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Four Seasons Resort & Residences Los Cabos at Costa Palmas

Four Seasons Resort & Residences Los Cabos at Costa Palmas ($3M–$20M+, Sea of Cortez beachfront, East Cape Baja California Sur) is the premier branded residence in Mexico for US buyers. The fideicomiso (Mexican bank trust) is the standard ownership mechanism for foreign buyers of...

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Costa Palmas: The East Cape’s Arrival

Costa Palmas is the development that transformed the East Cape of Los Cabos from a fishing village destination into a Four Seasons-standard luxury resort market. The East Cape’s defining characteristic: the Sea of Cortez (the calmest, clearest, most marine-life-rich body of water on Mexico’s Pacific coast) rather than the Pacific Ocean. The water is swimmable year-round (unlike the Pacific coast of Cabo, where dangerous surf makes swimming inadvisable at most beaches). Four Seasons at Costa Palmas delivers the full resort experience: private beach, marina, Robert Trent Jones II golf course, spa, and the Four Seasons’ global service standard. For US buyers accustomed to Florida or Hawaii resort living: the Four Seasons brand provides the quality assurance bridge for a purchase in Mexico — reducing the information asymmetry that makes cross-border real estate riskier.

Mexico Ownership Structure: The Fideicomiso

Under Mexican law, foreign nationals cannot directly own real estate within the “restricted zone” (50 km from the coast, 100 km from national borders). All Los Cabos beachfront falls within this zone. The solution — the fideicomiso (bank trust) — is the standard, well-established legal mechanism: a Mexican bank holds title to the property in trust for the foreign buyer, who is the beneficiary with full use, sale, and transfer rights. The fideicomiso is renewable every 50 years and is recognised by all Mexican courts and the Mexican Constitution since the 1973 Foreign Investment Law reforms. Key points for US buyers: (1) the fideicomiso is not exotic or unusual — it is the standard mechanism used by all foreign buyers of coastal Mexican real estate; (2) the trust’s annual fee is approximately $500–$2,000/year; (3) the buyer’s US estate plan must address the Mexican property specifically — US revocable trusts do not automatically govern Mexican property.

Dual Tax Obligations for US Buyers

US buyers of Mexico real estate face tax obligations in both countries: (1) Mexico: Mexico imposes capital gains tax (ISR) on the gain from sale of Mexican real estate. The rate is approximately 25–35% of the gain (depending on the calculation method). The seller also pays the notario’s fee (comparable to a closing attorney in the US). (2) United States: US citizens and residents must report worldwide income, including Mexican rental income and capital gains from Mexican property sales, on their US tax return. A credit for Mexican taxes paid is available under the US-Mexico Tax Treaty to avoid double taxation. (3) FBAR: if the fideicomiso’s Mexican bank account holds more than $10,000 at any point during the year, the US owner must file an FBAR (FinCEN Form 114). The dual tax filing requirement means US buyers of Los Cabos branded residences should engage both a Mexican notario and a US CPA with cross-border experience before closing.

Los Cabos as a US Buyer Destination

Los Cabos — encompassing Cabo San Lucas and San José del Cabo at the southern tip of the Baja California peninsula — has established itself as the premier Mexico resort destination for US luxury buyers. Direct flights from every major US city to San José del Cabo International Airport (SJD) in 2.5–4 hours make Cabo more accessible from most of the western US than Florida or Hawaii. The US buyer concentration: approximately 80%+ of Los Cabos luxury real estate buyers are US nationals. The US dollar is widely accepted. English is spoken throughout the resort corridor. The branded resort product (Four Seasons, Montage, Waldorf Astoria, Auberge) makes the Los Cabos purchase experience practically similar to a US branded residence purchase — with the added fideicomiso and dual-tax complexities that require specialist guidance.

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Frequently Asked Questions

Can a US citizen buy beachfront real estate in Mexico?

Yes, through a fideicomiso (bank trust). A Mexican bank holds title in trust for the foreign buyer, who has full use, sale, and transfer rights. The fideicomiso is the standard, well-established mechanism for all foreign coastal property purchases in Mexico. Renewable every 50 years.

What is the price range at Four Seasons Costa Palmas?

Approximately $3M–$20M+ for beachfront and Sea of Cortez-view residences. Los Cabos ultra-luxury resort pricing, comparable to Hawaii resort market pricing.

Do US buyers pay US taxes on Mexico property?

Yes. US citizens and residents must report worldwide income including Mexican rental income and capital gains. Credit for Mexican taxes paid is available under the US-Mexico Tax Treaty. Dual tax filing (US + Mexico) requires both a Mexican notario and a US CPA with cross-border experience.

Is the East Cape safe for US buyers?

Costa Palmas is a gated, Four Seasons-managed resort community with private security. The East Cape’s resort corridor serves primarily US and Canadian luxury visitors and residents. The Four Seasons brand’s involvement provides the quality assurance and management infrastructure that independent Mexican purchases lack.

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