How to Buy Property in Los Cabos as a Foreigner

How to Buy Property in Los Cabos as a Foreigner

Learn how to buy property in Los Cabos safely and legally as a foreigner. Discover the buying process, closing costs, and expert tips from Zenith Cabo Realtors.


Why Los Cabos Is the Top Choice for Foreign Buyers


Los Cabos has become Mexico’s most attractive destination for international real estate investment. With its pristine beaches, high-end developments, strong rental demand, and lifestyle appeal, it’s easy to see why investors, retirees, and second-home buyers are flocking here.


But beyond beauty and luxury, what truly sets Los Cabos apart is security and legal transparency, two key elements foreign buyers value most. With the right guidance, purchasing property in Cabo can be just as straightforward as buying in the U.S. or Canada.


Can Foreigners Buy Property in Los Cabos?



Understanding Mexico’s “Restricted Zone”


By Mexican law, foreigners cannot directly own property within 50 km (31 miles) of the coastline or 100 km (62 miles) of an international border. Since Los Cabos lies within this coastal zone, ownership happens through a legal mechanism called the Fideicomiso, a bank trust.


What Is a Fideicomiso (Bank Trust)?


A Fideicomiso allows a foreigner to hold title to real estate in Mexico through a Mexican bank, acting as the trustee.


Here’s how it works:

  • You, as the foreign buyer, are the beneficiary of the trust.
  • The bank (trustee) holds the title on your behalf.
  • You retain full ownership rights: to sell, rent, inherit, or remodel the property.
  • The trust is valid for 50 years and can be renewed indefinitely.


This structure ensures your property rights are 100% protected under Mexican law.



Step-by-Step Process to Buy Property in Los Cabos


Step 1 – Choose the Right Real Estate Agent


Working with an experienced, bilingual, and trustworthy agent is crucial.

At Zenith Cabo Realtors, our agents are experts in guiding international buyers through every detail of the process, ensuring full transparency, clear communication, and client-first representation.


Step 2 – Select Your Ideal Property


Whether you’re looking for:


  • Luxury beachfront villas
  • Ocean-view condos
  • Investment opportunities (Airbnb or rental units)
  • Land to build your dream home


…Cabo has it all. Your agent will help you explore neighborhoods such as Cabo San Lucas, San José del Cabo, the Corridor, Todos Santos, and East Cape, each offering a unique lifestyle.


Step 3 – Make an Offer


Once you’ve found the right property:


  1. Your agent presents a written offer to the seller.
  2. Negotiations begin on price, closing date, and terms.
  3. Both parties sign a purchase agreement once they reach an understanding.


A good faith deposit (usually 5–10%) is placed into escrow.


Step 4 – Due Diligence & Legal Review


Your agent, attorney, and notario (notary public) conduct a thorough verification:


  • Ownership documents
  • Land use/zoning confirmation
  • Title search
  • HOA and property taxes
  • Utility status (water, electricity, etc.)


This ensures your investment is safe and free of legal issues.


Step 5 – Establish the Fideicomiso


Your attorney or notary initiates the bank trust setup process.

The chosen bank becomes the legal titleholder (trustee), and you’re registered as the exclusive beneficiary.


Step 6 – Closing the Deal


On the closing day:


  • Both parties sign the Deed of Trust before a notary.
  • The property is officially recorded with the Public Registry of Property.
  • The balance payment is transferred.
  • You receive the final deed (Escritura Pública).


Congratulations! You’re now the legal owner of your Los Cabos property!



Understanding Closing Costs in Los Cabos


While costs may vary depending on property type and location, here’s a general overview:

*These may change every year


Zenith Cabo Realtors provides a clear estimate of all closing expenses before you commit, so you always know your total investment upfront.


How Long Does the Process Take?


The average buying and closing timeline in Los Cabos ranges from 60 to 90 days, depending on:


  • Property type
  • Seller readiness
  • Bank trust creation time
  • Documentation from both parties


Working with a local, experienced team like Zenith Cabo Realtors ensures efficiency and reduces unnecessary delays.


Common Mistakes to Avoid When Buying Property in Mexico


1. Not Using a Local Expert

Avoid working with non-local or unlicensed agents. Always choose a trusted, established real estate agency.


2. Skipping Legal Review

Never skip due diligence. Legal verification protects your title and prevents future complications.


3. Ignoring HOA Rules

If buying in a gated community, review HOA fees, restrictions, and maintenance responsibilities before committing.


4. Underestimating Closing Costs

Factor in all transaction fees, not just the purchase price, for a realistic budget.



Financing Options for Foreign Buyers


While many buyers purchase with cash, there are mortgage options available for foreigners through specialized institutions. Interest rates and eligibility vary, so consulting with your agent and financial advisor early in the process is key.


Working with Zenith Cabo Realtors


At Zenith Cabo Realtors, we’ve helped hundreds of international buyers secure properties across Los Cabos safely and smoothly.


Our bilingual team ensures:

  • Transparent communication
  • Secure legal processes
  • Access to off-market listings
  • Personalized property tours


With over 30 years of combined experience between Mexico and the U.S., we understand both worlds, and we always put your interests first.


Download the Free Buying & Closing Process Guide


Ready to make your move?

📘 Download The Buying & Closing Process Guide for Los Cabos — your free resource explaining every step, from offer to ownership, with expert insights from Zenith Cabo Realtors.


FAQs About Buying Property in Los Cabos



Is it safe for foreigners to buy property in Mexico?

Yes. When done through a Fideicomiso, foreign property ownership in Mexico is 100% legal and protected by law.


How much are closing costs?

Expect around 4–6% of the property value, depending on the transaction details.


How long does the process take?

Typically 30–60 days from offer acceptance to final deed registration.


Can I rent out my property on Airbnb?

Yes! Many Cabo owners generate rental income, especially during high season. Your agent can help you understand the local regulations.


Do I need to live in Mexico to own property there?

No. You can buy, own, and rent property remotely, with proper legal representation.


Who pays the real estate agent commission?

The seller covers the commission, not the buyer.



Conclusion

Buying property in Los Cabos as a foreigner isn’t just a smart investment; it’s a chance to own a piece of paradise.


With the right team by your side, the process is secure, transparent, and rewarding.


Trust Zenith Cabo Realtors to guide you every step of the way, from your first inquiry to the day you hold your keys.

See you in Cabo.