Is It Expensive To Live In Cabo San Lucas?

Are you looking to retire or buy a home in Cabo San Lucas? Are you looking for an amazing place to vacation, but want to know the cost of living first? Well, Cabo San Lucas is an awesome place. The cost of living is much lower than what you might expect. This blog article will outline some of the information you need to know before you decide to settle down in one of the beautiful oceanside Los Cabos properties. 

 

Is It Expensive To Live In Cabo San Lucas?

Cabo San Lucas is an amazing place to live. Not only because of those beautiful sunsets, but also because the cost of living is 20-25% less than living in the United States or Canada. If you are looking to retire in Mexico, Cabo is one of the best places to do it.

 

The low cost of living in Cabo San Lucas is a result of a number of factors. For one, much of the food that people purchase in Cabo San Lucas is locally produced and much of the staples are imported from the mainland at reduced costs. In addition, there are significant tax breaks for retirees and vacationers. Those able to take advantage of these tax breaks can live very well without spending a lot of money.

 

Cost Of Living In Cabo

Affordability is one major aspect of Cabo’s grand draws. But it doesn’t stop there. Whether you are visiting on the family budget, the new business venture budget, or your millions in the bank budget, Cabo can be a great place for all travelers to vacation and live.

 

You can easily buy a nice home for a steal, and you’ll have access to some of the nicest resorts in the world, from beachfront condos to luxury homes on the golf course. There’s something for every taste and price range. Below is a list of items that are, on average, less expensive in Mexico:

 

• Medical assistance;

• Medication;

• Dining out;

• Entertainment;

• Groceries;

• Alcohol;

• Clothing;

• Automobiles; 

• Education; and

• Rent. 

 

Cabo San Lucas has the reputation as being a higher cost of living area in Mexico. However, the cost of living in Cabo San Lucas and the rest of the Los Cabos Corridor is still much more affordable than what is found back in the U.S. or Canada. For most expats, the cost of living is still very much within their budget – it can be as low as $3,000 a month to rent a three-bedroom home in a gated community with 24-hour security (and sometimes with spa services included).

 

Is It Cheaper To Live In Mexico Than The United States?

Purchasing, living in and maintaining luxury homes is much less expensive than in the United States, which makes owning properties that much more appealing. Property taxes in Mexico are relatively inexpensive. The predial tax is a flat rate paid to the local government at a predetermined amount set by the state or municipality. It is approximately .1% of the property value at time of sale. On a $500k dollar property, taxes are only about $500 a year. However, if you pay in January you get 20% discount and if you have a permanent resident card and over the age of 65 you get an additional 30% discount, for a total of 50% discounted from you annual property taxes making your annual property taxes on a $500k dollar property closer to $250 per year. In contrast, US property taxes average around .25% -2.5% on the assessed value of the property (assessed at time of sale).

 

Rent and utilities are also several hundreds of dollars cheaper than in the U.S. Utility costs like water, electricity, and garbage service are often included based on the size of the house and lot. If you purchase a home in Mexico, it is common to include these services. 

 

Electricity and gas (depending on which area you live) costs around $100-150 a month. Water is typically included as well and varies based on the region. It may cost anywhere from $5 – $60 a month depending on whether you have potable water; i.e., purified for human consumption or rain water collected off your roof.

Now that you know the costs of living in this beautiful destination – are you ready to make the move? View Cabo San Lucas real estate here!