Costa Palmas Overview
Costa Palmas is a 1000-acre (400 hectare) private beachfront resort community located 45 minutes from Los Cabos
International Airport on the East Cape of the Baja Peninsula. Thoughtfully and sensitively designed and situated along a pristine stretch of swimmable beach, Costa Palmas introduces an elemental form of luxury hospitality set among organic farms and a marina.
The Costa Palmas community is home to:
- Four Seasons Resort and Private Residences Los Cabos at Costa Palmas
- Costa Palmas Marina
- Costa Palmas Beach & Yacht Club
- Costa Palmas Golf Course, operated by Four Seasons and designed by Robert Trent Jones II 18-hole golf course
- 18 acres (7.3 hectares) of orchards and farms
- 2 mile (3.2 km) stretch of swimmable beach
Los Cabos’ East Cape
The East Cape’s location on the warm, crystal-clear waters of the Sea of Cortez on Mexico’s Baja Peninsula makes for excellent snorkeling and diving, some of the world’s best light tackle and sport fishing, and world-class windsurfing and kite boarding. The idyllic setting at the base of the Sierra de la Laguna Mountains also offers endless opportunities for land adventure, from hiking, biking, and horseback riding to exploring waterfalls, springfed freshwater pools and hot springs. With fresh water coming off the mountains throughout the year, the East Cape also provides ideal conditions for organic farming.
The East Cape contains seemingly endless miles of soft white, sandy beaches that remain wild and barren but contain many hidden secrets to explore. The East Cape boast over 300+ days of sunshine yearly with an average air temperature of 85°F and a water temperature ranging between 75°F-85°F, making it an ideal location for year round vacationing while lacking some of the humidity of other regions in Mexico.
The Los Cabos International Airport (SJD) is located 45 minutes by car from the East Cape. Many major airlines fly directly to Los Cabos International Airport from the US, Canada and Mexico. With over 500 flights per week, traveling to Cabo is convenient and easy, making the East Cape extremely accessible from abroad.
The Los Cabos International Airport also operates an Executive Air Terminal for private aircraft and offers refueling services, lounge area, private meeting room and other flight services.
Four Seasons Resort & Residences
Los Cabos At Costa Palmas
The 141-key resort scheduled to open in late 2018 will feature a low-density layout spread across multiple buildings with views of the Sea of Cortez and the Sierra de la Laguna Mountains.
- Family and adult pool
- Hotel beach facilities
- Fitness and tennis facilities
- Arrival building includes reception, concierge and lobby lounge
- Indoor and outdoor event and wedding facilities
- Four unique dining outlets
- Two formal dining restaurants
- Pool-side cevicheria at adult pool
- Pool grill at family pool
- Full-service spa
- Retail shops
Four Seasons Private Residences
and Private Villas
Since 1985, Four Seasons Hotels and Resorts has managed branded residences with the same degree of caring and personalized services that experienced travelers have come to love in Four Seasons hotels and resorts worldwide. Four Seasons Private Residences at Costa Palmas will offer owners unfettered access to the many services and amenities of the resort, all in the sophisticated comfort and elemental luxury of a private home. A collection of whole-ownership beachfront, ocean-view, marina-side, golf-side and Beach Club Four Seasons Private Residences are available. The residences are fully furnished and appointed to meet Four Seasons standards. An intimate collection of custom single-family oceanfront Four Seasons Residence Villas will also be available.
Costa Palmas Beach
All of our hotel guests and residence owners have access to all of the Costa Palmas beaches from the high tide line to the water. As
it is the case in much of the US, all beaches in Mexico are officially public from the high tide line to the water. Given our location, we do not expect any significant public traffic on the beach. Costa Palmas does hold a beach concession, which prevents vendors from selling anything on our beach.
Costa Palmas Marina
The extensive grounds of the resort will be connected to the Costa Palmas deep-water marina that will feature 250 slips and is steps away from the marina village, complete with artisanal boutiques, additional dining options and locally curated music and art. Costa Palmas Marina is the heart of Costa Palmas Yacht Club and will be the hub of activity for all the water adventures and programming offered to club members and resort guests.
Beach & Yacht Club
All Four Seasons Los Cabos at Costa Palmas Residences homeowners will be invited to join the members-only Costa Palmas Beach & Yacht Club which features the following:
BEACH CLUB & BEACH BAR
The heart of the club community, the Beach Club is your backyard and a gathering place. Easy, fresh cuisine at all hours of the day. Private fitness and locker rooms. A series of full-service pools. A bridge to the beach and Beach Bar which offers shade from the sun and a refreshing paloma or taco just steps from the sea. And Aventura Station, for an escape into nature.
Big lounge-y space for teens, with a small stage, costumes and maybe karaoke. Video games and even board games because they never get old. Plus cushy, cozy corners for littler kids, with a multitude of playthings, plush friends and arty-crafty activities.
The Yacht Club is comfortably private and decidedly enviable, a vantage point on the marina that’s reserved only for members. Come relax in a private ringside seat on the water, enjoy the views and tell the stories of the ones that got away.
Your green and grassy field of possibility is ready for anything – a soccer match, a game of pickup softball, a spontaneous picnic, a change of pace.
You will never be more intrepid, more curious, more open than here. Aventura is our attitude and adventurous are our people – guides, coaches and mentors who accompany and lead you to places on land and sea where you’ll experience a rare and thrilling freedom. This is our spirited adventure. And you’ll never want it to end. Mountain bike. Stargaze. Walk to the water, tie a fly and cast for roosterfish.
Costa Palmas Golf Course
Scheduled to open with the resort, the Costa Palmas Golf Course will be operated by Four Seasons and designed by Robert Trent Jones Jr. The18-hole golf course will take you from Marina, Orchards and Farms, Sierra de la Laguna Mountains to the sandy beach of the Sea of Cortez.
Orchards and Farms
On the Sea of Cortéz, the land is fertile and the waters generous. Farms specializing in certified organic produce have become a pillar in supporting the farm to table movement. Costa Palmas features 18 acres of its own organic crops woven throughout the property.
The Team Behind
Four Seasons Residences
WHO IS THE DEVELOPER OF FOUR SEASONS RESORT AND RESIDENCES LOS CABOS AT COSTA PALMAS?
With operations in California, Colorado, Hawaii and Mexico, Irongate is a full-service real estate development firm specializing in residential and resort communities located in world-class destinations. The company’s expertise lies in identifying opportunities for high profile, luxury branded projects that combine timeless architecture and design with five-star service. Entrepreneurial in spirit, the vision of Irongate is to elevate the communities in which they develop creating one-of-a-kind opportunities and introducing luxury brands that attract visitors, residents and investors alike.
WHO MANAGES FOUR SEASONS RESIDENCES LOS CABOS AT COSTA PALMAS?
Founded in 1960, Four Seasons has defined the future of luxury hospitality with extraordinary imagination, unwavering commitment to the highest standards of quality, and the most genuine and customized service.
Currently operating 97 hotels, resorts and residences in major city centers and resort destinations in 41 countries, and with more than 50 projects in development, Four Seasons consistently ranks among the world’s best hotels and most prestigious brands in reader polls, traveler reviews and industry awards.
CAN I USE MY RESIDENCE ANY WAY I LIKE?
You may use your unit for residential living and leisure purposes any way you like. Should you choose to rent your residence, you will be required to follow the rules established in the Bylaws. Use of the residence as a place of business is not allowed.
WHAT AMENITIES AND SERVICES DO I GET WITH OWNERSHIP?
When in residence, you will have access to the services provided by Four Seasons staff onsite, as well as all Four Seasons Resort amenities, including but not limited to pools, spa, fitness and wellness center and restaurants. Certain facilities may includes charges for use, such as spa, golf, restaurants and other a la carte incentives.
ARE THE RESIDENCES FULLY FURNISHED?
The residences will be fully furnished with a furniture package that meets Four Seasons design standards, and will include, but not be limited to kitchen appliances, dishware and linens. Owners will also have access to private owner storage to keep personal belongings between stays.
CAN OWNERS CHOOSE TO FURNISH THEIR OWN UNIT?
If the owner chooses to use the residence exclusively for personal use, then they are welcome to furnish their condominium unit as they wish after closing. If an owner plans to make the unit available for rent, the finishes and furniture will have to conform to Four Seasons design standards.
WHAT ARE THE MONTHLY FEES ASSOCIATED WITH OWNERSHIP?
All owners at Four Seasons Residences will become members of both the association of the project (the “Residence Association”), as well as the association of the master plan (the “Costa Palmas Association”).
Each of the associations will establish a budget of shared expenses for their respective jurisdiction. The expenses will then be allocated to all members proportionately on a monthly basis.
The monthly Residence Association fees for Four Seasons Private Residences are based on size and are estimated to be US$1.32 per interior square foot. The monthly Costa Palmas Association fees for Four Seasons Private Villas are based on size of home and will range from US$3,300 to US$4,600 a month.
WHAT IS INCLUDED IN THE MONTHLY HOMEOWNER ASSOCIATION FEE?
The monthly homeowner association fees include costs associated with the management, maintenance, and operations of the residential common areas, and for long-term reserves of the Association, as well as a contribution to the Costa Palmas master association for resort-wide services that includes costs associated with the management and maintenance of the master plan common areas, including but not limited to roads, security, and for long-term reserves of the Association.
The Residence Association budget includes, but are not limited to, the following:
- Maintenance, landscaping and lighting for roads and common areas within the residences neighborhood
- Exterior building and landscaping maintenance
- Private pool maintenance, if applicable in Private Residences only
- Four Seasons security services
- Resort amenity maintenance and services accessible to Four Seasons Residences included but not limited to valet parking, front desk services, concierge services, residential services, resort pool maintenance, fitness center maintenance, etc.
- Administration and accounting for the association
The Costa Palmas Master Association allocation includes, but is not limited to, the following on a pro-rata basis:
- Costa Palmas resort security
- Maintenance, landscaping and lighting for main property entry roads
- A portion of the beach and marina concession payments
- Common area maintenance and utilities
- Property taxes for common areas
- Administration and accounting for the Master Association
Owners will be responsible for usage of electricity, water, yearly property taxes, annual bank trust fees, and insurance for the individual residences they own.
AS AN OWNER, DO I GET DAILY MAID SERVICE OR OTHER SERVICES?
Owners will be able to customize their stay based on personal needs, by choosing from various A La Carte services for a fee, like daily housekeeping, fresh towel service, turn-down service, pre-arrival grocery shopping, etc.
WHY MUST MY GUESTS AND I CHECK IN THROUGH THE FRONT DESK?
For the convenience and peace of mind of each unit owner, the resort manager monitors access through key control and owner/guest registration at the front desk. Each owner will be asked to approve, in advance, access to their unit by persons other than themselves or resort guests.In order to prov ide a high level of service, full-time residents should notify the front desk when they are in residence.
CAN I HAVE A PET?
Yes. An owner may have up to two (2) dogs or cats inside his or her unit.
DO I HAVE A PARKING SPACE?
When on property, you can expect to have the use of a resort-parking stall accessible only by valet parking services for yourself. As there are no public vehicles permitted within the Resort, transportation from the Arrival Building to Private Residence buildings will be by private or chauffeured golf cart. The only exception may be certain Private Residence buildings and Villas that have private parking. Valet guest parking will be available, subject to availability. Valet parking is provided and included in the monthly assessments so self-parking will not be permitted. Daily tipping is not required.
WILL THERE BE A PARKING CHARGE FOR MY GUESTS WHEN I’M IN RESIDENCE?
Your guests are welcome to valet park their car when they come to visit you. Owners will have the privilege of requesting complimentary validation for their guest through the front desk.
WILL THERE BE SPECIAL ASSESSMENTS?
It is anticipated that the budget and reserve funds should cover the operating and capital expenses for the Association. The Board of Directors would have the authority to increase the fees and/or reserve funds or levy special assessments if the regular assessment is insufficient to cover Association expenses or for capital improvements.
CAN I STORE MY PERSONAL THINGS WHEN I AM NOT ON PROPERTY?
You will have access to private locked owner storage on property where you may keep items during and between stays.
WHAT ABOUT INSURANCE?
As an owner, you will be individually responsible for contents and liability insurance for your unit. The Residence Association will be responsible for securing coverage for fire, casualty and earthquake, public liability, and property damage insurance, director’s and officer’s liability insurance, and additional insurance and bonds for the residential common areas. The Costa Palmas Association will be responsible for securing coverage for fire, casualty and earthquake, public liability, and property damage insurance, director’s and officer’s liability insurance and addition insurance and bonds for the community common areas.
Costa Palmas Infrastructure
HOW WILL SECURITY BE HANDLED AT COSTA PALMAS?
Costa Palmas will be a gated resort community, with controlled access, perimeter fencing, ongoing patrols and infra-red cameras with 24-hour monitoring by both software and personnel.
Costa Palmas security staff will be fully vetted and trained by top security experts within the resort industry. Four Seasons Resort and Residences benefit from an added layer of security, including additional personnel trained and managed by Four Seasons, cameras, surveillance technology and patrols. Four Seasons security team benefits from Four Seasons’ experience in multiple resort destinations around the world, often located in remote areas.
HOW WILL UTILITIES BE PROVIDED?
As a master planned development, Costa Palmas is responsible for delivering utilities to residences, some from public sources and some directly from Costa Palmas.
Utilities will be sourced, as follows:
- ELECTRICITY will be sourced from the public grid, CFE (Comisión Federal de Electricidad). Individual residences will be separately metered.
- WATER will be sourced on-site by Costa Palmas, through agreements with the local water authority. Because of the setting at the base of the Sierra de la Laguna mountain range, underground water in this area is expected to be plentiful. Water will be separately metered at each residence.
- PROPANE GAS, where used, will be brought on-site by truck and stored in tanks. Propane gas will be separately metered.
- SEWER services will be provided on-site by Costa Palmas.
- TRASH AND RECYCLABLE collection will be performed by Costa Palmas, which will then contract with a third party for off-site disposal.
- DATA SERVICES (a high-speed connection) will be provided directly to Costa Palmas by Telmex, the Mexican telephone company. Costs Palmas will then distribute throughout the resort via wired and wireless network.
- TELEVISION will be provided via both the Internet (Telmex) and via a system Costa Palmas is developing with Four Seasons to serve the Resort and Four Seasons Residences. The service will be augmented by on-demand services provided by the Resort, which will also be made available to Four Seasons Residences.
WHAT IF I GET SICK OR INJURED AT COSTA PALMAS?
Four Seasons security team includes 24-hour trained Emergency Medical Technicians (EMTs) to treat injuries and emergencies. For less urgent matters, Four Seasons Resort will hold a private medical treatment room with on call bilingual doctors.
For more serious illness or injury, a dedicated Costa Palmas ambulance will transport guests and residents to a nearby private hospital in San Jose del Cabo which has an intensive care unit, surgical center, CT and MRI scanning, and blood bank.
Air evacuation and transport to US hospitals for life-threatening illness or injury is also available in Los Cabos.
For national security purposes, the Mexican federal constitution prohibits non-Mexican persons from owning real property located within 30 miles of Mexico’s coastline, referred to as the “restricted zone”. The entire Baja Peninsula and all of the other desirable coastal lands where foreigners would most want to purchase property are situated within the restricted zone. In the early 1970s, Mexico’s government wanted to encourage foreign investment and began allowing foreigners to purchase coastal property through a “fideicomiso”, or trust agreement. The coastal property is held in trust by a Mexican bank. The bank acts on behalf of the foreign buyer, taking title to the real property. The bank then has a fiduciary obligation to follow instructions given by the foreign buyer. Contrary to a land lease, as the trust beneficiary, the foreign buyer enjoys all of the rights of fee simple ownership, and may sell, gift, lease, add construction, improve existing buildings, mortgage and encumber the property. The fideicomiso technically satisfies the prohibitions in the Mexican federal constitution against foreign ownership of restricted-zone property. Foreigners have been buying, owning and selling Mexican coastal property through fideicomisos for nearly fifty years.
WHAT IS THE TERM OF A FIDEICOMISO AGREEMENT?
The term is for 50 years, and is renewable for at least one more 50-year term. After 100 years, the buyer/beneficiary may request and set up a new fideicomiso. If the fideicomiso expires without renewal, the buyer still has up to 10 more years to apply for a new fideicomiso.
IS THE FIDEICOMISO RECORDED AS A DEED?
The fideicomiso is granted in a public deed before a notary public and is registered in the local municipality’s property records.
IS THE FIDEICOMISO FREELY TRANSFERABLE?
Yes, either through the cancellation of the fideicomiso and transfer of the property, or through the assignment of the fideicomiso’s beneficial rights. If property is purchased that already has a fideicomiso, the existing trust may be transferred to the new owner and will be good for the remainder of its 50-year period, or the trust may be renewed.
IS THERE A COST TO SET UP OR MAINTAIN A FIDEICOMISO?
Yes. The fees vary by trustee. Costa Palmas is currently working with Banco Monex S.A. as the Buyer Trustee. Their fees are approximately $1,000 US to set up a fideicomiso, with annual trust fees of $400-800, and modification or transfer fees of $400-800.
WHO CAN BE BENEFICIARY? HOW CAN I HOLD OWNERSHIP OF THE FIDEICOMISO?
The fideicomiso beneficiary can be the same as any entity that would hold property in the US, such as an individual, couple, group of individuals, or through a corporation (LLC).
WHAT IS THE TAX TREATMENT AND WHAT ARE THE REPORTING
REQUIREMENTS OF A FIDEICOMISO?
Fideicomisos are generally considered foreign trusts for US tax purposes. Certain tax filings may apply.
WHAT HAPPENS IF THE TRUSTEE IS ACQUIRED OR FILES FOR BANKRUPTCY?
A new trustee may be appointed.
WHAT ARE LOCAL PROPERTY TAXES?
Municipal property taxes in Mexico are considerably lower than in the US. Generally, taxes average 0.3% of the property’s value.
CAN I GET TITLE INSURANCE?
Title insurance is widely available at your discretion. Costa Palmas is providing Owners with an Armor Secure title commitment and will assist with the purchase of Title Insurance at an estimated cost to Buyer of approximately 0.45% of the property value.
WHAT WILL MY CLOSING COSTS BE?
Many US buyers are surprised by the closing costs associated with luxury real estate in Mexico. There are fees associated with closing a transaction in Mexico that are not part of a real estate transaction in the US, such us acquisition tax, notary fee, registration fee and the fee for the fideicomiso. For luxury properties, total closing costs, including title insurance, range from 3% to 5% of property value.
It is important to keep in mind that while closing costs are higher than their US equivalent, property taxes are much lower.
WHAT TAXES WILL I PAY UPON SALE?
Income generated by the property will be subject to Mexican taxes. Capital gains tax will be calculated by the notary public and withheld at sale to be paid to the government. Taxes and fees owed are calculated on the peso value of the transaction using the currency exchange rate published the Federal Official Gazette the day before the payment is made. US sellers may be entitled to a US foreign tax credit for taxes paid in Mexico. No Value Added Tax (Sales Tax) is payable on residential property.