Buying property in Colombia as an American: Full guide

Colombia is a diverse and friendly country for American buyers looking to purchase property abroad. You can rent your house to tourists or spend your retirement in a stunning paradise.

With cities like Cartagena and Santa Marta offering beautiful beaches, delicious food, and an affordable cost of living, there’s something for everyone.

But can Americans buy property in Colombia? We take a look at everything you need to know, including legal requirements, fees, house prices, and exactly how to buy property in Colombia.

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Table of contents

What’s the property market like in Colombia? Can an American buy property in Colombia? What are the legal requirements of buying a property in Colombia? Can Americans buy land in Colombia? Can you buy property in Colombia and get residency? How to buy property in Colombia as an American: step by step Buying property in Colombia: costs, taxes, and fees Buying property abroad? Send money the hassle-free way with Wise How can you find real estate in Colombia? What’s the best city to buy property in Colombia?

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What’s the property market like in Colombia?

The Colombian real estate market is currently experiencing expansion and economic development. There’s a growing demand for high-rise apartments with plenty of modern amenities, such as swimming pools or communal spaces.¹

In recent years, the country has seen a rise in urbanization in major cities like Bogotá and Medellín, with a boom in the Colombian construction industry.²

Tourist destinations like Cartagena are always in high demand, particularly with investors looking to rent their homes to visitors – and beachfront properties are popular due to the country’s alluring coastal locations.³

Can an American buy property in Colombia?

Yes, a US citizen can buy property in Colombia. However, you’ll need to follow the necessary laws and requirements to purchase your Colombian home.

Whether you’re looking for a vacation spot or a new investment opportunity, let’s take a look at how to buy a house in Colombia.

What are the legal requirements of buying a property in Colombia?

The Colombian government encourages foreigners to invest in the local economy – and non-residents have the same property rights as residents.⁴ This makes it relatively easy to buy real estate in Colombia as an American.

You won’t need a visa to buy property in Colombia, but you’ll need to follow the same legal and financial procedures as a Colombian national.⁵

Key documents you may need for your purchase include

• certificate of tradition and freedom
• promise of sale
• copy of the title deeds
• commercial appraisal of the property
• proof of payment of the property title search
• proof of payment of property tax⁶

You may also need to get a Colombian Tax ID before purchasing your property, as you’ll need it to register for property taxes.⁷ Speak to a local or international lawyer for advice and support with your Colombian property purchase.

Can Americans buy land in Colombia?

Foreigners can buy land in Colombia. All you’ll need is a valid passport and sufficient funds to cover your investment. However, you may not be able to buy land in certain border zones or protected areas.⁸

You’ll need to work with a lawyer to ensure you meet all the necessary legal requirements for your purchase.

Can you buy property in Colombia and get residency?

You can buy property in Colombia to qualify for residency in the country. The Colombian investor visa, also known as the Colombian Golden Visa, grants temporary visa status to those investing in local real estate.

You’ll need to invest roughly 160,426 USD in property to acquire your golden visa.⁹ You may also need proof of legal residency in your country of origin, and you’ll need to pay visa fees.

You can typically renew your residency visa for up to 5 years.⁹ This could be the first step to permanent residency or Colombian citizenship.

You may also qualify for residency if you make a sizeable investment in a Colombian business or the local economy.⁹

How to buy property in Colombia as an American: step by step

Buying property abroad can be a tricky process. Let’s take a look at how to buy property in Colombia – a step-by-step guide.

Property search

First, you need to look for your dream property. Conduct research into the best location for you and your family, and don’t forget to view your favorite properties in person.

You should work with a real estate agent that specializes in Colombian or South American property. You may also want to hire a lawyer. Contact the Colegio de Juristas to look for qualified legal professionals.

During your property search, you’ll also need to look into how you’re going to pay for your Colombian home, as the process to get a Colombian bank account or mortgage can take some time.

Read further
Guide to international mortgage lenders Funding your overseas property purchase guide Overseas property mortgage: explained

Make an offer

Once you’ve researched and viewed properties in Colombia, it’s time to make an offer. Your real estate agent can help you make a reasonable offer on your new home, and your lawyer can help you negotiate the best deal for you.

These negotiations may take place in Spanish, so work with a multilingual legal team to ensure you get the best price.

Once your offer has been accepted, your lawyer will produce your finalized purchase contract, which contains the details, price, and payment schedule for your property.²

Do your due diligence

It’s important to conduct extensive property surveys and inspections on your new home. These checks look for electrical issues, plumbing problems, or mold, for example.

You’ll also need to conduct a title investigation into your property of choice. Your lawyer will make sure your property has a clear title with no outstanding debts or real estate disputes before you complete your purchase.²

Notary public

After your lawyer has drawn up the final purchase agreement, you’ll need to sign the document to complete your sale.

This typically takes place at a notary public, known as escritura pública. You’ll also need to make the final down payment for your property and pay any notary or government fees.²

Registration

Finally, you’ll need to register the deed for your property. You’ll need to fill out the Certificado de Libertad y Tradición at the Office of Public Instruments in Colombia.

You may also need to pay a fee to register your purchase.² Speak to your real estate agent or lawyer for more information about how to officially complete the house-buying process.

Buying property in Colombia: costs, taxes, and fees

If you’re buying property in Colombia, there are a few fees and costs to consider, such as notary fees, title registration fees, legal fees, moving costs, and your down payment or deposit.

You may also need to pay to authenticate your legal documents, such as your purchase contract or any property certificates.

Both nationals and foreigners have to pay an annual Colombian property tax based on the value, type, and location of a property. This is typically set at around 0.1% to 0.6% of the property value.²

How much is an apartment in Colombia?

The cost of living in Colombia can differ depending on where you want to buy your property. Tourist destinations like Cartagena may be more expensive than cities like Bucaramanga.

Let’s take a look at how much it costs to buy an apartment in 5 popular Colombian cities.

Location	Price (sqft) in city center	Price (sqft) outside city center
Bogotá¹⁰	169.60 USD	126.78 USD
Santa Marta¹¹	130.65 USD	111.99 USD
Medellín¹²	154.13 USD	135.62 USD
Cartagena¹³	258.99 USD	244.88 USD
Bucaramanga¹⁴	123.22 USD	105.16 USD

Wondering how much that would cost in Colombian pesos (COP)? Check out this handy conversion calculator:

What kind of taxes and fees will you need to pay?

Let’s take a look at some of the taxes and fees you may need to pay during the Colombian real estate process.

Tax/Fee	Amount (%)
Real estate agent fees	3% to 4% + VAT¹⁵
Property transfer tax	0.5% to 1%¹⁵
Legal fees	0.5% to 1%¹⁵
Property registration fees	Roughly 0.98%²
Notary fees	Up to 0.29%²
Exchange rate fees	Variable Look out for the standard mid-market rate. Many banks charge exchange rate markups and fees for converting your USD into COP. Get the most COP from your USD by using Wise, a cheap and transparent way to move your money abroad. Save on international payments

Buying property abroad? Send money the hassle-free way with Wise

Now that we covered all the basic costs of purchasing a home in Colombia, the only question left is: how to send money to pay for your property overseas?

Wise offers you a quick, secure and transparent way of sending money to Colombia. You get the mid-market exchange rate for your payments and see how much it’s charged for the transfer before sending the money from your bank.

With the Wise Account you can also hold 40+ currencies, spend money in 150+ countries, and receive like a local in 9 different currencies.

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Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information

How can you find real estate in Colombia?

You can conduct your own research online or work with a real estate agent to find your dream home in Colombia.

Choose a real estate agency that specializes in South American or Colombian property, such as Engel & Volkers® and Century 21®. These international agencies can help you successfully navigate the house-buying process.

You can also use resources like Fincaraíz® or Metrocuadrado® to look for up-to-date property listings in Colombia.

Types of property in Colombia

There are no restrictions on the type of property foreigners can buy in Colombia.¹⁶ Common Colombian properties include:

• apartments
• townhouses
• detached houses
• villas
• co-living spaces

Many Americans choose to invest in vacation rental properties. You can explore the country’s famous beaches or rent out your property to tourists when you’re back in the US.

From beachfront properties to inner city living spaces, Colombia offers a range of unique property types, so you’ll need to find the right home for you.

How to avoid scams when buying property abroad

Unfortunately, scammers prey on foreign investors making big property purchases abroad. Never transfer your down payment or property fees without first confirming that your money is going to a trusted source.

Make sure to work with a lawyer who speaks both Spanish and English to avoid any language barriers, and look at your property in person before completing the sale.

What’s the best city to buy property in Colombia?

Let’s take a look at 5 of the best cities to buy property in Colombia as an American.

Bogotá

Bogotá is one of the most expensive cities in Colombia – but there’s lots to do! You can visit museums or check out a bit of local history and culture.

Chapinero is the perfect place for great restaurants and a busy nightlife, or you can purchase property in a small neighborhood like the Coffee Triangle for a peaceful way of life.

As the country’s capital, there are plenty of job opportunities for expats looking to work, with growing economic development in the city.

Medellín

Medellín is a popular Colombian city for expats and foreigners. It’s known for its sunny weather, but without the stifling heat you might find in other parts of the country.

There are plenty of different property types available for purchase, including historical buildings or brand-new apartments with accessible amenities.

The city offers affordable property investment opportunities for people of all cultures and backgrounds. Popular neighborhoods for foreign investors include El Poblado, Laureles, Barbosa, and Bello.

Bucaramanga

Bucaramanga is the capital of the Colombian Santander department, with parks and nature spots for expats to explore.

The city is cheaper than locations like Medellín, but it’s full of things to do. You can take part in fun outdoor activities or enjoy the city’s vibrant nightlife.

Bucaramanga is known for its social life, with a good University education system and excellent public transport links across the city.

Cartagena

Popular with tourists and foreigners, Cartagena is a Colombian port city with lots to offer Americans moving abroad.

Similar to Caribbean locations like Barbados, the city is known for its beautiful beaches and delicious food, with lots of local history.

With high demand for beachfront properties, you can invest in lucrative real estate to rent out to tourists or appreciate Cartagena’s laid-back lifestyle for yourself.

Santa Marta

Santa Marta is a beautiful and affordable place for Americans to buy property in Colombia. It’s great for nature lovers, with a range of beaches and hiking spots.

You’re not far from the Tayrona National Park or you can get involved in adventurous outdoor sports across the city.

Bavaria is a popular inland Santa Marta neighborhood for foreign buyers, tucked away from tourists.

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Colombia has an attractive real estate market for foreign investors. Cities like Bogotá and Cartagena are ideal for American expats, with gorgeous beaches, nature spots, and energetic metropolitan centers.

Make sure to look into the fees, costs, and tax implications of moving abroad, and always follow the correct legal procedures for your property purchase.

If you’re buying property in Colombia, choose Wise to avoid hefty exchange rate charges. Pay your deposit and send large amounts at the mid-market exchange rate – no hidden fees, no markups, no stress.

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Sources:

1. Statista - Colombia residential real estate trends
2. Nexo Legal - Buying property in Colombia
3. Kurby - The evolution of Cartagena, Colombia’s real estate market over the last decade
4. Expat Focus - Colombia - Buying property
5. Adam Fayed - Guide to buying property in Colombia as a foreigner
6. AGT Attorneys - How can a foreigner buy a property in Colombia?
7. Colombian Visa Services - Buying property in Colombia
8. Finanssenteret - Foreigners can buy land in Colombia
9. Global Citizen Solutions - Colombian Investment Visa
10. Numbeo - Cost of living in Bogota
11. Numbeo - Cost of living in Santa Marta
12. Numbeo - Cost of living in Medellin
13. Numbeo - Cost of living in Cartagena
14. Numbeo - Cost of living in Bucaramanga
15. Global Property Guide - How to buy property in Colombia as a foreigner
16. The Latin Investor - Buying property in Colombia as a foreigner

Sources checked 07.23.2024