Quick Answer
If the purchase price is in USD, the transaction happens in USD with no exchange rate impact. If priced in pesos, the exchange rate on the day of closing applies. Most Los Cabos properties are listed and transacted in USD for the convenience of foreign buyers. Wire transfers can be sent in USD to the notario's trust account.
Detailed Answer
Currency logistics are simpler than most buyers expect. The vast majority of properties in Los Cabos are listed and transacted in US dollars, which eliminates exchange rate risk for American and Canadian buyers. The purchase price, deposit, and closing funds are wired in USD to the notario's trust account or a US-based escrow company. Closing costs calculated in pesos (such as the acquisition tax) are converted at the prevailing exchange rate on the day of closing.
If a property is listed in Mexican pesos, the exchange rate used is the official rate published by Banco de Mexico on the closing date. In these cases, a favorable exchange rate can work in your favor — and our team monitors rate trends to help time closings when it makes sense. For ongoing expenses like property taxes, HOA fees, and utilities, having a Mexican bank account allows you to convert funds at competitive interbank rates rather than paying retail exchange fees.
Wire transfers are the standard method for moving funds, and both Mexican and US banks are well-equipped to handle cross-border property transactions. Processing typically takes 1-3 business days. For guidance on the most cost-effective way to transfer your purchase funds, contact our team or browse more financial topics in our FAQ hub.