Foreigners can own property in Mexico — but the process has unique steps. Here's a clear overview of buying in Baja.
Can Foreigners Own Property in Mexico?
Yes. Foreigners can fully own real estate in Mexico, including in the "restricted zone" (within 50km of a coast or 100km of a border). The mechanism is called a fideicomiso — a bank trust that holds the property on your behalf. Think of it as a 50-year renewable trust where you have all rights of ownership.
The Notary
Every real estate transaction in Mexico requires a Notario Público — a highly qualified legal professional appointed by the state government. The notary verifies the title, calculates taxes, and records the transaction. This is not optional or interchangeable with a US/Canadian notary.
Costs to Budget
Beyond the purchase price, budget for:
- Acquisition tax: ~2% of assessed value
- Notary fees: ~1–1.5%
- Fideicomiso setup: ~$1,500 USD
- Annual trust fees: ~$500–700 USD per year
Working with a Buyer's Agent
The seller's agent represents the seller's interests. A buyer's agent works for you. In Cabo, most transactions are listed on MLS (Multiple Listing Service), so buyer's agents have access to the same inventory. Working with one costs you nothing — the commission is split from the seller's side.
The Rental Income Opportunity
Many Cabo properties generate significant short-term rental income through platforms like VRBO and Airbnb. Management companies handle everything for 20–30% of gross revenue. A well-located two-bedroom condo can net $30,000–60,000 USD per year in rental income.
