Buying Property in Cabo San Lucas

Can Americans or Canadians buy property in Mexico?

Yes. Americans and Canadians have been buying homes in Cabo for decades. Foreign ownership through a Mexican bank trust called a fideicomiso is an established process. Buyers can enjoy their property, sell it or pass their rights on to designated beneficiaries through the trust.

Today’s terms: These trusts have terms of up to 50 years and can be renewed upon request. Mexico’s 1993 Foreign Investment Law established this longer term. Because Cabo is in Mexico’s coastal restricted zone, the bank holds legal title as trustee and the buyer holds the beneficial rights. Your notary and trustee bank can explain the property documents, beneficiary designations and renewal steps for your purchase. The trust is renewable through the trustee bank. Mexican regulations provide that renewal shall be granted when the trust’s conditions continue to be met and the required application is submitted.

A trust offers benefits beyond meeting ownership requirements

Mexican families also choose fideicomisos for inheritance and estate planning. For foreign buyers in Cabo, the property trust provides an established ownership structure and allows you to name successor beneficiaries—helping make the eventual transfer of your property rights to loved ones simpler.

When properly structured, the trust can avoid the ordinary inheritance proceedings for the property rights covered by its beneficiary provisions, potentially reducing delays and expenses. Your beneficiaries still need to complete the trustee bank’s documentation and any applicable transfer formalities. Although the trust involves setup and annual fees, it also serves a useful purpose for you and your family.

Learn more: BBVA’s coastal property trust and successor beneficiaries; estate-planning trusts used in Mexico.

Why the late 1980s were a turning point

The May 1989 regulations provided a route for a 30-year trust to continue through a new trust over the same property, subject to the required permits and conditions. Buyers often described this as “30 plus 30.” When a property sold to a different beneficiary, a new trust could begin a fresh term of up to 30 years, with renewal available under the rules. A sale alone did not automatically restart the term.

BIR’s connection to that history: Don Weis recalls Stewart approaching him in the late 1980s and offering him the exclusive rights to offer title insurance throughout Mexico. He remembers the trust changes as major news for foreign buyers. In his experience, renewable trust terms and the availability of title insurance helped build buyer confidence and contributed to Cabo’s growing real estate market.

Another milestone came in January 2002, when Stewart opened its Mexican subsidiary, Stewart Title Guaranty de México. It was the first Mexican title insurance underwriter licensed by Mexico’s Comisión Nacional de Seguros y Fianzas (CNSF) to issue title insurance policies in Mexico.

Historical and legal references: 1989 regulations, Articles 20–21 (reproduced in a UNAM thesis, pp. 105–107; PDF in Spanish); Foreign Investment Law, Article 13; Stewart’s Mexican underwriting history.

What are the closing costs when buying property in Cabo?

Closing costs in Cabo can be higher than buyers initially expect. A major part is the property acquisition tax, known as ISABI: Los Cabos has a 3% rate, applied to the applicable taxable value. Notary fees, public registration, appraisals and certificates also contribute. For foreign buyers using a new fideicomiso, the trust permit, bank setup and first annual trust fee add to the upfront cost.

Real closing-cost examples

These three new-trust estimates, prepared by Loyalty Consulting on September 21, 2026, illustrate how costs can vary with the purchase price. All amounts are in US dollars.

Click a purchase price below to see the full breakdown. You can open more than one to compare.

Illustrative estimates, not fixed quotes. Totals reproduce the preparer’s figures; the acquisition-tax amounts in these samples equal 3.1% of the stated prices, so that calculation needs clarification in your individual quote. Costs depend on the taxable value, exchange rate, trust arrangement and services required. Confirm whether escrow, inspections, title insurance or financing costs apply and are included.

Some charges are fixed or do not rise in direct proportion to the price, which can make closing costs a smaller percentage on a higher-priced purchase. Ask us for a written, itemized estimate for the property you are considering.

Official references: Los Cabos acquisition-tax reform; municipal property-tax rules; 2026 early-payment discounts.

Can I rent out my home or condo in Cabo?

Yes—in many cases, you can enjoy your Cabo property yourself and rent it when you are away. Foreign ownership through a fideicomiso can accommodate rental income. The key is choosing a property whose rules fit your plans.

Location comes first

Start with the experience your guests are looking for. Beachfront attracts people willing to pay a premium for being right on the water, although you will usually pay more to buy that location too. A beachfront home can perform very differently from a home directly behind it. Compare actual rental histories and purchase costs rather than assuming similar homes will earn similar income.

For fishing visitors, convenient access to the marina can be a major attraction. Other guests want to walk to restaurants, bars and town activities without arranging taxis or renting a car. Think about the guests you want to attract and how easily they can enjoy the things they came to Cabo to do.

Give guests a reason to choose your property

When many nearby rentals offer essentially the same experience, guests can shop next door for a lower price. A distinctive property gives them reasons to choose yours beyond price alone. That applies at every budget, from an affordable retreat to an expensive beachfront home: thoughtful design, a memorable outdoor space, useful amenities and personal touches can help create an experience guests want to return to.

Repeat guests are a valuable part of the business

Based on our decades of local experience, building a base of returning guests is an important part of a successful rental. When guests choose to book future stays directly with you or your manager, you can reduce booking-platform fees and commissions. Agree with your manager how repeat bookings are handled and what fees still apply, and honor any existing booking-platform terms. Make it easy for guests who want to return to stay in touch.

A great property manager delivers the experience

The property needs to meet the expectations created by its photos and description—or exceed them. A great manager makes that happen through a clean, well-maintained home, clear communication, a smooth arrival and prompt help when something goes wrong. That consistency helps earn trust, recommendations and return visits. Choose a manager for the guest experience they deliver as well as the fee they charge.

Choose the rental approach that suits you

Vacation rentals can leave room for your own visits, while a longer-term rental commits the property to a tenant for the agreed period. Before buying, check whether the community permits your intended rental arrangement, including minimum stays, guest access and any rental-management requirements.

Understand your rental income and expenses

Ask for a realistic estimate that includes vacancies, management and booking fees, cleaning, utilities, maintenance, insurance and taxes. Your own visits also affect the number of nights available to rent. If a property already has a rental history, ask to review actual income and expenses rather than relying only on projections.

Tell us how you hope to use the property, and we can help you identify the rental questions to resolve before you buy.

Useful references: Foreign Investment Law, Article 12; SAT guidance on platform income; BCS lodging tax; Los Cabos environmental sanitation charge.