Buying Property in Colombia as a US Citizen
What it is
US citizens can buy property in Colombia, subject to the property and transaction rules. US tax reporting can also apply to the income, accounts and ownership structure.
Which Colombian rules stay the same for a US passport holder?
Your nationality does not change the basic legal steps. A notary signs a public deed (escritura). The land registry office (Oficina de Registro de Instrumentos Públicos) registers it. That office is part of the Superintendencia de Notariado y Registro. Some details still depend on your situation as a foreign buyer. The notary must confirm which ID it accepts: a passport or foreigner ID card (cédula de extranjería). An interpreter may be needed at signing if you do not know Spanish well enough. Signing from abroad requires a power of attorney (poder). Other details concern bringing in money and registering it as foreign investment. The sequence of steps is in our step-by-step guide to buying as a foreigner.
The money side follows the same rules. Banco de la República lists foreign investment in Colombia, and its yields, among the operations that must go through the exchange market. Its own example is a US resident who buys an apartment in Cartagena (Banrep, basic concepts). That page does not name a form number. Ask your bank which exchange declaration applies. Read how to register your foreign investment. A Colombian certified public accountant (contador público) can confirm how Colombia taxes rental income from the property.
Who it applies to
What if you are Colombian and live abroad?
Many buyers in the United States are Colombians who live there. For them, some points change. See the property checklist for Colombians abroad for the wider document review.
- You may be a “non-resident” for the exchange regime. Decree 1068 of 2015 (art. 2.17.1.2) calls Colombians residents if they live in Colombia. A person who does not meet that condition is a non-resident. For Colombians, the rule sets no day count (Decree 119 of 2017).
- Your purchase can be foreign investment. A property bought by a non-resident is foreign direct investment (art. 2.17.2.2.1.2). If you send foreign currency through the exchange market, the exchange declaration serves as the registration with the Banco de la República (art. 2.17.2.5.1.1). See our foreign investment guide.
- Tax residence is a different test. Tax Code article 10 includes presence, family and financial tests. It also has exceptions for Colombian nationals living abroad. Ask a Colombian accountant to apply the full rule, including its exceptions.
- If you split the year between the two countries, confirm your status with your bank or exchange intermediary before you send money.
What does US tax law require for a Colombian property?
The IRS says US citizens and resident aliens are subject to tax on worldwide income from all sources (IRS). Under that rule, rent from Colombian property is income to report. Where to report it depends on the facts. It may be Schedule E, Schedule C if substantial services are provided, or an entity return. A US tax professional decides which. If it is Schedule E, the Schedule E (Form 1040) instructions say what to enter when a rental property is in a foreign country (Schedule E instructions). For foreign taxes on income, the IRS says the foreign tax credit generally uses Form 1116, with exceptions (IRS foreign tax credit).
Two information returns are separate questions:
- FBAR (FinCEN Form 114). It is required when the aggregate value of foreign financial accounts exceeds $10,000 at any time during the calendar year (FinCEN). It concerns accounts. The IRS comparison table marks foreign real estate held directly as "No" for this form (IRS comparison).
- Form 8938. Directly held foreign real estate is not a specified foreign financial asset. If a foreign entity holds it, your interest in that entity is (IRS Form 8938 FAQ).
Among others, the IRS lists these Form 8938 thresholds (IRS filing page):
| Filing status | Threshold |
|---|---|
| Unmarried, living in the US | more than $50,000 on the last day of the tax year or more than $75,000 at any time during the year. |
| Married filing jointly, living in the US | more than $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year. |
| Living abroad, not a joint return | more than $200,000 on the last day of the tax year or more than $300,000 at any time during the year. |
| Living abroad, joint return | more than $400,000 on the last day of the tax year or more than $600,000 at any time during the year. |
Our US tax reporting guide goes through these forms in detail.
The reporting thresholds were checked in October 2026. The higher Form 8938 thresholds require the IRS tax-home and residence or presence tests for living abroad. Form 8938 is not required if no income-tax return is required. FBAR also has exceptions. Ask a US tax professional to apply the full rules.
Do you need a visa, and which visa fits an owner?
Cancillería puts the United States on List A (Lista A). Its passport holders may enter without a visa for short stays, including tourism and business. The activity must generate no pay in Colombia (Cancillería). The page we reviewed does not state the number of days. Confirm it before you travel.
The M investor visa (M Inversionista) through real estate requires title solely in the foreigner's name for a minimum of 350 SMLMV (legal monthly minimum wages, salarios mínimos mensuales legales vigentes) at the application date, plus Banco de la República extracts registering the investment (Cancillería). See visas for property buyers.
Steps
Can you sign from the United States?
A representative can sign under an appropriate power of attorney. Ask the Colombian lawyer and notary to approve its wording and formalities. The US Department of State’s document guidance distinguishes federal documents from state documents. Do not assume the federal office authenticates every notarized document. See buying from abroad with a power of attorney.
How do you send the money from the US?
On the Colombian side, the funds come in through the exchange market. Ask your bank whether the name on the wire must match the name on the exchange declaration and the public deed. Your bank may ask for source-of-funds documents. Ask it what it needs before you send anything. For other investment types, see investing in Colombia from the United States.
On the US side, the official pages we reviewed do not set a wire-reporting threshold for an individual. The $10,000 figure FinCEN publishes for the CMIR applies to physically transporting currency or monetary instruments out of the United States, not to wires (FinCEN CMIR guidance). Our guide to sending money from the US covers the wire itself.
Questions for your Colombian lawyer, certified public accountant and US tax professional
The Colombia Owner Kit includes a United States sheet (FBAR, Form 8938, rental income on Schedule E, Schedule C or an entity return, entity forms and the foreign tax credit), plus the Colombian calendar, checklists, letters in Spanish, a BanRep records pack and question lists for your lawyer, certified public accountant and US tax professional. You can also start with the free one-page due-diligence checklist.
- Colombian lawyer or certified public accountant: Which exchange declaration applies to my transfer? Should the public deed show the same name as the wire?
- US CPA, enrolled agent or tax attorney: How do I report Colombian rental income and claim the foreign tax credit? Do the FBAR or Form 8938 apply to me, and does it change if I hold through an entity?
- Your bank: What source-of-funds documents do you need, and how do you treat my accounts under FATCA?
Documents
What do tax authorities exchange about your accounts?
The DIAN agreements page lists a US–Colombia tax-information exchange agreement and a FATCA agreement. These are different from an income-tax treaty. Ask the bank how it classifies and reports the accounts.
Exceptions
Is there an income-tax treaty between the US and Colombia?
DIAN's page of international tax agreements does not list an income-tax treaty with the United States. It places the United States under tax-information exchange (Ley 1666 de 2013) and an FATCA agreement (DIAN). Relief from double taxation on Colombian rent depends on US rules, such as the foreign tax credit. No income-tax treaty provides that relief. Confirm with a CPA, enrolled agent or tax attorney licensed in the US how it applies to you.
Official sources
Next step
Educational information, not legal or tax advice. Ask a Colombian lawyer or accountant for your case.
This guide is educational, not legal or tax advice.
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Frequently asked questions
Is there a tax treaty between the US and Colombia?
DIAN's list of international tax agreements does not show an income-tax treaty with the United States. It lists the United States under tax-information exchange and a FATCA agreement.
Do I need to file an FBAR for a Colombian property?
FinCEN requires an FBAR when the aggregate value of foreign financial accounts exceeds $10,000 at any time during the calendar year. The IRS table says directly held foreign real estate is not reportable on that form. The report concerns accounts.
Does Form 8938 cover foreign real estate?
The IRS says directly held foreign real estate is not a specified foreign financial asset. An interest in a foreign entity that holds the real estate can be.
Can a US citizen visit Colombia without a visa?
Cancillería lists the United States on List A, which exempts passport holders from a visa for short stays that do not generate pay in Colombia. Confirm the number of days with Cancillería before you travel.
Not sure which topics to raise? Take the quiz. The Colombia Owner Kit (US$79, instant download) turns this guide into a checklist, a calendar entry and a question list: see what’s included. Or start with the free sample: Chapter 4, the due-diligence checklist.