Can Americans & Canadians Buy Property in Mexico? (2026 Guide)

How does it works? What is a fideicomisos? What are the costs involved? What can we expect when buying property in Baja California Sur? And what else do I need to know?

Introduction

The short answer is YES. Americans and Canadians can legally buy property in Mexico, including in highly desirable coastal areas like Cabo San Lucas, Cerritos Beach, Todos Santos, and La Paz. In fact, Mexico has a well-established system that allows foreign buyers to securely own real estate, making it one of the most popular international property markets for North American buyers.

In this guide, we’ll explain how it works, what a fideicomiso is, the costs involved, and what you can expect when buying property in Baja California Sur.

Can Foreigners Own Property in Mexico?

Yes. Foreign buyers can own property in Mexico, including homes, condos, and land.

However, properties located within Mexico’s “restricted zone” — which includes land within 50 km of the coastline — must be purchased through a specific legal structure called a fideicomiso (bank trust).

This applies to nearly all coastal real estate in Baja California Sur, including:

Cabo San Lucas
San José del Cabo
Cerritos Beach
Todos Santos
La Paz
East Cape

What is a Fideicomiso?

A fideicomiso is a bank trust that allows foreign buyers to securely own property in Mexico’s restricted zones.

In simple terms:

A Mexican bank holds the title to the property
You are the beneficiary of the trust
You retain full ownership rights

This means you can:

live in the property
rent it out
sell it at any time
pass it on to your heirs

The trust is typically established for 50 years and can be renewed indefinitely.

👉 Learn more in our full guide: What is a Fideicomiso?

Is It Safe to Buy Property in Mexico?

Yes — buying property in Mexico is considered safe when you work with experienced professionals and follow the proper process.

Every real estate transaction is overseen by a notario público (government-appointed attorney) who:

verifies the legality of the transaction
ensures clear title
registers the property

The fideicomiso system has been used for decades and is widely trusted by international buyers.

What Are the Costs of Buying Property in Mexico?

Closing costs in Mexico typically range from 4% to 8% of the purchase price, depending on the property and location.

These may include:

notary fees
transfer tax
trust (fideicomiso) setup
registration fees

Additional ongoing costs:

Fideicomiso annual fee: approx. $500–$800 USD
HOA fees (if applicable)

Can You Get Financing in Mexico?

Financing options are available, but more limited than in the U.S. or Canada.

Most buyers:

purchase with cash
use developer financing
or explore cross-border lending options

Many new developments in Baja also offer structured payment plans, especially during pre-construction.

Can You Rent Out Your Property?

Yes. Foreign owners can legally rent out their property in Mexico.

This is especially popular in high-demand areas like:

Cabo San Lucas
Cerritos Beach
Todos Santos

Many buyers generate income through:

short-term vacation rentals
long-term leases

What Is the Buying Process Like?

The process of buying property in Baja California Sur is relatively straightforward and comparable to buying in the US or Canada:

Choose a property
Submit an offer
Sign a purchase agreement
Open escrow and begin due diligence
Set up the fideicomiso (if required)
Close with a notary

Most transactions take 30 to 60 days, depending on the property and structure.

We suggest always using a trusted realtor. Contact us today!

Why Buyers Choose Baja California Sur

Baja California Sur has become one of the most sought-after real estate markets for international buyers due to:

strong demand from U.S. & Canadian buyers
beautiful coastal lifestyle
growing infrastructure and development
attractive investment potential

Popular areas include:

Final Thoughts

Buying property in Mexico as a foreigner is not only possible — it’s a well-established and secure process. With the right guidance, buyers can confidently purchase homes, condos, and investment properties throughout Baja California Sur.

Whether you’re looking for a vacation home, rental property, or full-time residence, understanding how the process works is the first step toward finding your place in Baja.

Still have questions?

We’re here to help you navigate the Baja real estate market and find the right property for your needs. Contact us today!

Name

Phone

Preferred Areas

Property Type

Message