Can Americans buy and own property in Colombia?

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

Who is the author of this content?

THELATINVESTOR

A team specialized in real estate investing in Latin American countries (Colombia, Mexico, Brazil, etc.).

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 TheLatinvestor, we explore the Colombian 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 property in Colombia or are there restrictions compared to locals?

Americans can legally buy property in Colombia with exactly the same rights as Colombian citizens.

There are no major restrictions for foreign buyers—both residents and non-residents enjoy equal property ownership rights in Colombia. The Colombian constitution and legal framework treat foreign property buyers the same as local citizens when it comes to real estate transactions.

The only exceptions apply to certain border zones and protected environmental areas, but these restrictions also apply to Colombian nationals. These restricted areas are clearly defined by law and represent a small fraction of available real estate in the country.

Unlike many other Latin American countries that impose restrictions on foreign property ownership, Colombia has maintained an open and welcoming approach to international real estate investment, making it one of the most foreigner-friendly property markets in the region.

This equal treatment extends to all types of residential and commercial properties, including apartments, houses, land, and commercial buildings.

Do Americans need a residency visa to purchase real estate in Colombia?

No residency visa is required for Americans to purchase property in Colombia.

You can buy Colombian real estate as a tourist using just your valid U.S. passport and the necessary legal documentation. Tourist status is completely sufficient for completing property transactions, and many Americans successfully purchase properties during short visits to the country.

While having Colombian residency may streamline certain administrative processes like opening bank accounts or obtaining financing, it is absolutely not a prerequisite for property ownership. The purchase process is designed to accommodate foreign buyers regardless of their immigration status.

However, if you plan to spend significant time in Colombia or generate rental income from your property, you may want to consider applying for a Colombian investor visa, which can provide additional benefits and tax advantages.

The lack of residency requirements makes Colombia particularly attractive for American investors looking to diversify their real estate portfolios internationally without the burden of complex immigration procedures.

Is physical presence mandatory to complete a property purchase or can it be done remotely?

Physical presence in Colombia is not mandatory to complete a property purchase.

Americans can successfully complete real estate transactions remotely by granting power of attorney to a trusted representative in Colombia. This representative can act on your behalf for signing documents, completing the notarization process, and handling all aspects of the property registration.

The power of attorney document must be properly notarized and apostilled in the United States before being recognized in Colombia. Once this is done, your designated representative has full legal authority to complete the transaction according to your instructions.

Many American buyers choose to work with experienced Colombian lawyers or real estate professionals who specialize in remote transactions for foreign clients. These professionals understand the process thoroughly and can ensure all legal requirements are met without your physical presence.

While remote purchases are possible, many buyers prefer to visit the property at least once before completing the transaction to personally inspect the property and meet with their legal representatives.

What is the step-by-step process for Americans to buy property in Colombia?

The Colombian property purchase process follows a structured sequence that typically takes 4-8 weeks to complete.

Step	Action Required	Timeline
1. Property Search	Find property through agents or online platforms	1-4 weeks
2. Due Diligence	Title search, property inspection, legal verification	1-2 weeks
3. Promise of Sale	Sign preliminary agreement (Promesa de Compraventa)	1-3 days
4. Obtain Tax ID	Get Colombian Tax ID (NIT) from DIAN	1-2 weeks
5. Document Preparation	Gather all required legal documents	1 week
6. Public Deed	Formalize sale at notary public	1 day
7. Property Registration	Register ownership at Public Registry Office	1-2 weeks

Is hiring a local lawyer mandatory or just recommended for Americans?

Hiring a local lawyer is not legally mandatory but is strongly recommended for American property buyers in Colombia.

While Colombian law doesn't require legal representation for property transactions, the complexity of real estate laws, language barriers, and potential risks make professional legal assistance extremely valuable. Colombian real estate regulations can be intricate, and a qualified lawyer can navigate these complexities effectively.

Local lawyers provide crucial services including comprehensive title searches, verification of property ownership history, identification of liens or encumbrances, review of all contracts and documents, and ensuring compliance with Colombian tax and legal requirements.

Additionally, real estate agents in Colombia are not required to be licensed, unlike in the United States, which means relying solely on agents can be risky. A qualified lawyer provides an essential layer of protection and professional oversight that agents may not offer.

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

What taxes and fiscal implications should Americans expect when owning property in Colombia?

American property owners in Colombia face several tax obligations both locally and potentially in the United States.

Tax Type	Rate/Amount	When Payable
Property Tax (Impuesto Predial)	0.3-3.3% of cadastral value	Annually to municipality
Capital Gains Tax	15% on profits from sale	Upon property sale
Rental Income Tax	Progressive rates 19-39%	Annual declaration
Notary Fees	0.27% of property value	At time of purchase
Registration Tax	0.5-1% of property value	At time of registration
Withholding Tax	1-2.5% for foreigners	At time of purchase
U.S. Tax Implications	Varies by residency status	Annual U.S. tax filing

Can Americans get mortgages in Colombia and what are the requirements?

Obtaining a mortgage in Colombia as an American is extremely difficult and rare, with most transactions being cash-based.

Colombian banks typically require foreign borrowers to have legal residency status, established Colombian credit history, proof of Colombian income or tax payments, and significant down payments often exceeding 50% of the property value. Major banks like Bancolombia, Davivienda, and Banco de Bogotá offer mortgages but rarely approve non-resident applications.

Interest rates in Colombia are significantly higher than U.S. rates, with average mortgage rates projected to drop to around 7% in 2025, but often ranging from 8-12% for foreign borrowers. The loan approval process can take 2-4 months and requires extensive documentation.

Most American buyers choose to finance their Colombian property purchases through U.S.-based options such as home equity lines of credit, cash-out refinancing of U.S. properties, or liquid investments. These alternatives often provide better rates and terms than Colombian mortgages.

The cash-based nature of the Colombian market actually provides advantages including faster transactions, stronger negotiating positions, and no ongoing currency exchange risk from loan payments.

What are the most common mistakes Americans make when buying Colombian property?

The most frequent and costly mistakes involve inadequate due diligence and over-reliance on unverified intermediaries.

1. **Skipping comprehensive title searches** - Many Americans assume title issues are rare, but property disputes and unclear ownership histories are more common in Colombia than in the U.S.2. **Trusting unlicensed real estate agents** - Colombian agents don't require licensing, leading to inexperienced or unethical representation that can result in overpriced purchases or legal problems.3. **Ignoring zoning and development restrictions** - Properties may have limitations on renovations, rental use, or future development that significantly impact investment potential.4. **Underestimating currency exchange and transfer costs** - Exchange rate fluctuations and international transfer fees can add 3-5% to the total purchase cost if not properly managed.5. **Language barrier complications** - Not using bilingual legal assistance leads to misunderstandings in contracts, resulting in costly disputes or unfavorable terms.6. **Rushing the purchase process** - The Colombian property market moves differently than the U.S. market, and Americans often rush decisions without proper local market research.

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 Colombian cities are most popular among Americans and expats?

Medellín leads as the top destination for American expats and investors, followed by Bogotá and Cartagena for different lifestyle preferences.

1. **Medellín** - Known as the "City of Eternal Spring" for its perfect year-round climate, Medellín attracts digital nomads and retirees with its modern infrastructure, affordable cost of living, and vibrant expat community in neighborhoods like El Poblado and Laureles.2. **Bogotá** - Colombia's capital offers cosmopolitan living, stable investment opportunities, cultural richness, and strong job markets, making it popular with business professionals and investors seeking long-term growth.3. **Cartagena** - The colonial coastal city attracts tourists and short-term rental investors with its historic charm, beautiful beaches, and strong tourism infrastructure, particularly in areas like Bocagrande and the Old City.4. **Santa Marta** - Growing in popularity for its relaxed beach lifestyle, proximity to national parks, and more affordable prices compared to Cartagena, attracting budget-conscious expats and early-stage investors.5. **Coffee Region (Eje Cafetero)** - Cities like Pereira and Armenia appeal to wellness enthusiasts and nature lovers seeking tranquil mountain living with strong expat communities.

Which areas offer the best combination of livability, rental income, and appreciation potential?

Medellín's El Poblado and Laureles neighborhoods currently offer the optimal balance of lifestyle quality, rental returns, and capital appreciation for American investors.

El Poblado provides the highest concentration of expat amenities, international restaurants, coworking spaces, and digital nomad infrastructure, generating rental yields of 8-12% annually while experiencing steady price appreciation of 7-8% per year. The neighborhood's modern high-rise developments and proximity to business districts make it attractive to both short-term and long-term renters.

Bogotá's zones near the upcoming Metro Line 1, including Chapinero and Usaquén, present strong appreciation potential due to infrastructure development, with projected growth of 6-7% annually and stable rental demand from professionals and students.

Cartagena's Bocagrande and revitalized Getsemaní districts offer exceptional short-term rental returns of 10-15% annually due to heavy tourism, though long-term appreciation may be more volatile depending on tourism trends.

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

What are current property prices per square meter in Colombia's top cities?

Colombian property prices vary significantly by city and neighborhood, with Bogotá and Medellín commanding premium prices while coastal cities offer more affordable entry points.

City/Area	Price per m² (USD)	Market Characteristics
Bogotá (Premium zones)	$1,500 - $2,000	Infrastructure-driven growth, Metro Line 1 proximity
Medellín (El Poblado)	$1,400 - $1,900	High expat demand, digital nomad hotspot
Medellín (Laureles)	$1,000 - $1,400	Local favorite, growing international recognition
Cartagena (Bocagrande)	$800 - $1,200	Tourism-driven, strong short-term rental market
Santa Marta (beachfront)	$600 - $900	Early growth stage, emerging destination
Cali (premium areas)	$700 - $1,100	Economic growth, cultural hub
Coffee Region cities	$500 - $800	Nature tourism, retirement destination

What rental yields and market forecasts should Americans expect for Colombian real estate investment?

Colombian real estate markets are projected to deliver strong returns through 2026, with rental yields significantly outperforming traditional investment alternatives.

Rental yields in major Colombian cities range from 6-15% annually, with short-term vacation rentals in tourist areas like Cartagena and Santa Marta achieving the highest returns. Long-term residential rentals in expat-heavy neighborhoods typically generate 6-10% annual yields, while commercial properties in growing business districts can deliver 8-12% returns.

Market growth forecasts for 2025-2026 show Cartagena leading with projected annual appreciation of 10-12% driven by tourism recovery and infrastructure investments. Medellín follows with 7-8% annual growth supported by continued digital nomad influx and urban development projects. Bogotá presents steady 6-7% growth backed by metro line construction and business district expansion.

Tourism numbers support strong rental investment potential, with Colombia receiving over 4.6 million international visitors in 2024, with Cartagena and Medellín accounting for the majority of tourist accommodations. The Colombian government's visa-free policies for many countries and improving infrastructure continue to drive visitor growth.

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. Wise - Buying Property in Colombia Guide
2. Colombia Legal - Legal Considerations for Foreign Property Buyers
3. TheLatinvestor - Colombia Property Buying Process
4. Lawyers Colombia - Title and Deed Study Importance
5. Gutierrez Group - Avoiding Common Buying Mistakes
6. TheLatinvestor - Colombia Real Estate Market Analysis
7. Initialife - Top Colombian Cities for Real Estate Investment
8. TheLatinvestor - Colombia Property Investment Guide
9. Global Property Guide - Colombia Rental Yields
10. Global Property Guide - Colombia Property Prices per Square Meter