BUYERS:
Buyers who are interested in Los Cabos property need to be aware of specific circumstances that affect their purchases. If you're a non-Mexican foreigner and want to buy property in Los Cabos, read on to find out what laws and processes apply to you and your purchases:
SELLERS:
Before you set your plans into motion to sell your Los Cabos property, it's a good idea to become familiar with the current trends in the Los Cabos real estate market so that you can accurately and competitively list your home for purchase. If you're ready to sell your Los Cabos property, read on for guidance on how to quickly and effectively list your property on the market:
The Fideicomiso, more commonly known in Mexico as simply a Trust, applies to foreigners who are interested in purchasing property within the Mexican "Restricted Zone''. This zone, approximately 100 kilometers from the border of Mexico and about half that distance from the Mexican coast, requires that foreign real estate buyers purchasing a property in the Zone obtain the renewable, eligible-for-50-years Fideicomiso trust to inhabit, purchase, sell, or even rent their real estate. The Fideicomiso trust designates foreign property buyers as the formal beneficiary of the Fideicomiso, which means buyers still have the authority to exercise their ownership responsibilities, such as leasing property to tenants, selling property on a capital market, or willing the property over to family members.
Once you locate the property you want to purchase and send in your official Offer to Purchase document, the closing process that finalizes your purchase begins. The entire purchase process includes several closing steps which have different durations depending on the number of parties involved in your purchase. On average, though, the process to finalize your Los Cabos real estate purchase takes anywhere from 45 days up to about three months' time. Windermere Los Cabos uses U.S. escrow companies operating in Los Cabos, as well as local closing notaries, attorneys, and closing coordinates, to provide clients with a smooth and efficient legal closing of their purchase processes.
Although foreigners such as U.S. expatriates are legally bound to pay property taxes in Mexico, the rates at which they pay those taxes are significantly lower than those found in the United States and Canada. For example, property taxes in Los Cabos are about one-tenth of the total amount that residents pay in Los Angeles, California. An important distinction to note as well is that, although foreigners who own Los Cabos property must pay property taxes, those who only rent their property, own their own business, or oversee their own interest-rated bank accounts pay income tax, rather than property tax.
Foreigners must pay capital gains tax to Mexico's official federal tax collector entity, the Servicio de Administracion Tributaria -- more commonly known as simply the Hacienda. On real property that the Hacienda deems legally taxable, foreigners must pay either a 25% tax or 35% of their total net profit on their property sale after applicable tax deductions are met. To do this, foreigners must divide the sum of their capital gains by the total number of years they've occupied the property they want to sell.
Despite the impact that COVID-19 has had on property values and sales numbers worldwide, the real estate market in Los Cabos remains vibrant with a diverse range of property listings and prices. The Los Cabos real estate market offers options that range from small, secluded resort homes to massive, elaborate oceanfront estates. What's more is that the market for real estate in Los Cabos shows no signs of slowing down on listing new properties such as resorts and real estate developments that attract both tourists and new residents alike.
It's imperative that you determine a listing price for the property you wish to sell in Los Cabos that's competitive compared to standard property listings on the Los Cabos real estate market. To determine the most attractive listing price for your Los Cabos home, Windermere Los Cabos connects you with an expert sales advisor who recommends listing prices for your property based on a thorough analysis of the Los Cabos real estate market. This market analysis makes it easy for Windermere Los Cabos to best represent you as a property seller who needs to achieve the highest possible listing price.
If you're interested in selling your property and need help listing it at competitive prices, or if you are ready to purchase property in Los Cabos, Mexico and you need access to up-to-date listings for the best properties from a real estate professional who understands the Los Cabos real estate market.
Get the listing price that your Los Cabos property deserves or start your property search today with Windermere Los Cabos who knows how to find the real estate options that meet your purchasing needs. Connect with us today!
Calle Coronado
S/N Col.5 de Febrero C.P. 23406
San Jose del Cabo, BCS
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