Los Cabos has always been a little paradise for people who want to escape from the cold winters and enjoy warm weather and sunny beaches.
Canada has been choosing Los Cabos for its warm weather, compared to the cold winters they may experience, the wide variety of culinary experiences, the tours & activities and excellent level of service that the destination has to offer.
Besides choosing Los Cabos as their favorite place to vacation, they have been also selecting this cute little gem as one of their top choices when investing in Mexico.
Los Cabos has the perfect environment for a relaxed but yet high-end lifestyle. It will include the perks of living in a private residential complex that will include some luxury accommodations and amenities, such as, gym, pool, tennis or pickleball courts, oceanfront views, access to private beaches, spa and even access to some of the high-end malls which includes fancy restaurants and coffee shops.
Tailored for Canadian expats, this guide breaks down ownership rules, tax implications, and lifestyle opportunities in Mexico. It also highlights the growing Canadian community in popular coastal regions, especially hotspots like Los Cabos, one of the most desirable places for Canadians to invest today.
Can Canadians Own Property in Mexico?
The answer would be YES! Canadians can legally own property in Mexico. The process is straightforward once you understand the difference between restricted and non-restricted zones, as well as the fideicomiso system commonly used in coastal areas.
Mexico is divided into two key geographic zones for property ownership:
1. Restricted Zone
- 50 km (31 miles) from any coastline
- 100 km (62 miles) from international borders
Most beach destinations, Los Cabos, Puerto Vallarta, Riviera Maya, Mazatlán—fall within this zone.
Foreigners can still own property here, but must do it through a fideicomiso (bank trust).
2. Non-Restricted Zone
Anything outside these boundaries.
In this case, Canadians can own property directly with full title.
What Is a Fideicomiso?
A fideicomiso is a secure Mexican bank trust that gives foreign buyers full ownership benefits. You can live in the property, rent it, remodel it, or sell it at any time. It is valid for 50 years and renewable indefinitely.
Why is Los Cabos one of the Best Places for Canadians to Invest?
Besides its natural beauty, location and perfect weather, mostly 350 days of sunshine, besides the hurricane season, that happens, officially, from August through October, 15th. Los Cabos has become a top investment destination for Canadians due to:
Los Cabos´s strong property value appreciation, its high demand for vacation rentals, a large and growing expat community, a World-class infrastructure, beaches, and safety and its connectivity. Los Cabos has around 550 connections with the USA and Canada, including direct flights to their major cities.
In recent years, Los Cabos has seen a significant increase in Canadian homeowners looking for either a vacation retreat or long-term investment.
Another important detail to mention is that there is a big amount of Canadian expats already living in Los Cabos and nearby areas like Todos Santos or Pescadero, which are just a 40 minutes car ride.
Mexico has become one of the most popular destinations for Canadian expats. Thousands now live in coastal regions thanks to the warm weather, lower cost of living, and vibrant lifestyle.
This makes it easier for new Canadian buyers to settle in, connect, and feel at home.
Let´s talk about tax implications for Canadians buying in Mexico.
While Mexico offers low property taxes compared to Canada, Canadian buyers should be aware of some important details,
Mexican Taxes
- Property taxes (predial): extremely low
- Capital gains tax: varies depending on residency and exemptions
Canadian Taxes
- Rental income from Mexico must be reported to the CRA
- Capital gains on a foreign property are also reportable
A cross-border tax advisor is recommended if you plan to rent or invest.
After thinking and analyzing your choices, there are other steps needed to be followed in order for Canadians to buy property in Los Cabos,
For example:
- Choose a trusted real estate agent experienced with foreign buyers.
- Make an offer and agree on terms.
- Open a fideicomiso (if buying in a coastal/restricted zone).
- Complete title verification through a Notario Público.
- Close the sale and receive either your trust deed or direct title.
In Los Cabos there is a wide offering of places where you can choose from when you decide to invest. Either if you´re looking for something to live in, something to make an investment on, or something to develop a couple of little apartments to live in, or you may want to use it as vacation rental property.
In any of the options you select, feel assured that you´re getting a compromise with a beautiful place and it will make you live satisfied in any of the options that you choose.
There are different areas that could be appealing for what you´re looking for.
Cabo San Lucas is where the nightlife comes alive, so it may be a great option to select if you would like to use it for a vacation rental property. Besides all the wide variety of restaurants and nightlife, Los Cabos also is famous for its marina, which is known as one of the prettiest and expensive marina in the world, and from there you´ll get access to any kind of tours and activities from a snorkel tour, a simple visit to the iconic landmark, known as El Arco, enjoy a morning in the deep ocean while scuba diving or a whale watching tour when is season.
San José is more relaxed, known as the cultural and artistic brother. It has its own personality, and on Thursdays, you can enjoy their art walk which involves a beautiful set up in the heart of San José downtown that will take you on a relaxed experience of visiting galleries, restaurants, bars & the main square to enjoy some art by local artists.
In both cases, it could be a great option to choose the downtown area, which normally will be near to some restaurants, shops and some bars, or something located between the 2 main towns, named tourist corridor, which is the way that connects Cabo San Lucas from San José del Cabo.
There is still a lot of unexplored land in the Sea of Cortés coastal area, meaning San José del Cabo, East Cape, La Ribera & Los Barriles. There are some areas that are still being developed and some renowned and luxury brands are arriving in Los Cabos such as Aman and Park Hyatt.
In the La Ribera town, there is a huge real estate project named Costa Palmas which involved the Four Seasons brand in their high-end resort, Four Seasons Resort Los Cabos at Costa Palmas.
On the opposite side, meaning on the Pacific side, there are 2 lovely and very charming towns that are well known to be the favorite spot as the retirement little gem for Canadians, named Todos Santos and Pescadero.
They are both full of local fishermen who enjoy living a relaxed baja lifestyle. They wake up really early, go fishing & the fish they get is the one they sell.
On the other hand, Todos Santos is a magic town, known for its local and Mexican charm, with streets full of colorful art and cultural agenda. It is also a very famous place to visit for tourists as it is just a 40 minutes car ride from Cabo San Lucas. It also has a wide variety of amazing restaurants where you can enjoy the freshness of sea food mixed with a local touch of the baja med taste.
So, can Canadians own property in Mexico?
Yes, and thousands already do.
With beautiful destinations like Los Cabos offering strong investment potential, a welcoming Canadian community, and clear legal pathways to ownership, Mexico continues to be one of the best places for Canadians looking to invest, retire, or enjoy a vibrant lifestyle abroad.