Search Active Listings

Leave a Message

Thank you for your message. We will be in touch with you shortly.

Explore Our Properties

Buying Real Estate in Mexico: The Definitive Guide

Investing in Mexican real estate—specifically in the restricted zones of Los Cabos and Baja California Sur—is a secure and straightforward process when you have the right legal framework. This guide outlines the essential steps for US and Canadian citizens to acquire luxury property safely.
main

The Fideicomiso: How Foreigners Own Property

Foreigners purchasing residential property within 50km (31 miles) of the coastline or 100km (62 miles) of the border do so through a Fideicomiso (Bank Trust).
  • How it works: A Mexican bank acts as the Trustee, holding the legal title, while you are named the Primary Beneficiary.
  • Your Rights: You hold all the same rights as a Mexican owner: you can sell, lease, improve, or pass the property to your heirs.
  • Duration: The trust is granted in 50-year increments and is perpetually renewable.
Cost: Expect a one-time setup fee (~$2,000 USD) and an annual maintenance fee (~$500–$700 USD).

Estimated Closing Costs

In Mexico, closing costs are typically paid by the buyer and are higher than in the US or Canada due to the Acquisition Tax, which we wrote a blog about. You should budget between 5% to 8% of the total purchase price.

 

Expense Estimated Cost
Acquisition Tax (ISAI) 2% to 5% (varies by municipality)
Notary Fees 1% to 1.5% of the transaction value
Fideicomiso Setup ~$2,000 USD (one-time)
Foreign Affairs Permit ~$1,100 USD
Registration & Appraisals Variable based on property size

The Buying Process: Step-by-Step

Why You Need a Specialized Agent

Navigating a foreign legal system requires local expertise. At The Agency Baja, we go beyond the search:

Expert Tip: Always ensure your property is "Manifested." This means the construction is officially recorded with the municipality, which protects you from unexpected tax liabilities and ensures a smooth resale in the future.

Ready to start your search?

View Our Featured Baja Listings Contact Us

Real estate isn’t just business. It’s personal.

The Agency Baja is a full-service, luxury real estate brokerage and lifestyle company representing clients worldwide including single-family residential, new development, resort and hospitality, leasing and luxury vacation rentals.

Let's Connect

Follow Me on Instagram

Contact Details

The Agency Baja

Phone

+1.424.340.5229

Email

[email protected]

Address

Carr. Transpeninsular Km 24.5. Plaza Esperanza Local 23, Cerro Colorado, 23405, San José Del Cabo, B.C.S.

Submit a Message

Message sent successfully!