How Currency Exchange Affects Buying Property in Mexico (2025 Guide for Texas & California Investors)
Karla & Erick | Cabo Realty | Century 21 Paradise Properties
Does the exchange rate change what I pay for a home in Los Cabos? Usually not the price itself. Homes in Los Cabos’ gated and golf communities are listed and paid in U.S. dollars, so a buyer paying in dollars pays the same whether the peso is at 17 or 21. What the rate does affect: costs charged in pesos (acquisition tax, notary, property tax, utilities, staff), rental income if you rent in pesos, and the tax when you sell, which Mexico calculates in pesos. In October 2026 the dollar trades around 18 pesos. This guide is for buyers from California, Texas and Arizona.
💬 Ask Us About Buying in Cabo 📞 Call or Text Us
| ~18 Pesos per dollar, October 2026 |
USD Currency most Cabo luxury homes are priced in |
| 17.7–21.4 Range of yearly averages, 2020–2025 |
Pesos Currency Mexico uses to tax your sale |
| Year | Average Pesos per Dollar | What It Meant for U.S. Buyers |
|---|---|---|
| 2020 | 21.40 | Strong dollar: peso costs were cheapest |
| 2021 | 20.22 | Strong dollar |
| 2022 | 20.07 | Strong dollar |
| 2023 | 17.69 | “Super peso”: peso costs got more expensive in dollars |
| 2024 | 18.27 | Peso weakened again |
| 2025 | 19.17 | Dollar stronger than in 2023 |
| Oct 2026 | ~18 (spot) | Close to 2024 levels |
Annual averages: OECD via FRED (St. Louis Fed). October 2026: market quotes around 17.9–18.4.
| Item | Affected? | Why |
|---|---|---|
| Price of a home listed in USD | No | You pay the same number of dollars at any rate |
| Closing costs | Yes | The 3% acquisition tax and notary fees are calculated and paid in pesos. See Closing Costs in Los Cabos |
| Yearly costs | Yes | Property tax, utilities and local staff are paid in pesos. See Property Taxes and Fees in Los Cabos |
| Rental income | Depends | Vacation rentals are usually priced in dollars; many long-term leases are in pesos |
| Tax when you sell | Yes | Mexico calculates the capital gain in pesos, so a weaker peso can increase the taxable gain. See Do I Pay Taxes in the US if I Sell My House in Mexico? |
| Mexican peso mortgage | Yes | With U.S. income, your payment in dollars moves with the rate. See Can Foreigners Get a Mortgage in Mexico? |
The 3% acquisition tax on a $1,000,000 home is about $30,000. It’s paid in pesos, so the peso amount changes with the rate:
In dollars, it’s still about $30,000. The difference shows up when costs are set in pesos, like a notary’s quote or a peso-priced home: then a stronger dollar makes them cheaper for you.
Homes in Los Cabos’ gated and golf communities are generally listed and paid in U.S. dollars. Some local-market homes are priced in pesos.
For costs paid in pesos (taxes, notary, utilities, staff, restaurants), yes. For a home priced in dollars, the price doesn’t change.
Around 18 pesos per dollar in October 2026. The yearly average was 19.17 in 2025.
Yes. Mexico calculates the capital gain in pesos, so currency moves can change the taxable gain. Talk to a cross-border tax advisor.
Rarely worth it on a USD-priced home. The rate mainly changes closing and yearly costs, which are a small part of the total.
We help buyers from California, Texas and Arizona understand every cost in dollars and pesos before they make an offer.
Sources: OECD via FRED (St. Louis Fed), “US Dollar Exchange Rate: Average of Daily Rates for Mexico”; Vantage Markets, USD/MXN analysis (Oct 9, 2026); Boletín Oficial de Baja California Sur (ISABI 3%). Information verified October 2026.
Disclaimer: This is general information, not financial or tax advice. Exchange rates change daily. Karla & Erick are MLS members with Century 21 Paradise Properties.
Karla & Erick | Cabo Realty | Century 21 Paradise Properties
Thinking of moving to Baja California Sur, México?
Karla Andreu and Erick Flores (Century 21) guide U.S. & Canadian buyers, expats, retirees, and families through every step.
We specialize in beach & golf communities across Los Cabos and Baja California Sur—offering expert advice, relocation support, and clear guidance to help you invest with confidence.
What Restrictions Do Americans Face When Buying Land in Mexico?
Can Americans buy land in Mexico? Yes. Here’s the restricted zone (50 km from the coast, 100 km from borders), how the fideicomiso and Mexican company options work, why the rules exist and what’s still risky, for Los Cabos buyers.
Los Cabos, Mexico vs. Caribbean Islands: Which Destination Is Easier to Reach from the United States of America?
Los Cabos, Mexico, offers easier access, shorter flight times, and lower costs compared to Caribbean destinations for U.S. travelers. With direct flights from major cities and diverse accommodations, it's an ideal choice for vacations and investments alike.
Do I pay taxes in the US if I sell my house in Mexico
Selling your house in Mexico as a U.S. citizen: how Mexico taxes the sale (25% of gross or 35% of net gain), how to report it to the IRS, the foreign tax credit, the $250K/$500K home exclusion and two worked examples.
