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?

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 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 without special restrictions compared to locals?

Americans can legally buy and own property in Colombia with virtually the same rights as Colombian citizens.

The Colombian constitution guarantees equal property rights to foreigners, with only minor exceptions for specific border areas and protected zones. These restrictions apply to all foreigners, not specifically to Americans.

Foreign buyers can purchase residential properties, condominiums, commercial buildings, and land in urban areas without nationality-based limitations. You receive full ownership title (escritura pública) and can sell, rent, or transfer the property freely.

The only restricted areas include vacant land within 100 kilometers of international borders and certain protected environmental zones, but these limitations affect all non-Colombian citizens equally.

As of September 2025, there are no ownership caps, nationality quotas, or special approval processes required for American buyers in the Colombian residential property market.

Do Americans need a residency visa or any special permit before buying property in Colombia?

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

You can legally buy real estate as a tourist on a standard 90-day visitor visa. Colombian law allows non-residents to own property without any pre-approval process or minimum stay requirements.

While purchasing property doesn't automatically grant residency, owning Colombian real estate worth at least $170,000 USD can qualify you for an investor visa if you choose to pursue Colombian residency later.

The property purchase process itself requires only a Colombian tax identification number (NIT), which can be obtained during the buying process regardless of your visa status.

Do Americans need to be physically present in Colombia to complete the property purchase?

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

Americans can buy Colombian real estate remotely by granting power of attorney (poder) to a trusted representative, typically a lawyer, who can sign all documents and complete the transaction on your behalf.

The power of attorney must be notarized and apostilled in the United States before being translated into Spanish and validated by Colombian authorities. This process adds 2-3 weeks to the timeline but allows complete remote purchasing.

Many American buyers choose to visit Colombia initially to view properties and meet their legal representative, then complete the final purchase remotely. However, being present during the final notary signing can provide additional peace of mind and faster completion.

What taxes or fiscal obligations do Americans face when buying, owning, or selling property in Colombia?

Tax Type	Rate/Amount	When Applied
Transfer Tax (Beneficencia)	1-1.5% of sale price	Paid at purchase
VAT (for new construction)	19% (may apply to new builds)	Paid at purchase if applicable
Notary and Registration Fees	1.5-2% of sale price	Paid at purchase
Annual Property Tax (Predial)	0.3-1.6% of assessed value	Paid annually to municipality
Rental Income Tax	35% for non-residents	If property generates rental income
Capital Gains Tax	10% after 2 years ownership	Paid when selling at profit
Wealth Tax	1% if total assets exceed $1M USD	Annual declaration required

What is the full step-by-step process for an American to purchase property in Colombia?

1. **Property Search and Selection**: Identify properties through licensed real estate agents or platforms, conduct initial due diligence on location and pricing.2. **Legal Representation**: Hire a Colombian lawyer to represent your interests and conduct thorough due diligence on the property title.3. **Obtain Colombian Tax ID (NIT)**: Apply for a Número de Identificación Tributaria at any DIAN office with your passport and proof of address.4. **Due Diligence**: Your lawyer verifies the property's legal status through a "certificado de tradición y libertad" showing clear title and no outstanding debts or liens.5. **Negotiate and Sign Promise to Purchase**: Execute a "contrato de promesa de compraventa" with a deposit (typically 10-20% of purchase price).6. **Register Foreign Investment**: Register the incoming funds with Banco de la República as a foreign investment for future repatriation rights.7. **Secure Financing**: Open a Colombian bank account and transfer purchase funds, or arrange alternative payment methods through your lawyer.8. **Final Purchase Contract**: Sign the definitive purchase deed (escritura pública) at a notary office, paying all taxes and fees.9. **Property Registration**: Register the deed with the local property registry (Oficina de Registro de Instrumentos Públicos) to finalize ownership transfer.10. **Obtain Final Documentation**: Receive the updated property title showing you as the legal owner.

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

Which documents must an American provide to complete a property purchase in Colombia?

Americans need several key documents to complete a Colombian property purchase, some obtained locally and others from the United States.

**Required U.S. Documents:**- Valid U.S. passport- Apostilled background check (if applying for residency)- Power of attorney (if purchasing remotely), notarized and apostilled- Proof of funds source for anti-money laundering compliance

**Required Colombian Documents:**- Colombian tax identification number (NIT)- Bank account opening documentation (if applicable)- Foreign investment registration with Banco de la República- Promise to purchase contract (contrato de promesa)

**Property-Specific Documents:**- Certificate of title and freedom (certificado de tradición y libertad)- Property tax payment receipts (impuesto predial)- Utility bills showing current status- Building permits and construction licenses (for new construction)- Homeowners association documentation (if applicable)

All U.S. documents must be apostilled and officially translated into Spanish by a certified translator in Colombia.

Is it mandatory for Americans to hire a lawyer in Colombia when buying property, and what does the lawyer typically handle?

Hiring a lawyer is not legally mandatory for property purchases in Colombia, but it is highly recommended for American buyers.

A qualified Colombian real estate lawyer provides essential services that protect your investment and ensure legal compliance. Most successful American property buyers invest in legal representation to navigate language barriers and local regulations.

**Key Legal Services Include:**- Property title verification and lien searches- Contract review and negotiation- Due diligence on property history and ownership- Foreign investment registration guidance- Tax compliance and filing assistance- Notary coordination and document preparation- Power of attorney services for remote buyers

Legal fees typically range from $1,500 to $5,000 USD depending on property value and complexity. This investment often prevents costly mistakes and provides peace of mind throughout the purchase process.

Many lawyers also provide ongoing services for property management, tax filing, and rental income reporting, making them valuable long-term partners for American property owners.

Which areas in Colombia are most popular with Americans for living, renting out, or long-term investment?

American buyers gravitate toward specific Colombian regions based on climate, infrastructure, and investment potential.

**Medellín** leads as the top choice for American expats, offering year-round spring-like weather, modern infrastructure, and a growing digital nomad community. The city's El Poblado and Laureles neighborhoods attract Americans seeking urban amenities and rental income opportunities.

**Bogotá** appeals to Americans focused on long-term investment and professional opportunities. The capital city's Zona Rosa, Chapinero, and La Candelaria districts offer strong rental markets and capital appreciation potential.

**Cartagena** attracts Americans interested in vacation rental properties and coastal living. The historic Old City and Bocagrande areas command premium prices and high tourist demand.

**Coffee Region (Eje Cafetero)** including Manizales, Pereira, and Armenia draws Americans seeking lifestyle properties and retirement destinations with lower costs and stunning natural beauty.

**Santa Marta** and **Cali** are emerging markets where American buyers find affordable properties with growth potential and developing expat communities.

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 cities or regions in Colombia currently rank best for livability, rental yields, tourism appeal, and capital appreciation potential?

Colombian real estate markets offer distinct advantages depending on your investment goals and lifestyle preferences.

**For Livability**: Medellín consistently ranks highest for overall quality of life, with excellent public transportation, healthcare, and year-round comfortable temperatures. Bogotá offers the most job opportunities but faces air quality challenges.

**For Rental Yields**: Medellín's El Poblado district generates 8-12% annual rental yields, while Bogotá's professional districts yield 6-10%. Cartagena's vacation rental market can achieve 12-15% yields during peak seasons.

**For Tourism Appeal**: Cartagena dominates with its UNESCO World Heritage status and Caribbean beaches. Santa Marta's proximity to Tayrona National Park creates strong vacation rental demand. The Coffee Triangle attracts eco-tourism and cultural tourism.

**For Capital Appreciation**: Medellín shows the strongest long-term appreciation potential due to urban development and foreign investment. Bogotá maintains steady growth as the economic center. Emerging markets like Barranquilla and Bucaramanga offer higher risk but potentially higher returns.

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

What is the current price breakdown for property in major Colombian cities and regions?

City/Region	Price per m² (USD)	Popular Neighborhoods
Bogotá	$1,000 - $2,000	Zona Rosa, Chapinero, La Candelaria
Medellín	$900 - $1,800	El Poblado, Laureles, Envigado
Cartagena	$1,500 - $3,000	Old City, Bocagrande, Manga
Coffee Region	$650 - $1,200	Manizales Centro, Pereira, Armenia
Santa Marta	$1,000 - $2,000	Rodadero, Historic Center, Pozos Colorados
Cali	$800 - $1,500	Granada, San Fernando, Ciudad Jardín
Barranquilla	$900 - $1,600	Norte-Centro Histórico, Riomar, Villa Country

Can Americans get a mortgage in Colombia, and if so, what are the usual rates, conditions, and tips for approval?

Americans can obtain mortgages in Colombia, but the process is challenging and most foreign buyers purchase properties with cash.

Colombian banks typically require borrowers to have Colombian residency, local employment history, and established credit relationships within the country. Major banks like Bancolombia, Banco de Bogotá, and BBVA Colombia offer foreigner-friendly mortgage programs with specific requirements.

**Current Mortgage Conditions for Americans:**- Interest rates: 10-15% annually (significantly higher than U.S. rates)- Down payment: 30-50% of property value- Loan-to-value ratio: Maximum 70% for residents, 50% for non-residents- Loan terms: Typically 10-20 years- Income requirements: 3-4 times annual income to debt ratio

**Tips for Mortgage Approval:**- Establish Colombian residency through investor visa- Open and maintain Colombian bank accounts for 6-12 months- Provide extensive income documentation from U.S. sources- Consider co-borrowing with a Colombian citizen- Work with mortgage brokers specializing in foreign buyers

Most successful American buyers either purchase with cash or arrange financing through U.S. sources secured by other assets, then use those funds for Colombian real estate purchases.

What are the most common mistakes and pitfalls Americans face when buying property in Colombia, and how can they avoid them?

American buyers in Colombia face several common pitfalls that can be expensive and time-consuming to resolve.

**Due Diligence Failures:** Many Americans skip thorough title searches and property history verification. Always insist on a complete "certificado de tradición y libertad" and hire a lawyer to verify no liens, debts, or ownership disputes exist.

**Currency and Investment Registration Issues:** Failing to properly register foreign investment with Banco de la República can prevent future fund repatriation. Always document the source of funds and complete investment registration before closing.

**Inadequate Legal Representation:** Using unqualified or English-speaking-only attorneys creates communication problems and legal gaps. Hire Colombian lawyers with proven real estate experience and verified credentials.

**Underestimating Total Costs:** Many buyers budget only for the purchase price but face unexpected notary fees, taxes, and registration costs. Budget 3-5% above purchase price for total transaction costs.

**Property Management Oversights:** American buyers often struggle with ongoing property management, tax compliance, and rental regulations. Establish reliable local management or legal support before purchasing.

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. Chord Real Estate - Foreign Buyer Guide
2. The LatinVestor - Colombia Real Estate for Foreigners
3. Wise - Buying Property in Colombia
4. Colombia Law Connection - Property Purchase Guide
5. LCG Colombia - Real Estate Purchase Process
6. Global Property Guide - Colombia
7. Remitly - Colombia Property Guide
8. Affirma Law - Investor Visa Guide