How To Own Property In Los Cabos

Are you ready to invest in Mexican Real Estate but don't know how it works? No worries! You are in the right place to learn!

In Mexico, zones that are 50 Kilometers (30 Miles) from the Mexican coast are considered "Exclusion zones." All properties in Los Cabos are included in this exclusion zone since the peninsula is about 50 miles wide.

If you are a foreigner and you are interested in purchasing real estate in these "exclusion zones" of Mexico, you must apply for a real estate trust in Mexico. This trust is called a fideicomiso.

In 1971 and 1994, amendments to Article 27 of the Constitution allowed foreigners to purchase and own real estate within Mexico’s “exclusion zones.” As a result of this law, ownership is recognized through a Mexican bank trust deed, or “Fideicomiso”.

How a fideicomiso works is simple. A permit is issued by the Mexican government to a Mexican bank of your choice. The bank is authorized by this permit to act as trustee of the property and appoint you as the buyer and beneficiary.

A beneficiary right is similar to a living will or a trust in the United States. The bank is your trustee and only receives instructions from the beneficiary of the trust. This process gives the beneficiary of the trust the right to use and enjoy the property as he pleases. He can build on it, rent it out, or inherit it. Beneficiaries can also sell their investment by appointing their trustee to transfer ownership to other qualified owners.

It is important to note that this is not a lease agreement in any form. This is full ownership of the property of your choice with the use of a bank trust held by a bank of your choosing. You can buy any home or property and place it in a trust in which you are the beneficiary. You are not leasing anything. You are the main beneficiary of a trust that holds your property.

The trust has an initial term of 50 years and as an investor, you can easily renew your trust indefinitely every 50 years, allowing long-term asset management.

I hope this information clarifies some doubts and I am at your service if you have any other questions!

Buying or selling a home can be stressful if you don't have the right real estate agent. My name is Ari Westwood and I'm a Real Estate Agent with Baja Properties, the first Real Estate Company in Cabo. I was born and raised in Los Cabos. I'm 100% fluent in Spanish and English, and with my local knowledge, my personal network, and the 37 years of experience Baja Properties has in Los Cabos, you can rely on us to get you the best possible result.

My Regards,

-Ari Westwood