Property Taxes and Fees in Los Cabos, Mexico: What U.S. Investors Should Expect
Karla & Erick | Cabo Realty | Century 21 Paradise Properties
How much are property taxes in Los Cabos? Very low compared with the U.S. Los Cabos charges property tax (predial) on the cadastral value, which is usually below market value: about 0.115% a year for a home the owner lives in and about 0.23% for a home that’s rented out. Pay in January or February and you get a 20% discount. On top of predial, plan for the fideicomiso annual fee (about $500–$1,000), HOA dues, utilities and insurance. This guide covers every yearly cost of owning in Los Cabos for buyers from California, Texas and Arizona.
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| ~0.115% Predial for an owner-occupied home |
20% Discount paying in Jan–Feb |
| $500–$1K Fideicomiso annual fee |
Varies HOA dues by community |
| Property Type | Annual Rate on Cadastral Value |
|---|---|
| Home the owner lives in | 1.15 per thousand (~0.115%) |
| Home that’s rented out, or mixed use | 2.30 per thousand (~0.23%) |
| Other uses (commercial) | 3.07 per thousand (~0.31%) |
| Vacant lot | 6.13 per thousand (~0.61%), rising each year until you build, up to ~1.23% |
| Unsold lot in an approved development | 3.07 per thousand (~0.31%) |
Rates from the Los Cabos Municipal Tax Law (Article 29). The cadastral value set by the municipality is usually lower than the price you paid, so the real tax is often less than these percentages applied to the purchase price. Confirm your property’s value and rate with the Catastro office.
Buying a lot? The vacant-lot rate goes up every year until you build, so factor it into your building timeline.
| Cost | What to Expect |
|---|---|
| Fideicomiso annual fee | About $500–$1,000 USD a year to the bank trustee |
| HOA dues | Vary widely by community and home size; ask for the exact figure before you buy |
| Utilities | Electricity is the big one: air conditioning from June to October can raise bills a lot |
| Insurance | Get quotes that include hurricane coverage and, if you rent, rental use |
| Property management | Optional, but most U.S. owners use one |
| Club dues | Only in private clubs like Querencia; see Querencia Golf Membership Costs |
Closing costs (transfer tax, notary, fideicomiso setup and more) are a separate, one-time expense. See the full breakdown in Understanding Closing Costs When Buying in Mexico.
Planning to rent your home? Rented homes pay a higher predial rate, and rental income has its own taxes. See Rental Income Tax for Foreigners in Los Cabos.
About 0.115% a year of the cadastral value for a home the owner lives in, and about 0.23% for a rented home. The cadastral value is usually below market value.
Yes. In 2026, 20% in January and February and 10% in March.
Yes. The rate for a rented home is about double the owner-occupied rate.
About $500 to $1,000 USD a year, depending on the bank.
Yes. Vacant lots start at about 0.61% of the cadastral value, and the rate rises each year until you build, up to about 1.23%.
We help buyers from California, Texas and Arizona get the predial, HOA and fideicomiso costs of a property before they make an offer.
Sources: Los Cabos Municipal Tax Law, Article 29 (Tesorería Municipal de Los Cabos); Municipality of Los Cabos, predial discounts 2026; MexHome, “Fideicomiso Explained” (Aug 2026). Information verified October 2026.
Disclaimer: This is general information, not tax advice. Rates and fees can change; confirm with the Catastro office, your bank trustee and an accountant. Karla & Erick are MLS members with Century 21 Paradise Properties.
Karla & Erick | Cabo Realty | Century 21 Paradise Properties
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