Buying a Home in Los Cabos as an American

Yes — foreigners can buy oceanfront homes in Los Cabos. What differs from buying in the U.S. is the legal vehicle: on the coast, residential property is held through a bank trust (fideicomiso). Here is what the law says, in plain English.

Why a fideicomiso?

The law calls the strip of one hundred kilometers along the borders and fifty along the beaches the “restricted zone” (Foreign Investment Law, Art. 2, sec. VI). The Los Cabos coast lies inside that strip. There, the Constitution does not allow a foreigner to acquire direct ownership of the land, whatever the use (Constitution, Art. 27, sec. I). The path the law gives a foreign person is a trust with a bank (Foreign Investment Law, Art. 11, sec. II).

Who is who?

A bank operating in Mexico (a credit institution) acquires the rights over the property as trustee, and you, the foreign buyer, are the beneficiary (Art. 11). The trust exists so you can use and enjoy the property.

Can I rent my home out?

Yes. The law defines “use and enjoyment” as the rights to use or enjoy the property, including fruits, products and, in general, any return from its operation and commercial exploitation, through third parties or the bank acting as trustee (Art. 12).

Is a government permit required?

Yes: the bank needs a permit from Mexico’s Ministry of Foreign Affairs (SRE) to act as trustee of property in the restricted zone (Art. 11). The law sets the SRE’s deadline at five business days when filed with its central office, or thirty business days at a state delegation; if the deadline passes without a decision, the request is deemed approved (Art. 14).

How long does the trust last?

A maximum of fifty years, renewable at the interested party’s request (Art. 13).

Source: Foreign Investment Law — Ley de Inversión Extranjera (Mexican Chamber of Deputies, last amended 27 May 2024) · Mexican Constitution, Art. 27, sec. I — Constitución Política de los Estados Unidos Mexicanos (Mexican Chamber of Deputies, current text)

What we will not promise on a web page

Bank fees, notary fees, taxes and real closing times vary by property and by timing. This page explains the legal framework; it is not legal or tax advice. Before signing, your notary and attorney confirm every detail. Claudio guides you through the whole process and introduces you to trusted professionals.

Frequently asked questions

Can an American buy a home in Los Cabos?

Yes. Because the Los Cabos coast is in the restricted zone, the home is acquired through a trust with a bank (fideicomiso) instead of a deed directly in the foreigner’s name (Constitution, Art. 27, sec. I; Foreign Investment Law, Art. 11, sec. II).

What is the restricted zone?

The strip of 100 km along the borders and 50 km along the beaches, where a foreigner cannot acquire direct ownership of the land (Foreign Investment Law, Art. 2, sec. VI; Constitution, Art. 27, sec. I).

How long does a fideicomiso last in Mexico?

Up to fifty years, and it can be renewed at the interested party’s request (Art. 13).

Can I rent out a home held in a fideicomiso?

Yes. The law expressly includes returns from the property’s commercial operation within use and enjoyment (Art. 12).

Next step

Tell him the area and budget you have in mind; he answers you personally.

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