Buying real estate in Colombia as a foreigner: a legal checklist

Colombia welcomes foreign real estate buyers. In general, foreigners have the same civil rights as Colombians to acquire property, with limited exceptions such as certain border areas. The legal process is formal, though, and mistakes are costly. This checklist covers the steps we review with international clients.

1. Due diligence on the property

• Certificate of tradition and freedom (certificado de tradición y libertad): shows the ownership history and any mortgages, seizures or other encumbrances.
• Title study: a lawyer reviews the chain of ownership and the underlying deeds.
• Taxes and fees: confirm that property tax and, for condominiums, administration fees are paid up.
• Zoning and land use: check that the intended use is allowed.

2. Preliminary sale agreement

Most deals start with a promesa de compraventa. It sets the price, deposit, closing date and conditions, and must meet formal requirements to be enforceable. A well-drafted promise protects both sides if the deal falls through.

3. Deed and registration

The sale is formalized through a public deed signed before a notary and then registered at the Public Instruments Registry Office. Ownership transfers only upon registration.

4. Costs to plan for

Expect notary fees, registration tax and related charges, and withholding on the seller. The amounts depend on the value of the transaction and its location, and the allocation between buyer and seller can be negotiated.

5. Foreign funds and exchange registration

When the funds come from abroad, the investment is generally registered with the Central Bank (Banco de la República) through the foreign exchange declaration. Doing this correctly preserves your ability to repatriate the proceeds later.

6. Buying from abroad

You do not need to be in Colombia to close. A power of attorney, apostilled and officially translated when required, lets a lawyer sign on your behalf. Electronic signature and video calls can handle much of the rest.

7. Holding structure

Some buyers hold the property through a Colombian company or a real estate trust (fiducia inmobiliaria). The right structure depends on taxes, inheritance planning and your plans for the asset.

8. Taxes after the purchase

Annual property tax applies, and your tax residency status affects how rental income and future sale gains are taxed. Plan this before buying.