Buyer's Guide

What is a fideicomiso, and why do I need one?
A fideicomiso is a bank trust — the legal structure that allows foreigners to own property in Mexico's "restricted zone," which covers anything within 50 kilometers of the coast or 100 kilometers of a border. Since Los Cabos sits right on the coast, virtually every foreign buyer here purchases through a fideicomiso. A Mexican bank holds the title as trustee, but you're named the beneficiary with full rights: you can sell, rent, remodel, renovate, or pass the property to your heirs, exactly as if the title were in your name.

How long does a fideicomiso last, and what happens when it expires?
Trusts run for 50 years and are renewable — most buyers never think about the expiration date because renewal is routine and not something to worry about mid-ownership.

What does a fideicomiso cost?
Expect a one-time setup fee, typically $500–$1,000 for the bank trust itself (this is separate from your overall closing costs, covered below), plus a modest annual maintenance fee to the bank — usually a few hundred dollars a year.

How much should I budget for closing costs?
Plan on roughly 5–6% of the purchase price in total. That figure includes notary fees (1–2%), the acquisition tax known as ISAI (3%, as of 2025), registration fees (around 1%), and smaller items like an appraisal and, if you choose it, title insurance (0.5–1%, optional but worth discussing). The fideicomiso setup fee mentioned above is separate and additional.

Are closing costs paid all at once?
Typically yes, at closing, though some buyers split portions between escrow deposit and final closing depending on how the transaction is structured. Beyond these one-time costs, plan for ongoing annual property tax and fideicomiso maintenance fees, plus HOA dues if your property is in a managed community.

Do I need residency to own property here?
No. You can own real estate in Mexico as a tourist, with no residency status required at all. Residency is a separate decision buyers make if they want to spend extended time in Mexico each year.

Can buying property help me get residency?
Yes — real estate is one recognized path to Mexican temporary residency. A property valued at roughly $585,000 or more (documented with your public deed) can qualify you, as an alternative to the standard income route (roughly $4,300–$4,500 in monthly income) or savings route (roughly $73,000 average balance over 12 months). These thresholds are tied to Mexico's UMA index and adjust annually, so exact figures shift slightly year to year.

What does the residency application process look like?
It's a two-step process: first, an interview at a Mexican consulate outside the country, where you present your financial documentation and pay a small application fee; then, once you enter Mexico, you complete a card exchange at the National Migration Institute within 30 days to receive your physical resident card. All told, expect roughly one to four months from start to finish, depending on consulate wait times.