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
Closing costs in Colombia typically range from 2% to 4% of your property's purchase price, with most buyers budgeting around 3% for all standard fees.
Foreign buyers should expect to pay notary fees, registration costs, legal fees, and various administrative charges when purchasing property in Colombia. These costs are generally consistent across different regions, though specific fees can vary slightly between new builds and resale properties.
If you want to go deeper, you can check our pack of documents related to the real estate market in Colombia, based on reliable facts and data, not opinions or rumors.
Closing costs in Colombia range from 2% to 4% of the property purchase price, with most transactions averaging around 3%.
Foreign buyers should budget for notary fees, registration costs, legal fees, and mandatory insurance when financing through Colombian banks.
| Fee Type | Typical Range | Who Pays |
|---|---|---|
| Notary Fees | 0.3% - 0.5% | Split between buyer/seller |
| Registration Fees | 0.5% - 1% | Buyer |
| Transfer Tax | 0.5% - 1% | Buyer/Seller |
| Legal Fees | 1% - 2% | Buyer |
| Appraisal Fees | 0.1% - 0.2% | Buyer |
| Bank/Mortgage Fees | 0.3% - 1% | Buyer (if financed) |
| Insurance Premium | Under 0.1% | Buyer (if financed) |
What's the typical percentage range of closing costs compared to the property purchase price in Colombia?
Closing costs in Colombia typically range from 2% to 4% of your property's purchase price.
Most buyers budget around 3% of the purchase price for all standard closing costs, which provides a safe margin for most transactions. This percentage includes notary fees, registration fees, legal fees, appraisal costs, and various administrative charges.
As of September 2025, these percentages remain consistent across major Colombian cities like BogotĂĄ, MedellĂn, and Cartagena. The 3% figure represents a middle-ground estimate that accounts for standard fees without optional services like translation or courier costs that foreign buyers might require.
It's something we develop in our Colombia property pack.
How much should you expect to pay in notary fees when buying property in Colombia?
Notary fees in Colombia typically range from 0.3% to 0.5% of the property's value.
These fees are usually split equally between the buyer and seller unless you negotiate a different arrangement in your purchase contract. The notary plays a crucial role in Colombian property transactions, authenticating documents and ensuring the legal transfer of ownership.
For a property worth 500 million COP (approximately $125,000 USD), you would pay between 750,000 and 1.25 million COP in notary fees. If split with the seller, your portion would be 375,000 to 625,000 COP.
The exact fee depends on the property's value and the specific notary office handling your transaction.
What are the standard registration fees for recording a property purchase with the Colombian registry office?
Property registration fees in Colombia range from 0.5% to 1% of the purchase price, with most transactions falling around 0.98% of the property's value.
These fees ensure the legal recording of your title transfer with the local property registry (Oficina de Registro de Instrumentos PĂșblicos). The buyer typically pays these costs, and they're mandatory for completing the ownership transfer.
Registration fees vary slightly by municipality, but the difference is minimal. For a 300 million COP property, you would pay between 1.5 and 3 million COP in registration fees.
This fee is non-negotiable and must be paid to legally complete your property purchase in Colombia.
How are property transfer taxes calculated in Colombia, and what percentage should you budget for?
Property transfer taxes in Colombia, often called "impuesto de beneficencia" (charity tax), typically range from 0.5% to 1% of the purchase price.
Most regions charge around 0.6% as the standard charity tax rate. This tax is calculated based on the property's sale price or cadastral value, whichever is higher. Some municipalities allow this cost to be split between buyer and seller, while others assign it entirely to one party.
The specific percentage and payment responsibility vary by municipality, so you should confirm these details with your lawyer or notary before finalizing your purchase. For a 400 million COP property, expect to pay between 2 and 4 million COP in transfer taxes.
These taxes fund local municipal projects and are collected at the time of property registration.
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Do closing costs vary between new builds and resale properties in Colombia, and by how much?
Closing costs do not significantly vary between new builds and resale properties in Colombia, as most fees are calculated based on the sale price rather than property type.
Both new construction and resale properties incur the same notary fees, registration costs, and transfer taxes. The percentage-based fee structure ensures consistency regardless of whether you're buying from a developer or an individual seller.
Occasionally, developers may offer to cover a portion of notary or registration fees as a sales incentive for new builds, but this is not standard practice and should be explicitly negotiated in your purchase contract. When developers do offer such incentives, they might cover 0.2% to 0.5% of the total closing costs.
The main difference might be in legal complexity, where new builds sometimes require additional documentation review, but this doesn't typically translate to higher fees.
How much are appraisal and valuation fees in Colombia, and who usually pays them?
Appraisal fees in Colombia typically cost between 0.1% and 0.2% of the property's value, and the buyer usually pays these costs.
Banks require an authorized appraisal (avalĂșo) if you're financing your purchase, and this must be conducted by a certified appraiser approved by the lending institution. Some appraisers charge a fixed fee based on property size rather than percentage, but the percentage method is more common.
For a 500 million COP property, expect to pay between 500,000 and 1 million COP for the appraisal. If you're paying cash, an appraisal isn't legally required, but it's still recommended for your due diligence.
It's something we develop in our Colombia property pack.
What are the average legal fees for hiring a real estate attorney in Colombia to handle closing?
Real estate attorney fees in Colombia generally range from 1% to 2% of the property's value, though some lawyers offer fixed rates around 3 million COP (approximately $800 USD) regardless of property price.
Legal fees cover title studies, contract review, due diligence, document filing, and representation during the closing process. These services are essential for foreign buyers to ensure proper legal compliance and protection of their interests.
The percentage-based fee structure is more common for higher-value properties, while fixed fees might be offered for smaller transactions. For a 300 million COP property, percentage-based fees would range from 3 to 6 million COP, making the fixed fee option potentially more economical for smaller purchases.
Always clarify what services are included in the legal fee before engaging an attorney.
If you're financing with a Colombian bank, what are the common loan-related closing costs like mortgage registration and bank fees?
Mortgage registration fees in Colombia cost approximately 0.5% to 1% of the loan amount, plus additional administrative charges for document processing.
Bank fees vary by lender but typically range from 0.3% to 1% of the loan amount for administrative costs and credit studies. These fees cover loan processing, credit evaluation, and mortgage setup costs.
For a 200 million COP mortgage, you would pay between 1 and 2 million COP in mortgage registration fees, plus 600,000 to 2 million COP in bank administrative fees. Some banks also charge document processing fees ranging from 100,000 to 500,000 COP.
Banks may offer to waive certain fees as part of promotional packages, so it's worth negotiating these costs during your loan application process.
Are there mandatory insurance policies tied to property purchases in Colombia, and what do they cost at closing?
When financing through a Colombian bank, property insurance and sometimes life insurance are mandatory requirements.
Property insurance annual premiums typically cost under 0.1% of the property's value, with the first year's premium often paid at closing. For a 400 million COP property, annual property insurance might cost between 200,000 and 400,000 COP.
Life insurance requirements vary by bank and loan amount, but when required, the annual premium is usually modest compared to the property value. Some banks offer group life insurance policies that can be more cost-effective than individual policies.
These insurance costs are relatively minor compared to other closing expenses, but they're non-negotiable when financing is involved.
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.
What optional costs, like translation or courier fees, might a foreign buyer face during closing in Colombia?
Foreign buyers often incur additional optional costs that can add 0.1% to 0.3% to their total closing expenses.
Translation fees for official documents average $20 to $50 USD per page, depending on complexity and urgency. Important documents like contracts, titles, and legal certificates often require certified translations for foreign buyers' records.
Courier and apostille services for international document deliveries range from $30 to $100 USD per shipment. If you need documents sent to your home country or require apostille certification for Colombian documents, these costs can accumulate quickly.
Optional escrow services, while not standard practice in Colombia, might be recommended for non-resident buyers and can vary significantly by provider.
On average, what total percentage of the property price should a foreign buyer budget for all closing costs in Colombia?
Foreign buyers should budget approximately 3% of the property price for all closing costs in Colombia.
This 3% estimate includes standard fees (notary, registration, legal, appraisal) plus a buffer for foreign buyer-specific costs like translations and courier services. The percentage can reach 4% if you require extensive legal services or choose premium service providers.
For cash purchases, your costs will be on the lower end of this range, while financed purchases with bank fees and mandatory insurance will push costs toward the higher end. Complex transactions involving corporate structures or multiple parties might exceed 3%.
It's something we develop in our Colombia property pack.
Can you get an itemized estimate of closing costs from a notary or lawyer in Colombia before finalizing the purchase?
Yes, both notaries and lawyers in Colombia routinely provide itemized estimates of closing costs upon request before purchase finalization.
A detailed estimate should specify expected notary fees, registration costs, legal fees, appraisal costs, and any optional services you might require. Most legal professionals provide these estimates within 24 to 48 hours of your request.
The estimate should break down each fee category, indicate who pays each cost, and include estimated timelines for each step. This allows you to budget accurately and avoid surprises during the closing process.
Always request these estimates in writing and compare them with multiple service providers to ensure you're getting competitive rates for legal and notarial services.
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.
Understanding closing costs is crucial for successful property investment in Colombia.
Foreign buyers who budget properly for these costs avoid financial surprises and can complete their transactions smoothly.
Sources
- Medellin Guru - Selling Real Estate
- LCG Colombia - Buying Property in Colombia
- Wise - Buying Property in Colombia
- Nexo Legal - Buying Property in Colombia
- Colombia Law Connection - Buying Property in Colombia
- International Living - Colombia Real Estate
- Medellin Advisors - Gastos Notariales
- CMS Law - Costs When Buying Properties in Colombia