Property Costs

Find out about the costs involved when buying a property in Colombia…

Fees and Taxes

  • Notary fees: To formalize the procedure and turn the promise to purchase into the final deed. Fees are 0.3% of the property price, and are usually split equally between the seller and the buyer
  • Registration fee: 0,5% of the total value of the property, paid by the buyer
  • Mortgage registration fee: If the property is financed with a mortgage, the buyer must pay a fee of 0.3% in addition to VAT on the amount of the mortgage
  • Registry tax: 1% of the total value of the property. This tax is usually paid by the buyer.
  • Withholding tax: 1% of the total value of the sale is due and withheld from the seller.
  • Other costs: There are also fees for issuing the Certificado de tradición y libertad, and a fee for authenticating the promise to purchase and copies of the deeds. Other small payments may also need to be taken into account

Mortgage and Financing

  • Obtaining a mortgage or bank loan: It may be possible to take out a loan or mortgage through a Colombian bank to finance the property purchase. There are currently a number of banks which offer credits for about 40% to 50% of the total value of the property
  • Transferring funds from abroad: Money transfers from abroad can be made either through professional broker services provided by various banks in the country, or via a money transfer from a foreign bank account. The Colombian government has a series of rules and requirements for bringing in large sums of money, including converting it to COP and registering the transfer with the Banco de la Republica. Documentation relating to the origin of the money may also be required. The buyer should consult directly with a lawyer and financial institutions for the specifics related to these procedures

Horizontal Property Costs

Building administration costs: Administration costs must be paid by the owner, if the property is subject to horizontal property rules (co-ownership of buildings or in a residential compound). The administration costs usually cover security and cleaning services for the building, repairs and other expenses.

Useful Websites

Antonio Malaver - Malaver Abogados antoniomalaver@malaverabogados.com At: Carrera 15 N°. 93-75. Office 505, Bogotá Tel: +57 (1) 7428276 Copyright © 2014 Malaver Abogados All Rights Reserved