Understanding the Real Cost of Buying Property in Colombia
When buying real estate in Colombia, the purchase price is only part of the equation. Property taxes, notary fees, and legal costs all play an important role in your total investment. For foreign buyers especially, these expenses can feel unclear or unpredictable.
At
EVERYPLACE, we believe transparency builds confidence. This guide breaks down the most common costs you should expect when buying property in Colombia—clearly, simply, and without surprises.
Colombian Property Taxes Explained
Annual Property Tax (Impuesto Predial)
The
Impuesto Predial is an annual municipal tax paid by property owners. It is based on the
cadastral value of the property, which is usually lower than market value.
- Typical rates range from 0.3% to 1.2%
- Paid yearly, sometimes with early-payment discounts
- Varies by city and property classification (residential, commercial, rural)
In cities like Medellín and Pereira, this tax is relatively low compared to many international markets, making Colombia attractive for long-term investors.
Capital Gains Tax (When Selling)
If you sell a property, you may be subject to capital gains tax if the property is sold for a profit and owned for less than two years. Long-term owners often benefit from reduced rates or exemptions depending on circumstances.
EVERYPLACE works closely with tax professionals to help clients plan ahead and avoid unnecessary liabilities.
Notary Fees: What Do They Cover?
Why Notaries Matter in Colombia
In Colombia, notaries play a central role in real estate transactions. They authenticate the public deed (
escritura pública), verify identities, and ensure legal compliance.
Typical Notary Costs
- Usually 0.5% to 1% of the purchase price
- Split between buyer and seller (unless otherwise negotiated)
- Covers deed preparation, authentication, and official registration steps
Notary costs are mandatory and unavoidable, but they ensure legal certainty and protect both parties.
Registration & Legal Fees
Property Registration Fees
After signing the public deed, the property must be registered with the
Office of Public Instruments. This officially transfers ownership.
- Typically around 0.5% of the property value
- Paid by the buyer
- Required to secure your legal ownership rights
Legal Review & Due Diligence
Although not legally required, hiring legal support is strongly recommended—especially for foreign buyers.
Legal services often include:
- Reviewing the Certificate of Tradition and Freedom
- Verifying ownership and liens
- Ensuring compliance with Colombian law
- Supporting funds transfer and closing
At EVERYPLACE, legal due diligence is part of our end-to-end service. Whether you’re purchasing a home or investing through our
properties for sale, we make sure everything is reviewed before you commit.
Ongoing Costs After Purchase
Owning property in Colombia also involves modest ongoing expenses, such as:
- Building administration fees (for apartments)
- Property management (for rentals)
- Maintenance and utilities
For investors who plan to rent their property, our
property management services handle everything—from tenant placement to monthly reporting—so you can own with peace of mind.
How EVERYPLACE Helps You Budget Accurately
Many buyers hesitate because they fear “hidden costs.” Our role is to eliminate uncertainty.
When you work with EVERYPLACE, you receive:
- Clear cost breakdowns before making offers
- Local expertise tailored to foreign buyers
- Transparent communication at every step
- Support from search to post-purchase
Whether you’re exploring ownership, testing the market through a
short-term rental, or planning a long-term stay with a
long-term rental in Medellín, we help you make informed decisions.
If you’re ready to explore opportunities in Colombia with clarity and confidence, start your journey at
everyplace.co.
