Closing costs in Los Cabos are the part of the purchase almost nobody prices correctly — including, too often, the guides ranking at the top of Google. The acquisition tax went up, notary fees follow a regulated tariff that scales with price, and foreign buyers carry trust costs that Mexican nationals never see. This guide breaks down every line at 2026 rates, works two full examples, and gives you a calculator that runs the math on your exact budget. Figures reviewed by Ramar’s in-house accounting team. Updated July 2026.
The short answer: budget 4–6% of the purchase price
For a residential purchase in Los Cabos, expect total closing costs between 4% and 6% of the purchase price, paid by the buyer on top of the agreed price. The single largest line is the state acquisition tax at 3% of value. A Mexican national buying a $1,000,000 USD home lands near 5%; a foreign buyer at a lower price point — who also needs a bank trust — can reach 6% or slightly above. Budget this amount before you sign the purchase agreement, not after.
Line-by-line breakdown at 2026 rates
Every closing in Los Cabos runs through a notario público, and every line below appears on the closing statement. Percentages apply to the purchase price unless noted otherwise.
Acquisition tax (ISAI): 3% — most guides still say 2%
The Impuesto Sobre Adquisición de Inmuebles (you will also see it as ISABI in Baja California Sur) is the transfer tax the buyer pays to the municipality. Los Cabos raised it from 2% to 3% on January 1, 2025, and as of January 1, 2026 all five municipalities of Baja California Sur apply the same 3% rate — including La Paz, whose municipality covers Todos Santos. Most closing-cost articles ranking today were written before the increase and still quote 2%. On a $1,000,000 purchase, that outdated figure hides a $10,000 difference.
The tax base is typically the highest of three values: the purchase price, the appraised value, or the cadastral value. In market transactions the purchase price usually governs.
Notary fees: 1–2%, on a regulated tariff
The notario público in Mexico is a state-appointed attorney with public authority, not a signature witness. The notario verifies title and liens, calculates and withholds taxes, and drafts the deed. Fees follow a regulated tariff and fall as a percentage as the price rises: figure close to 2% on an entry-level condo and near 1% above the $1,000,000 mark, plus 16% IVA on the professional fee itself.
Public registry: around 1%
Recording the new deed at the Registro Público de la Propiedad is what makes your ownership enforceable against third parties. Registry fees in Baja California Sur typically add around 1% of the transaction value, often somewhat less on higher-priced properties.
Appraisal (avalúo): 0.1%–0.3%
A formal appraisal by an authorized valuator is required in every transfer — it validates the tax base for the ISAI and the registry. Expect roughly 0.1% to 0.3% of the property value; on most homes that means a few hundred dollars.
Fideicomiso setup: $2,000–$3,000 USD — foreign buyers only
Los Cabos sits inside Mexico’s restricted zone, so foreign buyers hold residential title through a fideicomiso, a renewable 50-year bank trust. Setup involves a permit from the Ministry of Foreign Affairs (SRE) — MXN $21,650 in 2026, roughly $1,100–$1,200 USD — plus the bank’s acceptance fee and first annuity. All in, plan on $2,000–$3,000 USD at closing and $500–$800 USD per year thereafter. We cover the structure, the myths and every peso in fideicomiso setup and annual fees explained. And if you are still confirming the basics, start with whether Americans can buy property in Mexico — the answer is yes, and the trust is precisely how.
Title insurance: optional, 0.5%–0.7%
U.S.-style title policies are available in Mexico through international underwriters, typically priced at 0.5% to 0.7% of the purchase price as a one-time premium. It is optional and uncommon among Mexican buyers, but many U.S. and Canadian purchasers add it for familiarity, and cross-border lenders often require it.
Closing cost calculator: your exact budget in seconds
Enter a purchase price, choose foreign or Mexican buyer — the toggle adds or removes the fideicomiso lines — and switch between USD and MXN. The calculator applies the 2026 rates above: 3% ISAI, tariff-scaled notary and registry fees, the appraisal, and the trust costs when they apply. You get the full breakdown, the total, and your effective closing-cost percentage.
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The output is an estimate built on current Los Cabos rates. For a quote to the peso on a specific property, our accounting team runs the exact numbers before you make an offer.
Worked examples: a $500K condo and a $1M home
$500,000 condo in El Tezal — foreign buyer
El Tezal, on the Cabo Corridor, concentrates most of the market’s condo inventory, with two- and three-bedroom units typically listing between $300,000 and $700,000 USD.
- ISAI (3%): $15,000
- Notary fees (~1.4%, IVA included): $8,100
- Public registry (~0.8%): $4,000
- Appraisal: $600
- Fideicomiso setup (SRE permit, bank fees, first annuity): $2,500
Total: about $30,200 USD — 6.0% of the purchase price. Add $2,500–$3,500 if you take title insurance. A Mexican buyer on the same condo closes near $27,700, or 5.5%.
$1,000,000 home in Cabo San Lucas — foreign buyer
In Cabo San Lucas, single-family homes in established gated communities commonly trade from $800,000 into the several millions.
- ISAI (3%): $30,000
- Notary fees (~1.1%, IVA included): $12,800
- Public registry (~0.8%): $8,000
- Appraisal: $900
- Fideicomiso setup: $2,500
Total: about $54,200 USD — 5.4% of the purchase price. Optional title insurance adds $5,000–$7,000. A Mexican national skips the trust line and closes near $51,700, or 5.2%. Once your all-in number is clear, see what your budget buys in Los Cabos.
Who pays what
Mexican custom is unambiguous: the buyer pays essentially all closing costs — ISAI, notary, registry, appraisal and trust costs. The seller pays two things: the capital gains tax (ISR), which the notario calculates and withholds at closing, and the listing commission, which in Los Cabos typically runs 6% plus IVA. If you ever plan to resell, the paper trail matters from day one: closing costs backed by facturas are deductible against your future capital gain, a mechanism we walk through in the Seller’s Manual.
That allocation is custom, not law. Developers occasionally absorb part of the closing costs as a pre-sale incentive — worth asking for, and worth getting in writing. For the complete purchase sequence from offer to recorded deed, work through our Buyer’s Manual.
After closing: what you pay each year
Two costs continue after the deed records. The predial (property tax) is among the lowest in North America: about 0.1% of assessed value, which itself typically sits below market value. A $1,000,000 home generally pays $1,000–$2,500 USD per year, and Los Cabos grants discounts for early payment in the first months of each year. Foreign owners also pay the fideicomiso annuity of $500–$800 USD. There is no Mexican equivalent of the five-figure annual property tax bill common in U.S. coastal markets.
How Ramar handles closing
Ramar is the only brokerage in Los Cabos with legal and accounting teams in-house. Before you make an offer, our accountants produce a line-by-line closing statement for the specific property — the same math this article uses, applied to a real folio. After acceptance, the legal team files the fideicomiso permit, coordinates the notario, and carries the file to the recorded deed with no outside handoffs. Get an exact quote from our accounting team: one property, one page of numbers, before you commit.
Frequently asked questions
How much are closing costs on a $500,000 home in Cabo?
Plan on roughly $28,000–$31,000 USD — about 5.5% to 6% of the price — for a foreign buyer, covering the 3% acquisition tax, notary and registry fees, the appraisal, and fideicomiso setup. A Mexican buyer pays about $2,500 less because no trust is required.
Who pays closing costs in Mexico — buyer or seller?
The buyer pays essentially all closing costs: acquisition tax, notary, registry, appraisal and trust setup. The seller pays the capital gains tax (ISR) and the listing commission. The split is customary rather than legal, so developer pre-sales sometimes include closing-cost incentives.
Did the acquisition tax in Los Cabos really go up?
Yes. Los Cabos raised the acquisition tax from 2% to 3% effective January 1, 2025, and since January 1, 2026 all five municipalities of Baja California Sur apply the 3% rate. Guides quoting 2% are out of date.
How much is the annual fideicomiso fee?
Bank trustees typically charge $500–$800 USD per year to administer the trust. It applies only to foreign owners; Mexican nationals hold direct title and pay nothing. Setup at closing runs $2,000–$3,000 USD including the SRE permit.
How much is property tax (predial) per year in Los Cabos?
About 0.1% of assessed value, and assessed values typically sit below market. A $1,000,000 home usually pays $1,000–$2,500 USD per year, with early-payment discounts at the start of the year.
Buying in Los Cabos?
Talk to the team with in-house legal and accounting — from the search to the keys.
