US Citizens and Mexico: The Practical Realities of the Most Common Route

Mexico is likely the single most common nomad destination for US citizens specifically, given the proximity, the relatively accessible Temporary Resident Visa (see the Mexico visa guide), and the ease of maintaining ties back home. That proximity creates some genuinely different practical considerations than a more remote destination like Thailand or the UAE.

The US and Mexico have a tax treaty, giving you the same additional structure Portugal offers beyond the base Foreign Earned Income Exclusion and Foreign Tax Credit mechanisms covered in the main US Citizens guide.

Because Mexico is close enough that many Americans maintain a US bank account, US-based business ties, or even property back home while living there, the 'center of vital interests' question that determines Mexican tax residency (covered in the Mexico visa guide's tax section) can be genuinely more ambiguous here than for nomads who've made a cleaner break — worth a direct conversation with a professional rather than assuming either outcome based on general reputation.

The proximity also means many Americans treat Mexico as a lower-commitment testing ground before a more distant relocation — which is a reasonable strategy, but doesn't change any of the underlying US citizenship-based tax obligations covered in the main guide.