Buyer’s Guide for the East Cape: How to Buy Your Baja Sur Property with Confidence

Thinking about buying a home in the East Cape? Learn how to work with the right agent, understand Fideicomisos, navigate offers, and prepare for closing costs—so you can own in Baja with no surprises.

1. Work with the Right Agent

The most important step is choosing a local agent who understands the East Cape market, knows how to navigate complex deals, and can structure offers that give you leverage. The right agent will save you time, money, and headaches by guiding you through the unique aspects of buying property in Baja Sur—from legal requirements to negotiating terms that work in your favor.

2. Buying as a Foreigner in Mexico

Anyone can legally buy property in Mexico. If the property is within the restricted zone (50 km from the shoreline or 100 km from the border), you’ll need to purchase through either:

• A Bank Trust (Fideicomiso) – The most common method.
• A Mexican Corporation – Often used for investment or commercial properties.

3. What is a Fideicomiso?

A Fideicomiso is a 50-year renewable bank trust that allows foreigners to hold beneficial rights to property in the restricted zone.

• Setup Cost: About $2,000 USD plus annual bank fees of $500–$800 USD.
• Rights: You can sell, improve, lease, or pass the property to heirs.
• Banks: Common trustee banks include Banco del Bajio, Banco Mifel, and Banorte.
• Inheritance: Substitute beneficiaries can be named, making inheritance straightforward without probate.

4. Mexican Corporation Ownership

A Mexican corporation allows foreign owners to purchase property in their own name anywhere in Mexico, including the restricted zone, without a Fideicomiso.

• Useful for rental, commercial, or multiple-property ownership.
• Requires monthly and annual reporting, tax returns, and shareholder meetings.
• May not qualify for certain capital gains exemptions.

5. Do You Need to Be a Resident to Buy?

No—residency is not required to buy property in Mexico.

6. Understanding the Buying Process

• Offer & Negotiation: Terms can include price, closing timeline, included furniture, or even boats and vehicles.
• Due Diligence: Your closing attorney will check title, liens, and property paperwork.
• Closing: The notary formalizes the transaction and registers the title or trust.

7. Closing Costs in Baja Sur

It’s important to realize that closing costs in Baja are often higher than in other markets—typically 6% to 10% of the purchase price. They can include:

1. Acquisition Tax (ISABI): 2% in La Paz County, 3% in Cabo County.
2. Notary Fees: Only a government-licensed notary can legally close the sale.
3. Closing Attorney Fees: Handle legal work and coordinate the transaction.
4. Fideicomiso Setup: Bank fee plus first-year payment (if applicable).
5. Searches: Certificate of no liens and title search.
6. Appraisal: Required by the public registry.
7. Public Registry Fee: For filing the deed or trust.
8. Foreign Investment Permit: Government requirement.
9. Soft Closing Fee: Optional early possession arrangement.
10. Additional Attorney Fees: For a second opinion or special legal work.

Ready to Find Your Place in the East Cape?

Buying property in Baja Sur isn’t just a transaction—it’s the start of your next chapter. Whether you’re searching for a beachfront escape, an investment property, or your forever home, the key is working with a trusted local expert who knows how to protect your interests and create opportunities in negotiation.

We’ve helped buyers secure dream homes and close even the most complex deals—smoothly, on time, and on their terms. Let’s talk about your goals, budget, and timeline so we can create a strategy that gets you the right property at the right price.