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As we already know, Colombia is a great tourist destination thanks to its beaches, mountains, and jungles that attract hundreds of tourists in search of adventure and new experiences, however and in addition to this, in recent years foreign investors and entrepreneurs see a wide opportunity to develop their businesses in our country, among those businesses, real estate investment turns out to be the most profitable and safe.
The Ministry of Industry and Commerce has reported that in 2023, Colombia received a total of US$17,446 million in foreign investment, which is 1.5% more than in 2022, according to the balance of payments. Of this total, 65.6% was invested in non-mining and energy sectors. Within the non-mining sectors, US$11,452 million was invested in Colombia, with US$4,795 million going to the manufacturing industry and the sector that includes commerce, restaurants, hotels, and tourism.
The purchase of housing in Colombia has been decreasing thanks to low sales, high cancellations, and increased finished inventories; whether to live, rent, or invest, it has become one of the most attractive sectors of the economy at this time. However, here are some reasons why buying property in Colombia is an excellent decision.
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Great Profitability
As mentioned before, real estate investment allows adapting to the investor’s profile. In the case of home purchase, the risk is generally low and in addition to its use, it generates appreciation over long periods of time, which allows to secure and make the investment profitable.
The direct purchase of a real estate for investment allows a return from various sources such as rent, medium-term appreciation, short-term sale and purchase investments at market prices, and the possibility of leveraging larger investments.
In 2024, demand in Colombia will continue to be directed especially to new and used housing. Valuation expectations are like 2023 or higher, depending on supply and subsidies, but it is expected that we will have at least an 8% valuation with an inflation of 4%, and rents of at least 6% per year, which would give about 14% per year before taxes and insurance.
Investment Incentives
To promote investment projects in the country, the Colombian government promotes fiscal, tax, and even migratory incentives. Another type of incentive is the differential rent for new hotel projects that are built, remodeled, or expanded, this is very important since the purchase of property in tourist areas offers good returns.
Foreign Investment Certificate
Certification issued by the Banco de la República, which is one of the ways to obtain a visa or Colombian residency depending on the amount of investment.
Foreign investment in Colombia is considered foreign capital investment in Colombian territory, including Colombian free zones, by non-residents in Colombia.
Exchange rate
The dollar exchange rate is one of the factors considered in the different sectors of the Colombian economy. The currency started 2024 at 3.822 COP, a decrease that will eventually impact the cost of housing. However, considering that real estate prices are set in advance, 2024 is still an excellent time for real estate investment.
These variations are also mostly positive for Colombians living abroad or foreigners interested in investing in Colombia. With the notable appreciation of currencies such as the pound sterling, the euro, and the dollar, this investment is even more profitable since it is possible to acquire a home at a price up to 30% lower than what was obtained a few years ago.
Colombia Investment Visa
The process of applying for an Investment visa type M (Property Owner) in Colombia is carried out before the Foreign Ministry of Colombia in Bogotá and once the visa is approved, the immigration certificate is requested before Migration Colombia of the corresponding city of residence and you can obtain your cédula de extranjerÃa. To apply for it, you will need:
Requirements to apply for a Colombian Investment Visa
Passport
Original valid passport with at least 2 blank pages.
Photo
1 digital photo 3 x 4 cm white background without accessories. Printed/physical photos are not accepted.
Banco de la República Certificate
Certificate from the Banco de la República showing the registration of direct foreign investment.
Bank Statements
Bank statements for the last 3 months.
Health Insurance Policy
The travel insurance must have coverage in Colombia, and be all risk and repatriation.
Deed Certificate
Public deed of the property duly updated and issued by the notary.
Tradición y Libertad
The certificate of tradition and freedom granted by the respective Public Instruments Registry Office issued less than one (1) month ago.
The direct foreign investment for the purchase of property in the name of the foreigner requesting the visa must be for an amount greater than 350 SMMLV (approximately $113,750 USD) for type M (Property Owner) or an amount greater than 650 SMMLV (approximately $211,250 USD) for type M investment Visa (Foreign Direct Investment).
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