What It Really Costs to Own a Luxury Home in Cabo (Annual Breakdown)
Owning a luxury property in Los Cabos isn’t just about breathtaking views and high-end finishes—it comes with unique responsibilities and recurring costs. Whether you're a full-time resident, a snowbird, or an investor, understanding the true annual expenses will help you plan and protect your investment.
Here’s a breakdown of what you can expect to pay annually when owning a luxury home in Cabo:
1. Property Taxes (Predial)
Estimated Cost: 0.1% to 0.25% of the assessed value
Cabo's property taxes are significantly lower than those in the U.S. For example, a home assessed at $1 million USD would pay roughly $1,000 to $2,500 annually.
2. Fideicomiso (Trust) Fees
Estimated Cost: $700 to $1,000 annually
If you're a foreign buyer, Mexican law requires you to hold coastal property in a bank trust. This annual fee covers administration and maintenance of the trust.
3. HOA or Community Fees
Estimated Cost: $3,000 to $15,000+ annually
This varies widely depending on location and amenities. Gated communities like Palmilla, Pedregal, or Quivira often include 24/7 security, landscaping, beach club access, and road maintenance.
4. Utilities
Estimated Cost: $3,000 to $6,000 annually
This includes electricity (which can be high if you run A/C often), water, internet, gas, and waste removal. Solar panels can help reduce long-term costs.
5. Property Management & Maintenance
Estimated Cost: $5,000 to $15,000+ annually
Whether you're in Cabo full-time or not, most luxury homeowners hire a property manager. This covers routine upkeep, repairs, gardening, pool service, and preventive maintenance.
6. Insurance
Estimated Cost: $1,000 to $3,000 annually
Homeowners insurance in Cabo is affordable, but if you add hurricane coverage or cover high-value items, expect to be toward the upper end.
7. Staff (Optional)
Estimated Cost: Varies ($300 to $2,000/month)
Many luxury homeowners employ part-time or full-time staff for cleaning, cooking, or security. Costs vary based on roles and schedules.
8. Rental Management (If Applicable)
Estimated Cost: 20% to 50% of rental income
If you rent your property short-term, expect to pay a commission to a property or vacation rental manager.
Total Estimated Annual Cost to Own a $1M+ Luxury Home in Cabo:
Low end: ~$13,000/year
High end (with full services): ~$40,000+/year
Final Thoughts
While the ongoing costs of owning a luxury home in Los Cabos are generally lower than in many parts of the U.S., they do add up. Understanding these annual expenses will help you budget smartly and make the most of your investment.
Have questions about owning or buying in Cabo? Reach out—I’m here to help you navigate the lifestyle, community, and investment opportunities with confidence.
