Buying Real Estate in Colombia

Foreigners Buying Real Estate In Colombia

Yes, a foreigner resident (or non-resident) in Colombia can buy real estate in Colombia under his/her name. A real estate purchase can be registered as a foreign investment taking advantage of the benefits under the foreign investment legislation, but it all depends if the buyer is a resident in Colombia of if the buyer is non-resident in Colombia. In case the foreigner is a resident in Colombia, meaning he/she has stayed for a total of 6 months in a 12 month period, the real estate property purchase can’t be registered as a foreign investment.

Buying real estate property without registering the purchase as a foreigner

A foreigner buying real estate in Colombia will just have to first follow the same steps any Colombian national follows when buying real estate in Colombia. To read about these steps please click here.

Additionally to those steps, if the the foreigner is buying real estate property without registering the purchase as foreign investment because he/she is resident in Colombia, or doesn’t want to register it as foreign investment, he/she will only have to inform  the Central Bank where the funds are coming from.

The payment of installments or the sums agreed on the sale contract should be made under the Colombian currency exchange regulations, and should be registered by delivering Central Bank Form #5 Services, Transfers and Others Exchange Declaration.

The “buyer” can simply send wire transfer(s) from his/her country to the bank account of the real estate property “seller” in Colombia which can be an individual, construction company or even a Trust or Colombia Corporation. The purchase and deed signature is made through the “buyers” local representative, who can be an attorney, relative, friend or broker.

This method has to be used by foreigners that are resident in Colombia or foreigners that want to buy a property through a relative, friend or broker.

However, if the foreigner is non-resident in Colombia there is yet another way to buy real estate properties in Colombia by registering the purchase as a foreign investment and take advantage of the tax benefits. To know more about this other option, please click here.