More and more Germans are drawn to Colombia, whether due to the lower cost of living, the rich culture and cuisine, or the climatic conditions. For Germans who want to stay in Colombia long-term, the question of buying property often arises quickly. This is particularly attractive in Colombia, as there are no restrictions on property purchases for foreign citizens, as is common in other Latin American countries. This article therefore focuses on what needs to be considered when searching for a suitable property and concluding a purchase agreement in Colombia.
- Search for a suitable object and due diligence review
First, it is important to begin the search for a suitable property to purchase. This can be done through online portals, private networks, or real estate agents. When choosing the latter option, it is important to find a reputable agent. While there is no mandatory central registry for real estate agents in Colombia, a reputable agent can be identified by their registration in the Colombian Business and Social Registry („Registro Único Empresarial y Social – RUES“) and their registration with the local Chamber of Commerce („Cámara de Comercio“). Additionally, membership in a recognized professional association for real estate agents, such as RAA (Registro Abierto de Avaluadores), Fedelonjas, or the international organization RICS, can indicate their professionalism. Furthermore, customer testimonials from former clients can be found on online platforms to ensure an agent's legitimacy.
Once the desired property is found, the property should be thoroughly inspected. It is important here to check whether the seller is indeed the owner of the property being purchased, whether the building was legally constructed, and whether it is encumbered by mortgages or other proprietary rights. The most important document in this regard is the „Certificado de Tradición y Libertad“. This is a kind of „résumé“ of the property, containing all legally relevant information about the building, such as the owner and any existing encumbrances or mortgages. The document is issued by the official Colombian „Superintendencia de Notariado y Registro“ and can be requested online or in person. This document should be reviewed before any purchase and, especially in the case of older properties, by a specialized lawyer!
- Closing of the preliminary agreement („Promesa de Compraventa“)
In Colombia, it is customary to subsequently conclude a legally binding preliminary contract for the property with the seller. This is regulated in Article 1611 of the Colombian Civil Code and typically includes the purchase price and payment schedule, the handover date, a penalty for withdrawal from the purchase contract, and an obligation for later notarization of the purchase contract. In contrast to the legal situation in Germany, the agreed-upon penalty becomes due upon withdrawal, even without notarization of the purchase contract. Therefore, it is important to be aware at this stage that the signed conditions of the purchase contract are legally valid and final.
- Purchase agreement and notarization
The actual purchase then takes place through a notarized contract („Escritura Pública“), which must be signed by both parties and authenticated by a notary. A down payment is usually made at this point.
- Payment of the purchase price
Thereafter, the purchase price must then, in particular, be paid in Colombian Pesos. This can lead to difficulties, especially if the capital originates from abroad. This is because, if the buyer has their primary residence outside of Colombia, the import of the money must be registered as a foreign direct investment with the Banco de la República. This is done via a special form submitted by the receiving bank. Payments via unregistered financial service providers or cash imports are not permitted here. Furthermore, Colombian banks are obligated to verify the origin of the money to ensure that it comes from legal sources. This process can take a considerable amount of time, so it should be started early.
- Land register entry
After notarization, the purchase agreement is then officially registered with the competent registry office („Oficina de Registro de Instrumentos Públicos“) in the land registry („Registro de Instrumentos Públicos“), and only here does ownership legally transfer to the buyer. Registration is therefore crucial, as otherwise the seller – despite the notarized purchase agreement – remains the owner.
- Conclusion
Real estate purchases offer many opportunities for German buyers, making it all the more important that the path to ownership is safe and compliant. Professional legal advice ensures that the property is free of encumbrances, the investment is properly registered, the purchase contract is correctly drawn up, and entry into the land register occurs without delay. We are happy to assist you on this journey and offer legal advice in German and English!
- Frequently Asked Questions
Can I get a residence permit for Colombia by purchasing real estate?
Yes, this is possible under certain conditions. Foreigners who acquire property in Colombia with a value of at least 350 minimum wages (approximately 95,000 Euros, as of 2025) and properly register the investment with the Banco de la República can apply for an investor visa („Visa de Inversionista“). This is initially issued for a limited period, but may allow for permanent residency status (Visa Type R) if the investment is maintained.
How do I transfer money for a real estate purchase to Colombia?
Ideally, the purchase price payment should be made through a Colombian investment account or an authorized broker. The payment must be registered with the Colombian Central Bank as a foreign direct investment (via „Formulario 4“). Payments through unregistered channels are not permitted and jeopardize the legal validity and tax recognition of the transaction.
What happens after purchasing a property in Colombia?
After the notary appointment, the contract must be registered with the land registry office. Only with this entry does the buyer legally become the owner of the property. Subsequently, the property must be registered for tax purposes with the tax office (DIAN), if applicable, especially if income is generated (e.g., from rent).
What is a preliminary purchase agreement („Promesa de Compraventa“)?
The „Promesa de Compraventa“ is a private written preliminary contract, widely used and legally binding in real estate purchases in Colombia. In this document, the buyer and seller commit to concluding the subsequent public deed of sale („Escritura Pública“) under agreed-upon terms. Typical contents of such a preliminary contract include: purchase price and payment terms, description of the property, deadlines for signing the main contract, and penalties for non-compliance (often 10–20% of the purchase price%).
Is a preliminary contract for the purchase of real estate also legally valid if it is not notarized?
Yes, a preliminary agreement for a real estate contract is fully legally binding even without notarization. In the event of a withdrawal from the contract, penalty clauses may become due, which can also be enforced in court. In comparison, the legal situation in Germany is much stricter. According to § 311b paragraph 1 sentence 1 of the German Civil Code (BGB), a contract for the purchase of real estate is only legally valid if it has been notarized. This also applies to binding preliminary agreements. A preliminary agreement for a real estate purchase that has not been notarized is therefore generally invalid in Germany and has no legal consequences, while it is legally binding in Colombia.
Author: Felix König
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