❓ FAQs: Buying Property in Los Cabos (For Buyers & Investors)
1. Can foreigners buy property in Los Cabos?
Yes — foreign buyers including U.S. and Canadian citizens can legally buy property in Los Cabos, San José del Cabo, Cabo San Lucas, East Cape, and La Paz through a fideicomiso (bank trust) if the property lies within the coastal restricted zone. Outside the zone, you can hold direct title. You retain full ownership rights in either case.
2. What is a fideicomiso and why do I need it?
A fideicomiso is a renewable 50-year bank trust that allows foreigners to own property within 50 km of the coastline or border. The Mexican bank holds title, but you control and can sell, rent, or bequeath your property.
3. How much do closing costs and fees cost in Los Cabos?
Typical buyer closing costs range from 3.5% to 7.5% of the purchase price. This includes acquisition tax (2–5%), notary fees, escrow, bank-trust setup, and legal expenses. Title insurance is optional but recommended.
4. How long does the buying process take in Cabo?
Most purchases close within 60 to 90 days. The process includes offer, fideicomiso setup, notary signing, and title transfer. Remote closings through power of attorney are common for international buyers.
5. Do I need to be present in Mexico at closing?
No — You can sign a power of attorney to complete the transaction remotely. All documentation can be handled by a qualified notario público and trusted attorney.
7. Can I finance my property purchase in Los Cabos?
Most buyers pay in cash, but financing is possible via specialized Mexican lenders or developer plans. U.S. mortgages are rare, so consult a finance company experienced in foreign real estate transactions.
8. What should I look for when choosing a location (San José, East Cape, La Paz)?
Consider your lifestyle: San José offers art and culture, East Cape is ideal for off-grid or beachfront living, and La Paz suits those seeking urban amenities and rental-yield potential. Visit or rent to test each area first.
9. What legal protections do I get as a buyer?
You’ll work with a Mexican notario público who ensures legal compliance. Title is registered with the local Public Registry, and title insurance provides extra protection.
10. What is the property tax like in Mexico?
Annual predial tax is quite low — usually under USD 300/year in Cabo, depending on the assessed value. It's significantly lower than U.S./Canadian property taxes.
11. Can I renovate or rent out my Cabo property?
Yes — As the beneficiary of the fideicomiso, you may renovate, lease, or sell the property without restrictions. Rental income can provide strong ROI in tourist markets like Cabo San Lucas and La Paz.
12. How do I safely transfer funds from abroad?
Wire transfers are standard. Avoid large cash transactions. Use escrow services for funds and work with your Realtor to coordinate safe payment, especially for down payments and closing.
13. Do I need residency or an RFC to buy property?
To open a fideicomiso and handle taxes, you need a Mexican RFC (tax ID), which requires a temporary or permanent residency and CURP. Many buyers apply early in the process.
14. What differentiates escrow in Mexico vs the U.S.?
In Cabo, escrow involves an independent agent (often U.S.-based) and the notario público. Escrow handles deposit and final payments, ensuring funds aren’t released until all contractual conditions are met.
15. How do I choose a real estate agent in Cabo?
Pick a licensed MLS agent with expertise in Los Cabos markets: San José del Cabo, Cabo San Lucas, East Cape, or La Paz. They should understand fideicomiso setup, escrow, Spanish contracts, and international closing logistics.