You can expect to pay approximately between 5%-8% of the purchase price as closing costs, but let's break this down in a bit more detail.

This amount may vary as well due to transaction structure, notary fees and whether additional services such as title insurance or whether or not independent legal representation are used.

What Closing Costs Should a Foreign Buyer Expect?

When purchasing Los Cabos real estate, typical buyer closing costs may include some or all of the following:

  • Property Acquisition Tax (ISABI): One of the largest closing expenses. In Los Cabos, the acquisition tax is currently 3% of the applicable taxable value.
  • Notary Fees: A Mexican Notario Público plays a vital role in every real estate transaction, including preparing and formalizing the deed and overseeing required legal documentation.
  • Public Registry Fees: The transaction and property rights must be properly recorded with the Public Registry.
  • Appraisal and Certificates: An official appraisal and various property certificates and searches may be required as part of the closing process.
  • Escrow Fees: Los Cabos transactions use an independent escrow service to hold funds during the transaction.
  • Legal and Due-Diligence Costs: Foreign buyers often choose to retain an independent Mexican attorney to review the transaction, protect their interests and close the deal.
  • Title Insurance: Although optional in many transactions, some foreign buyers choose to purchase title insurance for additional protection.

What About the Fideicomiso?

Because Los Cabos is located within Mexico's coastal Restricted Zone, most foreign individuals purchasing residential property here will acquire their property rights through a fideicomiso, or Mexican bank trust.

(For a more in-depth look at what the Fideicomiso is and how it protects foreign buyers, check out our BLOG on everything "Fideicomiso"!)

Establishing the fideicomiso is part of the closing expenses, including the bank's setup charges and the required permit from Mexico's Secretaría de Relaciones Exteriores (SRE).

For 2026, the official government fee for authorization to establish a fideicomiso within the Restricted Zone is MXN $21,650. The trustee bank will also charge its own setup and ongoing annual administration fees.

How Much Should You Budget?

As a general planning guideline, a foreign buyer purchasing residential property in Los Cabos should consider budgeting approximately:

Purchase Price + 5% to 8% for Closing Costs

For example, on a $1,000,000 USD property, a preliminary budget of approximately $50,000 to $80,000 USD for buyer closing costs would be reasonable.

This is only a planning estimate. Some transactions may fall outside this range depending on the property's value, fideicomiso structure, notary, legal services, title insurance and other circumstances.

Are Closing Costs the Same Here as in the U.S. or Canada?

Not exactly.

While closing costs are slightly higher when purchasing real estate in Los Cabos than back home, those upfront costs should be measured against the overall cost of owning property in Los Cabos. The biggest difference with respect to ongoing costs is the relatively low annual property taxes here compared to what Canadian and American homeowners are typically used to. 

Know the Numbers Before You Buy

Closing costs shouldn't be a surprise at the end of your transaction.

Before purchasing real estate in Los Cabos, buyers should receive a detailed closing-cost estimate based on the specific property and transaction. Your notary, closing professional and independent legal or tax advisors can explain the individual charges and confirm which costs apply to your purchase.

 

Written by Carol Boniuk-Los Cabos Area Real Estate Specialist.