Buying property in Baja California Sur: questions and answers
Short answers to what US and Canadian buyers ask most. Each links to the full step.
Can a foreigner own property in Baja California Sur?
Yes. In the restricted zone, which covers nearly all of BCS, you hold residential property through a bank trust (fideicomiso) as beneficiary, with rights to use, rent, sell and bequeath it.
Confirm the restricted zone applies · Choose the trustee bank (fiduciaria)
What is a fideicomiso?
A bank trust. A Mexican bank holds title for you, and you keep the rights of an owner. It is renewable and you choose the bank.
Choose the trustee bank (fiduciaria) · Trust term and renewal
How long does a trust last?
Trusts are granted for up to 50 years and can be renewed. Track the end date in the app.
Should I use a Mexican company instead of a trust?
A company is meant for business use and has monthly accounting and tax filings. For a personal home, most buyers use a trust. Compare both with an attorney and an accountant.
Bank trust or Mexican company: choosing how to hold title · Other structures you'll be offered: lease, Mexican company, front person
What is ejido land?
Land granted to a community (ejido) under agrarian law. Foreigners can't hold ejido rights. It must first become private property through dominio pleno and be recorded at the public registry.
Is it communal land (ejido) or private property? · Communal land (ejido): from a parcel to private property you can buy · Communal land deep check: full ownership (dominio pleno) and the agrarian registry file (RAN)
How do I know if a lot is ejido?
Ask for the title and the public registry record, and check the RAN's PHINA database. An attorney should confirm the full chain.
Is it communal land (ejido) or private property? · Communal land deep check: full ownership (dominio pleno) and the agrarian registry file (RAN)
Is a 'cesión de derechos' on ejido land safe?
No, for a foreign buyer it isn't ownership. Wait until the land has dominio pleno, the RAN registration is cancelled, and a private title is recorded.
Communal land (ejido): from a parcel to private property you can buy · Communal land deep check: full ownership (dominio pleno) and the agrarian registry file (RAN) · Scams and red flags
What is the derecho del tanto?
The right of first refusal that family and ejido members have on the first sale of a former ejido parcel. Skipping it can void the sale.
Communal land deep check: full ownership (dominio pleno) and the agrarian registry file (RAN)
What is ZOFEMAT?
The federal maritime-terrestrial zone, generally the first 20 m inland from high tide. Nobody owns it; you can only hold a concession to use it.
Federal beach zone (ZOFEMAT) · Coastal checks: federal beach zone (ZOFEMAT), setbacks, erosion and beach access · Keep and renew a federal beach zone concession (ZOFEMAT)
Do I need a concession for my beachfront patio?
If it sits in the federal zone, yes. Check the survey line and any existing concession before buying.
Coastal checks: federal beach zone (ZOFEMAT), setbacks, erosion and beach access · Keep and renew a federal beach zone concession (ZOFEMAT)
What does a notario do?
A notario público is a senior lawyer appointed by the state who drafts the deed, checks the title, calculates and collects taxes, and records the sale. It's not the same as a US notary.
The public notario (notario público)
Do I still need my own attorney?
It's strongly recommended. The notario is neutral; your attorney works only for you on due diligence and contracts.
Build your team and your due-diligence plan
How much are closing costs?
Estimates commonly range around 4%–7% of the price in BCS, including ISABI, notario, appraisal, registry, trust and permit fees. Ask the notario for an itemized estimate.
Total closing costs · Closing costs by municipality (all five)
What is ISABI?
The municipal acquisition tax paid by the buyer, set by each municipality's revenue law. It's commonly a few percent of the higher of price or appraisal.
Appraisal and purchase tax · Closing costs by municipality (all five)
Is ISABI the same in every municipality?
No. La Paz, Los Cabos, Comondú, Loreto and Mulegé each set their own rate and rules every year.
Closing costs by municipality (all five)
Why does the appraisal matter?
ISABI is charged on the higher of the price or the appraisal, and the appraisal also supports your cost basis.
Should I declare a lower price to save tax?
No. It's illegal, and it raises your capital-gains tax when you sell.
Closing costs by municipality (all five) · Selling: capital-gains tax (ISR) and the home exemption
How long does closing take?
Often about 1–3 months after the promise to purchase, depending on the trust permit, certificates and the notario's schedule (estimate).
Offer and promise to purchase (contrato de promesa de compraventa) · Sign the deed (escritura)
Do I need to be in Mexico to sign?
Not always. You can sign through a power of attorney, with apostille and translation as needed.
If a buyer can't attend closing: power of attorney, apostille and translation
What is escrow and do I need it?
An escrow company holds funds until conditions are met. It's optional but common for cross-border purchases.
How do I avoid wire fraud?
Never trust changed instructions by email. Confirm account details by phone using a number you already know.
Moving the money: exchange rate, wires and paying at closing
Can I pay in cash?
Mexican anti-money-laundering rules limit cash in real-estate deals. Use documented transfers.
Moving the money: exchange rate, wires and paying at closing
Do I need an RFC to buy?
Many notarios ask for one. Even if not required, it helps later when you rent or sell.
ID number and tax ID for foreign buyers (CURP and RFC): when you need them · Your ID number and tax ID (CURP and RFC)
What is a no-lien certificate?
A registry certificate showing whether the property has mortgages, liens or claims.
No-lien certificate (certificado de libertad de gravámenes)
Can I buy a presale unit safely?
Check the developer's land title, permits, PROFECO-registered contract and payment protections first.
What should I check in a condo?
The condo regime, bylaws, recent minutes, budget, reserve fund, rental rules and a no-debt letter.
Condo vs. land (and house) · Condo regime review: bylaws, fees, reserves and rental rules
Is there water on my lot?
Ask the municipal water utility for a feasibility letter. Many areas rely on cisterns and water trucks.
Water · Utilities by town: water, power, sewer and internet before you buy
How much does it cost to bring power to a lot?
CFE quotes extensions case by case. Remote lots can be expensive; compare with off-grid solar.
Road access and power proximity · Utilities by town: water, power, sewer and internet before you buy · Solar and off-grid power
What happens after closing?
Register with the foreign investment registry (RNIE), file the SRE notice, check the recorded deed, set up predial and transfer utilities.
Register with the foreign investment registry (RNIE) · Tell the Foreign Ministry the permit was used (aviso de uso de permiso, SRE) · Check the recorded deed and build your property file · Sign up for property tax (predial) in your municipality and set up payments
How much is property tax?
Predial is usually low by US and Canadian standards, based on the cadastral value. Most municipalities give early-payment discounts.
Property tax (predial): early-payment discounts and paying from abroad · Sign up for property tax (predial) in your municipality and set up payments
When is predial due?
Yearly, with discounts often early in the year. Confirm your municipality's dates each year.
Property tax (predial): early-payment discounts and paying from abroad · Sign up for property tax (predial) in your municipality and set up payments
Where do I pay predial?
At your municipality's treasury: online in La Paz and Los Cabos, or at the offices in Ciudad Constitución, Loreto or Santa Rosalía.
Sign up for property tax (predial) in your municipality and set up payments
What is the annual trust fee?
The bank's yearly fee for administering your trust. It isn't regulated, so compare banks before closing.
Annual trust fee · Choose the trustee bank (fiduciaria)
Who inherits my property?
The substitute beneficiaries named in your trust. Keep them current, and coordinate with your wills.
Substitute beneficiaries and inheritance · Wills: Mexican will vs. the trust's substitute beneficiaries
Do I need a Mexican will?
Often recommended for assets outside the trust, such as bank accounts and vehicles. Ask a notario.
Wills: Mexican will vs. the trust's substitute beneficiaries
Do I pay tax if I rent my property?
Yes, Mexican income tax and sales tax (ISR, IVA) apply, and BCS has a lodging tax. Platforms withhold part; an accountant handles the rest.
Renting and taxes · Short-term rentals: tax ID, income tax, sales tax and the state lodging tax (RFC, ISR, IVA)
What tax do I pay when I sell?
ISR on the gain, withheld by the notario. Documented purchase costs and invoiced improvements reduce it, and residents may qualify for a home exemption.
Selling · Selling: capital-gains tax (ISR) and the home exemption
Why keep invoices (CFDI)?
They prove your costs and improvements, which lowers capital-gains tax when you sell.
Selling: capital-gains tax (ISR) and the home exemption · Construction contract and payment schedule
Do I need a permit to build?
Yes: land use, street alignment and a building license from your municipality's Desarrollo Urbano, signed by a DRO.
City land-use approval (uso de suelo) · Street alignment and official address (alineamiento y número oficial) · Building permit (licencia de construcción) · Building permits by municipality: where to go in each of the five
What is a DRO?
The Director Responsable de Obra, a licensed professional who signs plans and is responsible for the construction meeting regulations.
Hire the architect, licensed site engineer (DRO), permit runner (gestor) and contractors · Inspections and the site logbook (bitácora)
Whose name do permits go in?
The trustee bank's, through a power of attorney it grants you or your representative.
Bank's permission for permits (the bank holds title in a trust)
Do I need an environmental permit?
Coastal, protected or large projects may need a federal or state environmental review (MIA).
Environmental impact study (MIA, federal through SEMARNAT or state)
Do I have to register construction workers?
Yes, construction must be registered with IMSS. Make sure your contract says who handles it.
Social security for construction workers (IMSS) · Construction contract and payment schedule
How much does it cost to build per m²?
It varies widely by finish and location; see the estimate ranges in the building budget step and get several quotes.
Budget: construction cost per m²
How do I protect my home from hurricanes?
Build to wind-design standards, insure before the season, and have a caretaker plan for shutters and checks.
Hurricane season and wind design · Home insurance (hurricanes and earthquakes) · Owning from abroad: managers, caretakers, squatters and hurricane prep
Can I live in Baja on a tourist permit?
A visitor permit (FMM) allows stays up to 180 days. To live here longer, apply for temporary or permanent residency.
Choose: visitor (FMM), temporary or permanent residency
How do I apply for residency?
Usually at a Mexican consulate at home, proving income or savings, then you exchange the visa for a card at INM within 30 days of entering.
Check your consulate's 2026 economic-solvency figures · Gather documents and book the appointment · Enter Mexico and swap your visa for a residency card at immigration (canje, INM) within 30 days · Consulate appointments in the US and Canada, and immigration offices (INM) in Baja California Sur
How much income do I need for residency?
Each consulate publishes thresholds based on UMA multiples that change yearly. Check your consulate's current figures.
Check your consulate's 2026 economic-solvency figures
Does owning property give me residency?
Property value can count toward solvency for some consulates, but owning doesn't grant residency by itself.
How residency affects buying and owning
When can I switch from temporary to permanent?
Generally after four years as a temporary resident, or sooner in some cases such as retirees who qualify.
Renewals, temporary → permanent after 4 years, and reporting changes
Can I drive my US or Canadian car in Baja?
Yes, the peninsula is a free zone. For mainland Mexico you need a temporary import permit, which permanent residents generally can't get.
Driving your US or Canadian car · Vehicles as a resident: Baja's free zone, permits and plates
Can I open a Mexican bank account?
Residents usually can with a resident card, RFC and proof of address; some banks serve non-residents.
Opening a Mexican bank account · Banking and wires
Do I report my Mexican account at home?
US persons may need to file an FBAR; Canadians may need form T1135. Check with your tax advisor.
Banking and wires · Opening a Mexican bank account
How do I bring my household goods?
New residents can import household goods once under the menaje de casa rules, with a list approved by the consulate.
Bringing your household goods (menaje de casa)
Can I bring my pets?
Yes, dogs and cats are inspected at entry. Carry health records.
What healthcare can residents use?
Private insurance and hospitals are common; residents may enroll voluntarily in IMSS in some cases.
Healthcare and insurance for residents
What should I do if someone occupies my property?
Act quickly with an attorney. Prevention, such as a caretaker and visible use, is much cheaper than eviction.
Owning from abroad: managers, caretakers, squatters and hurricane prep
What if I employ a housekeeper or gardener?
Household workers have legal rights, including IMSS enrollment and a year-end bonus (aguinaldo).
If you employ people at your home (housekeeper, gardener, caretaker)
Which municipalities does the app cover?
All five in BCS: La Paz, Los Cabos, Comondú, Loreto and Mulegé.
Closing costs by municipality (all five) · Sign up for property tax (predial) in your municipality and set up payments · Building permits by municipality: where to go in each of the five
Is this legal advice?
No. It's general information to help you prepare. Confirm every step with your notario or attorney.
Build your team and your due-diligence plan
Are the costs in the app exact?
No. They're estimates and ranges from public sources, and they change yearly. Always get written quotes.
What are common scams?
Selling ejido land as private, fake titles, pressure for cash deposits, and changed wire instructions.
Get the free iPhone app: every step, your checklist and deadlines