Blog · October 16, 2026 · 10 min read · Leer en español

Investing in Colombia real estate as a foreigner: how it works, what it costs, and the hotel-share alternative

Colombia has quietly become one of the most searched real estate markets in Latin America. Medellín's digital-nomad boom, a peso that makes dollar-denominated budgets go further, and a tourism sector growing faster than the region's average have put the country on the radar of investors from the United States, Canada and Spain. This guide answers the questions those investors ask most: can I own property, how does the purchase work, what will it cost me, what return is realistic, and is there a simpler way in than buying an apartment.

This is general information, not legal or tax advice. Rules change and your situation matters; for a real transaction, work with a Colombian lawyer and an accountant in your home country.

01Can foreigners own real estate in Colombia?

Yes, with the same rights as a Colombian citizen. There are no restrictions on nationality, no requirement to be a resident, and no need for a local partner. You can buy in your own name or through a company. The one formality that matters is registering the money you bring into the country as foreign investment with Banco de la República; that registration is what later allows you to repatriate your capital and profits in dollars without problems.

02How the buying process works

1. Due diligence: a lawyer pulls the property's certificado de tradición y libertad (title history) to confirm ownership, liens and encumbrances.
2. Promesa de compraventa: a binding purchase agreement, usually with a deposit of 10–30 %.
3. Bringing the funds: wire the money to Colombia through a licensed exchange intermediary and declare it as foreign investment.
4. Escritura pública: the deed is signed before a notary.
5. Registration: the deed is recorded at the Oficina de Registro de Instrumentos Públicos, which makes you the legal owner.

The whole process typically takes four to eight weeks once you have a property under contract. You do not need to be physically present if you grant a power of attorney, which is how most foreign buyers close.

03What it costs: taxes and fees

• Closing costs: notary fees, registration tax and registration fees together usually land between 2 % and 3 % of the purchase price, often split between buyer and seller.
• Annual property tax (predial): roughly 0.5 %–1.2 % of the cadastral value, which is usually below market value.
• Rental income: taxable in Colombia for non-residents, with filing obligations that depend on the amount; check how it interacts with your home-country taxes.
• Capital gains on sale: taxed in Colombia, with a lower rate for assets held more than two years.
• Wealth tax: applies above a threshold that most single-property investors do not reach, but worth checking.

04Where the return actually comes from

Most foreign buyers look at Medellín, Bogotá or Cartagena apartments to rent long-term or on Airbnb. Long-term rents produce gross yields in the range of 5 %–7 % per year; after property tax, building fees, insurance, vacancy and management, the net figure is commonly in the mid single digits. Short-term rental can do better in good months, but several cities now regulate it, and the management burden from abroad is real. Appreciation has been strong in specific neighbourhoods, but it is uneven and depends on the peso.

That is the honest picture of residential real estate in Colombia: a solid, tangible asset with moderate net yields and meaningful management overhead when you live thousands of kilometres away.

05Is a hotel a good investment?

Hotels earn differently from apartments. Instead of one fixed rent, a well-located hotel bills per night and layers additional revenue on top: restaurant, spa, events, day passes, marina. In destinations with high weekend occupancy, those streams add up to yields that residential rentals rarely reach. The catch has always been the ticket size and the operating expertise: buying a hotel outright is a multi-million-dollar project, and running one is a profession.

Fractional hotel ownership solves both problems. The project is divided into shares; investors buy one or several; a professional operator runs the property; profits are distributed to shareholders, typically quarterly. The investor owns a stake in a real, income-producing asset without managing anything, and enters at a fraction of the cost of a whole building.

06The Blaze model, with real numbers

Blaze is a 34-room boutique hotel on the Guatapé reservoir, two hours from Medellín, with spa, restaurant, marina, day passes and events. It is developed by Everyplace and Sin Mente, sold by shares, and currently 65 % sold. The published terms are:

• Projected annual return of 16 % from operations, plus appreciation of the asset.
• Minimum ticket of COP 230,000,000 per share (roughly USD 55,000–60,000 depending on the exchange rate), with 10 % down and 30 equal instalments.
• Quarterly dividends from the first year of operation.
• A secondary market, with Blaze's support, for shareholders who want to sell.
• Funds held in custody by Kustodio and corporate governance with shareholder participation.
• Owner benefits: 2 to 10 free nights a year depending on the number of shares, plus a 30 % discount.

The 16 % projection assumes 60 % occupancy at an average rate of about COP 1,000,000 per night — conservative against the weekend occupancy the Guatapé area already records.

07Why Guatapé

Guatapé is Antioquia's best-known weekend destination: the Peñol rock, the reservoir, the painted village. Tourism has overtaken coffee and coal as the region's economic driver, Medellín ranks ahead of Madrid and Mexico City as a digital-nomad hub, and the area has very little luxury inventory. For a boutique hotel, that combination — strong demand, scarce supply, two hours from an international airport — is the whole thesis.

08Apartment or hotel shares? A quick comparison

• Capital required: apartment, typically USD 150,000+; Blaze share, about USD 55,000–60,000 with 10 % down.
• Net yield: apartment, mid single digits after costs; Blaze, 16 % projected from operations.
• Management from abroad: apartment, yours or a paid manager; Blaze, none — the operator runs it.
• Liquidity: apartment, months to sell; Blaze, secondary market with support.
• Use: apartment, yours when empty; Blaze, free nights and discounts as a shareholder.

09Next step

If you want the full investor deck — renders, financial projection, contract and construction timeline — message us on WhatsApp or leave your details in the form. We reply within one business day, in English or Spanish.

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