Foreign individuals can purchase property in Colombia, as the government encourages foreign investment and has simplified the process. The procedures for buying property are the same for foreigners as for residents. The only requirements are a valid passport and sufficient funds to complete the purchase. Buying property in Colombia can also result in obtaining a residency permit.
Depending on the investment amount, individuals can apply for a one-year or five-year visa, allowing them to live in the country. Moreover, you will not have to worry about sharing ownership with a citizen or leasing the property from the government, which is often required when buying real estate in other countries.
Colombia offers a variety of terrains and property options, allowing individuals to find their perfect location. In recent years, Colombia has experienced significant economic growth and political stability. The government’s new regulations are enough to attract foreign investment, making it easier for foreign buyers to purchase property. Colombia is an affordable place to own property due to its low cost of living.
Some benefits are listed below:
If you’re considering moving to Colombia, buying a house there can be the first step towards obtaining a residency visa. Colombia’s Resident Investor’s Visa program offers a permanent residency visa to individuals with property worth at least US$200,000. The best part is that their spouses or partners can also qualify for the visa. Moreover, property owners can also get tickets for their financially dependent parents and children.
The exchange rates of the Colombian peso have become more favourable, with foreign currencies now buying more pesos than in previous years. As a result, buyers can save up to 30% compared to what they would have paid when the appreciation of major world currencies was not as significant.
The cost of living in Colombia is significantly lower than in the U.S., Canada, and Europe. On average, monthly fees are 75% cheaper than in the U.S. Even in major cities like Bogota and Medellin, the cost of living is lower than in comparable big cities in the U.S. Colombia’s lower utilities, clothing, food, and entertainment costs mean that foreigners relocating will find their savings or income further.
Colombia is a significant tourist destination, which means that potential investors can expect strong demand for rental properties in areas popular with international visitors, such as Medellin. In addition, as tourism continues to grow, property values in popular destinations are likely to increase, offering big profits for investors who choose to sell in the future.
When you decide to buy a property in Colombia, it is essential to remember that the cost of purchasing the home is not limited to the selling price. Here are a few factors contributing to the total cost of buying a house in Colombia.
The price of houses in Colombia varies depending on their location, size, age, and condition. Generally, a standard family home can cost anywhere between US$50,000 and US$100,000, while luxury homes can cost upwards of US$1 million.
Foreigners who buy real estate in Colombia must pay the same taxes as citizens. In most municipalities, there is a local tax of approximately 1.05%. The seller is responsible for paying a sales tax of 1% on the property’s purchase price and a 1% income tax on the same amount. As a buyer, you do not have to pay these taxes. However, it is helpful to know about them if you plan to sell the property.
In addition to taxes, you can expect to pay fees at closing. These include:
The seller will pay real estate agent fees, typically around 3% of the purchase price plus 19% VAT. Sometimes, sellers may increase their asking prices to cover these costs.
Protecting your home from financial loss due to damage is crucial. The cost of homeowners insurance depends on the location and value of the property. Compared to similar coverage in the U.S., Colombia’s insurance is generally less expensive. If you’re comparing properties, obtaining homeowners insurance quotes from a few companies is a good idea to compare rates and estimate costs.
The best places to buy property in Colombia depend on your personal goals and preferences. Retirees may look for homes near great hospitals and recreational opportunities. Families may be most concerned about the quality of schools in the area and the availability of services and amenities. At the same time, investors may be most interested in homes in top tourist destinations. Bucaramanga, Medellin, Santa Marta, Cartagena, Salento, and Leticia are popular areas for purchasing property in Colombia
When buying property in Colombia, obtain a Certificate of Tradition and Liberty, known locally as ‘Certificado de Tradición y Libertad’. It provides valuable information about the property, such as its history, ownership records, mortgage details, legal claims, and any renovations that have been done. You can get the Certificate of Tradition and Liberty from the local Registry Office for 15,700 pesos. This document will help you identify and address any potential issues or complications associated with the property, ensuring a smoother and more secure purchase process.
Before purchasing a property in Colombia, it’s crucial to ensure the previous owner has paid all outstanding taxes. To verify this, you’ll need to obtain two certificates from the owner – the Tax-Free Property Certificate (Paz y Salvo Predial) and the Tax-Free on Value Gained Property Certificate. These certificates will help you confirm whether the taxes have been paid. When you buy property in Colombia, you, as the buyer, will be responsible for paying various taxes and fees amounting to 1.65% of the property’s value. On the other hand, the property seller is responsible for paying between 3.63% and 4.79% of the total property value in taxes and fees.
Always comply with legal requirements and follow a smooth transaction process when buying property in Colombia.
After completing all the necessary steps, the last step to purchase a property in Colombia is to sign the Public Deed, also known as the “Escritura pública.” This legal document confirms you are the new owner of the property. To produce the Public Deed, you must engage the services of a notary. Certain taxes and fees will be applied when you sign the Public Deed to purchase a property. These include a fee of 0.25% of the property’s value for notary services and an advance payment of 1% of the transaction value. Afterwards, the purchase will be registered at the Registry Office and then at the Cadastre or “Subdirección de Catastro.” These registrations will establish you as the new legal owner of the property.
A real estate agent can simplify the buying process and make it easier for you. To ensure you choose a knowledgeable professional, seek recommendations from expat community forums and social media groups. Read online reviews for the agent and the agency they work for. Interview multiple agents about their years of experience, areas of expertise, and fees. You can find someone to help you find your dream home without hassle by diligently searching for a real estate agent.
Seek the assistance of an experienced Colombian real estate attorney when buying international real estate in the country. A reliable attorney can help you identify scams, ensure that you complete all the necessary documentation, and oversee the closing process on your behalf.
Virtual tours can be a convenient way to view properties in Colombia without visiting them in person. However, it’s essential to remember that they cannot replace the experience of inspecting a house and exploring the neighbourhood on your own. You can use these tours to create a list of properties you’re interested in, but you should plan to travel to Colombia and see the homes in person before purchasing. This will ensure you have a clear idea of what you’re buying and avoid surprises.
If you are buying a property in Colombia for investment purposes, it is essential to consider the tax implications in your home country. You may need to pay income tax or other taxes on the rental income you generate through the property. To ensure that you are compliant with the tax laws, it is recommended that you seek the advice of a reputable tax attorney.
If you need to transfer money to Colombia to cover fees and other expenses, a remittance service such as Remitforex is worth considering. Unlike traditional banks, online and mobile international money transfer services often offer more competitive interest rates and lower prices. To learn more, visit the Remitforex website or download the Unimoniindia app.
Unimoni is a reliable and trustworthy partner for transferring money to Colombia. With its authorization from RBI and vast experience in the financial sector, Unimoni ensures seamless and secure transactions for all your remittance needs. Unimoni operates under strict guidelines from the Reserve Bank of India (RBI), ensuring adherence to industry standards and regulatory compliance. Unimoni takes pride in providing competitive exchange rates, ensuring you get the best value when transferring funds to Colombia. With Unimoni, you can confidently move money to Colombia, knowing your funds are secure.
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