Buying property in Cabo is more than a lifestyle decision—it's a strategic move. With pristine beaches, world-class golf, and a growing international community, Cabo is now firmly on the map for affluent U.S. and Canadian buyers seeking legacy homes, investment properties, or seasonal residences.

Drawing from the many transactions we've successfully guided and the countless questions we've fielded over the years as a top local real estate advisor, this guide covers everything you need to know about buying real estate in Cabo—from legal ownership and financing to taxes and the intricacies of owning in a private luxury community.

Can Foreigners Own Property in Cabo?

Yes. Foreigners can own property in Cabo through a fideicomiso, a 50-year renewable bank trust approved by the Mexican government. This structure gives you full ownership rights—you can sell, rent, remodel, or pass your property to heirs.

The fideicomiso is not a lease. It's a legal, widely used ownership tool for beachfront and coastal properties across Mexico.

What is the Buying Process Like?

Purchasing property in Cabo involves several steps:
1. Select a trusted real estate advisor
2. Make an offer
3. Begin due diligence and set up your fideicomiso
4. Close with a licensed, Mexican attorney.
5. Register the property and receive your deed (escritura)

Closings typically take 60 days. Your Closing Attorney oversees legal compliance and title registration.

Cash vs. Financing

Most buyers pay cash. However, cross-border lending is available through private mortgage companies such as Global Mortgage or Moxi. Developer financing is sometimes available for pre-construction purchases.

Loan terms are shorter and rates higher than in the U.S., so financing is used selectively. For buyers seeking leverage or phased payments, pre-construction offers the most flexibility.

Closing Costs and Taxes

Buyers are responsible for closing costs, which typically total 4–6% of the purchase price. These include:
- 2% acquisition tax
- Notary and legal fees
- Bank trust setup and first-year fees
- Title registration and documentation

Annual property taxes (predial) are low—often under $1,000 USD/year, depending on the home’s assessed value.

Capital gains tax may apply upon resale, but there are strategies to reduce it. Always consult a cross-border tax advisor.

Ownership in Private Resort Communities

Many of Cabo's top properties are located in gated, luxury developments like Chileno Bay, El Dorado, Maravilla, and Cove Club. When buying in these communities, consider:

- HOA fees: Typically $600 to $2,500+ USD/month
- Club memberships: Some are mandatory and carry six-figure initiation fees
- Rental policies: Some communities prohibit short-term rentals; others offer managed programs
- Design controls: Strict architectural guidelines are common
- Governance: Ask if the HOA is owner-run or still developer-controlled

These rules preserve property values, privacy, and community standards. Make sure they align with your goals.

Property Types & Investment Opportunities

Cabo offers:
- Beachfront villas
- Ocean-view condos
- Branded residences (e.g., Four Seasons, Montage)
- Pre-construction homesites

Each offers different perks in terms of appreciation, rental potential, and lifestyle access. Work with an advisor who understands Cabo’s micro-markets to match your goals.

Buying in Cabo as an Investment

Cabo continues to attract investors thanks to increasing tourism, improving infrastructure, and demand for luxury vacation rentals. However, investment success depends on:

- Community rules: Most communities allow short-term rentals, but some do not, so make sure you bring this up so we can go over your options.
- Rental management: Choose between self-management, third-party firms, or onsite rental programs.
- Location: Proximity to beaches, marinas, or nightlife impacts demand and nightly rates.
- Seasonality: Understand high and low season patterns, and price accordingly.

Buyers looking for returns should be clear on rental goals and confirm policies before purchasing.

Common Buyer Mistakes to Avoid

- Skipping due diligence: Always verify title, permits, and HOA rules.
- Assuming rental rights: Don't assume you can rent—ask first.
- Underestimating closing costs: Budget for 4–6% in fees and taxes.
- Working with the wrong agent: Choose a specialist in luxury Cabo real estate.
- Ignoring post-sale needs: Consider property management, insurance, and tax filing requirements from day one.

Avoiding these mistakes protects your investment and enhances long-term enjoyment.

Why Work With Laidback Legacy?

Buying in Mexico is not like buying in the U.S. or Canada. Our team has successfully helped numerous clients navigate cross-border transactions, luxury community requirements, and complex legal frameworks. We help you:

- Vet properties and developers
- Navigate title, tax, and trust structures
- Optimize rental and resale potential
- Access private listings and gated investment opportunities

We offer white-glove advisory services to make your Cabo real estate experience seamless, secure, and rewarding.

Frequently Asked Questions About Buying Real Estate in Cabo

1. Can foreigners buy beachfront property in Cabo San Lucas or San José del Cabo?
  Yes. Foreigners can legally buy beachfront property in Cabo through a fideicomiso (bank trust).

2. What is a fideicomiso and do I need one to buy in Cabo?
  A fideicomiso is a 50-year renewable trust that allows foreigners to own property in the restricted zone, including Cabo.

3. How does the home buying process in Cabo differ from the U.S. or Canada?
  Most sales will require an escrow. Notaries handle the legal process. The closing timeline is usually 60 days.

4. Are there closing costs and taxes when buying property in Mexico?
  Yes. Closing costs are 4–6% of the sale price. Annual property taxes are low.

5. Can I get a mortgage in Mexico as a U.S. or Canadian citizen?
  Yes, through private lenders like Global Mortgage. Most luxury buyers pay cash.

6. What is the best area to buy luxury real estate in Cabo?
  Top communities include Chileno Bay, Maravilla, El Dorado, Querencia, and Cove Club.

7. Can I rent out my Cabo property as a vacation home?
  Some communities allow it under certain conditions. Others prohibit short-term rentals.

8. What are common HOA fees in luxury communities in Cabo?
  HOA fees range from $600 to $2,500+ per month depending on services and amenities.

9. Is it safe and legal to buy property in Mexico?
  Yes, when you work with qualified advisors, notaries, and trusted developers.

10. Can I pass my property on to my heirs or family in Mexico?
    Yes. Fideicomisos allow you to name heirs and transfer property without probate.

11. What’s the difference between owning in a gated resort community vs a standalone home in Cabo?
    Gated communities offer privacy, amenities, and managed services. Standalone homes offer more independence but fewer built-in benefits.

12. Do I need to be a resident of Mexico to buy a home?
    No. Residency is not required to buy, but is useful for tax planning and property registration.