Buying property in Colombia as a foreigner

Yes: a foreigner can buy a house, apartment, farm or lot in Colombia, with the same property rights as a Colombian. You don't need to be a resident or hold a visa. What differs is how the money comes in and which registrations are worth doing.

Requirements

• A valid passport. It is what you sign the deed with. If you live in Colombia, you use your foreigner's ID (cédula de extranjería).
• Be present, or grant a power of attorney. If you won't be in Colombia to sign, you can give a specific power of attorney to someone you trust. Signed abroad, it must carry an apostille or be authenticated at a Colombian consulate.
• A tax ID. The notary and the tax authority (DIAN) may require you to register for a RUT. You will need it in any case when you sell.

There is no general restriction by nationality. There are specific limits on some rural land that was originally state-owned and on border or national-security areas; your lawyer checks this in the title review.

Bringing in the money

This is where most mistakes are made.

• The funds must enter through a bank or another authorised foreign-exchange intermediary in Colombia, not in cash or by informal remittance.
• When the transfer arrives, an exchange declaration is filed and the transaction is registered as foreign investment with the central bank (Banco de la República).
• That registration is what lets you legally take the money and any gains out of the country when you sell.

Speak to the bank before sending the transfer and tell them it is for a property purchase.

The buying process

It is the same as for any buyer: title check, promise of sale, deed at a notary and registration. It is explained in How to buy property in Colombia. The documents are in Spanish: if you aren't fluent, the notary may require an interpreter, and it is worth hiring a lawyer who speaks your language.

Costs and taxes

• Closing costs are the same for foreigners.
• Property tax (predial) is paid to the municipality every year.
• If you rent the property out, that income is taxed in Colombia.
• When you sell, the gain may be taxed. An accountant can tell you how to declare it, depending on whether you are a tax resident.

Does buying give you a visa?

Buying property doesn't grant residence automatically, but a real estate investment above the amount set by the Foreign Ministry (expressed in minimum monthly wages; it has been 350) lets you apply for a migrant visa as an investor. Amounts and requirements change: confirm them on the Colombian Foreign Ministry (Cancillería) website before buying for that purpose.

Financing

Colombian banks rarely give mortgages to non-resident foreigners. Most buy with their own funds, or pay for a new development in stages while it is built.

Frequently asked questions

Can I buy on a tourist stamp?

Yes. A passport is enough to buy.

Where can I search for property in English?

LuxuryHomes.com.co has every listing in English and Spanish. Start with properties for sale or read Where to find real estate in Colombia.

Do I need a lawyer?

It isn't mandatory, but it is strongly recommended: for the title check, the promise of sale and registering the investment.