Can Americans buy land in South America?

Authored by the expert who managed and guided the team behind the Colombia Property Pack

Everything you need to know before buying real estate is included in our Colombia Property Pack

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THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Colombia. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The LatinVestor, we explore the Latin American real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Bogotá, Medellín, and Cartagena. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can Americans legally buy land in South America or are there restrictions compared to locals?

Americans can legally purchase land in most South American countries with rights that are largely equivalent to local citizens.

In Colombia, Brazil, Chile, Peru, and Uruguay, foreign buyers including Americans enjoy the same property ownership rights as nationals for urban land and most rural properties. These countries have established legal frameworks that protect foreign property ownership and provide clear title registration processes.

Argentina presents a more restrictive environment for rural land purchases, implementing caps on foreign ownership at 15% per province and limiting individual buyers to 1,000 hectares in core agricultural zones. Urban property purchases face fewer restrictions across all countries.

Specific limitations typically apply in sensitive areas including international border zones (usually within 150 kilometers), coastal properties, and protected environmental areas. Brazil and Colombia maintain restrictions near international borders, while some coastal properties require special permits or face outright prohibitions.

It's something we develop in our Colombia property pack.

Are there any residency or visa requirements for Americans who want to purchase land?

No residency or visa requirements exist for Americans to purchase property in South American countries as of September 2025.

Americans can visit as tourists on standard 90-day tourist visas and complete property transactions during their stay. Tourist status provides sufficient legal standing to enter into binding property purchase agreements and complete all necessary documentation.

Property ownership itself does not automatically grant residency rights or path to citizenship. However, several countries offer investment visas for Americans planning to relocate, with minimum investment thresholds typically ranging from $150,000 to $500,000 depending on the country and program.

Some countries provide expedited residency processes for property investors, but these are separate programs from the basic right to purchase real estate. Americans should consult immigration attorneys if seeking residency through property investment.

Do Americans need to be physically present in the country to complete a land purchase?

Physical presence is not required for Americans to complete property transactions in South American countries.

Most jurisdictions accept property purchases executed via power of attorney, allowing transactions to be finalized remotely through local legal representatives. The power of attorney document must be properly notarized and apostilled in the United States before use abroad.

Remote transactions require careful selection of qualified local attorneys or notaries who can represent American buyers' interests. These representatives handle property inspections, due diligence, contract negotiations, and final registration procedures.

While remote purchases are legally valid, many American buyers prefer to visit the property at least once during the due diligence phase to verify physical conditions and local market characteristics. Video conferences and virtual property tours have become standard practice for remote buyers.

What is the step-by-step process for Americans to buy land, and which documents are required?

The property purchase process follows a standardized six-step procedure across most South American countries.

1. **Obtain local tax identification number** using valid US passport and proof of address2. **Conduct property search and due diligence** through qualified real estate agents and attorneys3. **Verify title and legal status** including boundary surveys and lien searches4. **Sign purchase contract** and submit deposit (typically 10-20% of purchase price)5. **Complete final payment** via international wire transfer or certified funds6. **Register property ownership** at local property registry office

Required documentation includes valid US passport, proof of funds source, local tax identification number, and power of attorney if completing the transaction remotely. Additional location-specific permits may be required for border zones, coastal properties, or rural land purchases.

Title verification and property registration typically require legal representation to ensure compliance with local requirements and protect buyer interests throughout the transaction process.

Is hiring a local lawyer mandatory for Americans buying land, and what does the lawyer typically handle?

Hiring a local lawyer is strongly recommended and often customary practice, though not strictly mandatory in all South American countries.

Legal representation becomes essential for conducting comprehensive due diligence, verifying property titles, preparing purchase contracts, and ensuring proper registration procedures. Lawyers also oversee international fund transfers and coordinate with local notaries or registry offices.

In Argentina, Colombia, and Brazil, notary services ("escribano" or "cartório") are mandatory for transaction authentication and final registration. These notaries work alongside attorneys to ensure legal compliance and proper documentation.

Attorney fees typically range from 1-3% of the property value, with notary fees adding another 0.5-1%. The investment in professional legal services significantly reduces risks of title disputes, fraudulent transactions, and regulatory compliance issues.

Lawyers specializing in foreign buyer transactions provide valuable services including translation of legal documents, explanation of local property laws, and ongoing support for property management and tax compliance.

What are the tax and fiscal implications for Americans when buying, owning, or selling land in South America?

American property buyers face multiple tax obligations both in South America and the United States.

Transaction taxes and registration fees typically range from 1-3% of the property value at the time of purchase. These fees cover title registration, municipal taxes, and legal documentation costs that vary by country and property location.

Annual property taxes generally range from 0.5-1.5% of assessed property value, with rates varying significantly between urban and rural properties. Property tax payments are typically due annually or semi-annually depending on local regulations.

Capital gains taxes apply upon property resale, with rates and calculation methods varying by country. Some jurisdictions offer reduced rates for properties held longer than specified periods, typically two to five years.

Americans must report foreign property ownership and rental income to the IRS, potentially requiring forms 8938 and FBAR for properties valued above specified thresholds. Professional tax consultation is recommended to avoid double taxation and ensure compliance with both US and local tax obligations.

Can Americans get a mortgage to buy land in South America, and if so, what are the rates, conditions, and tips to secure one?

Local financing options for American buyers are extremely limited, with most property purchases requiring cash payments.

Few South American banks offer mortgage products to foreign buyers, and those that do typically require substantial down payments of 40-60%, proof of local income, and established banking relationships. Interest rates for available foreign buyer mortgages range from 7-12% annually.

Alternative financing strategies include US-based portfolio loans secured against American assets, international private lending, or seller financing arrangements. Some American buyers leverage home equity lines of credit or investment property refinancing to fund South American purchases.

Developer financing occasionally becomes available for new construction projects, particularly in major urban markets and resort developments. These arrangements typically offer 12-24 month payment plans with higher down payment requirements.

Cash buyers maintain significant advantages in negotiations, transaction speed, and seller acceptance. The prevalence of cash transactions also reflects currency stability concerns and banking system limitations in some markets.

Which areas in South America are most popular with Americans looking to buy land?

American buyers concentrate their investments in major metropolitan areas and established lifestyle destinations across South America.

Buenos Aires leads in popularity due to its European architecture, sophisticated cultural scene, and relatively affordable luxury properties. The Palermo, Recoleta, and Puerto Madero neighborhoods attract significant American investment for both primary residences and rental properties.

Colombian cities including Medellín and Bogotá have gained traction among American buyers seeking modern infrastructure, favorable climate, and growing expat communities. Cartagena's colonial charm and Caribbean coastline appeal to vacation home buyers and retirees.

Uruguay's Punta del Este and Montevideo offer political stability, established property rights, and proximity to Buenos Aires. The country's beaches and resort communities attract seasonal property buyers and investors.

Chilean markets in Santiago and Valparaíso provide economic stability and strong rule of law, while Brazil's São Paulo and Rio de Janeiro offer diverse investment opportunities in Latin America's largest economy.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Colombia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Which regions currently offer the best opportunities for living, renting out, or capital appreciation?

Investment opportunities vary significantly based on intended use and investment timeline across South American markets.

For primary residence and quality of living, Uruguay's Punta del Este and Montevideo offer the highest stability and infrastructure quality. Argentina's Buenos Aires and Mendoza provide excellent cultural amenities and lower cost of living, while Colombia's Medellín offers year-round spring climate and modern infrastructure.

Rental yield opportunities favor Buenos Aires for short-term vacation rentals, particularly in tourist-heavy neighborhoods like San Telmo and La Boca. Bogotá and Medellín generate strong rental demand from growing expat populations and business travelers, with annual yields ranging from 6-9%.

Capital appreciation prospects are strongest in Colombian urban areas experiencing infrastructure development and economic growth. Chile's Santiago market offers steady appreciation driven by economic stability, while Brazil's secondary cities show growth potential as the economy recovers.

Coastal Uruguay properties benefit from seasonal tourism and Argentinian buyer demand, creating dual-market dynamics for both rental income and appreciation. Areas with improving transportation links and urban development projects typically outperform established markets.

It's something we develop in our Colombia property pack.

What is the breakdown of average land prices by city and region for Americans considering a purchase?

Land prices vary dramatically between urban centers and rural areas across South American markets as of September 2025.

Country/City	Average Urban Land Price (USD/m²)	Market Notes
Buenos Aires, Argentina	$1,200-2,000	Premium neighborhoods command higher prices
Bogotá, Colombia	$1,000-2,500	Zona Rosa and Chapinero at upper range
São Paulo, Brazil	$2,083	Varies significantly by district
Santiago, Chile	$2,470	Las Condes and Providencia premium
Montevideo, Uruguay	$4,000	Seaside and city center locations
Medellín, Colombia	$800-1,800	El Poblado neighborhood premium
Córdoba, Argentina	$600-1,200	Secondary city pricing

Rural land prices typically fall below $500 per square meter across most countries, though accessibility, utilities, and legal restrictions significantly impact pricing. Border zones and environmentally protected areas often have lower prices but face purchase restrictions.

Premium urban locations including waterfront properties, city centers, and exclusive neighborhoods can command prices 50-100% above regional averages. Infrastructure development and transportation improvements create price appreciation in emerging neighborhoods.

What are the most common mistakes or pitfalls Americans face when buying land in South America?

American buyers frequently encounter preventable problems due to insufficient due diligence and unfamiliarity with local practices.

1. **Inadequate title verification** leading to disputes over property boundaries, liens, or previous ownership claims2. **Overlooking location-specific restrictions** particularly in border zones, coastal areas, or indigenous territories3. **Failing to verify tax compliance** resulting in unexpected liabilities for unpaid property taxes or municipal fees4. **Skipping professional land surveys** causing boundary disputes and construction limitations5. **Attempting local financing without proper research** into eligibility requirements and documentation needs6. **Underestimating ongoing costs** including property taxes, maintenance, and management fees7. **Ignoring currency fluctuation risks** when planning long-term investments or rental income

Many Americans also underestimate the importance of building relationships with reliable local professionals including attorneys, accountants, and property managers. Cultural differences in business practices and communication styles can lead to misunderstandings during negotiations.

Rushed decision-making without adequate market research often results in overpaying for properties or choosing locations with limited resale potential. Professional guidance throughout the process significantly reduces these risks.

How do the rules, opportunities, and market conditions for Americans compare to those for other foreign buyers?

Americans face identical rules and restrictions as other foreign buyers in South American property markets, with no preferential treatment based on nationality.

Some countries maintain overall caps on foreign ownership percentages, such as Argentina's 15% limit per province, which applies equally to all non-resident foreign buyers regardless of origin. Long-term residents or individuals with local family ties may receive preferential treatment in certain jurisdictions.

Market opportunities remain consistent across foreign buyer nationalities, though Americans often benefit from stronger US dollar exchange rates and established banking relationships for international transfers. European buyers may find advantages in countries with historical ties to Europe.

Transaction processes, legal requirements, and tax obligations apply uniformly to all foreign buyers. However, Americans face additional US tax reporting requirements that other nationalities may not encounter in their home countries.

It's something we develop in our Colombia property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Can Americans Buy Land in South America
2. Brazilian Residency Legislation
3. Central and South American Real Estate Guide
4. Chile US Citizen Property Ownership
5. Can Americans Buy Property in Argentina
6. Can Americans Buy Land in Argentina
7. Can Americans Buy Property in Colombia
8. Best Countries to Buy Property Abroad