How to Buy Property in Colombia - A Definitive Guide
Table of Contents:
Introduction
Why Buy Property in Colombia?
Understanding the Legal Aspects of Buying Property
Steps to Buy Property in Colombia
Navigating Financing and Payments
Essential Tips for Colombia Expat Property Buyers
Conclusion
Introduction
Discovering the ins and outs of how to buy property in Colombia isn't an easy task, but this comprehensive guide aims to make the journey as smooth as possible. Known for its vibrant culture, impressive biodiversity, and a burgeoning economy. Colombia is an attractive destination for both enthusiastic real estate investors and those seeking to join the thriving Colombia expat community. With detailed insights, practical tips, and step-by-step instructions, this transparent guide will make the process of buying property in Colombia seem way too easy. Brace yourself for a fascinating journey towards acquiring your piece of paradise! At the bottom, we will put a contact that has all the connections that will be mentioned in this blog. We used him and trust him completely and he will make the whole process easy as pie if you decide to take this life changing leap!
Why Buy Property in Colombia?
There are myriad reasons to invest in the astonishingly diverse country that is Colombia. From boasting the world's best coffee to offering an enviable quality of life, Colombia is a dream destination for many. Some key reasons include:
Resilient Real-Estate Market: Despite global economic fluctuations, Colombia maintains a steady real estate market, making it a safe haven for global investors.
Affordability: When compared to other Latin American destinations, Colombia offers more value for money in terms of property prices and lifestyle.
Vibrant Colombia Expat Community: The country hosts a thriving expat community, which makes transitioning easier for foreigners.
Understanding the Legal Aspects of Buying Property
Before buying property abroad, it's crucial to understand the country's specific legal nuances. In Colombia:
No Constraints on Foreigners: Unlike some Latin American countries, Colombia’s real estate laws do not distinguish between nationals and foreigners.
Rigorous Due Diligence: Colombia’s process for purchasing real estate involves comprehensive due diligence to ensure legal safeguarding.
Steps to Buy Property in Colombia (brief overview)
Hire a Bilingual Real-Estate Lawyer: Hiring a bilingual lawyer who understands both local laws and your language can help avoid communication gaps
Finding the Right Property: Explore different properties online or hire a local real estate agent.
Validating Property Title and Run Due Diligence: Check property status, ensuring no debts or liens.
Making Offer and Sale Contract: After title validation, you can make an offer and prepare the sales contract.
Payment: Once agreed, proceed with payment, usually in cash via a Colombian bank.
Navigating Financing and Payments (Can I get a mortgage in Colombia or do I need to pay cash?)
Property transactions in Colombia traditionally involve full cash payments. However, banks have recently started offering mortgages to foreigners - albeit with stringent rules. This will depend on the banks and there are two main banks that will bring your money into Colombia. The first one is the one we used, which is called Alianza Valores. Alianza Valores has a relationship with Citibank in the United States as a mediary to move your money from the US to Colombia. Citibank will hold your money until you tell Alianza Valores that you agree with the exchange rate and to start the journey of moving your money. This process typically takes a day or two. The other bank is called Acciones Y Valores. It is very similar to Alianza Valores as far as banking and I am sure has similar customs when transferring money. I am not completley sure of their customs as I have never used them. Both banks will have English speaking agents and you could compare these investment banks to a “Fidelity” or “TD Ameritrade” which are banks in the United States.
Essential Tips for Colombia Expat Property Buyers
For a seamless process, a Colombia expat should:
Consult with Locals and other Expats: Their insights can be incredibly valuable in understanding the local real estate scene.
Think Long-Term: Consider not just current needs but also potential future requirements.
Location Matters: Even within Colombia, every city holds different socio-economic and cultural characteristics. Choose the right fit for you.
There are many expat facebook groups and other organizations that will happily talk to you about living in Colombia. Feel free to reach out!
Conclusion
By now, you should have a firmer foothold on everything you need to do to buy a house in Colombia. With thorough research, diligent planning and the right support, buying property in Colombia can be a rewarding process. Don't forget - the most crucial part is enjoying your new Colombian abode! So go ahead, let the colorful nation of Colombia give you the welcome you deserve! Remember, you're not just buying a house, you're creating your very own Colombian story. So go ahead, let Colombia welcome you with a warm 'bienvenidos'!
Contact Information for English and Spanish speaking real estate agent who we trust very much:
Daniel Arango / +57 313 6963961
Email: daniel@everyplace.co
Everyplace.co
FAQ’s
Can foreigners buy property in Colombia?
Yes, Colombia welcomes foreign buyers, and there are no restrictions on non-residents purchasing property. However, it's crucial to navigate the legal and administrative processes, including obtaining a Tax Identification Number (TIN) and working with a notary public.
2. What are the key steps in the property buying process in Colombia?
The property buying process in Colombia involves several steps, including selecting a property, conducting due diligence, negotiating the price, signing a preliminary agreement, and completing the final transaction at a notary's office. Understanding and following these steps is essential for a smooth property acquisition. It is similar to buying a home in the United States.
3. Are there any specific considerations for expats buying property in Colombia?
Expats should be aware of local regulations, tax implications, and potential language barriers when buying property in Colombia. Working with a bilingual real estate agent and a legal professional can help navigate these considerations and ensure a successful transaction.
4. What types of properties are available for purchase in Colombia?
Colombia offers a diverse range of properties, including apartments, houses, and rural estates. The type of property available depends on the location and your preferences. Researching different regions and property types will help you find the best fit for your needs.
5. What costs should I be aware of when buying property in Colombia?
In addition to the property's purchase price, buyers should consider additional costs such as property taxes, notary fees, and registration fees. These fees were a big shock to us as we didn’t anticipate how hight they would be. It's important to have a clear understanding of the total expenses involved in the transaction to budget effectively and avoid surprises.
