Buying property in Colombia as a foreigner offers great opportunities, but it also involves property taxes and procedures that, if not well understood, could end up costing you more than necessary.
In this updated 2025 guide, we explain which property taxes apply, how to comply with each of them, and how to avoid paying more than necessary—following current regulations and the guidelines set by official authorities.
Who Can Buy Real Estate in Colombia as a Foreigner?
In Colombia, there are no restrictions preventing foreigners from purchasing real estate.
The Civil Code (Article 1504) establishes that any adult may acquire real property in the country.
However, the purchase must follow Colombian legal procedures:
- A promissory purchase agreement (promesa de compraventa).
- Public deed before a notary.
- Registration with the Oficina de Instrumentos Públicos (Public Registry of Property).
- Legalization of foreign funds through the Banco de la República if the money comes from abroad.
- Tax declaration before the DIAN when applicable (for investment or income).
- Withholding tax payment when applicable.
Property Taxes When Buying and Owning 2025
1️⃣ Registration and Notary Tax
Every real estate purchase generates notarial fees and a registration tax.
- Notary: 0.54% of the property’s sale value.
- Registration: up to 2%, depending on the municipality or department.
On average, the buyer and seller share some costs 50/50, although, for example, registration is paid only by the buyer, while withholding tax is paid only by the seller.
Other costs to consider include notary fees, copies, and, when applicable, VAT.
2️⃣ Buying Property in Colombia Tax (Impuesto Predial)
This is an annual municipal tax paid by all property owners.
It is calculated based on the cadastral value, not the commercial value of the property.
Each municipality has the authority to set its own rate within the limits established by law, considering factors such as location, property use (residential or commercial), and socioeconomic classification (estratificación).
3️⃣ Stamp Tax (2025)
Starting in 2025, the Stamp Tax (Impuesto de Timbre) was reactivated for real estate transactions equal to or greater than 20,000 UVT (approximately COP $995 million).
- Rate: 1% of the total value of the transaction.
- Payment time: calculated and paid at the time of signing the public deed.
This tax applies to:
- Contracts, deeds, and other documents that create, modify, or extinguish an obligation with a value greater than 6,000 UVT (≈ COP $298,794,000 in 2025).
- Public deeds of sale of real estate with a value equal to or greater than 20,000 UVT (≈ COP $995,980,000 in 2025).
4️⃣ Withholding Tax
The withholding tax on the sale of real estate is a prepayment of the income tax applied when signing the public deed.
This payment corresponds exclusively to the seller, who must make the payment at the time of sale.
Therefore, when you buy a property in Colombia, the seller is responsible for carrying out this payment before the tax authority.
Keep in mind that if you decide to sell the property in the future, this obligation will be your responsibility as the new seller.
5️⃣ Income Tax (If You Generate Income in Colombia)
If you rent out your property, that income is considered Colombian-source income, even if you live abroad.
Non-tax residents are taxed only on income generated within Colombia.
Tax residents, on the other hand, must declare global income before the DIAN, including both domestic and foreign income.
Step-by-Step: How to Buy Without Overpaying
1️⃣ Legal Due Diligence
A title study is conducted based on public documents (Certificate of Ownership and Freedom, public deeds, etc.) to identify restrictions, liens, or any legal issues that could affect the validity, legality, or effectiveness of the property transfer.
2️⃣ Promissory Purchase Agreement
This document formalizes the conditions of the sale (price, dates, currency, payment method, and distribution of notarial expenses).
3️⃣ Legalization of Foreign Funds
Register the investment with the Banco de la República if the money comes from abroad. This step protects your rights to nationalize the capital or apply for an investor visa.
4️⃣ Deed and Registration
Sign the deed before a notary, pay the stamp tax (if applicable), and register the title. Only then do you become the legal owner.
5️⃣ Tax Declarations and Annual Obligations
Pay the property tax (Impuesto Predial) every year, and if you earn income from rent or from a sale, file your tax return before the DIAN.
Legal Strategies to Reduce Property Taxes
✅ Properly register your foreign investment: this helps you avoid penalties and ensures you can repatriate or nationalize your capital without double taxation.
- Conduct a thorough title study to prevent errors or corrections in the public deed or ownership certificate.
- Hire specialized legal advice to define the best strategy when acquiring the property—considering investment vehicles, trusts, or corporate structures.
- Prepare a tax projection according to your investment plan, property use, and business strategy.
Frequently Asked Questions
Do foreigners pay more Property taxes than Colombians?
No. They pay the same property taxes (registration, property, and stamp tax) as any Colombian buyer.
What happens if I don’t register my investment with the Banco de la República?
You could lose migration benefits (such as eligibility for an investor visa) and face difficulties repatriating your money or proving the source of funds before the DIAN. It may also carry penalties.
How do I declare my property if I am a non-resident?
You only need to declare the income or gains derived from the property in Colombia, not your global assets.
Can I deduct expenses or depreciation if I rent out my property?
Yes. Expenses related to maintenance, administration, and insurance can be partially deducted from your income tax return.
Conclusion
Buying property in Colombia as a foreigner is completely viable and profitable, but property taxes can become a headache if you don’t know the rules.
With proper planning and legal guidance, you can comply with the law, reduce your tax burden, and protect your investment.
📩 At Nexo Legal, we guide you step-by-step:
- We accurately calculate all the property taxes on your purchase.
- We legalize your investment before the Banco de la República.
- We help you avoid fines or overpayments due to tax or currency errors.
👉 Schedule your consultation today and discover how buying property in Colombia without overpaying or facing legal risks.
Your investment deserves security, clarity… and the best legal support.
Get started with a free case assessment
What will happen after you fill out this form?
After submitting the form, your case undergoes a comprehensive review by our team of specialist to assess its viability. Providing clear and concise information about your objectives accelerates this process.
Subsequently, a specialist will be assigned to your case, reaching out to you within a day to clear up details about your case and outline the next steps to help you achieve your goals.
Get started with a free case assessment
What will happen after you fill out this form?
After submitting the form, your case undergoes a comprehensive review by our team of specialist to assess its viability. Providing clear and concise information about your objectives accelerates this process.
Subsequently, a specialist will be assigned to your case, reaching out to you within a day to clear up details about your case and outline the next steps to help you achieve your goals.