When purchasing property in Colombia, one needs to consider the Resident Visa program that the government offers for those buying a home, condo, finca, etc. for 650 times the MMW, minimum monthly wage, or over. Conveniently, with that wage being a million pesos a month for 2022, the threshold is 650 million COP. The mid market rate as quoted by xe.com at 4 pm EST on October 28th was 4829 pesos to the US dollar, the equivalent of just over $134K US. With a purchase of that size, the buyer is given the opportunity to apply for a Resident Visa, a permanent visa that allows one to come and go as they please. The main reason for losing it would be if the holder left Colombia for two years straight, otherwise it is valid for as long as needed.
The MMW will increase on January 1, 2023, as it has for many years, our guess is close to the rate of inflation for 2022, so somewhere around ten or eleven percent. At ten percent, that would raise the visa threshold a similar amount so the minimum purchase would become $148K US. We mention this because anyone considering a purchase should take that minimum into account and if considering something close to the threshold, may want to look for a property that fits the Resident Visa guidelines. For example, and using our 2023 assumptions, it would be a mistake, we feel, to buy property for $135K when another $13K would make the permanent visa a reality. Of course, this assumes the buyer has the financial ability to meet the threshold but anyone that does, must give this some serious thought.
The Resident Visa is a valuable document to have, both for the flexibility it offers and the peace of mind it provides to the holder, never having to worry if a renewal in the other categories will be approved once the time comes. It also eliminates the costs, government fees, perhaps flights, and the time involved in going to Bogota whenever one is required to. This program is a wonderful perk offered to expats by the Colombian government and should be taken advantage of whenever possible.