Buying Property in Cabo del Sol
How a foreigner actually takes ownership in Los Cabos — the fideicomiso bank trust, what closing really costs, and the specific things that catch buyers out at Cabo del Sol.
Yes, foreigners can own in Cabo del Sol
Mexico's constitution defines a restricted zone: land within 100 kilometres of a national border and within 50 kilometres of the coastline. Cabo del Sol sits inside it. Foreign nationals cannot hold direct title to residential property there.
This alarms people, and it should not. Since 1973 the mechanism has been the fideicomiso — a bank trust. A Mexican bank holds legal title as trustee, and you are named as beneficiary. As beneficiary you hold every practical right of ownership: you occupy it, renovate it, rent it, sell it to whomever you like, and leave it to your heirs. The bank cannot sell it, encumber it, or use it. It administers the trust and nothing more.
Tens of thousands of foreign-owned homes across Los Cabos, Puerto Vallarta and Cancun are held this way. It is boring, established, and the banks that provide it are the ones whose names you would recognise.
How the fideicomiso works
Term and renewal
The trust runs for 50 years and is renewable for further 50-year terms. Renewal is a routine administrative step, not a re-application, and there is no cap on the number of renewals. If you sell, the buyer either takes an assignment of your existing trust or establishes a new one.
What it costs
Expect a one-time setup in the region of US$1,500–2,500, plus a permit fee payable to the Ministry of Foreign Affairs, and an annual trust administration fee typically in the US$600–900 range depending on the bank and property value. Confirm current figures with your notary before closing — banks revise their schedules.
The alternative: a Mexican corporation
Buyers acquiring primarily for rental income sometimes hold through a Mexican corporation instead, which can own restricted-zone property directly. It brings accounting and monthly filing obligations that a trust does not, and it changes your tax position on eventual sale. Which structure suits you depends on how you intend to use the property.
Decide this before you make an offer, not after. Restructuring later is possible but expensive, and it is one of the more common regrets I see.
What closing actually costs a buyer
Budget 5–8% of the purchase price. The percentage falls as the price rises, because several line items are fixed rather than proportional.
| Line item | Typical cost | Notes |
|---|---|---|
| Acquisition tax (ISAI) | ~2% of value | Paid to the municipality |
| Notary fees | ~1–1.5% | The notary is a state-appointed official, not your lawyer |
| Fideicomiso setup | US$1,500–2,500 | One time, to the trustee bank |
| Foreign Affairs permit | ~US$1,500 | One time |
| Registry & certificates | ~0.5% | Public registry, no-lien certificates, appraisal |
| Title insurance | Optional | Available; I recommend it on resale purchases |
| Annual trust fee | US$600–900/yr | Ongoing, not a closing cost |
Indicative ranges for Los Cabos as at August 2026, provided for orientation only. Exact figures depend on the property, the assessed value and the trustee bank, and are confirmed by your notary in the closing statement. This is general information, not legal or tax advice — take advice from a Mexican notary and your own tax adviser before committing.
Who pays what
The seller pays the brokerage commission and their own capital gains tax (ISR). The buyer pays everything in the table above. There is no equivalent of a US-style buyer-agency fee — my representation of you as a buyer costs you nothing directly.
The purchase process, start to finish
- Offer and acceptance. A written offer (promesa de compraventa) sets price, terms, deposit and timeline.
- Escrow deposit. Typically 10%, held by a third-party escrow company. Never send a deposit directly to a seller.
- Due diligence. Title search, no-lien certificate, HOA account status, property tax status, and — at Cabo del Sol specifically — the golf membership position and any short-term rental restrictions.
- Trust permit application. Your notary applies to the Ministry of Foreign Affairs for the fideicomiso permit. This is the longest step; allow several weeks.
- Closing. Signed before the notary, who calculates taxes, records the deed and issues the trust. You do not strictly need to be in Mexico — a power of attorney can be arranged.
- Registration. The notary registers the transfer with the public registry. Allow a further few weeks for the recorded deed to issue.
Realistically, 45 to 90 days from accepted offer to keys, with the trust permit driving most of the variance.
Five things specific to Cabo del Sol
1. Golf membership does not automatically transfer
Club membership is governed by the club, not the HOA or the deed. Dues, initiation and transferability differ between enclaves. If golf is part of why you are buying, confirm the membership position in writing during due diligence.
2. Branded residences carry a service charge on top of HOA
Park Hyatt and Four Seasons residences include hotel services, billed separately from standard HOA dues. Model the full annual carry — HOA, service charge, property tax and trust fee — before you commit.
3. Short-term rental rules vary by enclave
Branded residences run managed rental programmes. Independent villas can generally be rented, but some HOAs impose minimum stay lengths. This is the single most common unpleasant surprise at Cabo del Sol. Ask early.
4. Constructed area is not living area
Los Cabos listings often quote total constructed area, which includes terraces, palapas, garages and covered circulation. A 17,000 square-foot listing may have far less under air conditioning. Always ask for the breakdown before comparing price per square foot between properties.
5. Asking price is a starting position — except where it is not
Both recorded Park Hyatt villa sales closed at full asking price. Meanwhile a Las Posadas home listed at $2,999,000 closed at $2,000,000, and a La Riviera estate listed at $10.9 million closed at $8.9 million. Negotiating room at Cabo del Sol depends entirely on which enclave you are in.
The full Cabo del Sol Buyer’s Guide
12 pages, including a line-by-line closing cost worksheet, neighborhood pricing, and the due-diligence checklist I use with my own clients.
Have a question about a specific property?
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