Buying a property in a foreign country can be confusing and sometimes scary, specially if it is the first time visiting and getting to know how to get things done. That is why the more you educate yourself, the smarter and safer your investment will be! And the answer is YES. you can buy a property in Colombia as a foreigner.
Keep reading to find out how you can invest in Colombia as a foreigner, what documents you'll need, and all the benefits that can make this a great financial decision.
There are several reasons why buying property in Colombia is a smart move for foreigners. Some of these include:
Experts predict that the next few years will show economic stabilization, with inflation returning to single digits and interest rates decreasing. Additionally, the appreciation of the real estate sector will present great profit opportunities in buying and selling properties.
The search for properties to rent, whether traditionally or as vacation rentals, remains very active.
As a foreigner, purchasing a property in Colombia is quite straightforward. All you need is a passport and the necessary funds.
A great benefit is that you can obtain a residence visa valid for one to five years, depending on your investment amount. And you can buy property even on a tourist visa—there are no restrictions.
The process of buying a home in Colombia from the U.S. or Europe is relatively easy. Plus, the exchange rate for dollars or euros remains competitive. This means that with the down payment for a home abroad, you could acquire a fantastic property in Colombia, with appreciation rates that outpace those in your home country.
Your Reasons for Buying: Do you plan to settle in Colombia, or are you looking for a vacation home? What’s your budget? Are you interested in new or used properties? Do you want to rent it out or keep it for family? Being clear about your goals simplifies the process and helps you determine if you need specific documents or qualify for a special visa.
Seeking Professional Advice: There are many factors to consider when buying property in Colombia without complications. Legal procedures, taxes, local bureaucracy, and the legalization of funds are some aspects to review. Assess whether you need professional guidance to facilitate the process.
Proving the Source of Funds: As a foreigner, you'll need to show the source of your money for the purchase with bank certifications and legalize them according to your home country’s regulations. You'll also need to register and nationalize the funds through the Bank of the Republic, which requires opening a bank account.
Additional Costs: These might include closing costs, notary and registration fees, taxes, certificates, and commissions for money transfers or opening bank accounts. Also, consider costs like repairs or furnishing if needed.
If you’re buying new construction, check the builder’s history. If it’s a used home, inspect its physical condition. There is no mandatory inspection in Colombia as there is in the US and other countries, but there are inspectors you can hire for this.
It’s common for foreigners in Colombia to be charged more for properties. Therefore, we emphasize the importance of having someone knowledgeable and honest about local procedures and customs to help negotiate the property.
You can stay in Colombia for up to 90 days without needing a visa, giving you time to explore different properties.
If you’ll be outside Colombia during the purchase, you’ll need to grant someone power of attorney to represent you. This person can inspect the property and sign the purchase agreement, deed, and other documents.
Ready to buy that beautiful home? Follow these three steps for a legal, easy, and safe buying process:
Obtain the Property Title Study: This document includes the legal history of the property, ensuring it is free of debts, taxes, or claims that could hinder the purchase. You need to request a Certificate of Tradition and Freedom from the Superintendence of Notary and Registry. In Spanish, it is called "Certificado de Tradicion y Libertad" and you can purchase and download it in the official Notary and Registry website if the have the title number, in Spanish " Numero de Matricula Inmobiliaria".
Draft the Purchase Agreement: This document guarantees that the deal will proceed under the agreed-upon terms between you and the seller. It’s important to include clauses, property details, and payment terms and dates. In Spanish it is called "Promesa de Compraventa". If you have a realtor helping you with the process, he or she will draft this document for you. We always recommend you hire a real estate attorney that will go through the process and documents with you.
Sign the Public Deed: Once you legalize the funds and make the payment, you’ll sign the public deed, known in Spanish as "Escritura". This document legally establishes you as the property owner. You then need to register the property in the Civil Registry and the Cadastre (most notaries will complete this step for you, but you need to make sure). Congratulations, you’re now the happy owner of your home in Colombia! 🎉
We’re here to help. Your dream of buying property in Colombia as a foreigner is closer than you think, and we can provide the guidance you need to make it happen. Contact us through the form below or reach out to us on social media to kickstart your investment journey in Colombia!