Buying Property in Los Cabos
The process of buying property in Los Cabos is much easier and better protected than the myths that have spread about foreign purchase rights. Nowadays, buyers safely purchase properties through professional real estate agencies that use U.S. escrow companies, secure their investments with title insurance, and obtain an Escritura Publica–irrevocable ownership under the Mexican Constitution.
Fideicomiso Trust
According to the Mexican Constitution, foreigners can purchase within the restricted zone, which is defined as 100 kilometers (about 62 miles) from the borders and 50 kilometers (about 31 miles) from the coastal shores through the foreign Real Estate Trust called a Fideicomiso. The purchaser then becomes the beneficiary of the Fideicomiso Trust. This allows the beneficiary to practice the same ownership rights as a Mexican citizen, from improving, building, occupying, leasing and renting, to selling and obtaining profits.
Foreign Business Owner
An alternative applies to foreigners who own Mexican companies with 100 percent foreign investment for business purposes. In this case, there are no requirements to set up a trust agreement within the restricted zone. A notification of this acquisition is sent to the Ministry of Foreign Affairs, and the foreign business owner must comply with local tax and accounting laws.
As many as 1.2 million foreigners live in México, according to the 2017 Mexican Census Bureau, and the real estate market here is growing at a fast pace.
Live in the community
When buying a home in México, it is important to understand the community you are interested in. While you spend time here, explore as much as you can with your Realtor. Have dinner at new places and try a different golf resort. Our “neighborhoods” in México have distinct features. Amenities vary, types of villas or residential living vary, and even beaches vary. Look for the unique features of each community, compare options and explore your ownership possibilities.
General real estate agents have the most intimate knowledge of what each beautiful town and community has to offer. They are well versed in homeowner fees, property taxes and purchase amenities. Our advisors can help you manage your time by determining what is most important to you and investigate properties to source your best real estate options.
