A short guide to how buying in Los Cabos works. This is general information, not legal or tax advice — confirm the details with a Mexican notario and accountant.
How foreigners own
Through a fideicomiso (bank trust) for homes, or a Mexican corporation for commercial use. Both give you full use and control of the property.
From offer to closing
Offer and promise-to-purchase agreement → deposit to escrow → bank-trust permit and title checks → signing at the notario → registration in the public registry.
Closing costs
3% ISABI acquisition tax (Baja California Sur, 2026) plus notario, appraisal, registry and trust fees — plan for about 4–7% of the price in total.
Due diligence checklist
Clear title and no-debt certificates (predial, water, HOA) · land use and permits · HOA rules and fees · an independent real estate attorney.
Frequently asked questions
Can a foreigner own beachfront property in Los Cabos?
Yes. Los Cabos is inside Mexico’s restricted zone (within 50 km of the coast), so foreign buyers hold residential property through a Mexican bank trust (fideicomiso) with a term of up to 50 years, renewable. A Mexican corporation is the usual route for commercial use.
What is a fideicomiso?
A bank trust: a Mexican bank holds title for you, and you keep the ownership rights — use, rent, sell or leave it to heirs. The bank charges a setup fee and a yearly trust fee; ask the bank or notario for the current amount.
What are closing costs?
The buyer pays the 3% Baja California Sur acquisition tax (ISABI, statewide since January 2026) plus notario, appraisal, public registry and bank-trust fees. As a working rule, plan for about 4–7% of the price in total, and get an itemized estimate from the closing notario before you make an offer.
How much is property tax (predial)?
Predial is the cadastral value times the municipal rate. The cadastral value is usually well below market price, so bills are low by US standards. In 2026 Los Cabos gave 20% off for paying the year in January–February and 10% in March. Bills are not mailed, so owners pay online or at the municipal office.
Do I need a Mexican bank account?
Not to buy: funds usually go through escrow or the notario. A local account helps later for HOA fees, utilities and predial.
Can I rent my home out?
In most communities, yes — check the HOA rules first. Rental income in Mexico is taxable; a Mexican accountant (contador) can register you and file.
How long does closing take?
Often 30–60 days from accepted offer, mostly for the bank-trust permit and title checks. Your notario gives the timeline for your purchase.
Do I need a lawyer and a notario?
The notario (a state-appointed lawyer) is required and closes the sale. An independent real estate attorney who reviews title and the trust for you is strongly advised.
Sources: Secretaría de Relaciones Exteriores (restricted-zone trust permits); Snell & Wilmer on the BCS ISABI rate (2026); Gringo Gazette on 2026 predial discounts (Jan 2026). Last reviewed November 2026.