Neighborhood-level cap rates, the legal framework for short-term rentals, closing costs, and what you need to know about buying property in Medellín as a foreigner in 2026.
Varies by neighborhood, building type, and STR legality
350× SMLMV — up 34% from 2025
Notary, registration, and retention taxes
Peso strengthened ~11% year-over-year
The established premium district. Purpose-built STR buildings like Energy Living, Blux, and Soul are concentrated here. Higher price per square meter, but access to the legal STR infrastructure justifies the premium for income-focused investors. Cap rates of 8–11% in authorized buildings at reasonable occupancy. The neighborhood also has the densest concentration of international restaurants, coworking spaces, and services.
The value play. Lower prices per square meter than El Poblado with strong demand from longer-stay tenants — the "slow-mads" who rent for 1–6 months. Cap rates of 7–10%. The neighborhood has a more local, residential feel with excellent walkability. STR-authorized inventory is thinner here, but buildings that do have authorization face less competition.
The quiet long-term play. A separate municipality south of Medellín with lower prices and a family-oriented atmosphere. Best suited for long-term rental strategies with corporate tenants or families. Less tourist demand means STR yields are lower, but vacancy rates tend to be better on extended leases.
Colombia's Horizontal Property Law (Ley 675) determines whether a building permits short-term rentals. The critical rule: if the building's bylaws (Reglamento de Propiedad Horizontal) don't explicitly authorize tourist accommodation, short-term rentals are prohibited by default. Changing the bylaws requires a 70% supermajority vote of all co-owners — practically impossible in most existing buildings.
Even with bylaw authorization, each unit needs an active RNT (Registro Nacional de Turismo) to operate legally. Enforcement is increasing in Medellín, and Airbnb is legally required to delist properties without valid RNT numbers.
Our full analysis covers Ley 675, the supermajority vote mechanic, RNT registration, the legal premium thesis, and an 8-point due diligence checklist.
Read the 70% Rule guide →| Cost | Rate | Paid By | Notes |
|---|---|---|---|
| Notary Fees | 0.30–0.50% | Split 50/50 | Of property value |
| Registration Tax | ~1.0% | Buyer | Impuesto de Registro |
| Registry Fee | ~0.50% | Buyer | Derechos de Registro |
| Retention Tax | 1.0% | Seller (verify) | Advance income tax — verify is paid |
| Total Buyer Cost | ~1.5–2.5% | — | Of purchase price |
Non-residents: Rental income from Colombian property is considered Colombian-sourced income. If paid abroad via a corporate manager, it's subject to a 20% withholding tax. If you manage the property yourself and receive income directly, you're technically required to file a Colombian income tax return.
Residents (183+ days): Rental income is pooled with your other income and taxed at progressive marginal rates from 0% to 39%. This is another reason why day-count management matters — exceeding 183 days can dramatically change your tax treatment on rental income.
The investment visa (M-type) now requires 350× SMLMV = approximately $167,000 at current exchange rates (1,750,905 COP × 350 ÷ 3,678). This is up 34% from 2025 due to the combined effect of the 23% SMLMV increase and peso appreciation. Budget your investment visa costs accordingly.
Colombia has no restrictions on foreign property ownership. Foreigners can buy, sell, and rent property on the same terms as Colombian citizens. The investment must be registered with the Banco de la República (central bank) to establish the legal paper trail for repatriation of funds. This registration is a procedural step, not a barrier — but skipping it can create problems when you eventually want to sell and move capital out of the country.