Can foreigners buy property in Bogotá?

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

Yes, the analysis of Bogotá's property market is included in our 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 Bogotá. 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 foreigners legally buy property in Bogotá and are there any restrictions compared to locals?

Yes, foreigners can legally buy property in Bogotá with virtually no restrictions compared to Colombian citizens.

Foreign investors have the same property ownership rights as locals, including the ability to purchase apartments, houses, commercial properties, and land. The Colombian constitution guarantees equal property rights regardless of nationality.

The only exceptions apply to vacant lots located within 50 kilometers of national borders and certain protected environmental zones. These restrictions also apply to Colombian citizens in border areas for national security reasons.

As of September 2025, Colombia maintains one of the most open foreign property ownership policies in Latin America. This legal framework has attracted significant international investment to Bogotá's real estate market.

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

Are there differences in property ownership rules for foreigners from certain nationalities?

No, Colombian property law does not differentiate between foreign nationalities when it comes to real estate ownership.

Whether you're from the United States, Canada, Europe, Asia, or any other region, you have identical rights to purchase property in Bogotá. The Colombian government treats all foreign investors equally under the law.

All foreign buyers must follow the same legal procedures: obtaining a Colombian tax identification number (NIT), conducting due diligence, and registering the property through a notary. No special permits or nationality-based approvals are required.

This uniform approach has made Bogotá particularly attractive to international investors who appreciate the transparent and equal treatment regardless of their country of origin.

Do foreigners need to meet any residency or visa requirements before purchasing property in Bogotá?

No residency or visa requirements exist for foreigners to purchase property in Bogotá or anywhere in Colombia.

You can buy property as a tourist on a standard 90-day tourist visa, as a temporary resident, or as someone who has never set foot in Colombia. Your immigration status does not affect your ability to own real estate.

However, you will need to obtain a Colombian tax identification number (NIT) to complete the purchase and register the property. This can be done at any DIAN (tax authority) office with your passport.

Many investors choose to purchase property first and then apply for investor visas or residency later, using their real estate investment as supporting documentation for immigration purposes.

Is it necessary for the buyer to be physically present in Colombia to complete the purchase?

Physical presence in Colombia is not mandatory to complete a property purchase, though it is highly recommended for due diligence purposes.

You can execute the entire transaction through a power of attorney, allowing a local representative or lawyer to act on your behalf. The power of attorney must be properly notarized and apostilled in your home country.

Many foreign buyers visit Bogotá initially to inspect properties and meet with lawyers, then complete the final transaction remotely. This approach allows for proper property evaluation while maintaining flexibility.

However, being present for the final closing at the notary office provides additional security and allows you to personally verify all documents before signing. Remote closings require absolute trust in your local representatives.

What is the full step-by-step process for buying property in Bogotá as a foreigner, and which documents are required?

The property purchase process in Bogotá follows a structured legal framework that typically takes 30-60 days to complete.

Step	Process	Required Documents
1. Research & Selection	Property search and agent selection	Budget confirmation, area preferences
2. Legal Due Diligence	Title search and property verification	Certificado de Libertad y Tradición
3. Tax ID Acquisition	Obtain Colombian NIT	Valid passport, DIAN registration
4. Preliminary Agreement	Sign purchase promise contract	Promesa de Compraventa, deposit payment
5. Final Documentation	Prepare all closing documents	Public deed, cadastral certificate
6. Notary Closing	Sign and register property transfer	All parties present or power of attorney
7. Registry Registration	Record new ownership	Payment of registration fees

Essential documents include your valid passport, Colombian NIT, the property's freedom and tradition certificate (proving clear title), cadastral certificate from the municipality, and proof of tax payments. All foreign documents must be apostilled and translated by an official translator in Colombia.

Is hiring a lawyer mandatory, and what role do they play in the transaction?

While not legally mandatory, hiring a lawyer for property purchases in Bogotá is strongly recommended and considered essential by most experts.

A qualified real estate lawyer conducts comprehensive due diligence to verify the property's legal status, ensures all documentation is properly prepared, and protects your interests throughout the transaction. They also handle compliance with currency exchange regulations and tax obligations.

Lawyers typically charge 1% of the property value for their services, which includes title searches, contract preparation, closing attendance, and post-purchase registry registration. This investment often prevents costly mistakes that could exceed the legal fees.

The notary, who is mandatory for all real estate transactions, serves a different role by certifying the transaction and ensuring legal formalities are met, but they don't provide legal advice or advocacy for either party.

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

What taxes, fees, and costs apply when buying, owning, and later selling a property in Bogotá?

Property transactions in Bogotá involve several mandatory taxes and fees that typically total 5-10% of the purchase price.

Cost Type	Rate/Amount	When Paid
Transfer Tax (Impuesto de Registro)	1-3% of sale price	At closing
Municipal Tax	~1% of property value	At closing
Notary Fees	0.3-0.5% in Bogotá	At closing
Registration Fees	1% of cadastral value	At closing
Legal Fees	~1% of property value	At closing
Annual Property Tax (Predial)	0.3-1.6% in Bogotá	Annually
Capital Gains Tax (on sale)	10-33% of profit	Upon sale

Annual property taxes in Bogotá are calculated based on the cadastral value and range from 0.3% to 1.6% depending on the property's value and location. Premium neighborhoods typically face higher rates.

When selling, non-resident foreigners pay capital gains tax of 10-33% on the profit, while residents benefit from lower rates and potential exemptions for primary residences held over two years.

Are mortgages available to foreigners, what are the typical rates and conditions, and what tips help secure approval?

Mortgages are available to foreigners in Bogotá, but approval requirements are significantly stricter for non-residents compared to Colombian citizens.

Colombian banks typically offer mortgage financing to foreigners at annual interest rates of 10-15%, with loan-to-value ratios usually capped at 50-70% for non-residents. Terms typically range from 10-20 years depending on the borrower's profile.

Key requirements include: documented income from Colombian sources or internationally recognized employers, substantial down payment (30-50%), excellent credit history, and often a Colombian guarantor or co-signer.

Tips for securing approval include maintaining clear financial records for at least two years, partnering with a local co-borrower, considering international banks with Colombian operations, and working with mortgage brokers who specialize in foreign clients.

Many investors opt for cash purchases or financing from their home countries due to the complexity and higher costs of Colombian mortgages for foreigners.

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 neighborhoods in Bogotá are most popular among foreigners, and which areas are best for living, renting out, or long-term capital appreciation?

The most popular neighborhoods among foreign investors in Bogotá offer a combination of safety, amenities, rental demand, and growth potential.

1. **Chapinero**: The trendy urban hub with high rental demand, vibrant nightlife, and strong appreciation potential averaging 8-12% annually2. **Zona G (Gourmet Zone)**: Premium dining district with luxury apartments, excellent safety ratings, and consistent 6-8% rental yields3. **Parque 93 & Zona T**: Upscale entertainment districts with luxury condos showing 10-15% annual appreciation4. **Usaquén**: Historic residential area popular with families, offering 7-9% rental yields and stable long-term growth5. **Rosales & El Nogal**: Elite neighborhoods providing prestige, safety, and strong capital appreciation but lower rental yields

Chapinero and Zona G consistently deliver the highest rental yields of 6-9% while maintaining strong capital appreciation. These areas benefit from proximity to business districts and excellent infrastructure.

For long-term appreciation, Parque 93 and northern expansion areas show the strongest growth potential due to ongoing urban development and increasing demand from high-income professionals.

What is the current breakdown of property prices across Bogotá and other Colombian cities or regions?

Property prices in Bogotá vary significantly by neighborhood and property type, with premium areas commanding substantially higher prices than the city average.

City/Region	Average Price Per m²	Premium Areas Price Per m²
Bogotá (Central upscale)	US$1,850-4,000/m²	Above US$3,500/m²
Bogotá (City average)	US$1,000-2,500/m²	US$2,500-3,500/m²
Medellín	US$1,000-1,900/m²	US$1,900-2,800/m²
Cartagena	US$1,250-2,900/m²	US$2,900-4,500/m²
Cali	US$700-1,600/m²	US$1,600-2,400/m²
Santa Marta (coastal)	US$800-2,200/m²	US$2,200-3,800/m²

Bogotá maintains the highest property prices in Colombia, with luxury neighborhoods like Rosales and Zona Rosa exceeding US$4,000 per square meter. The city's status as the economic and political capital drives sustained demand.

Coastal cities like Cartagena command premium prices for vacation rental properties, while Medellín offers attractive pricing for investors seeking growth potential in Colombia's innovation hub.

What are the most common mistakes or pitfalls foreigners face when buying property in Bogotá and how can they be avoided?

Foreign buyers in Bogotá frequently encounter preventable mistakes that can result in significant financial losses or legal complications.

1. **Skipping legal due diligence**: Always conduct comprehensive title searches and verify the seller's legal ownership before making any payments2. **Not registering foreign currency properly**: Register all incoming funds with Banco de la República to ensure legal repatriation and tax compliance3. **Using generic contracts**: Employ qualified lawyers to draft specific purchase agreements rather than using template documents4. **Paying large deposits without proper agreements**: Never transfer significant amounts without formal escrow arrangements or legal protections5. **Expecting quick bank financing**: Plan for cash purchases or arrange financing in your home country due to limited mortgage options for non-residents6. **Buying sight unseen**: Always physically inspect properties or use trusted local representatives with proper power of attorney7. **Underestimating total costs**: Budget for 5-10% additional costs beyond the purchase price for taxes, fees, and legal expenses8. **Neglecting tax implications**: Understand both Colombian and home country tax obligations before purchasing

To avoid these pitfalls, work exclusively with reputable real estate agents and lawyers, follow all legal registration requirements, and allow adequate time for proper due diligence.

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

What are the fiscal implications in both Colombia and the buyer's home country when owning or selling property in Bogotá?

Property ownership in Bogotá creates tax obligations in both Colombia and potentially your home country, requiring careful planning to avoid double taxation.

In Colombia, foreign property owners must pay annual predial (property tax) of 0.3-1.6% based on cadastral value, declare rental income if applicable, and pay capital gains tax of 10-33% when selling. All foreign currency transfers must be registered with Banco de la República.

Home country implications vary significantly by nationality. US citizens face FATCA reporting requirements for foreign assets over specific thresholds, while EU citizens may trigger CRS (Common Reporting Standard) obligations. Many countries require declaration of foreign property and rental income.

Double taxation treaties between Colombia and many countries provide relief mechanisms, but proper reporting in both jurisdictions is essential. Failure to comply with home country reporting requirements can result in substantial penalties.

Professional tax advice from qualified accountants in both Colombia and your home country is essential before purchasing to understand your specific obligations and optimize your tax strategy.

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. Colombia Law Connection - Buying Property Guide
2. Global Property Guide - Colombia
3. Baker McKenzie - Colombia Real Estate Law
4. Wise - Property Buying Guide Colombia
5. Remitly - Buying Property in Colombia
6. LCG Colombia - Property Purchase Guide
7. The Latinvestor - Bogotá Legal Requirements
8. The Latinvestor - Colombia Real Estate for Foreigners
9. Lawyer Colombia - Real Estate Transactions
10. Arepas del Gringo - Taxes and Fees Bogotá