Cost of Owning a Home in Los Cabos (2026)

Most buyers spend weeks studying the purchase price and closing costs — and only a few minutes thinking about what the property will cost every year after closing. Yet those carrying costs decide whether a second home feels effortless or stressful, and whether a rental investment actually makes money.

Whether you are buying from Mexico City, Monterrey, Texas, California or Canada, here is a clear breakdown of the recurring costs of owning a home or condo in Los Cabos, and how to estimate them before you make an offer.

If you are still at the budgeting stage, start with our guide on how much money you need to buy a home in Los Cabos, which covers the down payment and closing costs.

First, a Quick Word on One-Time Costs

This article is about ongoing costs, but one number changed recently and affects every buyer's budget: the ISABI acquisition tax in Los Cabos is 3%. The municipality raised it from 2% to 3% on January 1, 2025, and since January 1, 2026 the other municipalities of Baja California Sur apply the same 3% rate.

ISABI is paid once, at closing. Everything below is what you pay year after year.

1. Property Tax (Predial)

Here is the good news: property tax in Los Cabos is typically much lower than in the U.S. or Canada.

• Predial is calculated by the municipality on the property's cadastral (assessed) value, which is usually below market value — not on your purchase price.

• It is paid once a year to the Los Cabos municipal treasury.

• Paying early saves money. For 2026, the municipality offered a 20% discount in January and February and 10% in March.

Tip: before you buy, ask the seller for the latest predial receipt. It tells you exactly what you will pay and confirms there are no past-due balances.

2. HOA Fees (Cuotas de Mantenimiento)

For most condo owners, the HOA fee is the largest recurring cost — often larger than property tax, insurance and the trust fee combined.

HOA fees vary widely depending on:

• Amenities: pools, gym, beach club, 24/7 security, golf access.

• Location and building type: beachfront towers and gated luxury communities cost more than smaller residential complexes.

• Unit size: fees are usually calculated per square meter or by ownership percentage.

What to ask before you buy:

• What is the current monthly fee, and how much has it increased in the last few years?

• Are there any special assessments approved or planned (roof, elevators, seawall, repainting)?

• How healthy is the reserve fund?

• What does the fee include — water, gas, internet, building insurance?

A low HOA fee is not always a bargain. A building with no reserves is more likely to hit owners with a large special assessment later.

3. Fideicomiso (Bank Trust) Annual Fee

If you are a foreign buyer purchasing in Los Cabos, you will most likely own through a fideicomiso, a bank trust required in Mexico's coastal restricted zone. The bank charges an annual trust fee, which varies by bank and is usually quoted in U.S. dollars.

Mexican nationals generally buy directly in their own name and do not pay this fee.

Want the full explanation? Read Can Americans and Canadians Buy Property in Los Cabos? The Fideicomiso Explained.

4. Home Insurance (Including Hurricane Coverage)

Los Cabos sits in the Eastern Pacific hurricane zone, where the official season runs from May 15 to November 30. That makes good insurance essential.

• Check whether your HOA's building policy covers the structure — and what it leaves out.

• As a condo owner, you will usually still need your own policy for contents, interior finishes and liability.

• For houses, you insure the full structure yourself.

• Confirm the policy explicitly covers hurricane, windstorm and flooding, and review the deductible, which is often a percentage of the insured value for these events.

Insurance premiums depend on construction quality, location, proximity to the ocean and coverage limits, so always get a written quote before closing.

5. Utilities: Electricity, Water, Gas and Internet

Utilities in Los Cabos are manageable, with one important exception: electricity.

• Electricity (CFE): Mexico's residential rates are subsidized, but homes with high average consumption are moved to the DAC tariff (high-consumption residential rate), which is much more expensive. Air conditioning in summer is the usual reason. Solar panels, efficient AC units and good insulation can make a big difference.

• Water: billed by the municipal water utility. Some homes also use water tanks (cisterns) and may occasionally buy water delivered by truck.

• Gas: many properties use LP gas, either through a building meter or a stationary tank that you refill.

• Internet and TV: fiber is available in many parts of Cabo San Lucas and San José del Cabo; confirm availability at the specific address if you plan to work remotely or rent to guests.

6. Maintenance and Upkeep

The desert climate, salt air and strong sun are beautiful — and tough on homes.

• Salt air corrodes metal fixtures, AC units, appliances and window frames faster than inland.

• Sun and heat age paint, sealants and outdoor furniture.

• Houses add costs for pool service, gardening and exterior painting.

Plan a yearly maintenance budget rather than being surprised by it.

7. Property Management (If You Are Not Living There Full-Time)

If the home sits empty for part of the year, someone needs to check on it — especially after storms. Options include:

• Home watch: periodic visits, airing out, checking for leaks or pests.

• Full property management: paying bills, coordinating repairs and, for rentals, handling guests, cleaning and bookings.

For vacation rentals, management is usually charged as a percentage of rental income, so compare what is included, not just the percentage.

8. Taxes on Rental Income

If you plan to rent your property, factor in taxes from day one. For short-term rentals through platforms such as Airbnb or Vrbo in 2026:

• With a Mexican tax ID (RFC) registered on the platform, the platform withholds 4% ISR (income tax) and 8% IVA (half of the 16% VAT).

• Without an RFC, withholding jumps to 20% ISR and 16% IVA.

• A state lodging tax also applies in Baja California Sur.

Registering correctly makes a large difference in your net income. For the full picture of rental returns, see our guide on how to make money with Airbnb in Los Cabos.

How to Estimate Your Annual Costs Before You Buy

Before making an offer, ask for these documents and numbers:

• Latest predial receipt.

• Current HOA statement, budget, reserve fund status and recent assembly minutes.

• Last 12 months of CFE (electricity) and water bills.

• An insurance quote that includes hurricane coverage.

• A quote for the fideicomiso annual fee from the bank (foreign buyers).

• For rentals, a realistic management fee and occupancy estimate.

Add them up and you will know your true yearly cost of ownership — before it becomes a surprise.

Thinking About Buying in Los Cabos?

At Cabo Smart Investments, we help buyers from Mexico, the U.S. and Canada compare properties based on the full picture — not just the listing price. We can help you gather HOA statements, utility bills and realistic operating costs for any property you are considering.

• Tell us what you are looking for: Start here

• WhatsApp: +52 624 118 3541

Disclaimer: This article is for general information only and is not legal, tax or financial advice. Tax rates and rules can change; consult a qualified Mexican notary, accountant or attorney for your specific situation.

+10 years of local experience in Los Cabos real estate — helping buyers find real opportunities, not just listings.

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