Buying Property in Cabo Real
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 Real.
Yes, foreigners can own in Cabo Real
Mexico's constitution defines a restricted zone: land within 100 kilometres of a national border and within 50 kilometres of the coastline. Cabo Real 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.
What that means at Cabo Real prices
On the $688,000 one-bedroom currently listed at Casa del Mar, 5–8% is roughly $34,000 to $55,000. On the $1,700,000 home listed in Bugambilias it is roughly $85,000 to $136,000. At the top of the market, the $10,250,000 Las Ventanas penthouse would carry something in the region of $512,500 to $820,000 — though at that level the fixed items matter less and the percentage tends toward the lower end of the range.
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 Real specifically — the condominium regime documents on the Ocean Side, or the surveyed lot area and construction restrictions if you are buying a homesite in Bugambilias.
- 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 Real
1. Ocean Side and Inland are two different markets
The MLS records Cabo Real as two communities, and averaging them produces a number that describes nothing. Over three years the Ocean Side produced 24 sales spanning $310,000 to $8,000,000. Inland produced 8 sales, every one between $400,000 and $1,400,000. If an agent quotes you a single "Cabo Real average", ask which half they mean.
2. Constructed area is not living area
Los Cabos listings quote total constructed area, which includes terraces, covered circulation and garages. This is why price per square foot at Las Ventanas ranges from $570 to $1,311 across eight sales — a 2.3× spread that mostly reflects how much of the quoted area is actually interior. Ask for the breakdown before you compare two properties on a per-foot basis.
3. Negotiating room varies sharply by neighborhood
The community-wide median sale closed at 93.8% of asking, but that conceals a real spread: Las Ventanas 91.1%, Casa del Mar 93.0%, Bugambilias 95.2%, Gardenias 96.5%. Roughly, the more expensive and the more heavily supplied the neighborhood, the more room there is. One Casa del Mar unit closed above its asking price, so none of this is a rule you can lean on blindly.
4. Model the full annual carry, not just the HOA
Several Ocean Side listings sit within resort-serviced developments, where hotel-style services are typically billed alongside or on top of standard condominium dues. Ask for the current schedule in writing during due diligence and add property tax (predial) and the annual trust fee before you decide what the property really costs to hold. Do not assume the arrangement at one building applies at the next.
5. Supply is wildly uneven — and that decides your leverage
Ten listings across the whole community sounds like about a year of supply against roughly eleven sales a year. By neighborhood it is nothing like that. Casa del Mar has three listings against sixteen sales in three years — about seven months, and you will be competing. Las Ventanas has six listings against eight sales — closer to two years, and time is on your side. Gardenias has no listings at all. Know which situation you are in before you decide how hard to push.
The full Cabo Real Buyer’s Guide
Including a line-by-line closing cost worksheet, every recorded sale in all four neighborhoods, and the due-diligence checklist I use with my own clients.
Have a question about a specific property?
Send me the listing and I will tell you what the comparables actually say about it.