If you’re buying property in Medellin as a foreigner, you’ll quickly learn that the listing price is just part of the cost. Closing costs in Colombia can catch international buyers off guard, especially if they’re used to all-in-one systems back home. But don’t worry—once you understand the basics, the process is straightforward and affordable compared to many global real estate markets.
In this guide, we break down what closing costs include, how much you should budget, and how to navigate them with confidence.
What Are Closing Costs in Medellin?
Closing costs refer to the fees and taxes paid to complete a property transaction. In Colombia, these are shared between buyer and seller, but the buyer typically bears the bulk of administrative and registration fees.
Expect closing costs to add about 1.5% to 2.5% of the property’s purchase price—significantly lower than in countries like the U.S. or Canada.
Key Components of Closing Costs for Foreign Buyers
1. Notary Fees (Escritura Pública)
- Required to formalize the property deed
- Split between buyer and seller (but negotiable)
- Cost: ~0.5% of the purchase price
2. Registration Fee (Registro)
- Covers the legal recording of your ownership with the public registry
- Paid by the buyer
- Cost: ~1% of the purchase price
3. Retention Tax (Retención en la Fuente)
- Paid by the seller but important for buyers to understand
- Applies only to sales by individuals
- Cost: 1% of the sale price (seller pays)
4. Legal Fees
- Hiring a local attorney is highly recommended for foreigners
- They handle title verification, contract review, and due diligence
- Cost: \$1,000–\$2,000 USD depending on complexity
5. Translation or Apostille (If Needed)
- Some documents (like passports, powers of attorney) may require notarized translations
- Cost: Varies depending on your country and service
Other Potential Expenses
Currency Exchange and Bank Fees
Wire transfers from abroad may incur currency conversion fees and intermediary bank charges. EVERYPLACE can connect you with trusted forex partners to minimize costs.
Property Appraisal or Inspection (Optional)
If you want extra assurance, you can hire an independent inspector or appraiser. Cost: ~\$200–\$500 USD
Who Handles the Paperwork?
A local notary, your attorney, and a property management or real estate team like EVERYPLACE typically coordinate all paperwork and payments. You don’t have to figure this out on your own.
How to Prepare for Closing
- Get a Colombian bank account (or work through a brokerage service if unavailable)
- Wire funds early to account for processing delays
- Clarify all costs with your agent or attorney upfront
- Ask for an estimated closing sheet to review all fees ahead of time
👉 Need help setting up bank accounts or wiring funds? EVERYPLACE assists clients through the full transaction
Conclusion
Closing costs in Medellin are relatively low, but knowing what to expect helps you avoid surprises and budget accurately. As a foreigner, working with a reliable, bilingual team is essential to ensure compliance and protect your investment.
Whether you’re ready to buy or just getting started, EVERYPLACE offers the guidance, legal support, and transparency you need to buy property in Colombia with confidence.