🛬 Buying Property in Mexico as a Foreigner: What You Need to Know

Los Cabos is a dream destination for many—turquoise waters, year-round sunshine, world-class golf, and a laid-back luxury lifestyle. But if you're a foreigner thinking about buying property in Mexico, you might be wondering… Can I even buy property here? 🤔

The answer is: YES—but with a few rules and some paperwork. Here's your friendly guide to understanding how it all works, especially if you're eyeing a home in paradise like Cabo.

🏝️ Can Foreigners Own Property in Mexico?

Yes, foreigners can legally own property in Mexico, with one key condition:
If the property is within 50 km of the coastline or 100 km of a border, you must use a legal structure called a fideicomiso (trust).

Spoiler: ALL of Los Cabos is in this “restricted zone.” since the Baja its only 80 kilometers from coast to coast, so no matter where are you located you will always be less than 40km from any coastline.

🔐 What is a Fideicomiso?

A fideicomiso is a real estate trust agreement established through a Mexican bank, which holds the title on your behalf. But don’t worry—you are 100% the beneficiary of that trust, which gives you all the rights of ownership:

You can live in it ✅
Rent it out ✅
Remodel or sell it ✅
Leave it to heirs ✅

The fideicomiso typically lasts 50 years and is renewable.

buy property mexico cabo san lucas

📑 The Buying Process (Step by Step)

Find your dream property 🏡
(Preferably with the help of a knowledgeable, local real estate professional 👋)
Make an offer and sign a purchase agreement
(Usually in both Spanish and English.)
Understad the closing costs
Closing costs go around 5-7 % of the property value, this includes the so called "acquisition tax" which is 3% solely of the property value, + the fees from your closing attorney + notary fees + setting up the fideicomiso with any reputable bank institution, all of these ultimately come up to be the 5 or 6 % of the property value, that would be all of the closing fees.
Set up your fideicomiso
The bank prepares the trust and obtains authorization from Mexico’s Ministry of Foreign Affairs.
Title review and legal due diligence
Your notary and legal team will ensure the title is clean and the property has no debts.
Closing
After final signatures, funds are transferred, and you become the rightful owner.

💵 Costs to Consider

Fideicomiso setup: ~$2,000–$3,000 USD (one-time)
Annual fideicomiso fee: ~$500–$700 USD
Closing costs: ~5–7% of the purchase price (includes notary fees, taxes, and bank fees)

📈 Why It’s Worth It

Despite the paperwork and extra steps, owning property in Mexico can be a smart investment and a lifestyle upgrade.
Los Cabos offers:

Strong appreciation potential
High rental income for vacation properties
A growing luxury real estate market
Easy access from the U.S. and Canada (2–4 hour flights!)

🧠 Pro Tips Before Buying

Work with an experienced real estate agent who knows the market and the legal process.
Use a real estate attorney—seriously, it’s worth every cent.
Always buy through a notario público (a government-appointed lawyer who oversees real estate closings).
Don’t skip title insurance if it's available, this applies more to off the grid areas like the East Cape, Todos Santos, Los Barriles, and mostly for land, but you should be able to get title insurance at any type and location of the property.

🏁 Final Thoughts

Buying property in Mexico as a foreigner is absolutely possible—and in places like Los Cabos, it’s one of the best decisions you’ll ever make (next to ordering that second margarita). 🍹

Whether you’re looking for a beachside villa, a cozy condo with ocean views, or a smart investment property, Cabo is calling. And now that you know how the process works, you’re one step closer to calling it home.

Want help navigating the real estate process in Los Cabos? Reach out to our team at Own In Cabo Real Estate—we’re locals, we’re pros, and we’re here to guide you every step of the way.