Can Americans and Canadians Buy Property in Los Cabos? The Fideicomiso Explained

Short answer: yes. Thousands of U.S. and Canadian buyers own homes, condos and lots in Cabo San Lucas and San José del Cabo. They do it legally and securely through a fideicomiso, a Mexican bank trust designed for foreign buyers in coastal areas. Here is how it works, what it costs and what to watch for.

Why do foreigners need a bank trust in Cabo?

Mexico's Constitution defines a "restricted zone": all land within 50 km (31 miles) of the coastline and 100 km (62 miles) of an international border. Foreigners cannot hold direct title to residential property inside this zone.

All of Los Cabos is inside the restricted zone. So if you are a foreign buyer, whether you are a tourist, a temporary resident or a permanent resident, you will buy through a fideicomiso (or, in some cases, a Mexican corporation).

This is not a loophole. It is the legal structure the Mexican government created specifically so foreigners can own residential property on the coast.

How a fideicomiso works

A fideicomiso has three parties:

1. You, the beneficiary. You have full rights to use and enjoy the property. You can live in it, rent it out (including Airbnb), remodel it, sell it, and pass it on to your heirs.

2. A Mexican bank, the trustee. The bank holds legal title on your behalf and acts only on your written instructions. The property is not an asset of the bank and is not part of its balance sheet.

3. The property. The purchase is formalized before a Mexican notary public and recorded at the Public Registry of Property.

Key facts:

• Term: 50 years, renewable for additional 50-year periods.

• Heirs: You name substitute beneficiaries in the trust. When you pass away, they take over your rights without going through Mexican probate.

• Selling: When you sell, you either transfer your beneficiary rights to the new buyer or the trust is terminated and a new one is created for them. We handle this routinely in Los Cabos closings.

• Government permit: Each trust requires a permit from Mexico's Ministry of Foreign Affairs (SRE). The notary requests it for you.

How much does a fideicomiso cost? (2026)

These are typical figures. Each bank sets its own fees, so always ask for a written quote.

• SRE government permit: about US$1,200 (about MXN 21,600), one time.

• Bank trust setup fee: US$500 – 1,000, one time.

• Annual trustee fee: US$450 – 800 per year.

The trust is only one part of your closing costs. You will also pay acquisition tax, notary fees, appraisal and registration. See our guide How Much Money Do I Need to Buy a Home in Los Cabos? for the full picture.

Step by step: buying with a fideicomiso in Los Cabos

1. Offer and escrow. Once your offer is accepted, your deposit goes into a U.S.-based or Mexican escrow account, not directly to the seller.

2. Choose the trustee bank. Compare setup and annual fees. Most major Mexican banks offer trusts.

3. Due diligence. Before your deposit becomes non-refundable, confirm clean title, no liens, property tax (predial) and HOA dues paid, water and utility status, and, for beachfront property, the federal zone (ZOFEMAT) concession.

4. SRE permit. The notary requests the permit to create the trust.

5. Closing at the notary. You (or your representative with a power of attorney) sign the deed. The bank signs as trustee.

6. Registration. The notary records the deed at the Public Registry of Property. Your final documents are delivered after registration.

In Los Cabos, a typical cash purchase closes in 30 to 60 days after the offer is accepted, depending on due diligence and the notary's schedule.

Fideicomiso or Mexican corporation?

Some buyers ask about purchasing through a Mexican corporation (S.A. de C.V.) instead.

• Fideicomiso: the best fit for a vacation home, retirement home or single rental property. It is simple, low-maintenance and built for individual buyers.

• Mexican corporation: can make sense for commercial property or multiple income properties operated as a business. It requires ongoing accounting, tax filings and corporate compliance in Mexico, so it is usually not practical for a personal residence.

Talk to your notary and a Mexican tax advisor before choosing a corporation.

Common mistakes to avoid

• Not naming substitute beneficiaries. It is the easiest way to protect your heirs, so don't skip it.

• Letting the annual fee lapse. Set up automatic payment or a reminder with the bank.

• Skipping due diligence. A good price means nothing if the title has problems. Never let your deposit go hard before the checks are done.

• Buying ejido land. Communal ejido land cannot be placed in a trust until it has been properly converted to private property. Always confirm the land regime first.

• Sending money directly to the seller. Always use escrow.

Frequently asked questions

Does the bank own my property?
No. The bank holds title as trustee on your behalf. You are the beneficiary with full rights, and the property is not part of the bank's assets.

Can I rent my Cabo property on Airbnb or VRBO?
Yes. Beneficiaries can rent their property. Rental income is taxable in Mexico, so plan for it with a local accountant.

If I become a permanent resident, do I still need a fideicomiso?
Yes. Inside the restricted zone the trust is required for foreigners regardless of immigration status.

Can I get a mortgage?
Most Cabo purchases are cash. Some buyers use a home equity loan in the U.S. or Canada, developer financing, or cross-border lenders.

What happens after 50 years?
You, or your beneficiaries, can renew the trust for another 50 years.

Ready to explore Los Cabos?

At Cabo Smart Investments we guide U.S. and Canadian buyers through every step, from finding the right property to a clean, secure closing with a trusted notary.

👉 Tell us your budget and goals and we'll send you the best current opportunities, or message us on WhatsApp: +52 624 118 3541.

This article is general information and not legal or tax advice. Fees and regulations can change. Confirm the details of your purchase with a Mexican notary public.

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