The sticker price is not the full price. When you buy property in Colombia, closing costs typically add 3% to 5% on top of the agreed purchase price. This guide breaks down every line item so you can budget accurately from the start.
How much are total closing costs?
Plan for 3% to 5% of the purchase price. On a COP 400,000,000 apartment (roughly USD 100,000), that means COP 12,000,000 to COP 20,000,000 in additional costs (roughly USD 3,000 to USD 5,000). The exact figure depends on the purchase price, the notary you use, and whether you hire a lawyer.
Below is the line-by-line breakdown.
Closing costs: a full breakdown
| Item | Who pays | Typical cost | Notes |
|---|---|---|---|
| Notary fees (gastos notariales) | Buyer | 0.3% to 1.0% of price | Tiered by transaction value |
| Registration tax (impuesto de registro + beneficencia) | Buyer | ~1.6% to 1.8% of price | Set by the departmental government |
| Withholding tax (retención en la fuente) | Seller (buyer withholds) | 1% of price | Held back at closing and remitted to DIAN |
| Lawyer fees (optional but recommended) | Buyer | COP 2M to COP 5M | Flat fee, not percentage-based |
| Certificado de tradición | Buyer | COP 20,000 to COP 50,000 | Small administrative cost |
| Appraisal (avalúo) | Buyer | COP 300,000 to COP 600,000 | Required only if financing |
[VERIFY: exact 2026 notary fee tiers for Antioquia. The 0.3% to 1.0% range is directionally correct but varies by transaction value and the specific notary. The registration tax of 1.6% to 1.8% is set by the Gobernación de Antioquia and should be confirmed on their website or with a notary.]
Notary fees explained
Notaries (notarías) in Colombia are private professionals who act as public officials. Their fees cover drafting the escritura pública (the public deed), verifying identities, witnessing signatures, and forwarding the deed to the registry office.
Notary fees are calculated on a sliding scale by the transaction value. Higher-value transactions pay a higher absolute fee but a lower percentage. For a COP 400,000,000 purchase, the notary fee typically falls in the COP 1,500,000 to COP 3,000,000 range. [VERIFY: the current notary fee schedule for Antioquia, as published by the Superintendencia de Notariado y Registro.]
The buyer chooses the notary. Ask for a quote before committing: notaries in the same city can charge slightly different amounts within the regulated band, and the quote should include the escritura, copies, and registration dispatch.
Registration tax: impuesto de registro and beneficencia
The registration tax is the single largest closing cost. It has two components collected together:
- Impuesto de registro. The fee to record the transfer in the public property registry. It is set by the departmental government (Antioquia) and is roughly 1% of the transaction value.
- Derechos de beneficencia. An additional charge that goes to the department's public-welfare fund. It is roughly 0.6% to 0.8% of the transaction value.
Combined, these two items total approximately 1.6% to 1.8% of the purchase price. The tax base is usually the higher of the purchase price or the cadastral value (avalúo catastral). If the purchase price is lower than the cadastral value, the notary uses the cadastral value to calculate the tax. [VERIFY: whether Antioquia uses the higher-of rule or the declared transaction price as the default base.]
Withholding tax: retención en la fuente
The buyer withholds 1% of the purchase price at closing and remits it to the DIAN, Colombia's tax authority. This is a prepayment of the seller's capital gains tax obligation. The buyer is not paying the tax themselves: the money comes from the seller's proceeds, but the buyer is responsible for withholding it and filing the return.
If the seller is exempt from capital gains (for example, because they owned the property long enough to qualify for the exemption), the seller can request the DIAN to refund the withheld amount. The buyer's obligation is to withhold and remit regardless.
Capital gains tax on sale
Capital gains tax (impuesto de ganancia ocasional) applies when you later sell the property. The rate is 15% on the gain for Colombian residents. For non-resident foreigners, it is also 15% on the gain. The cost basis is the original purchase price plus documented improvements and the acquisition costs (notary fees, registration tax).
Colombian tax law provides an exemption: if you have owned the property for at least two years and it is your primary residence, you may exclude the first 7,500 UVT of gain from tax. The UVT (Unidad de Valor Tributario) is adjusted annually. [VERIFY: current UVT value for 2026 and the exact primary-residence exemption conditions under the latest tax reform. Tax rules change frequently in Colombia; this summary is directional only and not tax advice.]
Property tax: impuesto predial (ongoing cost)
Property tax is an annual cost, not a one-time closing cost, but it affects your ongoing budget. The rate varies by municipality and by property value in Medellín:
| Cadastral value band (COP) | Annual rate |
|---|---|
| Up to ~COP 150M | 0.3% to 0.5% |
| ~COP 150M to ~COP 400M | 0.5% to 0.8% |
| Above ~COP 400M | 0.8% to 1.0% |
[VERIFY: exact Medellín impuesto predial rate bands for 2026. Rates are published annually by the Secretaría de Hacienda de Medellín.]
A COP 400,000,000 apartment in Laureles would pay roughly COP 2,000,000 to COP 3,200,000 in annual property tax. Tax is paid in quarterly or annual instalments, and the bill is sent to the property address. Owners who pay the full year upfront often receive a discount of roughly 10%.
IVA (VAT) on new construction
If you buy a new apartment directly from a developer, IVA at 19% is added to the purchase price. This applies to units above a certain value threshold. Used properties are exempt from IVA. [VERIFY: the current IVA threshold for new housing. Properties below a certain UVT cap are exempt or taxed at a reduced rate. The 19% rate applies above the social-housing threshold.]
The distinction between a new-build purchase (grava IVA) and a used-property purchase (no IVA) is one of the largest cost differences in the market. It is worth confirming with the seller or developer in writing before signing the promesa.
Summary table: a COP 400M purchase
| Line item | Estimated cost (COP) | Estimated cost (USD at COP 4,000) |
|---|---|---|
| Purchase price | 400,000,000 | 100,000 |
| Notary fees | 1,500,000 to 3,000,000 | 375 to 750 |
| Registration tax | 6,400,000 to 7,200,000 | 1,600 to 1,800 |
| Withholding (seller's burden) | 4,000,000 | 1,000 |
| Lawyer (optional) | 2,000,000 to 5,000,000 | 500 to 1,250 |
| Total closing costs (buyer portion) | 9,900,000 to 15,200,000 | 2,475 to 3,800 |
| Total outlay at closing | 409,900,000 to 415,200,000 | 102,475 to 103,800 |
This table is illustrative. Get a specific quote from a notary and a lawyer for your transaction.
FAQ
Can I negotiate who pays the closing costs?
The promesa de compraventa can allocate costs however both parties agree. In Colombian practice, the buyer almost always pays notary fees, registration tax, and their own lawyer. The seller covers their own costs. The 1% withholding is formally the seller's burden but is administered by the buyer. Any deviation from the standard allocation should be written into the promesa.
What is the difference between cadastral value and the purchase price?
The cadastral value (avalúo catastral) is the value assigned by the municipality for property tax purposes. It is usually lower than the market price, sometimes by a wide margin. The purchase price is whatever you and the seller agree to. For tax purposes, the higher of the two is typically used as the base. When the cadastral value is well below the market price, an appraisal (avalúo comercial) may be required by the bank or used for the promesa.
Do I pay capital gains tax if I sell at a loss?
No. Capital gains tax applies only to the gain, defined as the sale price minus the adjusted cost basis. If you sell for less than your cost basis, there is no gain to tax. You must still file the return and document the cost basis, but no tax is due.
Are there any tax breaks for foreign buyers?
No special tax breaks exist for foreign buyers specifically. Colombian property tax, registration tax, and notary fees apply to all buyers equally regardless of nationality or residency. The general exemptions (primary residence capital gains exemption, social-housing IVA relief) also apply to foreigners who meet the conditions.
How do I pay impuesto predial each year?
The Secretaría de Hacienda de Medellín sends a bill to the property address. You can pay online through their portal, at authorised banks, or through the EPM app. A discount of roughly 10% usually applies if you pay the full year before the first instalment deadline, typically in March or April. Set this up early: missing a payment triggers interest and penalties.
Do I need a lawyer or is the notary enough?
The notary handles the legal transfer of title and verifies the key documents. For a straightforward cash purchase with a clean title, many Colombian buyers use only the notary. A lawyer adds value in three scenarios: you are buying remotely with a power of attorney, the title history is complex, or you want independent advice on the tax implications and the contract terms. For a foreign buyer doing their first purchase, a lawyer is a sensible expense.