How to Get Colombia Citizenship by Investment in 2023

Are you considering expanding your investments to an international level? Colombian citizenship by investment offers an attractive opportunity for foreign investors to enter a new market and enjoy many benefits. In this blog post, we will explore the various types of Colombian visas, the requirements for a successful application, and the advantages of obtaining residency and citizenship in Colombia. Let’s dive into the world of Colombian citizenship by investment and discover the potential it holds for you!

Short Summary

• To obtain Citizenship, foreigners first need to hold a migrant visa and then a resident visa.
• Making a qualifying investment in Colombia will allow foreigners to obtain a Migrant Visa
• Simply transferring money to a bank account in Colombia won't qualify. Foreigners will need to certify their investment during the investment process.

Understanding Colombian Investment and Business Visas

Colombian investment and business visas are designed for foreigners who invest in Colombia. The purpose of the visas is to encourage foreign investment into the Colombian economy and to create an attractive environment for investors to boost the country’s economy.

Two main types of Colombian visas are granted after investment: The Business investment visa and the real estate investment visa.  Each visa has its own requirements, such as submitting documents in PDF format, a valid passport, and proof of the minimum investment amount.

To ensure a successful application and process, it is recommended to consult a qualified immigration attorney for the most up-to-date information and to facilitate the Colombia investment visa online application process.

Direct Foreign Investment In Colombia

Direct Investment in Colombia is investing in a new or existing business or real estate.  To obtain a Migrant (Type M) visa, an investment in real estate or a business is required. The minimum investment required for a direct foreign investment visa in Colombia is at least 100 times the monthly minimum wage in Colombia.

This type of investment visa offers the opportunity to:

• Enter the Colombian business market
• Contribute to the country’s growth
• Stimulate the local economy
• Create job opportunities
• Potentially earn a large return on your initial investment

By investing in a new or existing business, foreign investors can take advantage of the support and incentives the Colombian government provides, making it an attractive option for potential investors.

Types of Colombian Investment Visas

Migrant Visa

To obtain Colombian Citizenship by Investment, investors first need to obtain a Migrant visa and hold this visa for a minimum of 5 years.

To obtain a Migrant Visa for investment in a business in Colombia, the minimum investment required is at least 100 times the Colombian minimum monthly salary, which is 130,000,000 pesos or around $35,000 USD in 2024.

To obtain a Migrant Visa for investment in real estate in Colombia, the minimum investment required is at least 350 times the Colombian minimum monthly salary, which is 455,000,000 pesos or around $120,000 USD in 2024.

By holding a Migrant Visa for five years and meeting certain residency requirements, investors can apply for a residency visa and eventually become Colombian citizens.

Permanent Residency (No Longer Exists)

Before October 2022, a foreigner could invest more than 650 times the monthly minimum wage and be eligible for permanent residency in Colombia. However, this visa no longer exists after the Colombian Government made changes to Colombian visas.

Therefore, the only way to obtain a residency visa in Colombia by Investment is to first obtain a Colombian Migrant Visa.

Requirements for a Successful Application

To apply for an Investor Visa in Colombia, investors must submit proof of their investment in Colombia, a valid passport, evidence of adequate financial resources, and a few other necessary documents depending on whether you're applying for a real estate investment visa or a business investment visa.

To ensure a smooth application process, it is recommended to consult a qualified immigration attorney to assist you with the investment and application process.

Requirements for the Real Estate Investment Visa:

Certification of Ownership

The interested party must provide the Certificate of Tradition and Freedom of the property showing that ownership is exclusively in the foreigner's name. The property minimum value must be equivalent to three hundred and fifty (350) current legal monthly minimum wages $406,000,000 COP.

Certification of the Investment:

A communication issued by the Department of International Exchange of the Bank of the Republic in which the record of direct foreign investment for the purchase of real estate in the name of the foreign applicant.

Proof of Economic Solvency

Demonstrate through bank statements of the last three months prior to the visa application economic solvency to remain in the country.

Proof of Continuous Possession (If Renewing the Visa)

When this visa is requested for the second and subsequent times, the foreigner must demonstrate that they maintained the investment or possession of the property during the entire validity of their previous visa.

Requirements for the Business Investment Visa:

Explanation Letter:

Explanatory letter with the company name, address and Tax Identification Number (NIT) of the incorporated commercial company.

Proof of Formation

Evidence of formation, share certification, a legalized form of foreign investment for an amount not less than one hundred (100) current legal monthly minimum wages of $116,000,000 COP.

Proof of Economic Activity (If the Company is more than a year old)

Demonstrate that the commercial company maintains economic activity and solvency through bank statements of the last three months before the visa application, income statement, social security contributions (if any), lease contract, and/or proof of tax payments.

Certification of Share Composition

The participation in the company will be accredited with a certificate of share composition signed by a public accountant, indicating the amount of capital or assets registered and paid, which may not be less than the equivalent of one hundred (100) legal monthly minimum wages of $116,000,000 COP.

Obtaining Residency and Citizenship

The Colombian Golden Visa offers an attractive opportunity for investors to obtain residency and citizenship in Colombia. The pathway to citizenship is provided through the Colombian Migrant Visa, which grants investors a migrant visa, allowing them to live and work in Colombia without any restrictions.

Pathways to Residency and Citizenship:

1. Obtain a Migrant Visa (Business or Real Estate Visa) The visa will be good for 1-3 years at a time and will need to be renewed before obtaining a resident visa.
2. After 5 continuous years of holding the Migrant Visa, the foreigner can apply for a resident visa. The resident visa is valid for 5 years at a time.
3. After holding the resident visa for 5 continuous years, the foreigner can apply for Dual Citizenship.
4. Obtaining Dual Citizenship can take 6 months to 3 years depending on how quickly the Colombian government responds to your application.

It is important to note that if your visa expires at any point during the 10 years, the timeline will reset, and you will need to start again with a Migrant Visa.

Residency Visa

After holding a migrant visa for five years, investors can apply for a residency visa, leading to permanent residency and citizenship in Colombia. To obtain a residency visa, investors must have held an M-visa for a period of five years.

The process of obtaining permanent residency and citizenship takes an additional five years.

Dual Citizenship

Colombia allows dual citizenship, enabling investors to maintain their original citizenship while obtaining Colombian citizenship. This is an attractive option for investors who wish to maintain ties with their home country while enjoying the benefits of Colombian citizenship, such as visa-free travel to certain countries and access to the Mercosur trade block.

To obtain dual citizenship in Colombia, one must pass a citizenship test related to Colombian history, geography, and the constitution and a basic Spanish oral test. Exemptions are granted to those with a bachelor’s degree from a Colombian university or those who are over 65 years old.

Real Estate Investment Opportunities in Colombia

Investing in Colombian real estate can be a lucrative opportunity for foreign investors thanks to the favorable exchange rate between the US dollar and the Colombian peso. With a variety of real estate options available, investors can choose from residential properties, commercial spaces, and even land for development.

Some recommended real estate partners for buying and selling properties in Colombia can help guide investors through identifying and purchasing the right property.

By working with experienced real estate professionals, investors can confidently navigate the Colombian real estate market and make sound investment decisions.

While there are many attractive real estate projects in Colombia, it is important to note that you can only apply for a real estate investment visa once you have proof of ownership. This means if you're investing in a project that is not yet completed, you will need to wait to get the keys to the property to apply for the visa.

Comparing Colombian Investment Visas with Other Latin American Countries

When considering investment visas, it’s essential to compare the Colombian investment visa program with those of other Latin American countries, such as Brazil and Costa Rica. Brazilian investment visas require a greater investment and cannot be applied for while within the country. Costa Rica offers an investor visa with certain pre-approved investment criteria. The minimum amount required for the investment is $200,000 USD or $100,000 USD if invested in reforestation projects.

The Colombian investment visa program offers:

• More flexibility and accessibility compared to other Latin American countries
• Various real estate investment opportunities
• The allowance of dual citizenship
• Colombia's economy is quickly becoming one of the most attractive in the world

This flexibility and the potential for residency and citizenship make the Colombian investment visa program an attractive option for foreign investors.

Tax Implications and Cost of Living

Understanding Colombia's tax implications and cost of living is essential for foreign investors. Investors can benefit from tax breaks or exemptions, depending on what type of investment they make. Lower tax rates may also be applicable in some cases. The corporate tax rate in Colombia is 31% at the moment.

Regarding cost of living, Colombia offers a relatively affordable lifestyle for investors. It is possible to live on a budget of $1,500 per month, with local food reasonably priced and readily available and transportation being cost-effective.

Foreign investors can enjoy a comfortable lifestyle by investing in Colombia while benefiting from the advantages of the Colombian investment visa program.

Navigating the Application Process with Colombian Visa Services

Using Colombian Visa Services to assist with the Colombian investment visa application process offers several advantages.

• We have over a decade of experience with real estate and business formation legal processes
• We can assist you with creating a company and opening a bank account in Colombia for the Investment
• We can help you with your foreign investment and ensure the investment is done properly for the visa

If you would like assistance with your direct foreign investment, property purchase, or with the formation of a new business in Colombia, our experienced attorneys can help you. We strive to make the process as stress-free as possible so you can enjoy everything Colombia has to offer rather than worrying about legal processes.

Summary

In conclusion, Colombian investment visas offer many opportunities for foreign investors looking to expand their investments and enjoy the benefits of residency and citizenship in Colombia. By understanding the different types of investment visas, the requirements for a successful application, and the advantages of obtaining residency and citizenship, investors can make informed decisions about their investment options in Colombia. With a favorable exchange rate, diverse real estate investment opportunities, and a competitive tax environment, Colombia presents a promising landscape for investors seeking to expand their horizons.

Frequently Asked Questions

Can I buy citizenship in Colombia?

You cannot directly buy citizenship in Colombia. However, you can obtain it by obtaining a migrant visa, and then a resident visa for a total of 10 years.

Can a US citizen have dual citizenship with Colombia?

Yes, a US citizen can have dual citizenship with Colombia as Colombia allows it and follows the jus soli policy.

Can a US citizen get Colombian citizenship?

It is possible for US citizens to obtain Colombian citizenship. Dual citizenship is allowed, so renouncing their current citizenship is not necessary.

How to get residency in Colombia by investment?

To gain residency in Colombia through investment, applicants must invest in a business or real estate and maintain their migrant visa for 5 continuous years.

What types of Colombian investment visas are available?

Colombia offers both real estate and business investment visas, allowing potential immigrants to apply for either option.

These visas provide an excellent opportunity for those looking to invest in the country and gain permanent residency. They also provide a pathway to citizenship for those who meet the requirements.