Many individuals are drawn to Colombia for its vibrant culture, stunning landscapes, and favorable property prices. If you are considering purchasing property in Colombia, it’s important to understand the process, costs, and specific rules for foreigners.
The first step in buying property is identifying your budget and financing options. If you are a foreigner, securing a mortgage can be challenging, as many Colombian banks require a Colombian bank account and local credit history. However, some banks offer loans to foreigners, often with a higher down payment requirement. Confirm whether you are eligible for financing through research or by consulting with local financial institutions.
Next, you should conduct thorough research on the location and type of property you desire. Colombia has diverse regions, each offering different lifestyles and investment potential. Investigate factors such as security, amenities, and local regulations that might impact your decision. Sites like Finca Raiz and OLX can provide listings and insight into market prices.
Once you have selected a property, it’s vital to conduct a due diligence check. This includes verifying property ownership, checking for liens or encumbrances, and ensuring that all property documents are in order. It’s advisable to hire a lawyer experienced in property transactions to assist with this process and to facilitate negotiations.
Upon reaching an agreement, you will need to draft a promissory contract, outlining all terms and conditions of the purchase. This document typically includes a deposit, which might range from 5% to 10% of the purchase price. The promissory contract ensures that both parties are committed to the sale. Ensure that your lawyer reviews this document to protect your interests.
The next stage involves the signing of the definitive purchase contract, which must be notarized. Both you and the seller will need to present valid identification. This is accompanied by the payment of the remaining balance of the purchase price. Once the sale is official, you will be required to register the property with the local registry office to formalize your ownership.
Understanding the costs involved in buying property is important. In addition to the purchase price, you should budget for various fees, including notary fees, registration fees (approximately 1% of purchase price), and the property transfer tax (up to 1% of the purchase price). You might also incur ongoing costs like property taxes, which are relatively low in Colombia, varying between 0.5% to 1.5% of the property value.
As a foreigner, you enjoy the right to buy and own property in Colombia without restrictions. However, ensure that you have a valid visa for extended stays. The most common options are the Retirement Visa or the Investment Visa, both of which have specific requirements that you will need to meet.
Buying property in Colombia can be an exciting and rewarding process when approached with care and preparation. By understanding the steps, costs, and regulations involved, you can make informed decisions and navigate the real estate market successfully.
Hey there! I’m Luciana, a travel writer from Colombia. I focus on places I know and love — mostly Colombia, Central America, and North America.
I’m all about discovering those hidden gems that don’t always make it into the guidebooks — think street food stalls, quiet little towns, underrated hiking trails, and the kind of real-life moments that truly capture what a place is all about.
Whether I’m wandering through vibrant markets in Guatemala, cruising across the deserts of the U.S., or hiking the Andes, I try to keep it real and useful — no fluff, just the good stuff.
When I’m not off exploring or writing about it, you’ll probably find me sipping too much coffee, editing photos, or dreaming up my next trip.
Let’s keep discovering and traveling smarter — one trip at a time.
