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  • Property due diligence in Medellin – 5 keypoints to keep in mind when buying a property in Colombia (2025)

    Property due diligence in Medellin – 5 keypoints to keep in mind when buying a property in Colombia (2025)

    Property Due Diligence in Medellin, Colombia: 5 Key Points to Keep in Mind When Buying a Property

    t is normal to feel apprehensive when buying property in another country. Each country has different rules, and it can be overwhelming to commit your resources, savings, or investments while depending on others. This short guide will help simplify the process.

     

    First, it is important to note that in Colombia, especially in rural properties, there is a strong tendency toward informality. For this reason, it is common to encounter properties being sold by non-owners, sales without deeds, or even entire floors built under the construction license of another house. Due to this informality, conducting a meticulous study of the legal status, nature, and history of the property is essential to identify a range of factors, including: who the legal owners are, whether the legal records match the physical property, if there are mortgages, lawsuits, foreclosures, or auctions affecting the property, or if there are squatters or third parties unrelated to the sellers who could jeopardize your investment.

     

    Covering all the intricacies of a due diligence process would be beyond the scope of this article, so here are five specific and sometimes overlooked points that should be thoroughly reviewed when negotiating a property purchase in Medellín or elsewhere in Colombia:

     

    1. Registered vs. Actual Property Area

    In Colombia, it is very common for a property’s registered area in the deeds to be smaller than its actual physical area. For example, the purchase might involve “air rights,” a phenomenon common in certain neighborhoods of the city. It is crucial to verify that the areas match across the Horizontal Property Regime (for condominiums), the Certificate of Freedom and Title (property registry), the purchase deed, and the cadastral certificate. Failing to do so can result in fines from urban planning authorities for unregistered areas.

    2. Zoning Laws and Co-Ownership Restrictions

    Even in the same block, two different units can have a different local regulation in Medellin

    If your goal is to buy property for investment purposes, it is important to study land use regulations and co-ownership rules (for properties within residential complexes) to determine if your investment plans are viable for the area. The most common example, though not the only one, is short-term rentals (Airbnb). Depending on the zone—and by “zone,” I do not mean the neighborhood but the property’s exact location—short-term rentals (less than 30 days) may or may not be permitted. Even in permitted zones, the co-owners’ association might have banned this practice. Therefore, before finalizing a deal, have a lawyer review these documents to confirm whether your business model is legally viable.

    3. Verify the Seller’s Full Ownership Rights

    Good Standing Certificate it’s a crucial document when buying property.

    In Colombia, there are legal mechanisms where a property owner may have transferred partial rights to third parties, either to secure debt payments or voluntarily. Examples include the transfer of bare ownership (nuda propiedad), usufruct rights, or joint ownership (proindiviso). These situations can mean that the seller is not the full owner, requiring all parties with rights to the property to be involved in the negotiation.

    4. Conduct a Background Check on the Seller

    A serie of certificates are important for checking the background of the sellers

    This is a critical step where even prestigious banks in Colombia have made mistakes. Investigating the seller can reveal risks to your investment. For example, checking their judicial history might uncover pending property seizures, while reviewing their tax or administrative status can prevent money laundering risks that could lead to losing your investment.

    5. Review Municipal Plans for Urban Projects

    Real example, a property who will be demolish in the next years due to a public construction.

    Few lawyers in Medellín conduct this check, partly because navigating the urban planning system of cities like Medellín is complex. However, this step is crucial. Municipal projects such as roads, parks, or urban renewal initiatives can result in the loss of green areas or even the entire property. A current example is the potential impact of the “Metro de la 80” project in western Medellín. Often, neither sellers nor brokers are aware of these plans, making it vital to work with a qualified lawyer.

    Extra Tip: Always Verify the Property’s Physical Possession

    Before starting negotiations and again just before closing the deal, ensure the property has no squatters, tenants with pending disputes, or other occupants. This prevents unexpected losses after investing.

     

    By addressing these points, you protect your investment from common pitfalls in Colombia’s real estate market. At Start In Colombia, we conduct thorough due diligence to secure your transactions

    Looking for a property in Medellin / Colombia ? Call us

    Navigating Colombia’s complex real estate landscape requires more than just caution—it demands expert legal guidance. A single oversight in due diligence can lead to costly fines, legal disputes, or even the loss of your investment. At Start In Colombia, our specialized real estate attorneys combine decades of local expertise with a meticulous 25-point due diligence process to safeguard your transactions. From verifying hidden liabilities to ensuring compliance with ever-evolving regulations, we turn uncertainty into confidence. Don’t risk your investment to guesswork. Contact us today for a comprehensive legal review tailored to your goals. Your peace of mind is our priority. 

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  • Avoid these mistakes when bringing money to Colombia – Investors and Expats guide (2025)

    Avoid these mistakes when bringing money to Colombia – Investors and Expats guide (2025)

    Avoid theese mistakes when bringing money to Colombia – Expats & investors guide 2025

    Introduction

     

    We live in a globalized world, but moving large sums of money across borders can still feel like stepping back in time. While platforms like PayPal or Payoneer make small transfers effortless, handling major capital for investments, retirement plans, or business ventures in Colombia is a different story. Hidden fees, bureaucratic hurdles, and legal risks can turn your dream investment into a nightmare.

    Colombia welcomes foreign investors, but navigating its currency regulations is no walk in the park. A single misstep could lead to fines of up to 200% of your improperly reported investment (yes, you read that right!). This guide reveals the critical mistakes to avoid and why hiring a lawyer specialized in Colombian foreign exchange law is non-negotiable.

    Key Concept: Foreign Exchange Market Intermediaries (IMC)

    Assuming that the capital for the incorporation of the company comes from abroad, it’s important to consider the bank commission cost for legalizing or monetizing foreign currency in Colombia. For this, it’s essential to clarify that the only legal currency in Colombia is the Colombian Peso, and in turn, the only foreign currency for which banks exchange Colombian Pesos is the US Dollar. This means that if your investment capital is in Euros, for example, you will have to make two bank exchanges through the bank, first from Euro to Dollar and then from Dollar to Colombian Peso, according to the official rates minus a commission charged by the bank for each Dollar converted.

    When transferring money to Colombia—whether through a broker, personal bank account, or corporate account—all investments must be processed through a licensed Foreign Exchange Market Intermediary (IMC). These include banks, brokers, or financial institutions.

    While IMCs help file exchange declarations with Colombia’s Central Bank (Banco de la República), the legal responsibility falls solely on you, the investor. Mistakes in these declarations can trigger audits, penalties, or even visa complications. Let’s break down the top errors we see at Start In Colombia

    Bancolombia Bank, one of the best banking options for foreign investors.

    Mistake #1: Misreporting the Purpose of Your Investment

    A common error occurs when an investor declares one specific amount as a real state investment bur then use part of the funds  for personal expenses or unregistered business activities. Months or years later, the Central Bank identifies the discrepancy during an audit. Penalties can reach 200% of the misreported amount. To avoid this, ensure every transfer aligns with its declared purpose. Different rules govern real estate purchases, corporate investments, loans, or equipment imports. Establishing a corporate vehicle (e.g., an LLC) helps manage funds in a clever way avoinding incurring in fines with the Central Bank.

    Exchange Form Declaration
    Exchange Form: In Colombia exits many forms declaration depending on the type of foreign investment. Choosing the correct one it’s mandatory to avoid infractions and fines.

    Mistake #2 Overlooking Exit Strategies for Repatriating Profits

    Another frequent mistake involves selling a property for $800,000 and receiving payment offshore to avoid Colombian taxes. This violates the requirement to repatriate all proceeds through Colombia’s financial system. Consequences include visa revocation, legal barriers to future investments, and tax audits. Always repatriate proceeds through an IMC and structure exits with legal guidance to optimize tax efficiency.

    Mistake #3 Underreporting Transaction Values in Legal Deeds

    For buying properties in Colombia the transaction must be concluded thru a Public Deed registered in a Public Notary.

    To reduce notary fees, some investors declare a property’s sale price below market value. Despite Colombia’s 2018 law mandating sworn declarations of actual values, this practice persists. Underreporting inflates capital gains taxes and creates discrepancies that hinder lawful fund repatriation. Always declare the true transaction value and consider using trusts (fideicomisos) to separate legal ownership from economic benefits.

    Mistake #4 Using remittance platforms for Investment Capital

    Transfers via PayPal or Wise are classified as personal remittances, not registered investments. This renders funds ineligible for visa applications and unprotected for repatriation or tax purposes. Exclusively use IMCs for investment-related transfers. If errors exist, reclassify past remittances as loans or capital injections with legal support.

    Mistake #5 Failing to verify IMC documentation

    IMCs occasionally submit forms with typographical errors (e.g., misspelled names or incorrect IDs). These errors disassociate the investor from their capital, leading to visa denials or frozen funds. Always request copies of filed declarations and engage legal experts to audit paperwork.

    The Necessity of Specialized Legal Counsel

    Colombia’s foreign exchange laws are highly technical, and few lawyers specialize in this field. Errors in compliance risk penalties exceeding your initial investment and jeopardize residency status. At Start In Colombia, we design custom corporate structures (e.g., LLCs, trusts), audit documentation for errors, and negotiate with the Central Bank to resolve disputes.

     

     

    Conclusion

    Colombia’s investment opportunities are vast, but its regulatory framework demands meticulous adherence. By avoiding these mistakes and partnering with legal experts, you protect your capital and ensure long-term success.

    Act Now: Schedule a consultation to review your investments, audit past transfers for compliance risks, and secure your financial future in Colombia.

    CALL US +573242950454
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  • Date counter – How many days i can stay in Colombia with my tourist visa 2024

  • Costs of incorporating a company in Colombia 2025

    Cost of incorporating a company in Colombia 2025

    Avocato plantations, one of the most trendy business in Colombia this 2025

    Regardless of whether you’re planning to start Airbnb businesses in Colombia, invest in coffee plantations, or expand your company to the Colombian (or South American) market, the best option for conducting business in Colombia and protecting your assets is through a Limited Liability Company, known in Colombia as SAS (Sociedad por Acciones Simplificadas). But the immediate question arises: How much does it cost to incorporate a company in Colombia this 2025? 

    Here, we’ll address that question.

    Government fees

    The official costs of incorporating a company in Colombia primarily depend on two variables: i) the company’s capital to be registered and ii) the age of the investors.

    The Company’s Capital

    This is the main variable and depends on the amount of the company you wish to register; it determines the tax value you will be charged for registration. Essentially, and aside from some minor additional expenses, the largest item when creating a company is the departmental company registration tax, which is 0.7% of the paid-in capital. This refers to the initial and actual amount of money deposited by shareholders in the company to carry out its corporate purpose.

    This means that if you set up a small business, for example, to sell street food and start with a capital of 5,000 dollars, you will pay around 35 dollars. However, if you start an avocado export business with an initial investment of 350,000 dollars, you will have to pay around 2,450 dollars. However, this should be approached with caution and, above all, in the company of an lawyer, to define the best strategy that allows you to optimize these costs, as a company planning to handle large business does not necessarily need to start with such large registered capitals.

    With this variable in mind, for a small to medium-sized company with an approximate capital of 50,000 dollars, expect to pay around 350 dollars in registration tax

    The Age of the Investors

    In Colombia, there is a law that promotes young entrepreneurship. Therefore, companies formed with a capital contribution of over 50% by individuals under 35 years of age receive a discount on some legal company registration fees, with an estimated saving of approximately 250 dollars for small to medium-sized companies with capitals of more than 30,000 USD.

    Medellín Chamber of Commerce

    Approximate Cost

    To the 0.7% registration rate, other costs are added which, depending on the size of the company, whether it benefits from being a young investor under 35 years, and whether physical books for the registration of shares and shareholders are desired, can range from 50 dollars to 300 dollars additional.

    In conclution, for small to medium-sized businesses with capitals ranging from 30,000 USD to 100,000 USD, expect to pay between 500 to 1,200 USD in government fees.

    IMPORTANT NOTE: Keep in mind that if you wish to obtain an investor visa that allows you to stay in the country to develop your business, the registered capital of your shares or company must exceed 100 Colombian legal minimum wages, which in 2024 represent 130,000,000 million pesos. At a rate of 3,800 COP/1 USD, this is equivalent to 34,210 dollars.

    Foreign capital investment (Bank fees)

    Assuming that the capital for the incorporation of the company comes from abroad, it’s important to consider the bank commission cost for legalizing or monetizing foreign currency in Colombia. For this, it’s essential to clarify that the only legal currency in Colombia is the Colombian Peso, and in turn, the only foreign currency for which banks exchange Colombian Pesos is the US Dollar. This means that if your investment capital is in Euros, for example, you will have to make two bank exchanges through the bank, first from Euro to Dollar and then from Dollar to Colombian Peso, according to the official rates minus a commission charged by the bank for each Dollar converted.

    Regarding the bank commision you have to consider: 

    Firstly, the commission of the originating bank where your money is located. This bank will only charge a sending commission, which often involves fixed rates under 100 USD.

    Secondly, the exchange rate of the Colombian bank (You must first open an account at the Colombian bank of your choice.). Colombian banks, depending on market movements, the value of the transfer, and the client’s profile, will charge a commission of a couple of tens of pesos for each dollar converted.

    For instance, if the exchange rate is 1 dollar to 4,000 Colombian pesos, the Colombian banks might offer a rate, for example, of 1 dollar to 3,950 Colombian pesos, meaning 50 pesos per dollar. For transfers of 50,000 dollars, this would equate to a bit more than 600 USD.

    Bancolombia Bank, one of the best banking options for foreign investors.

    Legal Fees

    The first question here is: Do I need to hire a lawyer to incorporate a company in Colombia? The answer is technically NO. In theory, you could do it yourself; however, even though the process is not very complicated itself, you will be asked for information on forms that are very technical regarding financial and accounting data of the company to be created, as well as the presentation of company creation statutes, declarations, and a series of documents that you could essentially complete yourself. But learning to fill them out would take considerable time, and you might face possible reprocessing and devolutions by the Chambers of Commerce (the entity in charge of this kind of process).

    So, the main advice is to hire a law firm to handle this process for you. 

    Regarding the costs, there are different ranges depending on the legal firm, with prices that can reach up to 5,000 or 6,000 dollars per incorporation to prices ranging from 800 to 1,000 dollars. When choosing the right firm, it’s very important to review what services are included in this incorporation process, for example, opening a bank account, managing the opening of other accounts like the National Tourism Registry, creating a user account with the tax entity, among others.

    Final cost

    Therefore, depending on the company’s capital, the age of the investors, the law firm you choose, and whether the invested capital is foreign or not, the incorporation costs will either increase or decrease. However, for small and medium-sized companies, and adding up the previously mentioned concepts, we could say that all the official & legal costs to carry out this process would be around 1,500 to 3,000 dollars, and for large-scale businesses from 3,500 to over 5,000 dollars.

    At Start In Colombia, our specialty is establishing investment vehicles. We have created hundreds of companies in Colombia for investment and business structuring, and we offer the most competitive rates in the market. Write to us, and we will take care of your process immediately.

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  • Real State in Colombia: 5 key pitfalls to avoid when purchasing properties

    Real State in Colombia: 5 key pitfalls to avoid when purchasing properties

    Real State in Colombia: 5 key pitfalls to avoid when purchasing properties:  Purchasing real estate can be an exciting venture, especially in a country as vibrant and diverse as Colombia. However, the process is fraught with potential pitfalls that can turn your investment dream into a nightmare. Here are five critical mistakes to avoid when buying property in Colombia:

    1. Not Confirming the Property’s True Ownership

    One of the most significant hurdles in the Colombian real estate market is the risk of dealing with individuals who falsely claim ownership of a property. This issue extends beyond interactions with real estate agents or middlemen to include those who are either under the mistaken impression that they have the right to sell a property or, in more nefarious cases, individuals aiming to defraud potential buyers by impersonating the rightful owner. To circumvent this issue, it is imperative to request an updated Certificate of Freedom and Tradition for the property in question. Given the complexity and potential for confusion within these documents, due to their detailed annotations and legal jargon, enlisting the services of a legal expert with a deep understanding of property law in Colombia is vital. This professional can dissect the legal standing of the property, ensuring the person you’re negotiating with is the legitimate owner.

    Good Standing Certificate example

    2. Purchasing Properties with liabilities

    Another prevalent issue is buying properties that are laden with liabilities such as mortgages, legal judgments, or other financial assessments that can adversely affect the transfer or utilization of the property. While negotiating a property under such conditions is not impossible, it is essential to ensure that all financial liabilities can be fully settled before the property changes hands to prevent any future legal or financial complications. This step is especially crucial when considering properties that might be subject to measures like value-added payments or transit easements, particularly in the case of rural estates. An exhaustive title search, conducted by a competent legal advisor, is crucial for uncovering any financial or legal assessments against the property and determining whether these can be satisfactorily resolved prior to completion of the sale.

    3. Acquiring Unlegalized Properties

    A common yet risky practice in Colombia involves constructing or expanding properties without the requisite building permits or failing to legalize these modifications. This can lead to scenarios where buyers unwittingly purchase non-existent “air,” believing they are acquiring legally distinct floors or extensions that, in reality, remain part of a single legal property. This issue is compounded in cases of land division not formally recognized by law, leading to purchases of land that remains legally unified under a single owner. Ensuring the targeted property has an individual real estate registration and is not part of an undivided larger estate is of utmost importance. As with other concerns, a thorough title study is indispensable for securing a safe and legally sound purchase.

    At the time of negotiation it is important to request the plans and construction license. Especially in rural properties.

    4. Investing in Unsuitable Properties for Intended Use

    Investors often encounter setbacks when they acquire properties for specific purposes that are not permissible due to local zoning restrictions or the nature of the property itself. This is a common pitfall in cities like Medellín, where investors might buy properties for short-term rental purposes without realizing such use violates local regulations. Similarly, purchasing land for agriculture in environmentally protected zones can result in legal and operational challenges. Therefore, investigating a property extends beyond its legal documentation to include a comprehensive review of the urban and zoning regulations applicable to the area, neighborhood, and city. This ensures the property can legally accommodate the investor’s intended use.

    5. Buying Properties Occupied by Squatters

    Especially prevalent in rural areas, but also a concern in urban settings, is the acquisition of properties that, while legally clear, are physically occupied by squatters. These occupants may or may not have the owner’s permission to reside there and could possess certain rights that complicate their removal following a sale. Such situations can prove particularly vexing for new owners and highlight the importance of not only conducting a legal examination of the property but also undertaking thorough on-site inspections at various stages of the purchase process. For larger rural properties affected by squatters, a detailed case-by-case analysis is required, taking into account the extent of the squatter’s occupation, the overall security of the region for investors, and any legal rights the occupants may hold. In these instances, expert legal counsel is indispensable for navigating the complexities involved.

    Invasions on a rural property.

    In conclusion, purchasing real estate in Colombia requires a vigilant approach, comprehensive due diligence, and the expertise of legal professionals familiar with the intricacies of the local property market. By being aware of and actively avoiding these five pitfalls, investors can significantly enhance the security and profitability of their real estate ventures in Colombia.

    Start In Colombia is a firm specialized in assisting investors and entrepreneurs to establish and grow their businesses in Colombia, providing support in legal, financial, and tax matters.

    Get a free consultation now.

    CALL US +573242950454
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  • Starting an avocado business in Colombia: comprehensive guide

  • The end of Airbnb in Medellin? (March 2024)

    The end of Airbnb in Medellin? (March 2024)

    The End of Airbnb in Medellin? (March 2024)

    Airbnb crackdown or banned in Medellin?

    If you have a property in Medellin or you are planning to buy one this post it’s for you.

    Medellín, as we’ve stated before, is trending. Not only is tourism booming in the city, but this burgeoning city has also become a business hub for LATAM, as well as a retirement destination for many expats from Europe and the United States. This, as has always happened anywhere in the world, has had a direct effect on rental prices in Medellín, thus generating an issue with locals whose salaries are insufficient to afford living spaces, leading to complex phenomena like gentrification.

    This situation led the current mayor to announce drastic measures against unregulated Airbnb in the city, pointing out an estimated 1,600 properties that would be utilizing these short-term rental services without being authorized to do so, either because the property’s location doesn’t permit such rentals or because the co-owners of the property (meaning each owner of each apartment) decided not to allow this type of rental.

    But is it the end of Airbnb in Medellin?

    Of course not, and in this post, I will explain the consequences of the current Mayor’s statements.

    1. Illegal Airbnbs:

    Prior to the mayor’s statements, authorities in the city were already shutting down Airbnbs that didn’t comply with legal requirements. For over 5 years, only property owners or tourist administrators have been permitted by law to rent properties through short-term contracts if the property meets certain requirements. 

    The primary requirement is that the property, from its location, can engage in this type of economic activity. Medellín, like most major cities worldwide, has regulations regarding permitted activities by zone. For example, not every part of the city can have a casino or open a nightclub. 

    Since 2014, the city has been governed by the updated Territorial Planning Plan (POT). This extensive and intricate document determines which areas can enable certain services like tourist rental of properties. In this sense, and for the past 10 years, it was determined that apartments or tourist properties can only be authorized in specific zones of the city.It’s important to note that by zone, we’re not just referring to neighborhoods like El Poblado. In reality, there are many areas in El Poblado where regulations don’t allow these activities, and others where they do. The analysis is so complex that there are areas where it’s permitted on one street and not on the street opposite. 

    Additionally, besides the zone, it will be necessary to review other documentation, such as the horizontal property regulations, shareholder meeting minutes that have addressed the issue, as well as verification of formal requirements, such as the issuance of the RNT, Chamber of Commerce (if applicable), among others.

    2. What are the consequences of renting an illegal Airbnb?

    The quick answer is that you could be fined, have your property sealed or even closed for several days, be summoned to a hearing, and potentially lose your license permanently in that property. However, it’s more complex than it seems. On one hand, the penalty could come from the same co-ownership (meaning the group of owners of each of the apartments that make up the building), and at the same time, it could also be issued by the Tourism Police if, during an operation, it confirms that the property doesn’t comply with the legal requirements to operate. Additionally, there’s the possibility that the Ministry of Tourism initiates an investigation with punitive character, so, in summary and for the purposes of this post, a series of sanctions and procedures could be combined that would significantly complicate your life. It’s important to note that, in the case of a police sanction, this could amount to $5,000.

    3. How do I know if my property is on the list of the 1,600 properties that the Mayor plans to close down?

    This is the first question several clients have asked me recently in the city. The answer is that we’ll have to analyze each property case by case to determine if it complies with all legal requirements to operate within the short-term rental mechanism. At Start In Colombia, we take care of conducting a thorough review to analyze the type of area where the property is located in terms of urban planning and zoning regulations, the horizontal property regulations, and the respective shareholder meeting minutes, as well as the existence of the RNT and other documents required for the legal operation of this type of short-term rental.

    4. Do the measures only apply to Airbnb?

    No, the measures apply to any type of short-term rental, whether through the famous Airbnb platform, Booking, Trivago, or other similar platforms.

    5. What if my property isn’t suitable for short-term rental?

    The first thing is not to panic. From Start In Colombia, the first recommendation is to suspend the reception of new reservations and schedule a meeting with a legal advisor. We are experts in this issue, as since 2018, we have resolved legal situations due to this unregulated activity. The next step will be to identify if there are no legal possibilities to enable the property or in other words, make it suitable for Airbnb, and if so, to propose the best divestment strategy or its replacement, in which we will advise you so that you don’t lose money and, on the contrary, can redirect your investment into a property that meets your needs.

    6. I want to buy a property in Medellín, how do I know if it will be suitable for Airbnb?

    Essentially, it will be the same answer as in item 4; the best advice is to seek legal advice. We will not only guide you through the entire negotiation process with the seller but also conduct a specialized title study beforehand to determine if your property is suitable or not for short-term rental, so that you can determine if that investment is convenient for you or not, according to your needs.

    7. I was wrongly advised by a lawyer and bought a property where I can’t have Airbnb:

    Don’t worry, schedule a free consultation with us, and we will indicate the steps to follow. Depending on the conditions, we may have divestment alternatives and, if necessary, request damages from the seller and the lawyers who made the mistake.

    8. I was fined by the Tourism Police, they sealed my apartment, and summoned me to a hearing, what should i do?

    Contact us as soon as possible, we will review your case, and if necessary, represent you to request a reduction in the sanction or, in any case, annul the fine and order the reopening of the property.

    Get a free consultation and resolve all your questions!

    Get a free consultation

    Call us/WhatsApp us at +573242950454

  • Top 5 best places to invest in Medellin this 2024

    Top 5 best places to invest in Medellin this 2024

    Top 5 best places to invest in Medellin this 2024

    Best Zones to Invest in Medellin This 2024

    If you’re here, it’s probably because you’ve already heard about the profitability of investing in Medellin, especially in the real estate market. Medellin is increasingly recognized globally as a center of innovation, tourism, development, and above all, a business hub. If you’ve read about the real estate market in Medellin, let me tell you that this post is different. We won’t repeat what every other blog and real estate agency says: “Invest in El Poblado!” While we can’t deny that El Poblado is one of the best areas of Medellin to live, boasting the best restaurants, housing, and the cleanest air in the city (it’s where our office is located), we must also inform you that, as good as it is, it’s also expensive. The entry price in this sector is not at all friendly. The short-term renting market by foreign investors has caused prices to skyrocket. Today, we bring you the Top 5 best places to invest in Medellin this 2024, an exclusive list of areas in Medellin with the highest potential for appreciation:

    1. Perpetuo Socorro

    Though it might still seem like an industrial area filled with old workshops and production factories, the Perpetuo Socorro District is emerging as the Wynwood of Colombia. For those unfamiliar, Wynwood is a neighborhood in Miami that transformed from an unsafe, industrial, and unsightly area into a creative district now considered one of the coolest neighborhoods in the United States. In recent years, significant private sector players have gradually turned this industrial sector into a creative district. Today, you can find restaurants, cafes, and aesthetic places that attract a young, trend-following public, making it a perfect place to invest. While it might not be suitable for low-budget investments, as properties here are large spaces designed for storage and assembly of industrial businesses, with sufficient capital, you could afford to refurbish one of these old factories into a modern venue for gastronomic tourism, entertainment, or lodging.

    2. La América: The Authentic Medellin

    Adjacent to the famous Laureles neighborhood, La América often goes unnoticed because it is a truly authentic part of Medellin. Removed from tourism and large chains, it is mostly flat (a rarity in a city of hills), where you can still breathe local air, find local prices, and experience Paisa life. For many real estate experts, La América is one of the areas with the highest potential in the city, considering its expansion dynamics. With old houses of generous sizes, close to the famous Comuna 13, the main Stadium of the City, Laureles, and the Downtown, it has become the new target for long-term investors who see in this sector the possibility to develop shared economy projects, building construction, and hospitality businesses like hostels and hotels. The current major attraction of La América is its comparative prices with other neighborhoods in the city.

    3. Envigado: The Emerging Gem

    Envigado, while technically a separate municipality, lies directly next to Medellin, offering an intriguing advantage for investors. One of the key benefits of investing in Envigado over Medellin is the typically lower tax rates, coupled with a local administration known for its efficiency and organization. Practically speaking, Envigado is just a step away from El Poblado, making it hard to distinguish between the two in many areas. This proximity means investors can enjoy the benefits of Poblado’s allure while taking advantage of Envigado’s more favorable fiscal and administrative conditions. This blend of advantages makes Envigado an attractive investment opportunity for those looking to benefit from close proximity to Medellin’s most prestigious neighborhood while enjoying the unique charms and lower costs of Envigado.

    4. Santa Helena: The Green Investment

    Santa Helena, recognized for its lush, green landscapes, is not just a haven for those seeking tranquility outside the urban sprawl; it’s also a prime spot for agricultural business ventures, serving as Medellin’s food pantry. The area is experiencing a surge in businesses centered around yoga, spirituality, boutique hostels, and Swiss-style villa hotels, catering to a growing demand for wellness and eco-tourism. Despite being a corregimiento, which in Colombia means a neighborhood with a degree of administrative autonomy, Santa Helena boasts excellent connectivity to Medellin and the Rionegro International Airport, the main airport serving the city. This makes it an ideal location for investors looking to capitalize on agricultural, hospitality, and tourism businesses, offering a serene environment that’s still conveniently linked to the urban and international access points.

    5. Laureles: The Planned Perfection

    Laureles stands out as Medellin’s only planned neighborhood, contrasting with the city’s historically haphazard growth towards its hillsides. Inspired by the expansive districts of Barcelona, Laureles replicates this style, featuring some of the oldest and most beautiful tree species in the city. The neighborhood offers a perfect balance between the local Medellin vibe and a bustling scene of commerce and entertainment. This unique blend of planned urbanism, natural beauty, and vibrant local culture makes Laureles an exceptional choice for investors. It offers the tranquility of a well-organized neighborhood with the dynamic pulse of city life, positioning it as an ideal investment for those seeking a harmonious blend of business opportunities and quality of life.

    Where to invest in Medellin 2024?

    The diverse landscapes of Medellin and its neighboring areas present a wealth of investment opportunities for 2024. From the creative renaissance of Perpetuo Socorro to the authentic charm of La América, the strategic advantages of Envigado, the green investments in Santa Helena, and the planned perfection of Laureles, each area offers unique benefits for real estate investment. Whether you’re looking to invest in the bustling city life or the tranquil retreats on the outskirts, Medellin’s real estate market caters to a broad spectrum of interests and investment strategies. By exploring these emerging neighborhoods with high growth potential, investors can tap into the vibrant future of one of Latin America’s most dynamic cities.

     

  • How to setup a business in Medellin

    Introduction to Medellín’s Business Landscape

     

    How to setup a business in Medellin

    In the heart of Colombia lies Medellín, a city that has undergone a remarkable transformation from its tumultuous past to become a beacon of innovation, entrepreneurship, and economic growth. Known as the “City of Eternal Spring” for its pleasant climate, Medellín has also earned the title of Colombia’s startup capital and is rapidly becoming one of Latin America’s leading business hubs. This guide delves into the essentials of starting a business in Medellín, offering detailed insights and practical steps for local and foreign entrepreneurs alike.

    1. Navigating Immigration for Business Success

    The journey to establishing a business in Medellín begins with securing the right to legally reside and operate within Colombia. Foreign nationals can explore business ideas and engage in planning as tourists; however, long-term business operations necessitate a more permanent immigration status. Colombia’s investor visa is tailored for individuals looking to invest a significant amount in the country, granting them the ability to stay beyond the typical tourist visa limits, engage in business activities, open bank accounts, and access tax benefits, among other advantages.

    2. Identifying Where to Invest

    Choosing the right sector and location for investment is crucial. Medellín’s diverse economy offers lucrative opportunities in tech startups, hospitality, real estate, manufacturing, and more. The city’s commitment to innovation, coupled with a supportive business ecosystem, provides high ROI potential for investors willing to tap into its resources.

    3. Legal Foundations and Business Structuring

    A solid legal framework is the backbone of any successful business. Entrepreneurs must navigate Colombian corporate law to establish a legal entity that protects personal assets and complies with local regulations. This process involves:

    • Choosing the right business structure (e.g., SAS, Ltda, etc.) based on the specific needs and goals of the business.
    • Working with specialized lawyers to draft and file necessary documents with the Chamber of Commerce and other relevant entities.
    • Understanding and preparing for tax obligations, labor laws, civil liabilities, and other regulatory requirements.

    4. Financial Considerations: Banking and Currency Exchange

    Opening a corporate bank account in Colombia is a fundamental step for business operations, enabling legal transactions and financial management. Additionally, foreign investors must navigate the “operations cambiarias” to legalize funds brought into Colombia, a process governed by stringent regulations to prevent penalties and ensure compliance.

    5. Setting Up Your Business: Virtual vs. Physical Presence

    The decision between establishing a virtual or physical presence in Medellín depends on the business model and industry. Online businesses must ensure their platforms comply with local consumer protection and data privacy laws. Conversely, businesses requiring a physical location must consider real estate investments or leasing agreements, paying close attention to legal terms that safeguard the business’s long-term interests.

    6. Meeting Industry-Specific Requirements

    Certain industries require additional permits and compliance with specific regulations. For instance:

    • Food and beverage businesses need health and safety permits from local authorities.
    • Short-term rental ventures must adhere to zoning laws and community regulations.
    • Agricultural projects should verify land use permissions to avoid future legal complications

    7. Hiring and Labor Compliance

    Recruiting and managing employees in Colombia involves understanding labor laws, drafting employment contracts, and ensuring compliance with social security and labor rights. This segment guides entrepreneurs through the process of building a compliant and effective team.

    8. Accounting and Tax Management

    Whether opting for in-house accounting or outsourcing, maintaining accurate financial records and adhering to tax obligations is vital. This section provides an overview of tax registration, reporting requirements, and strategies for tax efficiency.

    Embarking on Your Medellín Business Venture

     Starting a business in Medellín is an exciting opportunity for growth and innovation. By thoroughly understanding and complying with Colombia’s legal, financial, and regulatory frameworks, entrepreneurs can set the stage for a successful venture in this dynamic city. With its supportive business environment, skilled workforce, and vibrant culture, Medellín invites you to be part of its ongoing success story.

    Additional Resources and Support

    • Legal and Business Consultation Services: Access to experienced professionals who can navigate the complexities of Colombian business law.
    • Networking and Community Engagement: Opportunities to connect with local entrepreneurs, investors, and business leaders.
    • Innovation and Tech Ecosystems: Insights into Medellín’s thriving tech scene and how to engage with startups and innovation hubs.

    Embarking on a business venture in Medellín requires careful planning, legal diligence, and an understanding of the local market. This guide aims to equip aspiring entrepreneurs with the knowledge and tools needed to navigate the process, highlighting the importance of legal advice, financial planning, and strategic investment. Medellín’s welcoming business environment, combined with Colombia’s rich cultural heritage, offers a unique and rewarding setting for starting a new business. As you take your first steps towards entrepreneurship in Medellín, remember that preparation, compliance, and local insight are key to unlocking the city’s vast potential for your business success.