What are closing costs in Colombia?

Typically 2.8–4.3% of the price on a $300,000 purchase.

Buying property in Colombia as an American

Q: How is rental income taxed in Colombia?

Colombian tax for non-resident individuals: Non-resident individuals pay a flat 35% on net Colombian rental income and must file a return (Art. 247 ET), since individual tenants and Airbnb guests do not withhold. If the tenant is a company or other withholding agent, it withholds 20% of the gross rent (Art. 408 ET), and when all your Colombian income was withheld this way that 20% can be final with no return (Art. 592 ET). Becoming tax resident (183+ days) switches you to progressive rates. No US–Colombia income tax treaty; Colombian income tax is generally creditable against US tax.

Colombia offers low prices, a fast-growing expat scene in Medellín and Caribbean beaches in Cartagena. The peso moves a lot against the dollar, and non-residents pay a flat 35% on Colombian income.

Data last verified on October 19, 2026 · AbroadYield research desk – public sources cited in each section

Key numbers

Gross rental yield

5.0–8.0%

Closing costs

2.8–4.3%

On a $300,000 purchase

Tax on rent (net basis)

35%

Colombian tax for non-resident individuals

Entry prices from

$80,000

6–10 weeks to close

Can Americans buy?

Allowed

US buyers can own property outright. Bring the money through the official exchange market; the exchange declaration (form 4) automatically registers the foreign investment with Banco de la República, which you need to repatriate the money later.

A property titled solely in your name worth at least 350 monthly minimum wages (2026: SMMLV COP 1,750,905 → about COP 612.8 million, ≈ USD 193k) qualifies for an investor (M) visa of up to 3 years (Resolución 5477/2022), registered with Banco de la República; pensioners and digital nomads have their own visas.

Data last verified on October 19, 2026 · AbroadYield research desk – public sources cited in each section

Sources: DIAN (Colombia tax and customs); US Department of State – country information

How rent is taxed

Non-resident individuals pay a flat 35% on net Colombian rental income and must file a return (Art. 247 ET), since individual tenants and Airbnb guests do not withhold. If the tenant is a company or other withholding agent, it withholds 20% of the gross rent (Art. 408 ET), and when all your Colombian income was withheld this way that 20% can be final with no return (Art. 592 ET). Becoming tax resident (183+ days) switches you to progressive rates.

No US–Colombia income tax treaty; Colombian income tax is generally creditable against US tax.

As a US taxpayer you also report the rent on Schedule E. Your free ranking estimates the combined effect for your state and income.

Data last verified on October 19, 2026 · AbroadYield research desk – public sources cited in each section

Sources: DIAN (Colombia tax and customs); PwC Worldwide Tax Summaries

Main risk

Non-resident individuals pay a flat 35% income tax on Colombian rent.

Short-term rentals must be in the National Tourism Registry (RNT, Ley 2068/2020, Decreto 1836/2021) and, in condominium (propiedad horizontal) buildings, expressly authorised in the building's registered bylaws; many buildings do not allow them. Medellín bans them in low-mixed-use zones, is inspecting and suspending listings, and its draft zoning plan (POT) would restrict them further; a draft national decree would tighten RNT checks.

Data last verified on October 19, 2026 · AbroadYield research desk – public sources cited in each section

Sources: US Department of State – country information; Global Property Guide (yields, transaction costs)

Cities we cover

Medellín$2,363/m² · gross 7.3%
Cartagena$2,205/m² · gross 9.6%
Bogotá$2,048/m² · gross 8.4%
Santa Marta$1,733/m² · gross 7.3%

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