Do you love Colombia?
If so, it makes sense that you may want to purchase property there, so you have a familiar place to return to when you go on vacation in this beautiful country. Of course, you could also use this property as an investment or simply rent it out to others when you’re not using it for some extra capital.
Whatever the case, before you spend a penny, make sure you read the following so you understand how to buy real estate in Colombia.
Finding the Right Location
For those of you who have been back to Colombia many times and look forward to vacationing there again and again in the future, you probably already know where you want to buy your new home.
On the other hand, if you’re more interested in owning a property that you can rent out as an investment, you’ll want to do a bit more research. Obviously, popular cities like Medellin will bring you plenty of renters, but the price for a property there is also going to be much higher than you’d find elsewhere.
If money is no object, that’s not a problem, but you may want to look into cities that aren’t as popular but still see plenty of tourists every year. You’ll spend a lot less on buying the place, yet won’t have to worry about keeping it occupied.
How to Actually Buy Real Estate in Columbia
The above will take as much or as little effort as you decide. It’s a very subjective process picking out the perfect property for your unique needs.
However, when it comes time to actually buy a property, here are the objective steps you are going to need to take in Columbia:
- Obtain a Certificado de Tradición that outlines the history of the property. You can get this at the Registry Office for about $3 USD.
- Hire a lawyer to go over the property titles. This shouldn’t take more than a week to do and will cost around $450 USD.
- Get both the Paz y Salvo Predial and Paz y Salvo de Valorizacion as these will verify that all the municipal taxes for the property have been paid.
- After that, a Minuta – preliminary deed – will be prepared by your lawyer.
- You’ll then need a notary to prepare the public deed. This will cost you 0.25% of the property value plus 1% of the value of the sale from the seller as an advance payment to be used for the income tax.
- The public deed has to be registered with the Registry Office. After registration and the payment of the registry tax, the new public deed will be sent to the Office of the Cadastre to carry out the official transfer of ownership.
Before you can do any of this, though, you’ll need a Colombian bank account open for at least six months. During that time, start networking with locals who can help you get a mortgage.
Overall, as you can see, the entire process is a pretty simple one. While it will take time, you can definitely own real estate in Colombia.