How to Buy Property in Cabo San Lucas as a US Citizen

Can a US citizen actually own property in Cabo?

Yes, and the ownership is real and full — not a lease and not a workaround. Because Los Cabos is on the coast, foreign buyers hold title through a fideicomiso, a bank trust that grants you the rights to use, rent, improve, sell, and pass on the property.

The structure exists specifically to let foreigners own in coastal Mexico, and it is the standard path for the large American and Canadian community that already owns here.

The buying process, step by step

At a high level the path is: find the property and agree on terms, sign a purchase agreement, set up (or assume) the fideicomiso with a Mexican bank, complete due diligence and the title work through a Mexican notary, and close. A specialized, government-appointed notary oversees the legal side of every Mexican real estate transaction.

In practice, plan on roughly 60 to 90 days from accepted offer to closing. It takes longer than most buyers expect because of the trust: in a typical sale between foreign owners, the existing fideicomiso has to be dissolved and a new one set up in your name, which can add about 45 days on its own. A sale between Mexican nationals that transfers escritura to escritura (deed to deed) can close in as little as one to two weeks — it’s the foreign-ownership trust work that sets the pace. If you need to take possession sooner, a “soft closing” can sometimes bridge the gap; these were common during COVID, when normal timelines stretched to 90 to 120 days or longer.

What will it cost beyond the purchase price?

Beyond the price of the home, buyers should budget for closing costs — which include an acquisition tax, notary fees, and the cost of establishing the bank trust — plus the trust’s recurring annual fee.

Closing costs run higher here than US buyers are used to, and they come out as a percentage of the purchase price that falls as the price rises. The largest single piece is a 3% acquisition tax on the purchase price; on top of that sit fixed costs like notary and attorney fees that don’t scale with price. As a rough guide, a small purchase around $100,000 can run as high as 9–10%, a $300,000 to $500,000 home lands near 6.25%, and a $1 to $2 million home comes down to about 4% — high threes to low fours.

See the full cost breakdown →

How financing usually works

Many luxury purchases in Los Cabos are made in cash, though financing options for foreign buyers do exist. Buyers also frequently ask about using a US-based 1031 exchange or other strategies.

Most of Brent’s buyers purchase in cash, but financing for foreign buyers does exist along two main paths. US-based cross-border lenders will finance Americans and Canadians, typically with around 35% down. Financing through a Mexican bank is also possible if you hold Mexican residency — those lenders weigh your income, credit, and debt-to-income much like lenders back home, and down payments can be as low as 10%, though rates are materially higher and the loan is usually issued in pesos. Because rates move with the market, get current numbers directly from a lender, and treat any tax question (such as whether mortgage interest is deductible at home) as one for a tax professional. Brent can connect you with trusted mortgage advisors.

Choosing where to buy

Los Cabos spans distinct communities — from the hillside estates of Pedregal to the golf-course residences of Quivira and the marina lifestyle of Puerto Los Cabos — each with a different feel, price range, and rental potential.

The right neighborhood depends on how you plan to use the home: full-time living, seasonal escape, or investment and rental income.

Explore Pedregal, one of Cabo’s most coveted areas →