Welcome to M.C.R.E.–I’m glad you’re here. I wrote this and other guides on the site to essentially be what I wish I had when I began our family’s Medellín home-buying journey. If my experience can help you avoid any of the common headaches and missteps many of us foreigners here have gone through, then I’ll be happy. I genuinely love this city, its people, and all the loveliness that is Antioquia–and I want to share it with other foreigners like me who wish to make the Medellín area their home
— Marco Sullivan, partner at M.C.R.E. (Medellín Colombia Real Estate advisers)
Medellín is one of the most attractive places in Latin America for foreign buyers—and for good reason. With spring-like weather year-round, world-class healthcare, excellent infrastructure, and a low cost of living, the “City of Eternal Spring” has become a magnet for remote workers, retirees, and global investors alike. But buying a property here isn’t quite the same as back home.
This guide walks you through the end-to-end process of purchasing real estate in Medellín as a foreigner—from financing and due diligence to registering your new title. It’s detailed, practical, and current. We’ve verified every step so you know what to expect, what to avoid, and how to set yourself up for success.
Phase 1: Pre-Purchase Planning
1. Define Your Legal Status
Can foreigners buy property in Colombia? Yes. You do not need a residency visa or Colombian citizenship to legally own property. Many foreigners purchase while on a tourist visa. However, property ownership alone doesn’t grant residency.
Want to live here full-time? You might qualify for a visa based on property investment:
- M-type visa (Inversionista): Requires an investment of at least 350 times the Colombian minimum monthly salary (roughly ~$92,000 USD).
- R-type (Resident) visa: Requires an even larger investment (650+ times the minimum salary) and is typically pursued after 5+ years of legal stay.
Visa policies can change. Consult a Colombian immigration lawyer for current thresholds.
2. Know Your Financing Options
Financing is the #1 hurdle for most foreigners.
- Local Mortgages: Nearly impossible unless you have legal residency, Colombian income, and a credit history here.
- Cash Purchase: The standard route. Have your funds ready.
- Foreign Financing: Secure a loan in your home country (e.g., HELOC) and wire funds here.
- Developer Financing: Sometimes offered on pre-construction projects. Varies widely by builder.
3. Budget Beyond the Listing Price
Here’s a breakdown of key costs:
- Purchase Price: Agreed upon with the seller.
- Notary Fees (Gastos Notariales): ~0.3–0.4% of the purchase price, usually split 50/50 between buyer and seller (plus VAT).
- Registration Fees: ~1% of sale price. Paid by the buyer. Covers registration tax and registry office.
- Legal Fees: Budget $1,000–$3,000 USD. Always hire your own bilingual real estate attorney.
- Title Search (Estudio de Títulos): Typically included in legal fees.
- Appraisal (Avalúo): Optional but wise.
- Agent Commission: Paid by the seller, but confirm. Standard is 3–5%.
- Money Transfer Fees & FX Risk: Factor in wire fees and USD-COP fluctuations.
- Initial Repairs / Furnishings: Costs vary by property.
- Ongoing Costs: Property tax (Predial), HOA/Administración, insurance, utilities.
4. Choose a Neighborhood & Property Type
Medellín offers something for every lifestyle:
- El Poblado: Expats’ first stop. Upscale, convenient, expensive.
- Laureles–Estadio: Flat, leafy, local feel, solid value.
- Envigado: Technically a separate municipality. Safe, residential, family-friendly.
- Sabaneta: Farther south, newer buildings, lower prices.
- Belen: Traditional, budget-friendly.
- Centro: Historic core. Cheap, but higher security concerns.
Property types include:
- Apartments (apartamentos), houses (casas), studios (apartaestudios), penthouses, and rural properties (fincas).
Consider views, floor plans, building amenities, estrato (socioeconomic classification, affects utilities), and accessibility.
5. Build Your Team
Don’t go it alone:
- Bilingual Real Estate Lawyer: Non-negotiable. They’ll handle due diligence, POA if needed, and protect your interests.
- Real Estate Agent: Make sure they’re experienced with foreigners and clearly represent your interests.
- Translator: If needed.
- Accountant: For investment registration and tax planning in Colombia and back home.
Phase 2: The Buying Process
1. Find a Property
Use:
- Local real estate portals (e.g. FincaRaíz, Metrocuadrado)
- M.C.R.E. (our listings are vetted and verified)
- Drive or walk neighborhoods to look for “Se Vende” signs
2. Make an Offer (Oferta)
Offers are written and negotiable. You may be asked to submit a small deposit (arras) to show good faith.
3. Due Diligence (Estudio de Títulos)
Your lawyer will:
- Review the Certificado de Tradición y Libertad (title history)
- Check property tax status
- Verify HOA and utility debts are paid
- Confirm land use/zoning
- Verify seller identity and representation
This step is crucial. Don’t skip it.
4. Promesa de Compraventa (Purchase Agreement)
This legally binding document outlines:
- Buyer/seller details
- Final price and payment schedule
- Penalties for withdrawal
- Closing date
- Who pays what (fees, taxes, etc.)
Both parties sign at a Notary. If you’re abroad, you’ll need a Power of Attorney (POA) with Apostille.
5. Wire the Funds & Register Your Investment
To bring money into Colombia legally:
- Use Formulario 4 via your Colombian bank
- Register the funds with Banco de la República
- This ensures you can legally repatriate the money later or apply for a visa
Ask your lawyer or accountant to help coordinate this.
6. Close the Deal
At the Notaría:
- Final documents are reviewed and signed (Escritura Pública)
- Final payment is made (often via cheque de gerencia)
- Fees and taxes are paid
7. Register the Title
- The Notary sends paperwork to ORIP (Public Registry)
- It can take several weeks
- You’re not the legal owner until registration is complete
- Your lawyer will retrieve the updated title (CTL) listing you as owner
Phase 3: After the Purchase
- Take Possession: Get the keys and inspect the property.
- Transfer Utilities: Water, gas, electricity (usually via EPM), and internet.
- Set Up Taxes: Impuesto Predial (property tax) is usually paid annually.
- HOA (Administración): If buying in a building or gated community, set up monthly payments.
- Insurance: Optional, but recommended.
Foreign Buyer Tips
- Spanish Matters: Don’t assume everyone speaks English. Hire a translator or bilingual legal rep.
- Legal Independence: Don’t rely on the seller’s lawyer. Get your own.
- POA: If you’re not in Colombia, you’ll need a notarized and apostilled Power of Attorney.
- Expect Delays: The process typically takes 6–12 weeks.
- “Paisa Time”: Medellín runs on a slower, relationship-first clock. Patience is key.
- Estrato Affects Bills: Utility rates differ by estrato (1–6). El Poblado and Envigado tend to be 5 or 6.
- Visit First: Always visit the property and neighborhood in person before buying.
Final Word
Buying a home in Medellín can be a smart long-term investment and a gateway to life in one of Latin America’s most livable cities. Just make sure you have the right team, solid due diligence, and a full understanding of the process.
At Medellín Colombia Real Estate (M.C.R.E.), we work hard to make the process clear, reliable, and tailored for foreign buyers. Whether you’re exploring neighborhoods or ready to make an offer, our team is here to help you move forward with confidence.
Questions about buying real estate in Medellín? Let us know—we’re happy to help.
