Real Estate Colombia: A Guide to Renting or Buying Property as a Foreigner

Real Estate Colombia: Known for its breathtaking landscapes, vibrant culture, and warm people, Colombia has become a sought-after destination for expatriates, retirees, and investors alike. Its diverse regions, ranging from bustling urban centers like Bogotá and Medellín to serene coastal towns like Cartagena and Santa Marta, offer a wide array of real estate opportunities. Whether you’re drawn to the modern amenities of city life or the laid-back charm of the countryside, Colombia presents countless options for every lifestyle and budget.

Moreover, the relatively low cost of living compared to many Western countries makes it an even more attractive choice for long-term stays or retirement. However, for foreigners, navigating the local real estate market requires a thorough understanding of legalities, regulations, and potential challenges. Therefore, whether you’re considering renting a place to live or purchasing property for investment purposes, being well-informed is crucial to avoid pitfalls.

In addition, factors like property taxes, financing options, and regional price differences play a significant role in shaping your real estate decisions. This guide provides a detailed overview of the legal processes, associated costs, and essential steps involved in renting or buying property in Colombia, ultimately helping you make informed choices and turn your Colombian real estate dreams into reality.

Real Estate Colombia: Renting Property

Finding a Rental Property

1. Online Platforms: Websites like Finca Raíz, Properati, and Facebook Marketplace are commonly used to find rental properties.
2. Real Estate Agencies: Local agencies can help navigate the market and provide valuable insights.
3. Networking: Engaging with expatriate communities and local residents often leads to hidden rental opportunities.

Real Estate Colombia: Rental Agreements

1. Lease Duration: Rental agreements typically range from six months to a year, though shorter-term rentals are available, especially in tourist areas.
2. Deposit Requirements: Most landlords require a security deposit equivalent to one or two months’ rent.
3. Utilities: Clarify whether utilities (e.g., water, electricity, gas, internet) are included in the rent or paid separately.
4. Documentation: Ensure the lease agreement is in Spanish and includes:
   • Rent amount and payment terms
   • Duration of the lease
   • Responsibilities for maintenance and repairs

Costs

Rental prices in Colombia vary based on location and property type:

• Major cities (e.g., Bogotá, Medellín): $300-$1,000 USD per month for apartments or houses.
• Smaller towns or rural areas: $150-$500 USD per month.

Buying Property in Colombia

Can Foreigners Own Property?

Yes, Colombia allows foreigners to own property outright, including land and buildings, with no restrictions on the type of property they can purchase.

Real Estate Colombia: Steps to Buying Property

1. Determine Your Budget and Needs
   
   • Identify your purpose for buying: personal use, rental income, or investment.
   • Research property prices in your desired area.
2. Hire Professionals
   
   • Work with a trusted real estate agent and an experienced lawyer to navigate the process.
3. Property Due Diligence
   
   • Verify the property title and check for liens or encumbrances through Colombia’s national property registry (Superintendencia de Notariado y Registro).
   • Ensure the property is properly zoned for your intended use.
4. Sign a Promesa de Compraventa (Promise to Purchase Agreement)
   
   • This legally binding agreement outlines the terms of the sale, including payment schedule and conditions.
5. Secure Financing
   
   • Many Colombian banks offer mortgages to foreigners with proper documentation, such as proof of income and a valid visa.
6. Finalize the Sale
   
   • Sign the Escritura Pública (Public Deed) before a notary and register the property in your name.

Costs of Buying Property

In addition to the purchase price, buyers should budget for:

• Notary Fees: Around 0.3%-0.5% of the property value
• Registration Tax: 1%-1.5% of the property value
• Lawyer Fees: Typically 1%-2% of the property value
• Real Estate Agent Fees: Usually 3% of the property price

Key Considerations

Residency and Ownership

While property ownership does not automatically grant residency, owning property can support visa applications, such as the Migrant (M) visa for property investors.

Legal Requirements

• Ensure all transactions are documented in Spanish.
• Foreign buyers must obtain a Número de Identificación de Extranjero (NIE), a tax identification number, for property purchases.

Practical Tips

• Consider proximity to amenities like public transportation, schools, and healthcare.
• Be aware of risks such as flooding or seismic activity in certain regions.

Frequently Asked Questions

Can foreigners finance property purchases in Colombia?

Yes, many banks in Colombia provide mortgage options for foreigners, though interest rates may be higher than for locals. Requirements typically include proof of income, a valid visa, and a Colombian bank account.

Is it better to rent or buy property in Colombia?

This depends on your long-term plans. Renting offers flexibility and lower upfront costs, while buying is ideal for those seeking long-term residence or investment opportunities.

What is the role of a real estate agent?

A real estate agent helps you find properties, negotiate prices, and navigate the legal process. Furthermore, you should ensure your agent is licensed and experienced in working with international clients.

Can I inherit property as a foreigner?

Yes, foreigners can inherit property in Colombia, provided it complies with Colombian inheritance laws.

What is the average interest rate at the moment for mortgages or loans?

Interest rates for mortgages in Colombia typically range from 8% to 12% annually. Rates vary depending on the bank, loan terms, and the borrower’s financial profile.

Conclusion

Renting or buying property in Colombia can be a straightforward and rewarding process with the right preparation and professional assistance. Whether you’re seeking a temporary home or a long-term investment, understanding the market and legal requirements will help you make informed decisions. With its welcoming culture and diverse real estate options, Colombia is an excellent choice for your next property venture.

For the renting or purchase of any property, we recommend you work with a trained real estate professional. Although it is possible to complete a rental or lease agreement your own, any oversight is risky and could end up costing you thousands of dollars. The world is also full of scams, regardless of which website you use to find your first place to stay in a new country. 

Use Our Directory

Get access to our directory to connect with real estate professionals who have been recommended by expats just like you and verified by our team. You will also gain access to our network of verified visa/residency facilitators, lawyers and other professionals recommended by expats and verified by our team. We make no commission on any work done by the professionals in our network, and none of the individuals or businesses listed have to pay to be recommended by us. Our recommendations are strictly merit based. Many facilitators, however, will provide you with 10-20% discount for purchasing access to our directory. 

You will additionally be given access to book a meeting with our network of expats just like you, living all over the world, who can share their experience of moving to your desired country, step-by-step. It’s like having a trusted friend in each city of the world to help answer your biggest questions. Some of these individuals may charge an hourly rate for their advice, however, we make no commission from this. This is an excellent way to speak to people who share your common background to help you decide which country or city you should move to.

Use our database to find visa facilitators, real estate agents, and recommended professionals. You will also have the ability to book a time to meet with our expats on the ground. These are individuals just like you who have gone through the immigration process and have been living in your desired country or city.

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