Intrigued? Investors should think carefully about a number of factors before making a purchase of real estate in Colombia.
Fly to Colombia
Whether you’re ready to buy right now or are still on the fence, our agent advises all potential investors to travel around Colombia before making any final decisions.
You can acquire a feel for the local culture in the place you’re considering living in or investing in by renting an apartment there. You should take the time to explore other cities in Colombia if you aren’t already familiar with them.
Decide on a city
Investing in Colombia is the next phase, and a trip there will help investors get ready to pick a city. Bogotá, Medelln, Cali, and Cartagena are the four most populous cities in Colombia and therefore provide some of the most attractive investment prospects.
Medelln, also known as “The Eternal Spring City,” attracts visitors with its pleasant climate and rich history, while Bogotá woos them with its lively nightlife and growing restaurant scene.
Cali’s salsa music is calling all explorers. Cartagena beckons sun and sand seekers as the crown jewel of Colombia’s Caribbean coast.
Decide on a particular barrio
Investors will be better able to make a decision on where to settle in after getting to know your new city. The four major cities in Colombia are each comprised of neighbourhoods called barrios, and each one has its own unique character.
Below, we’ll talk about some of our favourite neighbourhoods, or “barrios,” in each city.
Medelln is a favourite of expatriates and is home to many expat-friendly communities. El Poblado is a popular option because to its abundance of bars, fine dining establishments, and boutiques. A number of young professionals and digital nomads, however, have a preference for Laureles and Envigado.
Bogotá is a contemporary metropolis with both upscale and hipster areas. In our opinion, Chapinero is the best place to be because it has everything you might want: restaurants, cafes, bars, and more.
Up-and-coming Cali is a top choice for those looking for an authentic, off-the-beaten-path experience. El Peon, Granada, and San Antonio are some of our favourite areas in the salsa capital of the world because they are verdant, tree-shaded barrios with a thriving restaurant scene.
Planning a trip to Cartagena’s beautiful beaches? Manga is a developing residential area close to Old Town and Getsemani, both of which can be reached on foot.
Assemble a local crew that speaks both official languages
Our agent stresses the need of working with a trustworthy team that is well-versed in the local market and Colombian real estate legislation while looking for a home in the area of your choice. As such, she suggests assembling the following bilingual team with a local presence:
An individual who works in the real estate industry: It is highly recommended that investors who do not speak Spanish locate a bilingual agency. A real estate agent in the area can aid purchasers in locating a home that satisfies their needs in terms of amenities, cost, and return on investment, and then in negotiating the purchase agreement with the vendor.
An attorney who specialises in property law: Córdoba recommends that investors consult a bilingual attorney in addition to a local agent who speaks English. All legally enforceable contracts in Colombia must be drafted in Spanish. The lawyer will aid in the formulation of the sales contract, the conducting of a title search, the verification that the purchasers’ funds have been correctly registered with the Central Bank, and the drafting of the terms and conditions for the closing.
Put up an offer
When backed by a team in the area, investors will be prepared to make an offer on the property of their choice. The price and the parameters of the acquisition agreement will be agreed upon in the initial negotiation between the investment team and the seller. The investor, aided by competent counsel, can then bargain for favourable terms regarding such factors as closing fees, down payments, and the inclusion or exclusion of parking, appliances, furnishings, and fixtures, and storage space.
Title due diligence
Once an offer is accepted, the next step is to consult a lawyer to make sure the property’s title is clear of any issues. our agent warns that despite Colombia’s rapid development, certain homes bought with “bad” money remain as reminders of the country’s troubled history. Obtaining the assistance of a local attorney in the due diligence process is highly recommended.
- A Certificate of Tradition and Freedom: The document details the property’s history, from its initial purchase to the current owner, as well as any liens or claims that have been filed against it.
- Public writing (Spanish: This is the title to the property, which includes the property’s address, the public lot number (matrcula inmobiliaria), and any restrictions on the sale of the land.
- Pace and Safety Predial: Evidence of payment of property taxes to the municipality is provided herein.
- Have Peace and Safety with Appreciation: You can rest assured that any taxes due because of the property’s increased worth have already been paid thanks to this certificate.
Complete a Purchase and Sale Agreement (Promesa de Compraventa)
If the buyers go forward with the acquisition, the lawyers for both sides will work out the details of a Promesa de Compraventa. The final sales price and other key terms, such as but not limited to, should be specified in this contract. Something like:
- Dates, amounts, and conditions of payments
- Expired payments of any sort, including commission, fees, and taxes
- Distribution of costs
- If a renter is already in place, rental income can be prorated.
- Party noncompliance penalties
Investors may be asked to provide a down payment at the time of promesa signing. According to Córdoba, down payments can be of varying sizes but are usually approximately 10% of the sale price.
Deposit funds into a brokerage account
The Banco de la Repblica de Colombia requires international investors to move money from their overseas account into a Colombian brokerage bank account before the investor can be officially recognised as a foreigner doing business in the country. Keep in mind that in order to bring the proceeds from the sale of the property back home, you will need to properly register the funds as a foreign investment using Form 4. Consultation with an attorney is highly suggested.
Putting your signature on a brand-new Escritura pblica
However, it could take up to a month after the closing date for the Colombian government to formally transfer ownership. After one month, the new owner will obtain the deed, known in Spanish as an Escritura pblica. The investor’s title to the property is perfected once the deed is signed in the presence of a notary public.
The tenth step is to apply for a visa
Investors who plan to live in Colombia permanently can do so by applying for a Resident visa, often known as a Type “R” visa. To qualify for a five-year visa that can be renewed indefinitely, investors must put up at least 650 times the Colombian minimum wage.
For an additional 100 times the minimum wage, investors can purchase a share of stock in a Colombian company and receive a three-year renewable investment visa through certain investment packages provided by Lifeafar.
You Can Own a Piece of Colombia
We at esalesinternational invite anyone interested in the exciting but tried-and-true process of investing in Colombian real estate to get in touch with us.
If you’d want to help us get started, please take a moment to fill out the contact form. Then, a member of the esalesinternational staff will get in touch with you to ensure that you have everything you need to buy a home in Colombia. Cotact us today to buy or sell property in Colombia.
