Buying Real Estate in Los Cabos: Complete Guide (2026)

How to Buy Property in Los Cabos

By Mishan Andre, a Local Real Estate Expert

Buying property in Los Cabos is one of the most exciting and rewarding decisions you can make. Whether you’re dreaming of a vacation home, an income-producing rental, or a full-time move to paradise, the process in Mexico is very achievable for foreigners – as long as you understand how it works. This guide will walk you through everything you need to know, from financing and legal structure, to finding the right property and closing the deal.

Los Cabos, located at the southern tip of Baja California Sur, includes two main towns: Cabo San Lucas and San José del Cabo. Each offers a different type of lifestyle:

Cabo San Lucas – vibrant, lively, and ideal for vacation rentals and nightlife.

San José del Cabo – more laid-back, cultural, and residential.

With one of the strongest tourism sectors in Mexico, high rental demand — including some of the highest average daily rates (ADR) — and continued development, Los Cabos has become one of the top destinations for buyers searching for Los Cabos homes for sale, luxury villas, and beachfront properties.

Cabo San Lucas vs San Jose del Cabo Real Estate

Step-by-Step Process to Buy Property in Los Cabos

Define Your Goals

1. How many bedrooms do you need?

This directly impacts both price and rental potential.

2. Where do you want to be?

Cabo San Lucas vs. San José del Cabo

Beachfront vs. Cliffside

Gated community vs. standalone home

3. What is your real budget?

And more importantly:

How much cash do you have available today?

If financing, what monthly payment are you comfortable with?

We often recommend working backward from your available capital and comfort level to determine the right purchase price.
 

Understanding Financing in Los Cabos

Here’s the reality: about 85% of all real estate transactions in Los Cabos are cash purchases. Foreigners can finance property in Los Cabos through two main options: a Global Mortgage available to U.S. citizens, or developer financing with 50-60% down and 6-8% interest. See more details below.

Option 1: Global Mortgage (Traditional Financing Alternative)

Available to U.S. citizens

Typically around 10% interest

Short-term loans (usually 3–5 years)

Best suited for:

Buyers expecting liquidity soon (selling a business, property, etc.)

Those needing bridge financing

Option 2: Developer or Seller Financing

This is more common in:

Pre-construction developments

Select resale properties (less common)

Typical structure:

50–60% down payment

Remaining balance paid over 3–5 years

Interest rates around 6–8%

Example:

$1M property

$600K down

$400K financed over 5 years at ~7%

** Important: These are negotiated terms, not guaranteed. Sellers may counter—or decline entirely.
 

How Foreigners Can Buy Property in Cabo Mexico

Can Foreigners Own Property in Mexico?

Yes, foreigners can legally own property in Mexico. The most common method is through a fideicomiso (bank trust), which allows non-Mexican buyers to securely purchase property in restricted zones like Los Cabos while maintaining full ownership rights.

What is a Fideicomiso?

Founded in 1973, the Fideicomiso is a Mexican bank that holds the proeprty title in a trust

You are the beneficiary with full ownership rights

You can:

Sell

Rent

Remodel

Pass it to heirs

Think of it as a secure legal structure—not a limitation.

Types of Properties Available in Los Cabos

Los Cabos offers a wide range of real estate options, including:

Beachfront homes in Los Cabos

Luxury villas and estates

Ocean view condos

Gated community homes in areas like Pedregal, Palmilla, and Puerto Los Cabos

Whether you’re searching for Cabo San Lucas homes for sale or a quieter option in San José del Cabo real estate, there are opportunities for every type of buyer and investment strategy.
 

The Buying Process (Step-by-Step)

1. Property Search

We identify properties based on your:

Budget

Location preference

Lifestyle goals

Rental income potential

2. Make an Offer

Once you find the right property:

Submit a written offer

Negotiate price and terms (including financing if applicable)

3. Accepted Offer & Escrow

Deposit typically 5–10%

Funds held in escrow (often through a U.S.-based escrow company)

4. Due Diligence

This includes:

Title verification

Permits and zoning

HOA review (if applicable)

5. Closing with a Notario (Notary)

In Mexico, a Notario Público (otherwise known in the United States as a Notary) is a government-appointed attorney who:

Verifies legality of the transaction

Finalizes title transfer

Registers the property

Closing Costs & Ongoing Expenses

Closing Costs

Typically 5–7% of purchase price, including:

Notario fees

Transfer tax

Trust setup (if applicable)

Annual Costs

Property tax (very low compared to U.S.)

HOA fees (if in a community)

Trust maintenance fee (~$500–$1,000/year)

Is Cabo Real Estate a Good Investment?

Yes, Cabo real estate can be an excellent investment, particularly for buyers interested in short-term vacation rentals. With strong tourism demand, luxury villa rentals in Los Cabos can generate attractive returns depending on the property, location, and management strategy. That said, performance varies based on your goals. Some investors prioritize appreciation and personal use, while others focus on maximizing rental income and occupancy rates. At Cabo Platinum, we specialize in both real estate and high-performing vacation rentals, helping clients structure their investments for optimal returns based on their budget and long-term objectives.
 

Rental Income Potential

Well-positioned properties in Cabo can achieve strong annual returns, especially in the luxury rental market with consistent year-round demand. Many buyers specifically target Los Cabos vacation rental investment properties due to the region’s strong tourism and high nightly rates. With the right property, owners can generate substantial rental income in Los Cabos while still enjoying personal use. Los Cabos is a high-demand luxury rental market, especially for:

Beachfront villas

Properties with ocean views

Homes in gated communities

Many buyers offset ownership costs—or generate significant income—through vacation rentals.
 

Common Mistakes to Avoid

Not understanding true budget (cash vs. financed)

Focusing too much on price instead of location

Skipping due diligence

Assuming U.S.-style financing options exist

Not working with a local expert

Final Thoughts

Buying real estate in Los Cabos is not only possible for foreigners—it’s often simpler than people expect once you understand the process.
The key is clarity:

Know your budget (especially cash available)

Define your goals

Work with professionals who understand the market

From there, it becomes an exciting journey toward owning a piece of paradise.
 

Thinking About Buying Property in Los Cabos?

Whether you’re just starting your search or ready to make an offer, our team specializes in helping clients navigate every step of the process—from identifying the right property to negotiating terms and closing smoothly.

Reach out today – we’re happy to help you explore your options.

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