Cabo San Lucas has long been a favorite destination for American travelers, but in recent years, more and more people are making the move permanently. Whether you’re looking to retire in Cabo, invest in a vacation home, or start a new chapter in paradise, buying a home in Cabo offers incredible lifestyle benefits. With its warm climate and stunning beaches, it’s no surprise that U.S. buyers are drawn to this Mexican coastal gem.
However, purchasing property in Mexico as a foreigner involves some unique legal and financial considerations. From understanding property ownership laws to choosing the right neighborhood and navigating the relocation process, this guide will walk you through everything you need to know about making Cabo your new home.
Why Move to Cabo San Lucas?
Before you start searching for homes for sale in Cabo, it’s important to understand why so many Americans are choosing to live here. Beyond the breathtaking scenery, Cabo offers a high quality of life, affordable living, and a welcoming expat community.
Year-Round Warm Climate
If you love sunshine and mild ocean breezes, Cabo’s climate is a major perk. With over 300 days of sunshine per year, outdoor activities like boating, fishing, and golfing can be enjoyed year-round.
Lower Cost of Living
Compared to many cities in the U.S., the cost of living in Cabo is significantly lower. Housing, dining, healthcare, and entertainment are all more affordable, making it a great option for retirees and remote workers alike.
A Thriving Expat Community
Cabo is home to a large community of American expats, making it easier for newcomers to adjust. From social clubs to networking events, there are plenty of opportunities to connect with like-minded people. Many local businesses also cater to English-speaking residents, helping to ease the transition.
Proximity to the U.S.
Cabo San Lucas is just a short flight from major U.S. cities like Los Angeles, Dallas, and Phoenix. This makes it easy to visit family and friends or travel back and forth seasonally.
Investment and Real Estate Opportunities
Cabo’s real estate market is booming, with strong demand for vacation homes and rental properties. Whether you plan to live here full-time or rent out your property, investing in Cabo real estate can be a smart financial move. A trusted Cabo real estate agent for Americans can help you navigate the market and find the right property to suit your needs.
Buying a Home in Cabo: What U.S. Buyers Need to Know
If you’re ready to turn your dream of living in Cabo into reality, understanding the real estate buying process is essential. While Mexico welcomes foreign buyers, the legal structure differs from that in the U.S. Here’s what you need to know before investing in homes for sale in Cabo.
Understanding Property Ownership Laws for Foreigners
In Mexico, properties located within 50 km (31 miles) of the coast or 100 km (62 miles) of the border fall within what’s known as the Restricted Zone. Since Cabo San Lucas is a coastal city, foreign buyers cannot own property outright in this zone. Instead, there are two main ways to legally acquire property:
- Fideicomiso (Bank Trust) – The most common way for Americans to purchase property in Cabo is through a fideicomiso, a bank trust that allows you to hold the title while giving you full ownership rights, including the ability to sell, lease, or pass the property to heirs. The fideicomiso is set up with a Mexican bank and is renewable every 50 years.
- Mexican Corporation – If you plan to purchase property for commercial purposes or investment rentals, forming a Mexican corporation may be an alternative option. This allows you to own property directly under a business entity, but it comes with additional legal and tax obligations.
Working with an experienced Cabo real estate agent for Americans will help ensure you understand the best ownership structure for your situation.
Choosing the Right Neighborhood
Cabo San Lucas offers a variety of neighborhoods, each catering to different lifestyles and budgets. Whether you’re looking for luxury oceanfront property, a quiet retreat, or a community close to town, there’s a perfect spot for you.
- Pedregal – One of the most prestigious areas in Cabo, known for its luxury homes, ocean views, and private beach access. A great choice for those seeking exclusivity and high-end amenities.
- Cabo Bello – A gated community offering a mix of condos and single-family homes, with private beach access and a more relaxed atmosphere.
- El Tezal – A popular area for American buyers looking for more affordable homes with ocean views. It’s close to downtown but offers a quieter environment.
- San José del Cabo – If you prefer a more traditional and artistic vibe, San José del Cabo is a charming town with colonial architecture, art galleries, and a slower-paced lifestyle.
- The Corridor – The stretch between Cabo San Lucas and San José del Cabo offers resort-style living with golf courses, gated communities, and beachfront properties.
Choosing the right neighborhood depends on your lifestyle goals, budget, and whether you’re planning to retire in Cabo or use the home as a vacation property.
Working with a Local Real Estate Agent
Navigating the Cabo real estate market as a foreign buyer can be challenging, which is why working with an experienced Cabo real estate agent for Americans is essential. A knowledgeable agent will guide you through the process, helping you find the best properties that match your lifestyle and budget while ensuring all legal requirements are met.
Benefits of Using a Local Real Estate Agent:
- Expert Knowledge of the Market – A real estate agent with experience in Cabo can provide insight into market trends, property values, and investment opportunities.
- Guidance Through the Legal Process – Buying a home in Cabo involves different legal steps than in the U.S. An agent will work with notaries, attorneys, and banks to ensure the process is smooth.
- Negotiation and Closing Support – From making an offer to finalizing paperwork, an agent will advocate on your behalf to secure the best deal.
- Access to Off-Market Listings – Some of the best homes for sale in Cabo may not be publicly listed, but a well-connected agent can help you find exclusive opportunities.
A trusted real estate professional simplifies the buying process, giving you confidence as you make one of the biggest financial decisions of your life.
Financing a Home in Cabo
Unlike in the U.S., where mortgages are common, financing options for foreign buyers in Mexico are more limited. However, several pathways exist for purchasing a property in Cabo without having to pay entirely in cash.
Financing Options for U.S. Buyers:
- Mexican Bank Loans – Some Mexican banks offer mortgages to foreigners, but these typically require higher down payments (30-50%) and have shorter loan terms. Interest rates are also higher than in the U.S. It’s also worth noting that getting pre-approved for your mortgage in Mexico is important.
- U.S. Cross-Border Lending – Certain lenders in the U.S. specialize in financing foreign real estate purchases, allowing you to use your U.S. credit history.
- Developer Financing – If you’re purchasing in a new development, the builder may offer direct financing with flexible terms.
- Home Equity Loans from the U.S. – Many buyers use equity from their existing home in the U.S. to finance a property purchase in Cabo.
Each financing method has pros and cons, so it’s important to explore your options and consult with financial professionals before making a decision.
Closing Costs and Additional Fees
When buying a home in Cabo, it’s important to budget for additional expenses beyond the purchase price. Closing costs in Mexico tend to be higher than in the U.S., and buyers are responsible for most of these fees.
Typical Closing Costs Include:
- Notary Fees – In Mexico, a notary public is required to oversee real estate transactions. Their fees typically range from 1-2% of the purchase price.
- Transfer Tax – Buyers pay a one-time acquisition tax, usually around 2-4% of the property’s value.
- Fideicomiso Setup and Annual Fees – If purchasing through a bank trust, expect to pay around $500-$1,500 for setup, plus annual maintenance fees.
- Legal and Administrative Fees – Hiring a real estate attorney to review contracts and ensure compliance can cost around $1,500-$3,000.
- Title Insurance (Optional) – Protects against potential ownership disputes and varies in price based on the property.
While closing costs can add up, they are a necessary part of securing your investment in Cabo. Working with professionals—such as a real estate agent, attorney, and financial advisor—will help ensure all expenses are transparent and accounted for before you finalize your purchase.
The Logistics of Moving to Cabo
Once you’ve secured your dream home in Cabo, the next step is planning your move. Relocating to Mexico involves more than just packing your bags—it requires understanding residency requirements, managing finances, and adapting to a new way of life. Here’s what you need to know to make your transition as smooth as possible.
Residency and Visa Options
If you plan to live in Cabo full-time, you’ll need to obtain the appropriate visa. While Americans can stay in Mexico for up to 180 days on a tourist visa, long-term residency requires a formal application.
Types of Residency Permits:
- Temporary Resident Visa – Ideal for those planning to stay in Mexico for more than six months but less than four years. You must demonstrate financial stability, typically by showing proof of sufficient monthly income or savings.
- Permanent Resident Visa – Designed for retirees and long-term residents, this visa allows indefinite stays in Mexico without renewal. Financial requirements are higher than for a temporary visa, but once granted, no extensions are needed.
To apply for residency, you’ll need to start the process at a Mexican consulate in the U.S. before moving. Consulting with an immigration expert can help streamline your application.
Healthcare and Insurance
Mexico has an excellent healthcare system, and many American expats find it to be more affordable and accessible than in the U.S. However, it’s important to plan for your medical needs before making the move.
Healthcare Options for Expats:
- Private Hospitals and Clinics – Many expats prefer private healthcare facilities in Cabo, which offer high-quality care at a fraction of U.S. prices.
- Health Insurance – While some expats pay out-of-pocket for medical services, private health insurance is recommended. International health plans and Mexican insurance policies are available to cover major medical expenses.
- IMSS (Mexican Public Healthcare System) – Expats with residency can apply for Mexico’s public healthcare system, which provides low-cost medical services. However, it may not be suitable for those seeking specialized or immediate care.
Before relocating, research healthcare providers and insurance options to ensure you have coverage that meets your needs.
Banking and Managing Finances
Setting up your financial affairs in Mexico is an important step in making a smooth transition. While many businesses in Cabo accept U.S. credit cards, having a local bank account can make everyday transactions easier.
Key Financial Considerations:
- Opening a Mexican Bank Account – Expats with a residency visa can open an account at a Mexican bank, allowing for local transactions and bill payments.
- Managing Currency Exchange – The exchange rate fluctuates, so it’s wise to monitor conversion rates when transferring money. Some expats use online services like Wise or Revolut for better exchange rates.
- Paying Property Taxes and Utilities – Property taxes in Mexico are lower than in the U.S., but payments must be made annually. Setting up automatic bill payments can help manage utilities and HOA fees.
By organizing your banking and finances early, you’ll avoid unnecessary stress once you arrive in Cabo.
Cost of Living and Everyday Expenses
One of the biggest advantages of moving to Cabo is the lower cost of living compared to most U.S. cities. While expenses vary depending on your lifestyle, many American expats find they can live comfortably in Cabo for a fraction of what they would spend in the U.S.
Housing Costs
The price of homes for sale in Cabo varies depending on location and amenities. Beachfront properties and gated communities tend to be more expensive, while homes in less touristy areas are more affordable. Property taxes in Mexico are also significantly lower than in the U.S., making homeownership more cost-effective.
- Renting: $800 – $2,500+ per month for a furnished home or condo
- Homeowners Association Fees (if applicable): $100 – $500 per month, depending on the community
- Property Taxes: Typically 0.1% of the assessed value per year
Utilities and Internet
Utility costs in Cabo are generally lower than in the U.S., though air conditioning during the hot months can increase electricity bills. Many expats install solar panels to offset energy costs.
- Electricity: $50 – $200 per month (higher in summer)
- Water: $20 – $50 per month
- Internet and Cable: $30 – $80 per month for high-speed service
Groceries and Dining Out
Groceries and dining options range from budget-friendly local markets to high-end Cabo restaurants. Eating out is generally much cheaper than in the U.S., especially if you enjoy local cuisine.
- Groceries for two: $200 – $400 per month
- Casual dining: $5 – $15 per meal
- Fine dining: $30 – $100 per meal
Transportation
Many expats find they don’t need a car in Cabo, as taxis, Uber, and public transportation are readily available. However, if you prefer to drive, you can either import a vehicle from the U.S. or buy a car locally.
- Gasoline: Around $4 – $5 per gallon
- Uber or Taxi: $5 – $20 per ride, depending on distance
- Bus fare: Less than $1 per ride
Overall, your cost of living in Cabo will depend on your housing choice, lifestyle, and personal spending habits, but most expats find they can retire in Cabo comfortably on a reasonable budget.
Moving Your Belongings and Pets
Once you’ve finalized your home purchase, it’s time to plan the logistics of moving your personal belongings and pets to Cabo.
Bringing Your Household Goods
When moving to Mexico, you have the option of shipping your belongings or purchasing new furniture locally. If you obtain a Temporary Resident Visa, you may qualify for a Menaje de Casa, which allows you to bring household goods duty-free.
Shipping Options:
- Moving Companies – International moving companies can handle customs paperwork and logistics.
- Freight Shipping – A more cost-effective option if you only need to ship a few large items.
- Driving a Moving Truck – Some expats choose to drive a U-Haul or trailer across the border, but this requires careful customs planning.
Many expats choose to furnish their homes with locally available furniture, as it’s often cheaper than shipping everything from the U.S.
Bringing Pets to Mexico
If you’re moving to Cabo with pets, Mexico has pet-friendly import regulations, but you’ll need to prepare the necessary paperwork.
Requirements for Bringing Pets:
- Health Certificate – Issued within 10 days of travel by a USDA-accredited veterinarian.
- Proof of Vaccinations – Dogs and cats must have up-to-date rabies and other vaccinations.
- No Quarantine – Mexico does not require quarantine for healthy pets with the proper documentation.
Most airlines allow pets in the cabin or cargo, but policies vary, so check with your airline before booking your flight. Cabo is a very pet-friendly city, with many expats enjoying outdoor dining and beaches with their furry friends.
Adjusting to Life in Cabo San Lucas
Moving to a new country is an exciting adventure, but it also comes with an adjustment period. Life in Cabo San Lucas offers stunning beaches, a welcoming community, and a laid-back lifestyle, but understanding local customs and daily routines will help make your transition smoother.
Embracing the Local Culture
Cabo is a unique mix of Mexican traditions and international influences, thanks to its large expat population. While many locals speak English, learning basic Spanish will make daily interactions easier and show respect for the culture.
- Greet people warmly – A friendly “Buenos días” (Good morning) or “Gracias” (Thank you) goes a long way.
- Adjust to ‘Mexican Time’ – Life moves at a slower pace, so don’t expect strict punctuality.
- Participate in local events – Festivals, markets, and community gatherings are great ways to connect with locals.
Getting Involved in the Expat Community
Cabo has a thriving expat community, and joining local groups can help you settle in quickly.
- Expat Facebook groups and forums – These online groups are great for advice, recommendations, and meeting others who have made the move.
- Volunteer opportunities – Many expats give back by helping animal rescues, beach clean-ups, or charity organizations.
- Social clubs and activities – Whether you’re into golf, fishing, yoga, or wine tastings, there’s something for everyone.
Healthcare and Safety Considerations
Cabo is considered one of the safest areas in Mexico, but it’s still important to take precautions.
- Healthcare – Choose a trusted doctor or hospital and make sure you have insurance coverage. Many expats also keep a list of bilingual medical professionals.
- Safety – While Cabo is safe for residents, always use common sense—lock your doors, be cautious at night, and avoid isolated areas.
- Emergency Services – Learn local emergency numbers and the nearest hospitals for quick access if needed.
Adjusting to life in Cabo takes time, but with an open mind and a willingness to embrace the local way of life, you’ll soon feel at home in this beautiful coastal paradise.
Conclusion
Moving to Cabo San Lucas is an exciting opportunity to enjoy a relaxed lifestyle, beautiful scenery, and a lower cost of living. Whether you’re looking to retire in Cabo, invest in a vacation home, or relocate full-time, the right planning and guidance will make your transition smooth.
By working with a Cabo real estate agent for Americans, understanding the legal and financial aspects of buying a home in Cabo, and preparing for daily life, you can confidently embark on this new chapter. With its warm climate, welcoming community, and unique culture, Cabo San Lucas offers the perfect place to call home.
Are you ready to start your journey? Explore homes for sale in Cabo today and take the first step toward your dream life in Mexico!
