Colombia Foreign Investment Law
During the last decade, Colombia has made considerable progress regarding its foreign investment legislation. Thanks to suchprogress, these procedures are now much more expedite and less uncertain for investors.
Existing foreign investment law in Colombia has given full legal rights to foreign citizens who want to invest in Colombian real estate.
As a foreign citizen you can buy and own real estate in a safe and confident way.
It used to demand a lot of paperwork some years ago. But now it is much easier for foreign citizens to buy real estate in Colombia!
Colombia Law benefits international real estate investment by:
� Stability. Investment reimbursement and profit remittance conditions in force on the date on which investments are registered may not be modified in any way that may be detrimental to the investor.
� Protecting Ownership rights. Private ownership and other rights acquired may not be disavowed or breached by subsequent laws except for public utility orsocial interest reasons. In any case, expropriation for public utility or for social interest reasons is guaranteed to be conducted through a proper process and with adequate indemnification.
You have the same rights as if you were a Colombian Citizen !
Who is a foreign Investor?
Foreign investor is understood to be any individual not residing in Colombia and any foreign corporation, investing resources from abroad in the country.
It is presumed that a person shown as a foreign investor in the various forms used for registration with Banco de la República (Colombian Central Bank) is a non-resident.Nevertheless, all such persons must keep the documents evidencing their nonresident status.
For the Colombian foreign exchange regime, loans and operations implying foreign indebtedness do not constitute foreign investment.
The old law required foreign citizens to have a local foreign ID ( Cedula de extranjeria), or have someone with a Cedula, to act as their official agent, when signing the deed.
Now you do not need a cedula or visa, just your passport with a valid Tourist 60 or 90 days stamp. The Notary will ask you this at the moment of signing the Deed (Escritura).
Types of foreign investment
The Colombian legislation contemplates two types of foreign investment: direct foreign investment and portfolio investment.
Acquiring real estate, stock certificates in real estate securitization processes or real estate funds, is considered as a DIRECT FOREIGN INVESTMENT.
In Colombia, foreign investment may be made through various methods:
· In cash, by importing foreign currency to be converted to local currency, whether to invest directly to a company's corporate capital.
. In kind, through either tangible or intangible assets.
. By capitalizing resources in local currency with a right to be drawn abroad
For real estate purposes, paying in cash with foreign currency is the most common way to pay.