Colombia’s booming real estate market, low prices, and foreigner-friendly laws make it one of the best places to invest abroad. But buying property here isn’t as simple as back home—if you don’t follow the right steps, you could lose money or get scammed.
After helping dozens of expats secure homes in Medellín, Bogotá, and Cartagena, here’s your no-BS 2024 guide to buying property in Colombia safely and smartly.
Can Foreigners Buy Property in Colombia?
✅ Yes! Colombia has no restrictions on foreigners buying real estate.
✅ You don’t need residency or even a visa.
✅ You can own 100% of the property (no local partner required).
Only exception: Properties near borders or coastlines (special permits may apply).
Step 1: Choose Your Location Wisely
Not all Colombian cities are equal for investment. Here’s the breakdown:
| City | Avg. Price (USD/sq.m) | Best For |
|---|---|---|
| Medellín | $1,500 - $3,500 | Expats, digital nomads, rental income |
| Bogotá | $1,800 - $4,000 | Long-term stability, business hubs |
| Cartagena | $2,000 - $6,000 | Vacation rentals, luxury buyers |
| Cali | $800 - $2,000 | Budget investors, local market |
Best ROI Right Now: Medellín (El Poblado, Laureles) and Cartagena (Bocagrande).
Step 2: Get Your Finances in Order
Colombia is cash-heavy, but financing options exist:
Option 1: Pay in Cash (Best for Foreigners)
- No mortgage headaches.
- Faster transactions (30-60 days).
- Tip: Use a currency exchange service (not banks) for better rates.
Option 2: Get a Colombian Mortgage (Hard but Possible)
- Requires local credit history (or a Colombian co-signer).
- Interest rates: 8-12% (higher than the US/EU).
- Better alternative: Get a loan in your home country and buy outright.
Step 3: Find a Property (Without Getting Scammed)
Where to Look:
- Local Agencies: Remax, Century 21 (avoid random "independent" agents).
- Online Portals: Fincaraíz, Metrocuadrado.
- Facebook Groups: "Real Estate Medellín Expats" (but verify listings).
Red Flags to Avoid:
❌ Too-good-to-be-true deals (common scam).
❌ Unlicensed agents (ask for their RUT number).
❌ No proper paperwork (always verify titles).
Step 4: Make an Offer & Sign the Promesa de Compraventa
- Negotiate the price (5-15% discounts are common).
- Sign a "Promesa de Compraventa" (reservation contract, 10% deposit).
- Hire a lawyer (~$500-$1,500) to review everything.
Key Tip: Never skip the due diligence (check liens, debts, and legal status).
Step 5: Close the Deal (Escrow & Notary)
- Open a Colombian bank account (Bancolombia, Davivienda).
- Transfer funds via escrow (never pay sellers directly).
- Sign at a notary (final deed, "Escritura Pública").
- Pay taxes & fees (3.5-5% of property value).
Full Closing Costs: ~6-8% of property value (taxes, notary, lawyer).
Step 6: Protect Your Investment
✅ Get property insurance (earthquakes, theft).
✅ Hire a management company (if renting out).
✅ Renew your tourist visa (or get a residency visa if staying long-term).
Best Strategy for Foreign Investors
- Short-Term: Buy in Medellín (El Poblado) for Airbnb rentals (~8-12% ROI).
- Long-Term: Buy in Bogotá (Chapinero) for steady appreciation.
- Luxury: Cartagena beachfront properties (high-end tourism).
Final Warning: Don’t Skip These Steps!
🚨 Never buy without a lawyer.
🚨 Always verify the property title (Consulta de Predial).
🚨 Avoid "informal" sellers (only deal with registered agencies).
Need Help? We Partner with Trusted Agents
Avoid the scams—we work with vetted real estate lawyers and agents in Medellín, Bogotá, and Cartagena.