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 represent 2% to 5% of the property purchase price, making them a significant factor to budget for when buying real estate in the country.
These costs include notary fees, registration charges, lawyer fees, property valuations, and various taxes that can quickly add up to substantial amounts. Understanding each component helps you prepare financially for your Colombian property purchase and avoid unexpected expenses during the closing process.
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.
Colombia property closing costs range from 2% to 5% of the purchase price, with notary fees at 0.15-0.5%, registration fees at 0.5-1%, and lawyer fees at 1-2% of the property value.
Foreign buyers face additional withholding taxes and document authentication costs, while mortgage financing adds bank-specific fees that vary by lender and property value.
| Cost Component | Typical Rate | Who Pays |
|---|---|---|
| Notary Fee | 0.15% - 0.5% of property value | Split between buyer/seller |
| Registration Fee | 0.5% - 1% of property value | Split between buyer/seller |
| Lawyer Fee | 1% - 2% of property value | Buyer |
| Property Valuation | 0.12% - 0.5% of property value | Buyer |
| Due Diligence | ~0.12% or COP 15,700+ | Buyer |
| Withholding Tax | 1% (for foreigners) | Seller/Foreigners |
| Total Closing Costs | 2% - 5% of purchase price | Primarily buyer |
How much is the notary fee in Colombia when buying property?
The notary fee in Colombia typically ranges from 0.15% to 0.5% of the property value, with most transactions settling around 0.3% of the purchase price.
For a property worth COP 500,000,000, you can expect to pay approximately COP 1,500,000 in notary fees. This fee covers the formalization of the public deed (escritura pública), which legally transfers ownership from seller to buyer. The notary's role is crucial as they verify the identity of all parties, ensure the transaction complies with Colombian law, and register the deed officially.
Most Colombian property transactions split the notary fee equally between buyer and seller, though this can be negotiated during the purchase agreement. In some cases, particularly in competitive markets like Bogotá or Medellín, buyers might agree to cover the entire notary fee to make their offer more attractive.
The exact fee often depends on the property's location and the specific notary office chosen. Urban areas like Cartagena and Cali tend to have slightly higher notary fees compared to smaller cities or rural areas.
It's something we develop in our Colombia property pack.
What percentage of the property value is charged for the registration fee at the public registry office?
The registration fee at Colombia's public registry office typically costs 0.5% to 1% of the property value, with most transactions falling around 0.5% to 0.7%.
This fee covers the official registration of your property ownership in the public records system, known as the Oficina de Registro de Instrumentos Públicos. The registration is mandatory for all real estate transactions in Colombia and provides legal proof of ownership. Without proper registration, your property purchase has no legal standing.
For a COP 500,000,000 property, expect to pay between COP 2,500,000 to COP 5,000,000 in registration fees. The exact amount varies by municipality and the property's cadastral value versus its commercial value. Some regions calculate the fee based on the lower cadastral value, while others use the actual purchase price.
Like notary fees, registration costs are typically split between buyer and seller, though local customs and negotiation can alter this arrangement. The registration process usually takes 5 to 10 business days after the notary deed is signed.
The registration office also issues the Certificado de Libertad y Tradición, which serves as official proof of ownership and shows any liens or encumbrances on the property.
What are the average lawyer fees for handling property purchase transactions in Colombia?
Lawyer fees for Colombian property transactions typically range from 1% to 2% of the property value, though some attorneys offer fixed-fee packages for standard residential purchases.
A qualified real estate lawyer in Colombia charges between COP 5,000,000 to COP 10,000,000 for a typical residential property transaction worth COP 500,000,000. These fees cover comprehensive legal services including contract review, due diligence, title verification, and representation during closing.
Major cities like Bogotá and Medellín command higher legal fees due to increased demand and higher living costs. International law firms with bilingual services often charge premium rates, ranging from 2% to 3% of the property value, particularly when serving foreign buyers who require English-language support.
Some attorneys offer tiered pricing structures where smaller properties under COP 200,000,000 might incur fixed fees of COP 3,000,000 to COP 4,000,000, while luxury properties over COP 1,000,000,000 could see legal costs exceeding 2% of the purchase price. The complexity of the transaction, including foreign buyer requirements, financing arrangements, and property type, significantly influences legal costs.
Always verify that your lawyer is registered with the Colombian Bar Association and specializes in real estate law to ensure proper representation.
How much does the property valuation (avalúo) typically cost in Colombia?
Property valuation costs in Colombia range from 0.12% to 0.5% of the property's commercial value, with most appraisals falling between 0.2% to 0.3%.
A professional property appraisal (avalúo catastral) for a COP 500,000,000 property typically costs between COP 600,000 to COP 2,500,000. The valuation must be performed by a certified appraiser registered with Colombian authorities and is mandatory for all real estate transactions. Banks also require independent appraisals when mortgage financing is involved.
Urban properties in major cities like Bogotá, Medellín, and Cartagena generally incur higher valuation costs due to complexity and market demand. Luxury properties, commercial buildings, and unique architectural features can push appraisal costs toward the upper range. Rural properties or those in smaller municipalities typically see lower valuation fees.
The appraisal process examines the property's physical condition, location, comparable sales, and market conditions. The resulting avalúo certificate is valid for six months and serves multiple purposes including tax assessment, registration fees calculation, and loan collateral evaluation.
Some buyers choose to obtain independent appraisals beyond the required one, particularly for investment properties or when purchasing from developers, adding to the overall valuation costs.
Are there any standard costs for due diligence, such as title searches or certificate checks, and how much are they?
Due diligence costs in Colombia typically include title searches at approximately 0.12% of the property value or fixed fees around COP 15,700 for basic registry checks.
| Due Diligence Service | Typical Cost | Purpose |
|---|---|---|
| Title Search Study | 0.12% of property value | Complete ownership history verification |
| Certificado de Libertad y Tradición | COP 15,700 per document | Current ownership and lien status |
| Paz y Salvo Tax Certificate | COP 25,000 - COP 50,000 | Property tax payment verification |
| Public Utilities Certificate | COP 30,000 - COP 75,000 | Utility payment status verification |
| Urban Planning Certificate | COP 40,000 - COP 100,000 | Zoning and construction compliance |
| Environmental Compliance | COP 50,000 - COP 150,000 | Environmental regulation compliance |
| Building Permits Review | COP 25,000 - COP 75,000 | Construction authorization verification |
A comprehensive due diligence package for a standard residential property typically costs between COP 200,000 to COP 500,000, depending on property complexity and location. Luxury properties or those with complicated ownership histories may require additional investigations, increasing costs to COP 1,000,000 or more.
Professional legal firms often bundle due diligence services into their overall fee structure, but standalone due diligence can be purchased separately. Foreign buyers should particularly focus on thorough title searches to avoid ownership disputes common in some Colombian regions.
What taxes apply at closing, like the 1% withholding tax on foreigners or other applicable local taxes?
The primary closing tax in Colombia is the 1% withholding tax (retención en la fuente) typically applied to foreign buyers or sellers, plus various municipal taxes that vary by location.
Foreign buyers face the 1% withholding tax calculated on the property's purchase price, which serves as a prepayment toward their annual Colombian tax obligations. This tax applies regardless of whether the foreigner has Colombian residency status. For a COP 500,000,000 property, this represents COP 5,000,000 in additional closing costs.
Municipal property taxes (Impuesto Predial) are calculated annually at rates between 0.3% to 3.3% of the property's cadastral value, though this is typically prorated at closing based on the ownership transition date. High-value properties in cities like Bogotá can face property tax rates up to 3.3%, while smaller municipalities might charge closer to 0.3%.
Some municipalities impose additional closing taxes including urban development fees, infrastructure contributions, and charity taxes. These can range from hundreds of thousands to several million COP, particularly in affluent neighborhoods of major cities.
Value-added tax (IVA) at 19% applies to new construction purchases but not to resale properties. This significant tax difference makes used properties more attractive to cost-conscious buyers.
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How are the notary and registration fees usually split between the buyer and seller in Colombia?
Notary and registration fees in Colombia are traditionally split equally between buyer and seller, with each party paying 50% of these costs.
This equal split applies to both the notary fee (typically 0.3% of property value) and the registration fee (usually 0.5% to 1% of property value). For a COP 500,000,000 property, if total notary and registration fees equal COP 4,000,000, each party pays COP 2,000,000.
However, Colombian real estate markets have evolved, and fee allocation has become increasingly negotiable. In competitive seller's markets, buyers might agree to cover all notary and registration costs to make their offers more attractive. Conversely, in buyer's markets, sellers sometimes absorb these costs to facilitate quicker sales.
The purchase agreement (promesa de compraventa) should clearly specify who pays each fee to avoid closing day disputes. International buyers working with developers often find that marketing materials advertise "buyer pays all closing costs," shifting the traditional arrangement.
Some regions maintain stronger customs regarding fee splits, while others have adopted more flexible approaches based on local market conditions and buyer-seller negotiations.
What additional bank or mortgage-related fees should be expected if financing is involved?
Bank and mortgage-related fees in Colombia typically add 0.5% to 2% of the loan amount to your total closing costs, varying significantly by lender and loan terms.
1. **Loan origination fees**: Most Colombian banks charge 0.5% to 1.5% of the loan amount as origination fees2. **Property appraisal costs**: Banks require independent appraisals costing COP 800,000 to COP 2,000,0003. **Credit life insurance**: Mandatory insurance typically costs 0.1% to 0.3% of the loan amount annually4. **Fire and earthquake insurance**: Property insurance ranges from 0.1% to 0.5% of the property value annually5. **Administrative processing fees**: Banks charge COP 200,000 to COP 500,000 for loan processing6. **Legal documentation fees**: Bank legal services cost COP 500,000 to COP 1,500,0007. **Mortgage registration costs**: Additional registry fees for mortgage liens cost COP 100,000 to COP 300,000For a COP 400,000,000 mortgage on a COP 500,000,000 property, total bank fees could range from COP 2,000,000 to COP 8,000,000. Colombian banks typically finance 60% to 80% of property value for foreign buyers, with stricter lending criteria than domestic buyers face.
Interest rates for foreign borrowers often exceed those for Colombian nationals by 2% to 4%, and banks may require larger down payments and additional guarantees. Some international banks operating in Colombia offer preferential rates for existing clients with substantial deposit relationships.
Are there costs for obtaining official certificates, such as the Certificado de Libertad y Tradición, and how much are they?
The Certificado de Libertad y Tradición costs approximately COP 15,700 per document and is mandatory for all Colombian property transactions.
This certificate provides complete ownership history, current liens, mortgages, and legal restrictions on the property. Most transactions require multiple copies: one for the buyer, one for the seller, one for the notary, and additional copies for mortgage lenders if financing is involved. Total certificate costs typically range from COP 47,100 to COP 78,500 for a standard transaction.
Additional official certificates required for property purchases include the Paz y Salvo certificate (tax clearance) costing COP 25,000 to COP 50,000, which proves all property taxes are current. Public utility clearance certificates cost COP 30,000 to COP 75,000 and confirm no outstanding utility debts.
Urban planning certificates verifying zoning compliance cost COP 40,000 to COP 100,000, while environmental compliance certificates range from COP 50,000 to COP 150,000. Building permit verification certificates cost COP 25,000 to COP 75,000 and ensure construction authorization compliance.
These certificates have limited validity periods, typically 30 to 90 days, so timing their acquisition properly is crucial to avoid paying duplicate fees. Professional legal services often include certificate procurement in their overall fee structure.
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 are the estimated costs for translations or apostilles if foreign documents are required?
Translation and apostille costs for foreign documents in Colombian property transactions typically total COP 36,000 per page for official translations, plus apostille fees varying by country of origin.
Foreign buyers must translate and apostille various documents including passports, bank statements, proof of income, marriage certificates, and power of attorney documents. A typical foreign buyer might need to translate 10 to 15 pages of documents, resulting in translation costs of COP 360,000 to COP 540,000.
Apostille fees depend on the issuing country but generally range from USD 10 to USD 50 per document in countries like the United States or European Union member states. For Colombian property purchases, common documents requiring apostilles include birth certificates, marriage certificates, and financial statements.
The translation must be performed by certified translators registered with the Colombian Ministry of Foreign Affairs. Some documents require both translation and notarization, adding COP 15,000 to COP 25,000 per document to the total cost.
Processing times for apostilles and translations can extend several weeks, so foreign buyers should begin this process early to avoid closing delays. Some Colombian law firms offer expedited services for additional fees.
Are there municipal or departmental charges specific to the property location, and what are the ranges?
Municipal and departmental charges in Colombia vary significantly by location, ranging from hundreds of thousands to several million COP depending on the property's value and specific municipality.
| City/Region | Typical Additional Charges | Estimated Range (COP) |
|---|---|---|
| Bogotá | Urban development, charity tax | 500,000 - 3,000,000 |
| Medellín | Infrastructure contribution | 300,000 - 2,000,000 |
| Cartagena | Historic preservation fee | 400,000 - 2,500,000 |
| Cali | Municipal development tax | 250,000 - 1,500,000 |
| Barranquilla | Coastal development fee | 200,000 - 1,200,000 |
| Smaller municipalities | Basic registration charges | 100,000 - 500,000 |
| Rural areas | Agricultural development fee | 50,000 - 300,000 |
Bogotá imposes some of Colombia's highest municipal charges, including urban development contributions that can reach 3% of property value for luxury properties in premium neighborhoods like Zona Rosa or Chapinero. The city also levies charity taxes on high-value real estate transactions.
Medellín charges infrastructure contribution fees based on property location and value, with El Poblado and Laureles neighborhoods facing higher rates. Cartagena's historic center properties incur preservation fees supporting colonial architecture maintenance.
Coastal cities like Cartagena and Barranquilla often impose additional environmental and coastal development fees. Some tourist zones have specific charges related to tourism infrastructure development.
It's something we develop in our Colombia property pack.
What is the typical total percentage of the property price that closing costs represent in Colombia?
Total closing costs in Colombia typically represent 2% to 5% of the property purchase price for most residential transactions, with foreign buyers often facing costs at the higher end of this range.
For a standard COP 500,000,000 property purchase, total closing costs range from COP 10,000,000 to COP 25,000,000. Properties under COP 200,000,000 might see closing costs closer to 2% to 3%, while luxury properties exceeding COP 1,000,000,000 can experience closing costs approaching or exceeding 5% of the purchase price.
Foreign buyers typically face higher total closing costs due to additional requirements including document translations, apostille fees, withholding taxes, and often premium legal services. International transactions commonly see closing costs of 4% to 6% of the property value.
New construction purchases incur IVA (value-added tax) at 19%, dramatically increasing total costs for properties from developers. This tax applies only to new construction and significantly favors resale property purchases from a cost perspective.
Geographic location significantly influences total closing costs, with major cities like Bogotá, Medellín, and Cartagena imposing higher fees and taxes compared to smaller municipalities or rural areas. Buyers should budget conservatively, particularly for their first Colombian property purchase, to account for unexpected charges that can arise during the closing process.
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 Colombian property closing costs is essential for successful real estate investment, as these fees can significantly impact your overall investment budget and returns.
As of September 2025, Colombian property markets continue to attract foreign investment, making comprehensive knowledge of closing costs crucial for international buyers navigating this growing market.
Sources
- Global Property Guide - Colombia Buying Guide
- MG Legal Group - Colombia Property Investment Guide 2025
- LCG Colombia - Buying Property in Colombia
- The LatinVestor - Bogotá Property Taxes and Fees
- Servicio Legal - Table of Lawyers Fees in Colombia 2024
- Nexo Legal - Buying Property in Colombia
- The LatinVestor - Medellín Property Taxes and Fees
- Servicio Legal - Title Study for Real Estate Purchase
- Sol Americana - FAQ
- The LatinVestor - Property Buying Process in Colombia