Santa Marta: property buying guide (Sept 2025)

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 Santa Marta. 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 Santa Marta, Cartagena, and Medellín. 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 Santa Marta?

Foreigners can legally buy property in Santa Marta with no restrictions on the type or location of property they purchase.

You do not need residency, a visa, or any special permits to purchase real estate in Santa Marta. Colombian law grants foreigners the same property rights as locals, including the right to hold full title in your own name for apartments, homes, land, beachfront properties, and commercial real estate.

The only restrictions apply to properties located in border areas or protected ecological zones, which are rare and clearly identified during the due diligence process. These restrictions are minimal and do not affect the vast majority of properties available in Santa Marta's main residential and tourist areas.

As of September 2025, foreign property ownership in Colombia remains one of the most open and straightforward systems in Latin America, with no caps on foreign ownership percentages or requirements for local partnerships.

Is buying property in Santa Marta a path to residency or citizenship?

Yes, purchasing property in Santa Marta can be a direct path to Colombian residency through the Real Estate Investment Visa program.

The Migrant (M) Real Estate Investment Visa requires a minimum investment of COP 290-459 million (approximately $73,000-$100,000 USD as of September 2025, depending on exchange rates). Your property must be registered in your name and the funds must be declared as foreign direct investment to Banco de la República (Colombia's Central Bank).

This visa is valid for three years and is renewable. After holding this visa for five years, you may apply for permanent residency, provided you retain the property and meet minimum stay requirements in Colombia. Permanent residents can eventually apply for Colombian citizenship after an additional five years.

The investment must remain active throughout the visa period, and you cannot sell the property without potentially affecting your residency status until you achieve permanent residency.

Where do foreigners buy the most in Santa Marta and what properties are popular?

Foreign buyers concentrate their purchases in three main areas of Santa Marta, each offering distinct advantages for investment and lifestyle.

El Rodadero remains the top choice for foreign investors, functioning as Santa Marta's primary tourist hub with high rental yields and stable property appreciation. This area offers modern beachfront condos with sea views and contemporary amenities that appeal to international buyers seeking both personal use and rental income potential.

Bello Horizonte attracts buyers seeking luxury beachfront properties, featuring resort-style condominiums with premium facilities and services. Pozos Colorados caters to those wanting more exclusive, upscale vacation homes in a quieter, residential setting.

Most foreigners choose beachfront condos, new-build apartments, and vacation homes specifically designed for short-term rental income and long-term appreciation. There's growing demand for eco-friendly and sustainable projects, driven by digital nomads and environmentally conscious international tourists.

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

What is the step-by-step process for purchasing property in Santa Marta?

The property buying process in Santa Marta follows a structured eight-step procedure designed to protect both buyers and sellers.

1. **Research and View Properties**: Work with reputable agencies verified through Colombia's Lonja de Propiedad Raíz (Property Exchange) to ensure professional credentials.2. **Submit Formal Offer**: Present a written offer including contingencies for financing, property inspection, and title verification.3. **Conduct Due Diligence**: Your lawyer performs mandatory checks on property titles, outstanding taxes, liens, and zoning restrictions.4. **Sign Promesa de Compraventa**: Execute the legally binding purchase promise contract, typically requiring a 10-20% deposit.5. **Arrange Financing** (if needed): Most buyers pay cash, but mortgage options exist for qualified foreign buyers.6. **Complete Official Sale at Notary**: Both parties sign the deed, transfer funds, and the notary registers the property transaction.7. **Transfer and Register Ownership**: Property registration in your name finalizes the legal transfer.8. **Post-Sale Setup**: Register for property taxes, utilities, and community administration if purchasing in a condominium or gated complex.

Which steps in the buying process are mandatory versus optional?

Three steps are legally mandatory in the Santa Marta property buying process, while several others are optional but strongly recommended.

**Mandatory steps include**: due diligence and title search (required by law to verify clear ownership), signing the purchase contract (Promesa de Compraventa), and notarizing and registering the deed with Colombian authorities. These steps cannot be skipped without invalidating the transaction.

**Optional but recommended steps include**: professional property inspection to identify structural or maintenance issues, using a qualified real estate lawyer or agent (though not required by law), and the financing step if you're not paying cash.

The property inspection, while optional, can save significant money by identifying problems before finalizing the purchase. Legal representation, though not mandatory, is highly advisable given the complexity of Colombian real estate law and the importance of proper due diligence.

What documents do you need to provide when buying property in Santa Marta?

The document requirements for purchasing property in Santa Marta are straightforward but must be complete and properly authenticated.

**Essential documents include**: a valid passport, Colombian Tax ID (NIT or cedula de extranjería) needed for registration and tax purposes, and proof of funds or investment origin for large transactions. You'll also need the Promesa de Compraventa (purchase promise contract), public deed/title certificate, and current receipts for property taxes and utilities.

**Additional documents may include**: appraisal documents if obtaining a mortgage, and registration confirmation with Banco de la República if you're seeking residency through your property investment. For visa purposes, you must demonstrate that your investment funds came from abroad and were properly declared.

All foreign documents must be apostilled and translated into Spanish by a certified translator. The Colombian Tax ID can be obtained at any DIAN (tax authority) office with your passport and proof of address.

Can you complete the entire purchase process without being in Colombia?

Yes, you can complete the entire property purchase process remotely without physically traveling to Colombia.

This is accomplished through a properly executed power of attorney that allows a trusted lawyer or agent to sign documents and register the deed on your behalf. The power of attorney must be notarized at a Colombian consulate in your home country or properly apostilled if notarized locally.

All legal procedures, tax registrations, and bank transactions can be managed online or through Colombian consulates. Your representative can handle the final closing, deed registration, and property transfer while you remain in your home country.

However, it's crucial to work with a reputable, licensed attorney or real estate professional who can properly represent your interests. Many buyers choose to visit Santa Marta to view properties initially but complete the legal process remotely after making their selection.

What are the typical taxes, legal fees, and costs involved in buying property?

The total transaction costs for buying property in Santa Marta typically range from 3-5% of the property's purchase price.

Cost Category	Percentage	Description
Notary Fees & Registration	1.5-3%	Official deed processing and government registration
Legal Fees	1-2%	Attorney fees for due diligence and transaction management
Property Tax (Annual)	Varies	Based on cadastral value, typically low compared to other countries
Capital Gains Tax	Variable	Only applies when selling for profit, not on purchase
Administration Fees	Monthly	For condominiums and gated communities

Additional costs may include property inspection fees, translation and document authentication costs, and banking fees for international transfers. These transaction costs are generally lower than many other international real estate markets.

Can you buy property in cash, and are there reporting obligations?

Cash payments are not only possible but are the most common method for property purchases in Santa Marta.

Large cash transfers must be registered with Banco de la República to comply with Colombia's anti-money laundering regulations. Any transaction above approximately $10,000 USD requires proof of the source of funds, and Colombian banks and notaries will request documentation demonstrating legitimate fund origins.

If you're purchasing property to qualify for residency, your funds must be specifically declared as foreign direct investment when they enter Colombia. This declaration is crucial for visa applications and must be completed through authorized financial institutions.

The process is straightforward: wire transfer funds to a Colombian bank account, provide source documentation to the bank, receive confirmation of the foreign investment registration, and proceed with your property purchase using these properly documented funds.

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.

Is mortgage financing available to foreigners in Santa Marta?

Mortgage financing is available to foreigners in Santa Marta, but the requirements are stringent and most international buyers prefer cash purchases.

Colombian banks typically require foreign borrowers to have residency status and demonstrate stable local income or substantial international income with proper documentation. Down payments range from 30-50% of the property value, and interest rates currently range from 9-14%, usually in Colombian pesos.

**Tips for obtaining financing**: establish a Colombian credit history by opening local bank accounts and using credit cards, provide extensive income documentation from both local and international sources, work with mortgage brokers who specialize in foreign buyer financing, and consider financing in your home country if possible.

The mortgage approval process can take 60-90 days, and banks may require additional guarantees or co-signers. Given these challenges, approximately 80% of foreign buyers in Santa Marta choose to purchase properties outright with cash.

What are the most common mistakes foreigners make when buying property?

Foreign buyers in Santa Marta typically encounter seven major pitfalls that can be easily avoided with proper preparation.

The most serious mistake is skipping due diligence, including title verification, tax status checks, and zoning confirmations. Many buyers also fail to use qualified legal representation, assuming the process is simpler than it actually is.

Currency exchange risks represent another significant concern, as buyers often don't account for peso fluctuations between initial deposit and final payment. Many underestimate total costs by focusing only on the purchase price while ignoring notary fees, taxes, and ongoing expenses.

Location mistakes include buying in underperforming neighborhoods without researching rental demand or resale potential. Administrative errors include failing to properly register the property or not verifying building permits and condominium regulations.

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

What are current prices, rental yields, and market forecasts for Santa Marta?

Santa Marta's property market as of September 2025 shows strong fundamentals with attractive investment potential for both short-term and long-term strategies.

**Current pricing**: Beachfront condominiums average approximately $1,826 per square meter, while sea-view apartments in El Rodadero range from COP 5-12 million per square meter depending on specific location, amenities, and condition.

**Rental yields**: Short-term vacation rentals generate approximately $80 per day with average occupancy rates of 41%, while long-term rentals provide annual yields of 8-12%. The rental market benefits from Santa Marta's year-round tourist season and growing digital nomad population.

**Market forecast**: Property values have increased 59% over the past three years, with moderate continued growth expected. Rental demand is projected to increase by 8% annually, particularly for eco-friendly and sustainable properties that appeal to environmentally conscious travelers.

**Expat lifestyle**: Santa Marta offers an affordable cost of living averaging $837 per month for a single person, a vibrant international community, reliable healthcare, and easy access to Caribbean beaches and cultural attractions.

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. Santa Marta Property Guide
2. Colombia Law Connection - Buying Property Guide
3. Wise - Buying Property in Colombia
4. Colombia Real Estate for Foreigners
5. Global Property Guide - Colombia
6. Arab MLS - Foreign Property Ownership Colombia
7. Jerico Colombia Real Estate - Residency Guide
8. CitizenX - Colombia Citizenship by Investment
9. Sobrenatural Inmobiliaria - Best Santa Marta Neighborhoods
10. Santa Marta Real Estate Market Analysis