Frequenlty Asked Questions

  • Can I get local bank financing?
  • As a foreign citizen, do I have any restrictions to buy, sell or own property in Colombia?
  • How do I make the payment, if I have the money outside of Colombia?
  • What are the closing costs?
  • How much would this apartment make in rentals?
  • How much are the annual property taxes?
If you are a foreign citizen: no. If you are a Colombian citizen and you live abroad you could get financing for the purchase of your property here.
None. The Law and the Colombian state protects private property regardless of the nationality of the owner. Formal notarial procedures can be done with your passport. The ownership is complete without any restrictions.

In Mexico, there is a restriction that foreign citizens cannot own property fronting the sea. In the United Kingdom there is a time constraint. In Colombia there are none of these restrictions, you own 100% fee simple until you decide to sell.

It is done through an international wire transfer in dollars to a bank account in Colombia. Once the deal is agreed, it is detailed in writing in a purchase contract of mandatory execution, this document legally supports the buyer and guarantees its purchase. In order to send money for the first time, the recipient bank will carry out a compliance check and will require all the financial information necessary from the buyer to prove that their money is obtained from lawful activities. Upon receiving the wire, the recipient Bank issues a document with the exchange rate applied and the pesos yielded, this eliminates any risk of discrepancy in the figures.
The buyer pays 3.1% of the transaction value including notary and recording fees. On the day of closing the buyer pays 0.4% at the notary and after two days when they release the deed, 2.7% is paid at the recording office. The selling owner pays 1.4% at the time of closing, this includes notary fees and tax witheld.
When a vacation rental history is not documented, you can expect a gain of 6% average annual return on investment, based on information given by my fellow rental agents. When it is a fixed residential lease, the return rate is lower: about 4% per year.
The properties pay the municipality 0.71% of the assesed vaue. In Cartagena, this tax is paid in advance before the last day of February with discounts up to 20% offered as an incentive.