Foreign buyers own beachfront homes and condos all along the Los Cabos coast, and the process is well established. It does work differently from buying at home, though, and a beachfront purchase adds one more layer: the strip of sand in front of the property. Here is a plain-language overview of how it fits together.
The restricted zone and the fideicomiso
Mexico’s constitution reserves land within 50 kilometers of the coast and 100 kilometers of the borders, known as the restricted zone, from direct ownership by foreigners. All of Los Cabos falls inside it. Foreign buyers get around this in a standard, legal way: a bank trust called a fideicomiso.
In a fideicomiso, a Mexican bank holds title as trustee, and you are the beneficiary with full rights to use, rent, improve, sell or pass on the property. The trust runs for 50 years and can be renewed. The bank charges a set-up fee and an annual fee for acting as trustee. Buyers who plan to use a property commercially sometimes hold it through a Mexican corporation instead, which is a different conversation to have with an attorney and accountant.
The federal zone in front of the beach
The beach itself is not private in Mexico. A strip of land running 20 meters inland from the high tide line, called the federal maritime-terrestrial zone or ZOFEMAT, belongs to the nation. Owners of beachfront lots typically hold a concession from the federal government to use that strip in front of their property, and they pay an annual fee for it.
When you buy beachfront, ask whether a concession is in place, whose name it is in, whether the fees are current, and whether it will be transferred to you. Your closing team should confirm all of this, along with where the property line actually sits relative to the federal zone.
Who handles the closing
In Mexico, the closing is formalized by a notario público, a government-appointed attorney who verifies title, calculates and collects taxes, and records the deed. Most buyers also hire their own real estate attorney and use an escrow or closing company to hold funds. Expect the process to include a permit from the Ministry of Foreign Affairs for the trust, a current appraisal, and certificates showing there are no liens or unpaid property taxes or utilities.
A beachfront due-diligence checklist
- Clean title and no liens, confirmed by the notario.
- Status and transferability of the federal zone concession.
- Permits and approvals for the construction, especially anything close to the beach.
- HOA rules, fees and reserves for condos, including any special assessments for seawalls or beach work.
- Property tax (predial) and utility accounts paid up to date.
- How the home has handled past storms, and what maintenance the salt air demands.
This is general information, not legal or tax advice. Every purchase should be reviewed by a qualified Mexican real estate attorney and the notario handling your closing. For more on the steps, see our guide to buying beachfront in Los Cabos, or contact us with questions about a specific property.
