Your Guide to Buying Property in Mexico From The USA
Yes. Americans can legally buy property in Mexico, including in coastal areas like Los Cabos, using a Fideicomiso (bank trust) — a government-authorized structure that grants US citizens the same ownership rights as Mexican nationals. BajaSmart Real Estate has guided American buyers through this process since 2009.
The Legal Framework: How Americans Own Property in Mexico
The most common concern for American buyers is foreign ownership law. The short answer: Mexico has a clear, federally-regulated mechanism that makes coastal property ownership fully legal for US citizens.
Article 27 and the Restricted Zone
Article 27 of the Mexican Constitution restricts direct foreign ownership of land within 50 kilometers of the coast and 100 kilometers of the border. Since virtually all of Los Cabos falls within this zone, the Fideicomiso is the standard ownership structure — not a workaround, but the legally designed solution.
What Is a Fideicomiso?
A Fideicomiso is a bank trust authorized by the Mexican government through the Secretaría de Relaciones Exteriores (Ministry of Foreign Affairs). Under this structure:
- A licensed Mexican bank holds the legal title as trustee
- You, the American buyer, are the beneficiary — with complete control over the property
- You have the right to use, sell, rent, build, or pass the property to your heirs
- The trust lasts 50 years and is renewable indefinitely
- The bank cannot make any decision about your property without your explicit written authorization
💡 Key fact: The Fideicomiso gives Americans the same "bundle of rights" as a Mexican citizen. It is used by millions of international property owners across Baja California Sur and is the standard ownership structure for virtually all coastal real estate in Los Cabos.
What Does It Cost to Buy Property in Mexico? (2026 Update)
Beyond the purchase price, American buyers should budget 5% to 9% of the purchase price in closing costs. As of January 1, 2026, the ISABI property transfer tax across all five municipalities of Baja California Sur is 3%.
Property transfer tax — one-time, paid at closing. Applied to the highest of purchase price, cadastral value, or bank appraisal.
The Notario Público's fees for legally registering the title transfer. Non-negotiable government requirement.
Trust setup (~$2,000 USD) plus third-party escrow and documentation fees (~$3,500 USD).
Who pays what: Buyer pays ISABI, notary, fideicomiso setup, escrow, and due diligence. Seller pays the real estate commission, ISR capital gains tax, and fideicomiso cancellation. Buyers pay zero real estate commission in Mexico — that cost falls entirely on the seller.
What Happens to My Property When I Pass Away?
This is one of the most reassuring aspects of the Fideicomiso for American buyers. You designate beneficiaries within the trust — and upon your passing, the property transfers directly and automatically to them. No will required. No probate. No title change process. Simpler and faster than inheritance in most US states.
The BajaSmart Process: From Search to Keys
Since 2009, we have refined a six-stage process that removes uncertainty from every transaction. Here's what working with BajaSmart looks like:
We discuss your goals, budget, and timeline. We give you an honest market overview and build a strategy tailored to your vision — whether you're in Los Cabos or calling from California.
We use our MLS access, exclusive listings, and off-market network to identify the right properties. Virtual tours and video walkthroughs available for remote buyers.
We prepare a strong, market-informed offer. Our 15+ years of negotiation experience ensures you get maximum value without leaving equity on the table.
Full title review, lien check, permit verification, and tax confirmation. Your funds are held in third-party escrow and released only after all legal conditions are met.
We prepare all trust documentation. On closing day, you sign before the Notario Público, funds are released, and title is registered in your name. We're beside you through every signature.
Utility transfers, property management recommendations, and ongoing availability for any questions. Our relationship doesn't end at the closing table.
Why Work With BajaSmart?
In a market where agencies appear and disappear with the tide, BajaSmart has operated continuously since 2009. Our team is fully bilingual, our process is legally bulletproof, and our commitment is personal.
"The mission of BajaSmart is to generate wealth from our real estate experience, providing our clients with knowledge, security, and elevating the value of their transactions — as a result of our advice."
We are members of MLS Baja California Sur — the most sophisticated real estate sales organization in Mexico — with our broker serving on the board of directors. We operate with strict adherence to Mexican KYC and Anti-Money Laundering laws, so every transaction is legally protected from start to finish.
2026 market context: In 2025, approximately 60% of properties sold in Los Cabos were acquired by US buyers. The market continues to see consistent appreciation driven by limited inventory, strong tourism, and growing direct flight connectivity from major US cities.
Ready to Buy Property in Los Cabos?
Let's start with a conversation. No pressure, no obligation — just honest answers from a team that has been doing this since 2009.
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