Investing in a second home in Los Cabos is more than just an opportunity to have a private refuge in paradise; it also involves understanding the recurring costs of ownership. In this article, we explore the primary expenses you should consider if you plan to acquire a property as a second home or retirement villa in 2026.

1. Taxes and the Fideicomiso

One of the greatest benefits for foreign owners in Los Cabos is that property taxes (Predial) tend to be very affordable compared to the United States or Canada.

• Property Tax (Predial): For a luxury property with high market value, the tax usually ranges between 0.1% and 0.25% of the assessed value. This often translates to just a few thousand dollars a year, even for high-end residences.
• Fideicomiso (Bank Trust): If you are a foreigner, you will likely own your property through a fideicomiso. The annual fee for this bank trust typically ranges between $700 and $1,000 USD.

2. HOA Fees and Utilities

If your second home is located within a gated community or a condominium, you must factor in Homeowners Association (HOA) fees.

• HOA Fees: In Los Cabos, these can vary significantly based on amenities such as 24/7 security, landscaping, common areas, and beach club access. Expect to pay anywhere from $150 to over $600 USD per month.
• Basic Services: Electricity, water, gas, and internet are monthly staples.
  • Electricity: Can range from $50 to $150 USD depending on usage (especially with intensive Air Conditioning during summer).
  • Water and Internet: These typically add another $30 to $80 USD per month.

3. Maintenance and Property Management

The unique climate of Los Cabos—featuring sea breezes, salt air, and high temperatures—requires regular maintenance to keep your home in top condition.

• Annual Maintenance: A good rule of thumb is to budget approximately 1% of the property’s value for annual maintenance, especially for high-level investments.
• Property Management: If you won’t be in Cabo year-round, many owners hire property management services. These services can cost between $200 and $500 USD per month, or a percentage of the income if you choose to rent the property as a vacation rental.

4. Lifestyle and Daily Expenses

Beyond property-specific costs, your second home in Los Cabos involves lifestyle considerations. Estimated costs for daily living and leisure include:

• Monthly Utilities (Electricity, Water, Gas): $100 – $200 USD.
• Internet and Phone: $30 – $70 USD per month.
• Food and Dining: This varies widely by lifestyle, ranging from delicious local street food to world-class gourmet dining experiences.

These figures allow for a realistic overview of what it implies to live part of the year in your second home without surprises.

5. Comparison with Other Luxury Destinations

While Los Cabos is a premium destination with higher service prices than other regions in Mexico, the property costs and taxes are considerably lower than in luxury markets like California or Florida, where property taxes and HOA fees tend to be substantially higher.

Furthermore, the ability to rent out your property as a vacation rental while you aren’t using it can turn your maintenance expenses into a return on investment (ROI) opportunity.

Conclusion

Planning for the cost of living and ownership is key to making an informed decision before buying a second home in Los Cabos in 2026. Although it involves recurring expenses in taxes, HOA, and maintenance, these are well-balanced by the exceptional quality of life, the potential for rental income, and the allure of an unparalleled lifestyle.

Do you want to know how these costs fit with your investment goals?

Contact Baja Memories Real Estate for personalized advice and to find the perfect second home in Los Cabos that fits your budget.

If you still don’t have your own property in Los Cabos, get in touch with us!

• Carmen Torres – Baja Memories Real Estate
• Office: +52(624) 143-9602
• Mobile: +521(624) 122-5479
• Email: bajamemories@gmail.com
• Website: http://www.bajamemoriesrealestate.com