Latin America is full of amazing and breathtaking views and landscapes. If you are planning on purchasing properties in these Southern countries then Colombia should be your preferred destination. Colombian people are very friendly and will welcome you with open arms and with amazing landscapes at the helm; you are going to love living in this Latin city.
With an affordable property market and one of the strongest performing economies, savvy property owners are attracted towards this amazing transcontinental country. Talking about investing in the country and actually investing in the country’s property market is a whole different thing as you have to keep up with many legal customs.
So, you will wonder; how can you purchase a property in Colombia?
Legal Information regarding buying property in Medellin Colombia
As a foreigner, you will face no complications while buying property in Medellin Colombia. With foreign investors being a huge part of their economy; the Colombian government has made it easy to buy properties on Colombian soil.
If you have a valid passport and enough funds available then you will be able to buy property in the country. In fact, the Colombian government offers you a residency permit if you invest and buy property in the country and that will be based on the size of the investment you make.
What follows are steps which you can follow legally to get property in Medellin:
- Obtain a certificate of Tradition and Liberty
After finding the suitable property sight for you, the first step for you is to acquire a certificate of tradition and liberty. If you want to go forward with the purchase then obtaining ‘Certificado de Tradición y Libertad’ is a must. This certificate is very necessary as it contains all the information about the property such as its history, ownership record, mortgage history, legal claims, and work carried out if any. Hiring a local lawyer will help you as he will be able to verify the certificate and do the diligence check on the property.
- Do the payment of taxes and fees involved in purchasing a property in Colombia
There are certain taxes you need to pay if you want to buy property in Colombia. Before you buy the property, ensure that previous owners have paid all the taxes on the property. You will need two certificates directly from the owner:
- Paz y Salvo Predial – This tax-free property certificate guarantees that all the municipal taxes on the property is paid up.
- Paz y Salvo de Valorización – This certification ensures that all the taxes have been paid upon the increase in the value of the property.
- Sign the Escritura pública
It is the final step of buying a property in Colombia as it is the signing of the Public Deed and it will confirm you as the new legal owner of the property. You will need to hire a notary to get it done. Following taxes and fees are applied:
- 0.25 % fee of the property’s value for the notary service.
- 1% of the value of the transaction as an advance payment to the Income Tax.
Final Words
The Colombian government has made Buying property in Medellin Colombia very easy for both foreigners and locals. This attracts more and more investors in the property sectors and helps the economy as well. So, if you are looking to buy property in Colombia then Medellin should be your preferred destination.
Real Estate Advisor Medellin 