Luxury Real Estate Search

Steps to buying a home

Buying a home in Mexico as a foreigner is an exciting and life-changing experience, but it involves some unique legal processes and considerations. Here's a general overview:

Research and Choose Location

Just like anywhere else, research the areas and neighborhoods where you'd like to buy property. Consider factors like safety, amenities, proximity to services, and your personal preferences.


Find a Reliable Real Estate Agent

Look for a reputable real estate agent who is licensed and a member of the MLS in Southern Baja. Baja Properties agents are extremely knowledgeable about the local market, have years of experience and can guide you through the process. They can help you find properties that match your criteria using the thousands of properties in the MLS database and navigate the legalities with transparency every step of the way.


Legal Framework

Understand Mexico's legal framework regarding property ownership by foreigners. In most cases, foreigners cannot directly own property within 50 kilometers of the coast, which is all of Southern Baja. However, there are legal ways to acquire property in these zones, such as through a bank trust (fideicomiso) or a Mexican corporation.



In a fideicomiso arrangement, a Mexican bank acts as the trustee, holding legal title to the property on behalf of the foreign buyer. The buyer is the beneficiary of the trust and retains all rights of ownership, including the right to use, sell, rent, or bequeath the property.

The trust is established for a renewable term of 50 years, with the option to renew for additional 50-year periods indefinitely.

The trustee (the Mexican bank) administers the trust in accordance with the terms established in the trust agreement. The fideicomiso structure provides a secure legal framework for foreign ownership of property, offering protection of the buyer's rights and interests. 

There are costs associated with setting up and maintaining a fideicomiso, including initial establishment fees, annual administrative fees, and transaction fees. These costs vary depending on the bank and the specific terms of the trust agreement


Mexican Corporation

Foreigners can also establish a Mexican corporation to purchase property in the restricted zones. This involves more complex legal processes and ongoing administrative requirements but may offer additional benefits depending on your situation.



As members of the MLS BCS is mandatory that we use an escrow account in every transaction, this ensures safety for all parties involved. There are many options in Los Cabos and everyone has its own favorite.


Due Diligence and Documentation

Before finalizing any purchase, conduct thorough due diligence on the property, including title searches, liens, and any outstanding debts. Ensure that all documentation is in order and seek legal advice if needed.


Closing Process

Once you've found the right property and negotiated the terms, the closing process involves signing the purchase agreement (promissory contract) and completing the necessary paperwork, including obtaining permits and paying taxes and fees (ask your agent about your closing costs but you can give you an idea by adding a 4% to your purchase price)


Tax Considerations

Be aware of the tax implications of owning property in Mexico, including property taxes, capital gains tax, and any other applicable taxes.


Enjoy Your New Home

Once the transaction is complete, you can enjoy your new home in Mexico! Consider engaging with the local community and immersing yourself in the culture to make the most of your experience.