9 Tips for getting the investment visa in Colombia

Are you captivated by the allure of Colombian real estate, envisioning the investment visa in Colombia and the property of your dreams nestled in its scenic landscapes? Embarking on a journey to secure your piece of paradise is an exciting venture, but it comes with its fair share of questions and considerations. In this comprehensive guide, we’ll address some of the most common questions that arise when navigating foreign direct investment (FDI) in Colombian real estate.

1. Payment Process and FDI Registration:

Dreaming of making a payment directly to the seller’s US or Foreign account? Hold that thought! Foreign direct investment in Colombia requires a mandatory registration with the Central Bank. This ensures transparency and adherence to regulations. This is done by transferring the money directly to Colombia through an authorized intermediary of the exchange market (financial institutions). If paying outside of Colombia is offered to you as a form of payment, know that you could face ends to up to one hundred percent 100% of the value of incorrectly monetized funds.

2. Colombian Visa and Property Value:

Curious about obtaining a Colombian visa through property investment? If the property’s value exceeds three hundred and fifty (350) Colombian Minimum Salaries or about one hundred thousand US dollars, you’re eligible to apply for an investor visa—a gateway to an extended stay in the country. Know that if you invest over six hundred and fifty (650) minimum salaries or about one hundred and eighty-five thousand US dollars in investments other than real estate you might be eligible for an investor visa as well.

3.Extending Your Stay:

Planning to soak up the Colombian charm for more than six months? With an investor visa , you’re granted the freedom to reside in the country for an extended period, making your connection with Colombia even deeper. The investor visa requires you to show proof of financial self-sufficiency by showing bank extracts, the registration of your foreign direct investment with the Central Bank, proof of insurance with sufficient coverage and a copy of the property deed.

If you decide to make Colombia your long-term residence, you can change your investor visa to a permanent resident visa after a period of five (5) years. And if you decide to request the Colombian Nationality, you can do so after 1 year of holding the R visa if you are either a citizen of a country in Latin America or the Caribbean, after 2 years of holding the R visa if you are Spanish or have Colombian family (spouse or children) and after 5 years of holding the R visa if none of the other conditions apply.

4. Tax Implications:

The realm of taxation can be complex. Tax liabilities in Colombia hinge on various factors, including your income source. Like with most countries, you do become a tax resident after one hundred and eighty three days (183 days) of living in the country, however there are several ways to shield your assets from tax obligations, but make sure you don’t fall into the trap of tax avoidance, you must always follow the laws and regulations. Seeking professional advice is key to understanding your tax obligations accurately.

5. Ensuring that the Property you are buying is the right property:

A vital step in property acquisition is conducting a thorough title search. It is important to conduct a title search before you buy any property in Colombia. This will help you to ensure that the property is free of any liens or encumbrances. Rely on experienced legal guidance to delve into property records, uncover ownership history, and ensure a seamless transfer of ownership.

6. Acquisition Costs:

The path to property ownership involves costs beyond the purchase price. Registration taxes, notary fees, and registration rights are among the financial considerations you need to account for.

7. Property Tax:

Colombia levies a property tax known as Predial. This tax varies based on the property’s location and size, contributing to the maintenance of local infrastructure and services. This tax can normally range around five pesos for every thousand pesos of the Cadastral value; However, this rate depends on the municipality.

8. Deed Registration Ethics:

Resist the urge to understate the property value during deed registration. This tactic may appear appealing, but it ultimately works against you as the tax that is not paid by the seller will ultimately be passed on to you when trying to sell the property (capital gains). Plus, this practice is not legal.

9. Expert Guidance:

Struggling to find the ideal property? GB PARTNERS works with a vast network of brokers and property developers. Collaborate with our network of skilled brokers and developers who specialize in connecting investors with their dream properties.

If these questions have been circling your mind and answers seem elusive, worry not! Colombia is well known for its service economy with service providers standing ready to be your guiding light through the maze of foreign direct investment in Colombian real estate. In Colombia you can find a myriad of financial, legal, and tax advisors is poised to address your queries, ensuring a smooth and informed journey towards realizing your Colombian property aspirations.

Contact us at info@gbpartnersllc.com or reach us through our whatsapp +573052346543