The Colombian Government adopted new visa regulations that came into effect on October 21, 2022, and now that the format has been published, it necessitates that we update our blog of October 31. There is a little bit of negativity for expats but we feel that is more than offset with the positives that the changes bring.
The Foreign Direct Investment Visa, whereby the purchase of a property that met or exceeded 650 times the minimum monthly wage,(MMV), that conferred instant permanent residency, has been eliminated. Buyers can now apply for a three year Property Owner Migrant Visa that will need to be renewed. That eventually leads to being able to apply for permanent residency once the five year qualification is met. So, the down side is the five year wait, as well as any concern one might have about the chances of a rejection at either renewal. In our visa contact’s opinions, in most cases, a renewal will be a formality, unless circumstances of the visa holder change dramatically.
There is an upside, one we feel far outweighs the renewal at three years and then the permanent application at five years. The minimum investment has been reduced to 350 times the MMW. This leads us to an assumption, one that will bring the investment, in US dollars, into perspective. The MMV in Colombia is updated every year and comes into effect on January 1, there is a proposal now in Congress to increase it 13.5%, many feel it will pass. That will bring the MMV to 1,135,000 COP. Multiplying this by the minimum of 350 MMV’s and converting it to US dollars at an exchange rate of 4,800 to the dollar, means an expat would have to purchase real property for a minimum of only $83,000 US, an attractive reduction from the old minimum. Speaking for Armenia, that amount will get one into an 800 to 1,000 square foot secure condo in a better barrio. Very little more, perhaps $100,000 US, will buy similar in the city’s best barrio. We believe, on balance, that the new requirements are very beneficial to any expats considering a move here.
When buying there are other considerations that need to be followed in order that there are no future issues from a financial, or any other, standpoint. Colombia is very particular about documentation and leaves it to the applicant to both know, and follow, the letter of the law. We are well equipped to assist you with a purchase in Armenia and area, please contact us with your concerns or questions, Armenia Colombia Realty For Expats will be happy to take you through the process.