Everything you need to know to invest safely, legally, and confidently

Are you thinking about buying property in Colombia?
We know the process might look very different from what you’re used to. No escrow? No title insurance? Multiple agents for the same property?

It’s true—Colombia has its own system. But once you understand the steps, you’ll see it’s not only possible but also full of opportunity.

In this guide, we’ll explain:

• The legal step-by-step to buy property in Colombia
• How your investment could help you get a visa
• The taxes you’ll face as a property owner
• Investment options based on your goals
• The best cities to invest in 2025

Let’s dive in.

Why invest in Colombia in 2025?

Before we get into the legal and financial steps, let’s take a look at why so many people are choosing to invest in Colombian real estate right now.

Did you know you can buy property in Colombia with just your passport?

Colombia is becoming one of Latin America’s most attractive real estate markets.
Cities like Medellín, Bogotá, and Cartagena are gaining attention for their combination of lifestyle, rental profitability, and lower entry costs compared to major U.S. or European cities.

💡 **And yes—**you don’t need to be a resident or hold a visa to buy property.
All you need is a valid passport and the right legal support.

 How to Buy Property in Colombia: Step by Step

Now let’s get practical. The process of buying property in Colombia is very different from what you might be used to. Here’s what you need to know.

There’s no MLS system, no escrow, and agents are not licensed—so things can get confusing fast.
That’s why it’s essential to have a legal team by your side. They’ll help you verify ownership, avoid fraud, and make sure every step is done properly.

Let’s walk through the process together.

1. Open a channel for funds

To begin, you need to ensure your money enters Colombia legally and traceably.
This is the first and most important step if you plan to register your investment or apply for a visa later.

You can open a Colombian bank account or use a registered currency broker. This usually takes 2–4 weeks and requires documents such as a passport and proof of funds.

2. Title check and due diligence

In Colombia, there’s no title insurance—so the responsibility falls on your lawyer to review everything.

This includes checking:

• Ownership history
• Mortgages or liens
• Legal disputes or forfeiture risks
• Pending inheritance processes

Skipping this step can cost you your entire investment. Don’t take the risk.

3. Negotiate terms

Once the property checks out, it’s time to negotiate.
This is where your legal advisor helps you agree on price, payment terms, and any specific conditions (like furniture, repairs, or delivery timelines).

If you don’t speak Spanish, a representative is highly recommended.

4. Sign the sales contract

This is not just a formality—it’s a binding legal document.
It should clearly outline the terms of the sale, responsibilities, penalties, and any special agreements.

5. Closing and notarization

Once both parties are ready, you move to the closing phase.
At this point, you’ll:

• Pay the balance
• Sign the public deed
• Cover notary and administrative fees

6. Registration and ownership

The final step is registering the deed in your name.
This takes place at the Oficina de Instrumentos Públicos and gives you the official Certificado de Libertad y Tradición—proof that you legally own the property.

Buyer’s Closing Costs in Colombia

Most foreign buyers are surprised by the number of small administrative costs that appear at the end. Let’s go over what to expect so you’re not caught off guard.

Here’s what you, the buyer, typically pay:

💡 These fees make up about 50% of all closing costs, with the seller typically responsible for the other half. Always confirm this in your purchase agreement.

Taxes You Must Pay as a Property Owner

Many investors think the process ends once the deed is signed. But owning property comes with ongoing tax responsibilities.

The most important one is “Impuesto Predial”—a local property tax paid every year.

The rate ranges from 0.3% to 1.6% of the property’s cadastral value, depending on:

• Location
• Property use (residential or commercial)
• Municipality rules

Make sure to factor this into your long-term investment plan.

Real Estate Tax Incentives in Colombia

Colombia not only offers affordable entry into real estate—it also rewards certain types of investment with major tax breaks.

If you’re planning to develop hotels, warehouses, shopping centers, or similar projects, you might qualify for:

✅ 9% income tax for 10 years (in large cities)
✅ 9% income tax for 20 years (in smaller towns)
✅ Incentives for ecotourism, marinas, and theme parks in rural areas

If you’re considering a development or large-scale investment, these benefits could save you millions over time.

What Type of Real Estate Investment Is Right for You?

Whether you’re a first-time buyer or an experienced investor, Colombia offers a range of options to match your risk tolerance and financial goals.

Let’s take a look at the most common strategies.

1. Real Estate Funds (FICs)

These are like REITs in other countries.
You can invest smaller amounts in a diversified real estate portfolio managed by professionals. It’s flexible and relatively low-risk.

2. Crowdfunding

Platforms like Bricksave allow multiple investors to co-finance projects.
A great way to start with limited capital and still be part of large developments.

3. Joint Ventures

Foreign investors often partner with local developers to enter the market.
This approach shares risk and gives you access to people who understand regulations, pricing, and demand.

4. Rental Property

The classic model: buy and rent.
There are different strategies within this category, depending on your location, legal requirements, and expected returns.

Rental Models in Colombia

Thinking of generating income from your property? Here are four rental strategies you can consider.

1. Short-Term Rentals (Airbnb)

Tourist zones like Cartagena, Medellín, and Santa Marta are hotspots for short-term rentals.
But be careful: some buildings prohibit stays under 30 days. Always verify this before buying.

2. Long-Term Rentals

Ideal for stability. You can rent to locals, expats, or businesses with contracts lasting months or years.

Note: tenants may need to have a Colombian ID (cédula de extranjería) to sign leases.

3. Commercial Rentals

Commercial spaces often have higher rental income, especially in high-demand business areas.
You’ll need to evaluate the local economy and foot traffic.

4. Co-Living Spaces

A growing trend in cities like Bogotá and Medellín.
Great option if you’re targeting students or digital nomads. You can earn more by renting per room than as a whole.

Where Should You Invest in Colombia?

Colombia is diverse—and so is its real estate market.
Each city offers a unique investment profile based on lifestyle, demand, and pricing.

Here’s a quick breakdown:

• Medellín: Ideal for lifestyle and short-term rentals
• Bogotá: Business capital with stable long-term demand
• Cartagena: High returns from tourism, but stricter regulations
• Cali / Santa Marta: Up-and-coming markets with lower entry costs

Choosing the right city depends on your budget, goals, and how involved you want to be in managing your property.

Final Thoughts: Safe, Smart Investing in Colombia

Buying property in Colombia can be one of the best decisions you make—if you do it right.

At Nexo Legal, we’ve helped dozens of international investors find the right properties, complete safe purchases, and even qualify for investor visas.

Whether you’re looking for your first home, a high-return rental, or a large development opportunity—we’re here to help.

📩 Contact us today to book a free consultation and take the first step toward your investment in Colombia.