Over the years, I’ve helped buyers from all over the world navigate the process of purchasing property in Los Cabos and throughout Baja California Sur. Here are some of the questions I’m asked most frequently, along with my answers.
Yes! Foreigners can own property in Mexico, and you do not need to be a Mexican citizen or resident to purchase real estate.
You simply need a valid passport to purchase a property. You can buy a home, resell it, rent it, and enjoy the same ownership rights provided under Mexican law.
Owning property in Mexico may also help you qualify for Mexican residency, depending on the value of your investment and current immigration requirements. After meeting the applicable residency and other legal requirements over time, you may also become eligible to pursue Mexican citizenship.
No. You do not need Mexican residency or citizenship to purchase real estate.
Whether you are a Mexican citizen, a temporary or permanent resident, or an international buyer living abroad, there are legal structures available for you to own property in Mexico.
For international buyers purchasing in Mexico's restricted zone, the property is generally held through a Fideicomiso, or Mexican bank trust.
A Fideicomiso is a Mexican bank trust that allows foreigners to hold residential property in Mexico's restricted zone.
The restricted zone generally includes property located within 50 km (31 miles) of the coast or 100 km (62 miles) of an international border.
Through the Fideicomiso, you are the beneficiary and have the rights to use, enjoy, sell, rent, and transfer the property, subject to the terms of the trust and Mexican law.
Your name appears as the beneficiary of the trust, you can designate beneficiaries for the future, and your utility accounts can be placed in your name.
A Fideicomiso is typically established for 50 years and can be renewed. It is not a lease — you are not renting the property from the bank. The bank acts as the trustee and holds title on behalf of the trust.
The annual maintenance fee is typically around $600–$700 USD, depending on the bank.
No. The bank is acting as the trustee of the Fideicomiso; it does not own the property for its own benefit.
The trust structure is regulated under Mexican law, and your rights as the beneficiary are protected. If the bank acting as trustee were to experience a problem, the trust can generally be transferred to another authorized financial institution.
Once you become a Mexican citizen, you may have the option to restructure your ownership and cancel the Fideicomiso, depending on your specific circumstances and the property's location.
This is something that should be coordinated with your notary and legal counsel at the time.
Property taxes in Mexico are generally very low compared with many other countries.
The exact amount depends on the property's cadastral value and municipality, so it varies from property to property.
As a general example, a property with a market value of approximately $1,000,000 USD might have annual property taxes of around $1,000 USD, although the actual amount is determined by the municipality and cadastral value.
It's relatively simple.
If you have a property manager, they can take care of the payment on your behalf.
If you prefer to handle it yourself, you can generally pay online or at the corresponding municipal office.
One of the best times to pay is in January, when many municipalities offer an early-payment discount. Depending on the municipality and payment date, discounts can sometimes reach 15–20%.
As a general estimate, buyers should budget approximately 5–6% of the purchase price for closing costs in Baja California Sur.
The exact amount varies depending on the property's value, municipality, ownership structure, and other factors.
What is included in the closing costs?
Acquisition Tax (ISAI)
Approximately 3% in Baja California Sur. This is the government tax paid when ownership of a property changes.
Notary Fees
The notary is a government-appointed legal professional who oversees the transaction, reviews the legal status of the property, prepares the deed, and ensures the transaction is properly recorded.
Notary costs can vary depending on the property value and transaction.
Public Registry Fees
These are the fees associated with officially registering the property in the Public Registry.
Fideicomiso Setup Fee
If a Fideicomiso is required, there is generally a one-time bank setup fee, often around $1,500–$2,500 USD, depending on the bank.
Appraisal
An appraisal may be required for tax and legal purposes. Costs vary depending on the property.
Certificates & Official Documents
These may include documentation such as:
Foreign Affairs Permit (SRE)
Foreign buyers purchasing through a Fideicomiso generally require the corresponding federal permit.
A simple way to budget:
Approximately 3% → Acquisition tax
Approximately 2–3% → Notary, registration, permits, certificates and other transaction costs
Estimated total: approximately 5–6%
The final amount is always determined by the notary based on the specific property and transaction.
A typical closing timeline in Baja California Sur is approximately 90 days, although the exact timeline can vary depending on the property, the parties involved, the notary, and whether additional documentation is required.
Here's what the process generally looks like:
1. Offer / Letter of Intent
Once your offer is accepted, we move forward with the transaction and begin coordinating the legal and financial process.
2. Escrow & Deposit
An escrow account is established, and the buyer typically deposits 10% of the purchase price as a good-faith deposit, according to the agreed terms.
3. Due Diligence
We conduct due diligence on the property, typically during the first 10–14 days.
This can include reviewing the property's legal status, title, liens, taxes, permits and other relevant documentation.
A home inspection can also be performed at this stage, with the buyer covering the inspection cost.
4. Purchase Agreement
Once due diligence is satisfactory, the parties proceed with the purchase agreement and the closing process.
5. Notary & Closing
The notary coordinates the preparation of the deed and the establishment or transfer of the Fideicomiso, when applicable.
Once the notary confirms that the transaction is ready to proceed, we coordinate the signing date.
The remaining purchase funds are transferred according to the escrow instructions, and the parties sign the final closing documents.
6. After Closing
At closing, you receive documentation confirming the transaction and your ownership rights.
The officially recorded Fideicomiso deed may take several additional months to be issued and registered. In some cases, the complete recorded deed and final closing package can take approximately 6–7 months.
I keep my clients updated throughout the entire process so you always know where things stand.
Not necessarily. One of the most common questions I receive from international buyers is how the payment structure works and whether they need to have the entire purchase price available immediately.
The answer depends on whether you're purchasing a resale property or a pre-construction property, and there may also be financing options available.
When purchasing an existing property, once your offer is accepted and the Letter of Intent (LOI) is signed, the buyer typically has approximately 3–5 days to wire the initial 10% deposit into an escrow account, according to the agreed terms.
The estimated closing period is approximately 90 days.
The remaining 90% of the purchase price is typically due at closing.
This means that you don't necessarily need to have the entire purchase price available on day one — you generally have approximately three months to prepare the remaining funds before closing.
The exact deposit, timeline and payment terms are established in the negotiated offer and purchase agreement.
Sometimes, yes.
Some sellers offer seller financing, particularly for certain resale properties. The terms are negotiated directly as part of the transaction and can vary considerably.
Depending on the seller, financing terms may include different down-payment requirements, interest rates, repayment periods and other conditions.
If you're interested in seller financing, I can help identify properties where this may be an option and explain the proposed terms.
Pre-construction purchases typically have a different payment structure.
In many developments, buyers make an initial down payment of approximately 35%, with the remaining balance paid through installments during construction and/or upon delivery of the property.
However, every developer has its own payment schedule.
Some projects may offer extended developer financing, construction-period installments or different down-payment structures.
Before purchasing, I will walk you through the complete payment schedule so you know exactly when each payment is due and how much you need to have available at each stage.
Yes. Qualified U.S. buyers have access to financing options for purchasing property in Mexico.
Financing is currently available to U.S. citizens and U.S. permanent residents who have verifiable income and qualifying credit.
Typical financing terms include:
For example, on a $1,000,000 USD property, a qualified buyer could potentially finance up to $650,000, with a minimum down payment of $350,000, subject to lender approval and the specific terms of the financing program.
Financing is subject to underwriting, income verification, credit qualification and other lender requirements. Terms and rates may vary, so I always recommend confirming the current conditions with the lending institution before making a purchase decision.
If financing is something you're considering, I can help you understand the process and connect you with the appropriate financial professionals.
Once the transaction has closed, you are officially the owner of your property.
The documentation provided by the notary allows you to begin transferring utilities and other accounts into your name.
And don't worry — this is one of the areas where I continue to help my clients even after closing.
After closing, you can use the documentation provided by the notary to transfer services such as:
The process can sometimes be a little complicated, particularly if you are not familiar with the local systems.
I help my clients navigate this process, so you don't have to figure it all out on your own.
Alternatively, a property manager can handle the process for you.
For international homeowners who don't live in Mexico full-time, I often recommend working with a reliable property manager who can handle utility payments and monitor the property while you're away.
Some local services and payment systems can be easier to manage with a Mexican bank account or card, and certain utility companies can occasionally have system or payment-record issues.
A property manager can take care of these payments and help ensure your accounts remain current.
Property management fees vary depending on the company and the services included.
Utility costs vary significantly depending on the property, size, occupancy and usage — especially air-conditioning.
As a general guideline:
Internet:
Around $30 USD/month with Telmex in many areas. In more remote communities such as Cerritos, Pescadero and Todos Santos, availability can vary, and Starlink may be an alternative, starting at approximately $50 USD/month depending on the plan.
Electricity:
CFE electricity is billed approximately every two months. Your bill can vary significantly depending on your air-conditioning usage. For example, a three-bedroom property with moderate winter usage might be around $200 USD for two months, but summer consumption can be considerably higher.
Water:
Often around $30–$40 USD/month, depending on the property and consumption.
These are only general estimates. Every property is different, and electricity in particular can fluctuate considerably throughout the year.
Not necessarily.
While speaking Spanish will certainly enrich your experience and make everyday life easier, you can comfortably live, vacation and own property in many areas of Baja California Sur without speaking Spanish.
Los Cabos and the surrounding communities have a large international and expat population, including many full-time residents and seasonal residents who spend part of the year here.
Most restaurants and cafés in the main tourist and expat areas offer English-language menus, and many businesses have English-speaking staff.
That said, I always encourage my international clients to learn at least some Spanish. Even basic Spanish can make everyday interactions more enjoyable and help you feel more connected to the local community.
One of the things I love most about Baja California Sur is how welcoming it is to people from all over the world, while still offering the opportunity to experience authentic Mexican culture and lifestyle.
Every purchase is different, and there is no one-size-fits-all answer when it comes to buying property in Mexico.
If you're considering purchasing a home, investment property or second residence in Baja California Sur, I'm happy to walk you through the process step by step, from choosing the right community to closing and everything in between.