5 Essential Things to Know Before Buying Property in Los Cabos
Thinking of buying property in Los Cabos, Mexico? Whether you're eyeing a luxury beachfront villa in Cabo San Lucas, an investment in San José del Cabo, or a gated community along The Corridor, understanding the local real estate market, legal process, and costs is crucial. Here’s what every foreign buyer should know before purchasing property in Los Cabos.
1. Foreigners Can Buy Property in Los Cabos (With a Fideicomiso)
Since Los Cabos falls within Mexico’s Restricted Zone (50 km from the coastline), foreign buyers must use a fideicomiso (bank trust) or a Mexican corporation to purchase property legally.
The fideicomiso allows foreigners to hold title through a Mexican bank while retaining full ownership rights, including the ability to sell, rent, or inherit the property.
2. Work With a Certified Cabo Real Estate Agent & Lawyer
Mexico doesn’t have an MLS system, so real estate listings aren’t always centralized. For a smooth transaction, work with a local AMPI-certified real estate agent and a bilingual lawyer specializing in Los Cabos real estate to verify title history, contracts, and legal documentation.
3. Understand Costs: Closing Fees, Taxes & HOA Dues
Buying property in Los Cabos comes with extra costs beyond the sale price:
- Closing costs: ~4–7% of the property value
- Annual property tax (Predial): Lower than in the U.S.
- Bank trust (fideicomiso) fees: If applicable
- Notary fees: Required for legal transactions
- HOA fees: Common in communities like Palmilla and Pedregal
- Rental income tax: If you plan to rent your property
4. Verify the Title & Legal Documentation
Before buying, ensure the property has:
- Clear title history (no liens or unpaid debts)
- Escritura Pública (Public Deed)—official ownership documentation
- Certificate of No Encumbrances (Certificado de Libertad de Gravamen)
- Public Registry verification for legal ownership confirmation
For pre-construction properties, check the developer’s reputation and permit approvals.
5. Best Neighborhoods in Los Cabos for Property Investment
Los Cabos offers varied real estate options depending on lifestyle and investment goals:
- Cabo San Lucas – High-energy area with vacation rentals, condos, and beachfront villas in Hacienda del Mar and Pedregal.
- San José del Cabo – Tranquil, upscale, known for Palmilla and golf course communities such as Puerto Los Cabos, Villas Del Mar, Palmilla and Querencia.
- The Corridor – Exclusive resorts and gated developments with panoramic ocean views and golf courses like El Dorado, Chileno, Maravilla and Cove Club.
- East Cape – Remote, beachfront eco-properties ideal for privacy and surfing enthusiasts such the Four Seasons and Aman at Costa Palmas
Final Thoughts
Investing in Los Cabos luxury real estate is an excellent opportunity for buyers seeking beachfront elegance, gated exclusivity, and five-star lifestyle amenities. By understanding the legal framework, costs, and top-tier communities, you can secure the perfect high-end property in Mexico’s most desirable coastal destination.
