Can foreigners buy land 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, Argentina, 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.

What types of land can foreigners legally purchase in Colombia?

Foreigners can legally purchase residential, commercial, agricultural, and vacant land in Colombia with the same property rights as Colombian citizens.

The Colombian government actively encourages foreign investment in real estate and places no restrictions on the amount of land a foreigner can own. This includes urban residential lots for building homes, commercial properties for business purposes, agricultural land for farming operations, and undeveloped land for future development projects.

Foreign buyers receive full ownership rights, including the ability to sell, rent, mortgage, or transfer the property without additional restrictions. The legal framework treats foreign and domestic buyers equally in terms of property ownership rights and protections under Colombian law.

As of June 2025, this policy remains unchanged and continues to attract international investors seeking to establish a presence in Colombia's growing real estate market.

Are there specific areas where foreigners cannot buy land in Colombia?

Yes, foreigners cannot purchase land in officially recognized indigenous territories, certain border zones, and specific protected areas.

Indigenous lands that are officially recognized as ancestral territories or part of indigenous reservations are completely off-limits to foreign buyers. The Colombian government has issued specific decrees to protect indigenous peoples' ownership of their traditional lands, and any attempts to purchase such properties would be legally invalid.

Border zones near Colombia's frontiers with Venezuela, Brazil, Peru, Ecuador, and Panama may have restrictions due to national security considerations. Additionally, certain protected environmental areas, national parks, and zones designated for ecological preservation may prohibit foreign ownership or require special permits.

Coastal areas are generally available for foreign purchase unless they fall within protected zones or indigenous territories. It's essential to conduct proper due diligence to verify that your target property doesn't fall under these restricted categories.

What is the complete step-by-step process for foreigners to buy land in Colombia?

The land buying process in Colombia involves seven essential steps from initial search to final registration.

Start by identifying suitable properties through local real estate agents or online platforms, then conduct thorough due diligence by obtaining a "Certificado de Tradición y Libertad" (title certificate) to verify the property is free of liens, disputes, or illegal constructions. This document reveals the complete ownership history and any encumbrances on the property.

Next, negotiate terms and sign a "Promesa de Compraventa" (purchase agreement), which is a legally binding contract outlining the sale conditions. Transfer funds to the seller while ensuring proper currency registration if you plan to apply for an investment visa later.

The final steps involve signing the "Escritura Pública" (public deed) before a notary to formalize the transaction, registering the property in your name at the local public registry office, and obtaining a Colombian Tax ID (NIT) for ongoing tax obligations.

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

Can I purchase land in Colombia without being physically present in the country?

Yes, you can buy land in Colombia remotely by granting power of attorney to a trusted representative.

This process requires appointing a reliable attorney or representative who can handle negotiations, contract signing, and property registration on your behalf. The power of attorney document must be properly notarized and, in some cases, authenticated by Colombian consular authorities in your home country.

Your representative will need authority to conduct due diligence, negotiate purchase terms, sign contracts, make payments, and complete the final registration process. This approach is commonly used by foreign investors who cannot travel to Colombia during the buying process.

However, being physically present offers advantages such as personally inspecting the property, meeting with local professionals, and better understanding the local market conditions before making your investment decision.

What documentation do foreign buyers need to legally purchase land in Colombia?

Foreign buyers need a valid passport, Colombian Tax ID (NIT), title certificate, purchase agreement, and public deed to complete a land purchase.

Your valid passport serves as primary identification, while the Colombian Tax ID (NIT) is required for all property transactions and ongoing tax obligations. You can obtain the NIT from DIAN (Colombian tax authority) offices or authorized banks.

The "Certificado de Tradición y Libertad" (title certificate) proves the property's legal status and ownership history. The "Promesa de Compraventa" (purchase agreement) establishes the binding contract terms, while the "Escritura Pública" (public deed) finalizes the legal transfer of ownership.

Additional documents may include proof of legal status in Colombia (if applicable), commercial property appraisal, proof of property tax payments, and documentation of the title search. All documents must be properly notarized and some may require translation into Spanish by certified translators.

What are the total costs and taxes involved in purchasing land as a foreigner?

Foreign land buyers should budget 4% to 8% of the property value for taxes, fees, and additional costs beyond the purchase price.

Cost Type	Percentage Range	Description
Property Transfer Tax	0.5% - 3%	Varies by municipality
Municipal Tax	Around 1%	Local government fee
Notary Fees	0.15% - 2%	Document certification costs
Legal Fees	0.5% - 1%	Attorney representation
Real Estate Agent Fees	3% - 5%	Usually paid by seller
Annual Property Tax	0.3% - 3%	Ongoing yearly obligation
Capital Gains Tax	10% - 33%	Applied when selling for profit

Hidden costs can include penalties for unpermitted constructions, unresolved inheritance claims, or undisclosed liens that emerge during due diligence. These issues can result in significant additional expenses or legal complications.

Is paying cash for land purchases common and recommended in Colombia?

Cash payments are common and legal for land purchases in Colombia, but bank transfers are recommended for large transactions.

Many Colombian real estate transactions are conducted in cash, particularly for smaller properties or in rural areas where banking infrastructure may be limited. Cash payments offer simplicity and can sometimes provide negotiating leverage with sellers.

However, for substantial investments, bank transfers provide better documentation and transparency, especially if you plan to apply for an investment visa later. Proper financial documentation helps establish the legitimate source of funds and supports future residency applications.

Large cash transactions may also trigger additional scrutiny from financial authorities, so maintaining clear records of fund sources and transfers is essential for compliance with anti-money laundering regulations.

What financing options are available to foreign land buyers in Colombia?

Foreign buyers can access mortgages from Colombian banks, international lenders, and developer financing programs.

Colombian banks including Bancolombia, Davivienda, and Banco de Bogotá offer mortgages to foreigners, typically requiring 30% to 50% down payments, proof of income, and sometimes visa or residency status. Interest rates are generally higher than those in the US or Europe, making it important to compare multiple offers.

International lenders specializing in foreign buyer mortgages provide another option, often with more flexible requirements but potentially higher rates. Some property developers offer direct financing arrangements, particularly for new construction projects or planned communities.

Financing terms vary significantly based on your residency status, income verification, property type, and relationship with the lending institution. Having a Colombian bank account and established credit history can improve your financing options and rates.

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.

How do foreigners typically use purchased land in Colombia?

Foreigners primarily use Colombian land for building homes, investment properties, tourism ventures, and limited agricultural projects.

Residential development represents the most common use, with foreign buyers constructing primary residences, vacation homes, or retirement properties in popular expat destinations. Investment-focused purchases often target land suitable for rental properties or future resale as the market appreciates.

Tourism and hospitality ventures including hotels, eco-lodges, and vacation rental developments attract foreign investors seeking to capitalize on Colombia's growing tourism sector. These projects often focus on coastal areas, coffee regions, and culturally significant destinations.

Agricultural uses are less common due to restrictions on certain agricultural lands and the complexity of farming operations for foreign investors. However, some buyers do pursue coffee plantation investments or sustainable agriculture projects in permitted areas.

What are the most common mistakes foreign buyers make when purchasing Colombian land?

The most frequent mistakes include skipping due diligence, buying properties with illegal constructions, relying on verbal agreements, and failing to comply with tax obligations.

1. **Inadequate due diligence:** Not checking for liens, disputes, or ownership issues through proper title searches2. **Unpermitted constructions:** Purchasing properties with illegal additions that can result in fines or demolition orders3. **Verbal agreements:** Relying on handshake deals instead of written, notarized contracts4. **Currency registration failures:** Not properly documenting fund sources for future visa applications5. **Tax non-compliance:** Failing to pay property taxes or capital gains taxes leading to penalties

These mistakes can result in financial losses, legal complications, or inability to obtain proper title to the property. Working with experienced local attorneys and conducting thorough due diligence helps avoid these common pitfalls.

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

Which regions of Colombia are most popular among foreign land buyers?

Bogotá, Medellín, Cartagena, Santa Marta, and the Coffee Region represent the most sought-after areas for foreign land investment.

Bogotá attracts investors seeking stable urban investments and business opportunities in Colombia's capital and largest economic center. The city offers consistent rental demand and property appreciation potential, though prices are generally higher than other regions.

Medellín appeals to foreign buyers with its vibrant culture, growing economy, pleasant climate, and established expat community. The city's transformation and improved infrastructure make it attractive for both residential and investment purposes.

Cartagena and Santa Marta draw tourists and investors interested in coastal properties, vacation rentals, and tourism-related developments. These cities offer historic charm, beaches, and strong rental income potential from tourism.

The Coffee Region, including areas around Manizales, Armenia, and Pereira, attracts buyers seeking scenic beauty, cultural experiences, and more affordable property prices compared to major cities.

Does purchasing land in Colombia provide a path to residency or citizenship?

Yes, buying property worth approximately $113,000 USD or more qualifies foreign investors for a Colombian investment visa leading to residency.

The Migrant (Type M) Investment Visa requires property purchases valued at 350 minimum monthly legal wages, which equals roughly $113,000 to $120,000 USD as of June 2025. This visa provides temporary residency status and can be renewed as long as you maintain the investment.

After holding the Migrant Visa for 5 years and meeting residency requirements such as spending at least 180 days per year in Colombia, you can apply for permanent residency. The permanent residency status provides greater stability and fewer renewal requirements.

Citizenship becomes possible after 5 years as a permanent resident, making the total timeline approximately 10 years for most investors. Colombia does not offer direct citizenship-by-investment programs, so the path requires gradual integration and compliance with residency obligations.

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. Colombia Legal - Legal Considerations for Foreigners
2. The Latin Investor - Colombia Real Estate for Foreigners
3. Colombia Law Connection - Buying Property Guide
4. Wise - Buying Property in Colombia
5. Gutierrez Group - Real Estate Law for Foreigners
6. Rights and Resources - Indigenous Territory Protection
7. Jardin Colombia Real Estate - Buying Process Guide
8. Expats Realty - Common Mistakes Guide