Buyers—both foreigners and Colombians—often underestimate closing costs when purchasing property in Colombia. Closing costs include mandatory taxes, notary fees, registration charges, and other legal expenses that typically add between 1.5% and 2.5% of the property value, and up to around 3% for high‑value properties.
This guide explains each cost, who pays it, when it is paid, and how to calculate your budget, with examples in COP and approximate USD (using a reference rate of 1 USD = 4,000 COP; actual bank rates vary daily).
How much are closing costs in Colombia?
For most residential purchases:
- For properties up to around COP 900–996 million (≈ US$225,000–249,000), statutory closing costs for the buyer usually fall around 1.9–2.1% of the property value, not including your own attorney.
- For high‑value properties above COP 2.5 billion (≈ US$625,000), total statutory costs (including stamp tax) can reach 2.8–3%, and your full budget including legal fees and contingencies can be closer to 4–5% of the purchase price.
Planning with these percentages from day one helps you avoid last‑minute funding gaps and contract penalties.
Why understanding closing costs is critical
According to Colombian real‑estate market experience, a significant share of transactions are delayed or fail because buyers did not correctly budget closing costs and legal fees
- Delivery delays: Lack of funds at closing slows or blocks the transaction.
- Contract penalties: You can lose around 10% of the property value or your deposit if you breach the promise‑to‑purchase agreement.
- Lost opportunities: If the deal collapses, you may lose the property and must restart the entire process.
With professional advice, realistic percentages, and a clear calculator, you dramatically reduce these risks.
Closing cost breakdown in Colombia (notary, taxes, registration, stamp tax)
All USD values below are approximate, using 1 USD = 4,000 COP as a 2025 reference rate.
1. Notary fees (Honorarios / Derechos notariales)
- Rate: 0.3% of the property value + 19% VAT.
- Who pays? Buyer and seller share 50–50.
- When? At closing, at the notary.
Example — Property value COP 900,000,000 (≈ US$225.000)
| Concept | Amount COP | ≈ USD |
|---|---|---|
| Notary fee (0.3%) | 2,700,000 | ≈ US$675 |
| VAT 19% on fee | 513,000 | ≈ US$128 |
| Total notary including VAT | 3,213,000 | ≈ US$803 |
| Buyer’s share (50%) | 1,606,500 | ≈ US$402 |
2. Departmental registration tax (Impuesto Departamental / Rentas)
- Rate: ≈ 10.5/1000
- Who pays? Typically 50–50 between buyer and seller.
- When? At closing, paid through the notary to the department
Example — Property COP 900,000,000 (≈ US$225,000)
| Concept | Amount COP | ≈ USD |
|---|---|---|
| Rentas total | 9,450,000 | ≈ US$2,363 |
| Buyer’s share (50%) | 4.725,000 | ≈ US$1,181 |
3. Registration tax (Impuesto de Registro)
- Rate (approx.): 1.27% + system/registry fees around 2% of that base.
- Who pays? 100% buyer.
- When? At closing; required to register the deed (escritura) and put the property in your name
Example — Property COP 900,000,000 (≈ US$225,000)
| Concept | Amount COP | ≈ USD |
|---|---|---|
| Base registration tax (1.27%) (progressive) | 11,412,000 | ≈ US$2,853 |
| Total registration cost (buyer) | 11,412,000 | ≈ US$2,853 |
4. Stamp tax (Impuesto de Timbre)
Applies mainly to medium and high‑value contracts.
Progressive bands (2025)
- 0% up to COP 996,000,000 (≈ US$249,000) — 20,000 UVT.
- 1.5% between COP 996,000,001 (≈ US$249,001) and COP 2,490,000,000 (≈ US$622,500) — 20,001–50,000 UVT.
- 3% + 450 UVT for each additional COP 1,494,000,000 (≈ US$373,500) above 50,000 UVT (very high‑value deals).
- Who pays? Normally the buyer.
- When? At closing, via the notary.
Illustrative examples
- Property COP 900,000,000 (≈ US$225,000):
- Below the COP 996M threshold → no stamp tax.
- Property COP 1,500,000,000 (≈ US$375,000):
- Only the portion above COP 996M is taxed at 1.5%; expect several million pesos (low thousands of USD) in stamp tax.
- Property COP 2,000,000,000 (≈ US$500,000):
- Still within the 1.5% band on the portion above COP 996M; total stamp tax is typically in the mid‑tens of millions of COP (≈ US$5,000–8,000 depending on the exact base).
For ultra‑high‑value transactions where the 3% + 450 UVT rule applies, the exact amount must be calculated case by case using updated UVT values and the contract structure.
5. Withholding tax (Retención en la Fuente)
- Rate: 1% of the property value.
- Who pays? Seller (if an individual).
- When? At closing; the notary withholds and remits it to the tax authority.
- Note: If the seller is a company (e.g., SAS), different rules can apply, but this tax is still a seller issue, not a buyer cost.
Example — Property COP 900,000,000 (≈ US$225,000)
- Withholding: COP 9,000,000 (≈ US$2,250) – paid by the seller, not the buyer.
Buyer budget examples: COP and USD
These examples assume 1 USD = 4,000 COP and focus on statutory costs. They do not include your own attorney fees or extra services.
Example 1 — Property COP 900,000,000 (≈ US$225.000)
| Cost item | Approx. rate | Buyer amount COP | ≈ USD | Who pays? |
|---|---|---|---|---|
| Notary fees (buyer’s half) | 0.3% + 19% VAT (50%) | 1,606,500 | ≈ US$402 | 50–50 |
| Departmental tax (rentas, buyer’s half) | 10.5/1000 total (50%) | 4,725,000 | ≈ US$1.181 | 50–50 |
| Registration tax (progressive) | Real tiers 8.67–12.68/1000 | 11,412,000 | ≈ US$2.853 | Buyer 100% |
| Stamp tax (timbre) | 0% | 0 | — | — |
| Total buyer | ≈ 1.97% of COP 900M | 17,743,500 | ≈ US$4.436 | — |
For a purchase close to COP 900M, a prudent buyer should budget at least ~2% extra in COP on top of the price, just for mandatory legal closing costs.
Example 2 — Property COP 1,500,000,000 (≈ US$375.000)
Illustrative example with stamp tax in the 1.5% band.
| Cost item | Approx. rate | Buyer amount COP | ≈ USD | Who pays? |
|---|---|---|---|---|
| Notary fees (buyer’s half) | 0.3% + 19% VAT (50%) | 2,677,500 | ≈ US$669 | 50–50 |
| Departmental tax (rentas, buyer’s half) | 10,5/1000 total (50%) | 7,875,000 | ≈ US$1.969 | 50–50 |
| Registration tax (progressive) | Real tiers 8,67–12.68/1000 | 18,945,000 | ≈ US$4.736 | Buyer 100% |
| Stamp tax (1.5% illustrative) | 1,5% on portion > COP 996M | 7,560,000 | ≈ US$1.890 | Buyer 100% |
| Total buyer | ≈ 2.48% | 37,057,500 | ≈ US$9.264 | — |
Example 3 — Property COP 2,500,000,000 (≈ US$625.000)
Simplified example with higher stamp tax band.
| Cost item | Approx. rate | Buyer amount COP | ≈ USD | Who pays? |
|---|---|---|---|---|
| Notary fees (buyer’s half) | 0.3% + 19% VAT (50%) | 4,462,500 | ≈ US$1.116 | 50–50 |
| Departmental tax (rentas, buyer’s half) | 10,5/1000 total (50%) | 13,125,000 | ≈ US$3.281 | 50–50 |
| Registration tax (progressive) | Real tiers 8,67–12.68/1000 | 31,700,000 | ≈ US$7,.925 | Buyer 100% |
| Stamp tax (higher band) | 3% + 450 UVT (illustrative) | 22,410,000 | ≈ US$5.603 | Buyer 100% |
| Total buyer | ≈ 2,87% of COP 2.5B | 71,697,500 | ≈ US$17.924 | — |
For very high-value transactions, stamp tax must be calculated precisely using current UVT values and contract structure; here we only show a reasonable range.
Need personalized closing costs? Calculate My CostsOther important costs buyers usually forget
Besides statutory closing costs, plan for:
| Concept | Typical range (COP) | ≈ USD | Notes |
|---|---|---|---|
| Attorney fees | 5,000,000 – 10,000,000 | ≈ US$1,250–2,500 | Due diligence, contracts, legal strategy |
| Property appraisal | 500,000 – 2,000,000 | ≈ US$125–500 | Especially if financing |
| Technical inspection | 300,000 – 1,000,000 | ≈ US$75–250 | Structure, defects, compliance |
| Immigration procedures (investor visa, for foreigners) | ~1,900,000 attorney fee + ~1,660,200 government fees | ≈ US$475 + ≈US$415 | Visa, ID card and processing |
Interactive closing cost calculator (COP & USD)
Use the interactive calculator below to simulate your property value in COP and see an instant estimate of notary fees, departmental taxes, registration tax, stamp tax, and your total closing budget in COP and USD.
Medellín · Colombia · 2025
Closing Checklist Before You Buy Property in Colombia (Downloadable PDF)
- Confirm total property price and estimated closing costs
- Verify that the property has a clear title (no liens or encumbrances)
- Check seller background and potential forfeiture/asset‑seizure risks
- Obtain certificates showing no outstanding municipal taxes or utilities
- Hire a real‑estate attorney specialized in Colombian law
- Order a professional appraisal
- Verify construction permits (for new builds)
- Confirm that all costs are included in your budget
- Arrange international transfers and timing with your bank (if applicable)
- Have your attorney review the purchase agreement before signing
- Ensure the public deed is properly registered in your name
Download the PDF checklist and go through each point with your attorney before signing any binding document.
Want a full legal check of the property (title, liens, risks)? Request Property Due Diligence
FAQ highlights (optimizado SEO)
1: What total percentage of closing costs in Colombia should a buyer expect?
On average, buyers should expect between 1.5% and 2.5% of the property value in statutory closing costs, depending on the property price and whether stamp tax applies. For properties up to around COP 900–996 million (≈ US$225,000–249,000), totals often fall around 1.97-2% including all registration‑related charges. For high‑value properties (> COP 2.5 billion ≈ US$625,000), overall costs (including stamp tax) can reach 2.87-3% of the transaction value.
2: Who pays which closing costs in Colombia—the buyer or the seller?
It depends on the item:
- Shared 50–50: Notary fees, departmental (rentas) taxes.
- 100% buyer: Registration tax, stamp tax, buyer’s attorney fees.
- 100% seller: Withholding tax (if seller is an individual).
3: When do I need to pay closing costs in Colombia?
Most closing costs are paid on the day of closing. The buyer must have all funds available before the closing date because the notary must verify payment before executing and registering the deed.
4: Are closing costs different between Medellín, Bogotá, and Cartagena?
There are only small differences. Main taxes (registration, stamp) are national, but departmental taxes can vary slightly, and some municipalities add minor local fees. Medellín, Bogotá, and Cartagena are broadly similar, but you should always confirm exact figures with your local attorney.
5: Can I negotiate closing costs in Colombia?
No. These are statutory taxes and official fees set by law; they are not negotiable. What you can negotiate is who pays what—for example, a seller may agree to assume part of the buyer’s expenses as an incentive.
6: What happens if I fail to budget correctly for closing costs in colombia?
You may face:
- Delays in closing and deed registration
- Penalties of up to 10% of the property value for breach of contract
- Loss of your deposit
- Potential legal action from the seller
7: Are there differences in closing costs in Colombia if I am a foreign buyer?
The cost structure is the same for foreigners and Colombians. However, foreign buyers often incur additional costs:
- Investor visas
- Opening a Colombian bank or brokerage account
- Specialized legal advice for foreign investment and currency registration
- Foreign‑exchange and transfer fees
8: Do I really need a lawyer to buy property in Colombia?
Yes, it is highly recommended. A specialized attorney will:
- Verify clear title and detect liens or claims
- Review and/or draft the purchase agreement
- Advise on all taxes and regulatory requirements
- Protect your rights as buyer
- Coordinate the closing at the notary and registration
The cost (COP 5–10 million) is small compared to the value of the transaction and the protection it provides.
Ready to speak with a specialized attorney? Book a Legal Consultation
9: What is the difference between registration tax and stamp tax in colombia?
- Registration tax (progressive 8.67–12.68/1000 + system fees): Mandatory fee that legally records the property in your name; paid 100% by the buyer.
- Stamp tax (1.5%–3% progressive): National tax on certain high‑value contracts, including property sales above COP 996,000,000; typically paid by the buyer and relevant mainly for mid‑ to high‑value transactions.
10: What document proves that I have paid all closing costs?
The public deed (escritura pública) granted by the notary and duly registered serves as official proof that the transaction was completed and that statutory costs were paid. It is your legal title to the property.
Real case studies
Case 1: Sarah, Foreign Investor
Sarah, a Canadian citizen, bought a property in El Poblado, Medellín, for COP 1,200,000,000.
- Initial budget: COP 1,200,000,000 (property price only)
- Real closing costs: ~COP 26.718.000 (≈ US$6,680, 2.23% of value)
- Notary fees: ~2,200,000
- Departmental taxes: ~6,300,000
- Registration tax: ~15,216,000
- Stamp tax (partial band): ~4,000,000
She nearly lacked the funds at closing. With professional planning beforehand, she would have fully anticipated these amounts and avoided last‑minute stress.
Lesson: Always add at least 2.3–2.5% on top of the property price for closing costs, and more if your purchase is above the stamp‑tax threshold.
Avoid Sarah’s last-minute stress. Get a Closing Cost Analysis for Your Case
Case 2: John, Latin American Entrepreneur
John purchased a property in Bogotá for COP 2,500,000,000.
- Budgeted: COP 2,550,000,000 (only 2% extra)
- Real closing costs: ~COP 71.697.500 (≈ US$17,924, 2.87% of value)
- All statutory taxes and fees: ~71,697,500
- Attorney fees: ~5,000,000
He had to wire additional funds just two days before closing, almost causing the deal to collapse.
Lesson: For high‑value properties (> COP 2 billion), expect closing costs in the 5–6% range. Budget conservatively.
Final recommendations
Do this before you buy property in colombia 2025
- Consult a Colombian real‑estate attorney.
- Use a detailed calculator and add at least 2–3% in COP to your property price for closing costs.
- Verify clear title and background (no liens, seizures, or claims).
- Get a professional appraisal and technical inspection.
- Ensure you have funds for price + closing costs + 5–10% contingency.
- Have your attorney review the purchase agreement before signing.
- Coordinate international transfers and FX registration if you bring money from abroad.
Avoid this when buying property in colombia 2025
- Assuming you only need the property price.
- Signing a promise to purchase without legal review.
- Underestimating stamp tax on properties above COP 996M (≈ US$249,000).
- Skipping title and background checks on the property and seller.
- Waiting until the last week to move funds into Colombia.
- Proceeding without specialized counsel—especially as a foreign buyer.
Contact Convexo for Professional Guidance
At Convexo, we offer a comprehensive, personalized diagnostic for your real‑estate investment in Colombia. Our multidisciplinary team helps you:
- Calculate exactly how much you need to budget
- Review legal documents and property background
- Coordinate legal, real‑estate, and immigration strategy
- Ensure your closing happens smoothly and without unpleasant surprises
- 📞 WhatsApp: +573103943774
- 📧 Comercial@convexorealestatelaw.com
- 🏠 Legal advisory for property purchase: Buying Property in Colombia
Or use our Closing Cost Calculator and Buyer’s Checklist.
