Investing in Real Estate in Colombia: A Guide for Foreign Investors
Colombia is becoming an increasingly popular destination for foreigners looking to invest in real estate. With its tropical climate, diverse landscape, and welcoming culture, it is no wonder that many investors are interested in buying properties here. If you are one of these individuals, it is important to understand the process of buying real estate in Colombia. In this guide, we will walk you through the process.
Step 1: Find a property.
Before you begin the process of buying real estate in Colombia, it is important to do your research. This will help you understand the market and ensure that you find a property that meets your needs. You can start by browsing online real estate portals or by contacting a local real estate agent. Be sure to take the time to visit the properties you are interested in.
Step 2: Conduct Due Diligence before buying the property.
It is important to conduct due diligence on the property to understand the nature of the deal, the risk involved, and whether the deal fits your needs. This may include reviewing the property's title history and ensuring that all taxes and fees are up to date.
Step 3: Make an offer and sign a promise to purchase agreement.
Once you have found a property that you are interested in and the due diligence is conducted, it is time to make an offer and sign a promise to purchase agreement at the notary. This document outlines the terms of the sale, including the purchase price, payment schedule, and any conditions that must be met before signing the public deed. Please note that it may include large penalties associated with non-compliance (10 – 20% of the purchase price).
Step 4: Pay the Deposit.
After the promise to purchase agreement is signed, you may be required to pay a deposit, which depends on the terms established in the promise to purchase agreement. This is typically around 10% of the purchase price and serves as a guarantee that you are serious about buying the property. Before the Colombian Republic Bank the purchase of property located in Colombia by foreigners is considered a international investment, therefore it is recommended to channelize the funds through a bank as a foreign investment and not pay in cash. You can wire the money directly from your bank account in your country, and a lawyer can assist you with the process of channelization.
Step 5: Sign the public deed and register the public deed before the Land Registry Office.
Finally, you will need to sign the public deed at a notary's office and pay the remaining balance of the purchase price. At this time, you will also be responsible for paying notary and registration fees, as well as the registration tax. These fees are typically split between the buyer and seller and paid individually.
Please do not forget to sign and register the public deed before the Land Registry Office since this will be the final step to become a legal owner in Colombia.
In conclusion, purchasing real estate in Colombia can be a straightforward process if you do your research, hire a real estate lawyer, and follow the necessary steps. By taking the time to understand the process, you can make your dream of owning property in Colombia a reality.