How to Buy a Vacation Home in Los Cabos: Complete Guide for Foreign Buyers

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Discover how to buy your dream vacation home in Los Cabos safely and easily. Learn the process, costs, and legal tips from Zenith Cabo Realtors.

Why Los Cabos Is the Perfect Place for a Vacation Home

Los Cabos isn’t just a travel destination; it’s a lifestyle investment.

With stunning beaches, world-class golf, and luxury living, this corner of Baja California Sur has become one of the most desirable second-home markets in Mexico.

Foreign buyers are drawn by:

Stable property values and strong rental demand.
Direct international flights from major U.S. and Canadian cities.
A thriving expat community and bilingual professionals.
The ability to own property safely through a Fideicomiso (bank trust).

Whether you want a Cabo beachfront villa, a modern condo in San José del Cabo, or a private retreat in the Corridor, you’ll find it here.

Cabo’s Vacation Home Market Overview

The Cabo real estate market continues to grow steadily in 2025, fueled by luxury tourism and investment demand.

Key Market Insights

Average condo prices: $450,000 – $1.2M
Luxury villas: $1.5M – $5M+
Ocean-view homes: Starting around $800,000
Rental yields: 6–10% annually for short-term vacation rentals

Popular Areas for Vacation Homes

Step-by-Step: How to Buy a Vacation Home in Los Cabos

Buying real estate in Mexico as a foreigner is straightforward when guided by the right experts.

Here’s the complete process, from start to finish:

Step 1 – Partner with a Certified Realtor

Start with a trusted, bilingual real estate agent.

At Zenith Cabo Realtors, our team focuses on transparency, ensuring every property you see is legally vetted and investment-worthy.

Step 2 – Choose the Right Property

Define your goals:

Are you looking for rental income or personal use?
Do you prefer a condo with amenities or a private villa?
Is proximity to the beach, golf, or town most important?

Your realtor can arrange private showings and virtual tours, making the search stress-free.

Step 3 – Make an Offer and Open Escrow

Once you’ve chosen your property, your agent will:

Draft a purchase offer (often with a 5–10% deposit).
Open an escrow account for secure funds management.

Step 4 – Establish a Fideicomiso (Bank Trust)

Foreigners can safely own property within Mexico’s restricted zone (including Cabo) by purchasing through a Fideicomiso, a renewable 50-year bank trust that grants full ownership rights.

Step 5 – Due Diligence and Closing

Your team, including the notary, lawyer, and realtor, will:

Verify the title and property history.
Ensure no debts or encumbrances.
Prepare the final deed and closing documents.

Then, the notary officially records your ownership, and you receive your title deed (Escritura Pública).

Legal & Financial Considerations

Foreign Ownership Laws

Under Mexican law, foreigners can own property near the coast through the Fideicomiso or via a Mexican corporation (for business investments).

Taxes and Fees

Expect:

Acquisition tax: ~2% of the property value
Notary & legal fees: 2–3%
Bank trust setup: $1,500–$2,500 initial + ~$500 annual renewal.

Your agent will give you a full cost breakdown before closing.

Financing Options

While most buyers pay cash, several local banks and international lenders now offer mortgages for foreigners.

You can also refinance U.S.-based assets to fund your Cabo purchase.

Benefits of Owning a Vacation Home in Cabo

Lifestyle & Investment in One

A vacation home in Cabo means:

Escaping winters to the Sea of Cortez sunshine.
Hosting friends and family in paradise.
Earning income through Airbnb or long-term rentals.

High Rental Demand

With tourism at record highs, vacation rentals are a profitable secondary income stream.

Cabo’s year-round climate ensures steady occupancy rates, especially for well-located properties with ocean views.

Long-Term Appreciation

Los Cabos property values have risen 8–12% annually in recent years, making it one of Mexico’s most stable and rewarding real estate markets.

Download the Buying & Closing Process Guide

Before making your investment, make sure you understand every legal and financial step.

📘 Download The Buying and Closing Process Guide — a free, step-by-step resource created by Zenith Cabo Realtors.

Learn how to buy safely, avoid pitfalls, and protect your investment from day one.

FAQs About Buying a Vacation Home in Cabo

Is it safe to buy property in Cabo as a foreigner?

Yes, property ownership through a Fideicomiso ensures your rights are fully protected.

Can I rent my vacation home on Airbnb?

Absolutely. Many owners earn 6–10% annual returns through short-term rentals.

How long does the buying process take?

Typically 30–60 days, depending on bank trust setup and paperwork.

Do I need to live in Mexico to buy property?

No, foreigners can purchase remotely through a legal representative.

Are there property taxes in Cabo?

Yes, but they’re very low — about 0.1% of assessed value annually.

Can I finance my vacation home?

Yes, through Mexican banks, U.S. cross-border lenders, or cash purchases.

Conclusion

Owning a vacation home in Los Cabos is more than an investment — it’s a gateway to a better lifestyle.

From sunrise beach walks to fine dining under the stars, every day here feels like a getaway.

At Zenith Cabo Realtors, we combine 30 years of international real estate experience with true local expertise to guide you through every step of the buying process — safely and transparently.

Your Cabo dream home is waiting. Let’s make it happen — See You in Cabo.