Legal support for buying property in Colombia
We ensure a risk-free process for buying property in Colombia
Make your purchase with confidence and enjoy the peace of mind knowing that your investment when buying property in Colombia is fully protected throughout the entire process.
What is legal support for property purchases in Colombia?
Legal support for purchasing property in Colombia is designed to ensure that every stage of the acquisition process is carried out safely and in compliance with all applicable regulations.Â
Our team, led by real estate attorneys, conducts a thorough analysis of the property’s legal status and the transaction’s legality, ensuring there are no risks or liens that could jeopardize your investment.
From verifying property ownership and reviewing titles to assisting with negotiations, drafting contracts, and registering the property, we are with you every step of the way.
We protect your interests and provide the confidence of a smooth, trouble-free purchase process. Additionally, we conduct SARLAFT checks to ensure that the parties involved in the transaction have no legal background that could pose a risk to you when buying property in Colombia.
In Colombia, one of the main risks when buying property in Colombia is the possibility that the seller may be involved in illicit activities, such as money laundering. If you buy a property from someone with such a background, the property could become the subject of a future investigation and, in the worst-case scenario, face an asset forfeiture process, putting your investment at risk.
Additionally, legal issues related to the property, such as encumbrances or unresolved disputes, can complicate the transfer of ownership or affect the property’s value. Without a well-drafted, solid contract, you could face unexpected legal challenges that impact your interests.
Our team works alongside you to anticipate these risks by conducting the necessary checks and safeguarding your interests throughout the entire process of buying property in Colombia.
How does legal support for property purchases in Colombia protect your investment?
With our legal support, your investment is safeguarded at all times. We ensure that every stage of the process when buying property in colombia is legally protected, providing you with peace of mind and preventing legal issues before they can impact your investment.
Protection of your investment:
When buying property in Colombia, we ensure the property is free from legal risks, avoiding complications that could affect the value of your investment or hinder the transfer of ownership.
Continuous legal support:
We protect your interests at every stage of the process of buying property in Colombia, from title review to obtaining and registering the public deed.
Verification and legal security:
We conduct a thorough analysis of the property and the parties involved, including SARLAFT checks, to ensure the transaction is completely secure when buying property in Colombia.
Negotiation and solid contracts:
We draft purchase agreements that protect your interests, establishing clear and fair conditions for all parties involved.
Peace of mind in your purchase:
We provide the legal security you need for buying property in Colombia with confidence, minimizing unexpected legal issues and ensuring a smooth process.
Our process
Step 1: Title and SARLAFT studies
We begin by gathering all the necessary documentation, conducting a thorough review of property titles, and performing SARLAFT checks to ensure there are no legal risks or prior issues that could affect the transaction.
Step 2: Signing the purchase agreement and initial payment
Once the legal verification is completed, we proceed with the signing of the purchase agreement (Promesa de Compraventa), where the terms of the transaction are formally established. Subsequently, the initial payment is made as agreed upon by the parties.
STEP 3: Signing of transfer deeds and final payment settlement
At this stage, the deed transfer is signed at the notary’s office, and the final payment is made, legally completing the transaction.
Step 4: Obtaining the public deed
Finally, we manage the process of obtaining the public deed and its registration, ensuring that the property is officially transferred to your name and is legally protected when buying property in Colombia.
What does the legal support for property purchases in Colombia include?
Identification of owners and possessors
Review of encumbrances and restrictions
Title and background study of the property
SARLAFT checks and legal background verification of the parties involved
Support on negotiation and contract drafting
Support during notarization and public registration
Assistance in the handover of the property
Do you have questions about Legal Support for Property Purchases in Colombia? We have the answers
Yes, a foreigner can buy property in Colombia using their passport. A visa is not required to purchase real estate, but having expert guidance when buying property in Colombia can ensure the process is secure and complies with local regulations.
As a property owner, you must meet several obligations, including:
- Payment of property tax (Impuesto Predial).
- Payment of administration fees (for horizontal property).
- Compliance with community rules and Law 1801.
- Proper use of the property according to urban planning regulations.
- Payment of utilities.
- Property insurance (recommended).
As a buyer, you are not responsible for paying the real estate agent’s commission; this responsibility typically falls on the seller and is usually 3%. However, you must consider the following notarial costs as the buyer:
- Notary fees: 0.29% of the total property value.
- Registration fees: 0.98% of the total property value.
- Charity tax: 0.6% of the total property value.
- Document authentication (e.g., purchase agreement, powers of attorney, certificates): Approximately COP 200,000.
These costs may vary depending on the property’s value and characteristics.Â
In Colombia, most apartments cannot be rented on a daily basis unless explicitly authorized by the horizontal property regulations and land use.
Generally, properties in horizontal property settings require a minimum rental period of one month. When buying property in Colombia, it is essential to verify these regulations to avoid potential legal issues.
If the funds used to purchase a property in Colombia originate from abroad, it is essential to bring them into the country properly, filing the required exchange forms with the Banco de la RepĂşblica for proper nationalization. Failure to comply can result in complications when transferring money out of the country. Proper planning when buying property in Colombia ensures that all financial processes are in order.
No, Escrow services (an intermediary account to hold funds until both parties meet their obligations) are not available in Colombia. For this reason, it is vital to have proper legal support to coordinate the purchase, payments, and terms of the transaction, ensuring your resources are protected when buying property in Colombia.
There are various ways to protect your property and assets, depending on your personal situation. Factors such as whether you have children, are married, or your plans for your assets can influence the best protection strategies. When buying property in Colombia, creating a tailored action plan can safeguard your assets and ensure your peace of mind.
Capital gains tax is the profit you earn when selling an asset at a price higher than its acquisition or fiscal value. In Colombia, this income is subject to taxation. If you sell a property after owning it for more than two years, the difference between the sale price and the acquisition value is considered a capital gain and taxed at 15%. Proper planning when buying property in Colombia can minimize the impact of future taxes.
No, it is not advisable to register a value lower than the commercial or cadastral value of the property in the public deed. Colombian regulations require the price recorded in the public deed to not be lower than the cadastral or commercial value, as this could result in tax evasion issues and penalties from tax authorities.
Additionally, registering a price below the real value might save the seller some taxes, but it increases the gap between the acquisition value and the future sale value. This would result in higher taxes for you when selling, directly affecting the calculation of taxes such as capital gains or liquid income, which could lead to future complications. When buying property in Colombia, ensuring transparency in transactions is essential to avoid these issues.
The cadastral value of a property is the value assigned for tax purposes. It is calculated by the corresponding cadastral authority, considering factors such as location, land size, construction characteristics, and land use.
The commercial value, on the other hand, is the market price of the property, meaning the value at which a property could be sold under normal market conditions. This value is determined based on factors such as market supply and demand, location, the condition of the property, and recent sale prices of similar properties in the area. Understanding these values is crucial when buying property in Colombia to comply with legal and tax obligations effectively.
Protect Your Investment with the Right Legal Support
We understand that buying property in Colombia is an important decision, and your assets must be protected. Complete the form, and our team will provide the legal support you need to ensure the process is safe and efficient.
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Subsequently, a specialist will be assigned to your case, who will contact you within one day to clarify the details of your case and define the next steps to help you achieve your goals.
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