally safe and friendly, though watch for bag-snatching and chaotic traffic; English is widely spoken in expat and tourist areas, the US dollar is used day-to-day, and driving is on the right.
Mexico: Hugely varied by altitude: the central highlands around Lake Chapala and San Miguel enjoy a spring-like climate year-round, while the coasts are hot and humid with a May-October rainy season. The dry winter months are the most comfortable. Safety varies sharply by region, so the settled expat towns are calm while some areas are best avoided; they drive on the right, and English is widely spoken in expat hubs though Spanish helps everywhere else.
Cambodia: Expect a 4% transfer tax on the government-assessed value for a strata-title condo, plus registration and legal fees and any title-upgrade cost; US dollars are used, which keeps transactions simple. Foreigners buy condo units (not land), and registration can take some weeks.
Mexico: On the coast or near a border, foreign buyers hold property through a bank trust (fideicomiso), which adds a setup fee and annual charge. Expect total closing costs of about 5-8% inland and 7-12% where a trust is needed, including acquisition tax (ISAI) of 2-4% plus notary and registration; completion often takes one to two months.
Cambodia: Phnom Penh for the widest amenities and healthcare, temple-rich Siem Reap for a calmer pace, and riverside Kampot with seaside Kep in the south for laid-back living, all with established expat pockets.
Mexico: Lake Chapala and Ajijic for a large, established lakeside expat community; San Miguel de Allende for colonial charm; Merida for a safe, cultured city in the Yucatan; and Puerto Vallarta for beach living.
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