Buyers who are interested in Los Cabos property need to be aware of specific circumstances that affect their purchases. If you’re a non-Mexican foreigner and want to buy property in Los Cabos, read on to find out what laws and processes apply to you and your purchases.


The Fideicomiso, more commonly known in Mexico as simply a Trust, applies to foreigners who are interested in purchasing property within the Mexican “Restricted Zone”. This zone, approximately 100 kilometers from the border of Mexico and about half that distance from the Mexican coast, requires that foreign real estate buyers purchasing a property in the Zone obtain the renewable, eligible-for-50-years Fideicomiso trust to inhabit, purchase, sell, or even rent their real estate. The Fideicomiso trust designates foreign property buyers as the formal beneficiary of the Fideicomiso, which means buyers still have the authority to exercise their ownership responsibilities, such as leasing property to tenants, selling property on a capital market, or willing the property over to family members.


Once you locate the property you want to purchase, negotiate terms, and receive an official “Accepted Offer to Purchase Agreement”, the closing process that finalizes your purchase begins. The entire purchase process includes several closing steps which have different durations depending on the number of parties involved in your purchase and what entity you select to purchase your property under. For example Individual Name vs Trust vs LLC, Etc. On average the process to finalize your Los Cabos Real Estate purchase takes anywhere from 60- 90 days time. Darren O’Connor and the Laid Back Team use U.S. escrow companies operating in Los Cabos, as well as local closing notaries, attorneys, and closing coordinators, to provide clients with a smooth and efficient legal closing of their property.


Although foreigners such as U.S. expatriates are legally bound to pay property taxes in Mexico, the rates at which they pay those taxes are significantly lower than those found in the United States and Canada. For example, property taxes in Los Cabos are about one-tenth of the total amount that residents pay in Los Angeles, California. An important distinction to note as well is that, although foreigners who own Los Cabos property must pay property taxes, those who rent their property, own a business, or have income producing bank accounts must pay Mexican income tax, rather than property tax. There is No Double Taxation in Mexico for US & Canadian residents! Any taxes which are paid in Mexico are credited in their home country.


Whatever your reasons for buying, finding the right home in the perfect neighborhood, and at a cost that is within your budget, is no small task. That’s why many buyers choose to work with a full-service, licensed real estate professional to guide them through the process. We have detailed information about properties for sale by every company, and can make appointments to see any home that you’re interested in. In this market it pays to have an ally on your side that represents your interest, especially when it comes to new construction and developer communities. In Los Cabos, MX the sellers pay commissions so our guidance and expertise is of no direct expense to you.