Karla & Erick | Cabo Realty | Century 21 Paradise Properties
Can Americans buy land in Mexico? Yes. The only real restriction is the “restricted zone”: land within 50 km (31 miles) of the coast or 100 km (62 miles) of a border. There, foreigners can’t hold title directly, so they buy through a fideicomiso (a bank trust for up to 50 years, renewable) with full rights to live in, rent, sell or pass on the property. All of Los Cabos is inside the restricted zone, so almost every U.S. buyer here uses a fideicomiso. Outside the zone, Americans can own directly. This guide explains each option for buyers from California, Texas and Arizona.
💬 Ask Us How to Buy in Cabo 📞 Call or Text Us
| 50 km Restricted zone from the coast |
100 km Restricted zone from the borders |
| 50 years Fideicomiso term, renewable |
100% Of Los Cabos is inside the restricted zone |
| Where | Can a Foreigner Hold Direct Title? | How Americans Buy |
|---|---|---|
| Within 50 km of the coast (all of Los Cabos, La Paz, Puerto Vallarta, Cancún) | No | Fideicomiso for a home; a Mexican company for non-residential use |
| Within 100 km of a border (Tijuana, Ensenada, Ciudad Juárez) | No | Same as above |
| Everywhere else (Mexico City, San Miguel de Allende, Guadalajara) | Yes | Direct ownership, after agreeing to the Calvo clause before the SRE |
The Calvo clause means you agree to be treated as a Mexican national for that property and not to ask your government to intervene in disputes about it.
This is how almost every U.S. buyer owns a home in Los Cabos:
The bank doesn’t own your home; it only holds title for you. For a deeper explanation, see What Is the Fideicomiso and What Protection Does It Offer?
A Mexican corporation with foreign shareholders can own property directly in the restricted zone, but only for non-residential use: commercial, tourism, rentals as a business or development. It must register with the SRE and keep accounting and tax filings in Mexico. For a home you’ll use yourself, the fideicomiso is simpler and usually cheaper.
| Fideicomiso | Mexican Company | |
|---|---|---|
| Best for | A home or second home | Commercial or business use |
| Residential use | Yes | No, non-residential only |
| Yearly upkeep | Bank fee of about $500–$1,000 | Accountant, tax filings and corporate costs |
| Inheritance | Substitute beneficiaries named in the trust | Through the company’s shares |
For the full list of buying risks, see Risks of Buying Real Estate in Mexico.
Yes. Outside the restricted zone they can own directly. Inside it, including all of Los Cabos, they own through a fideicomiso with full use and transfer rights.
Land within 50 km (31 miles) of any coast and 100 km (62 miles) of any border.
Yes, all of it. U.S. buyers use a fideicomiso for homes in Los Cabos.
Up to 50 years, and it can be renewed before it expires.
Only for non-residential use, such as commercial or tourism purposes. For a home, use a fideicomiso.
The notary handles the legal transfer, but many buyers also hire their own real estate attorney to review the title and contracts.
We guide buyers from California, Texas and Arizona through the fideicomiso, the SRE permit and closing with the notary.
Sources: Mexican Constitution, Article 27; Foreign Investment Law (Ley de Inversión Extranjera, 1993), Articles 10–14; Garrigues, “México: la normativa exige una estructuración jurídica precisa para inversionistas extranjeros” (Apr 2026). Information verified October 2026.
Disclaimer: This is general information, not legal advice. Confirm your structure with a notary or Mexican real estate attorney. 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.
Does Mexico Tax U.S. Retirement Income? | Karla and Erick Cabo Realty Century 2
Does Mexico tax U.S. retirement income? Under the U.S.–Mexico tax treaty, Social Security is taxed only in the U.S. See when pensions and IRA withdrawals are taxed, what makes you a Mexican tax resident and what to file.
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.
Top Airbnb Communities in Cabo San Lucas
Cabo San Lucas offers prime Airbnb opportunities in three key communities: Pedregal, known for luxury and stunning views; Quivira, featuring resort-style amenities; and El Medano, vibrant with beachfront access. Explore these areas for successful investments!
