Medellin: The Next Panama?

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MARKETING TO AMERICANS

BY CHRONICLE STAFF

Medellin’s real estate sector is growing thanks to growing interest by foreign buyers and improved credit for local purchases of residential and commercial real estate, industry officials say.

“There has been a notable increase in Medellin from foreign clients, possibly due to the real estate situation in the United States, which is an incentive to evaluate other areas of high investment potential,” says Carlos Mario Osorio, general manager of the Medellin
office of Century 21. “The recent construction boom is related to the growing access to credit for private investment, mainly in industrial, commercial and residential real estate.”

Commercial real estate is growing strongly, while residential saw a small decline last year, according to data from Century 21. Industrial real estate, for example, expanded by 76 percent. In contrast, the supply of new homes declined by 0.8 percent, according to
Colombia’s Construction Chamber.

COLOMBIA: AN IDEAL COUNTRY FOR THOSE IN THE MARKET FOR A SECOND HOME?

The following Bill is scheduled to be presented to the Colombian Congress.

Medellin, September 6, 2007 – In the following days the office of Treasury Ministry and Public Financing will present for consideration, to the Congress of Republic, a proposal aimed at stimulating the economy in Colombia, with an emphasis on promoting the development of a new real estate market designed to attract foreigners interested in purchasing property in Colombia.

The proposed Bill has taken into consideration the improved security in Colombia to help sell the plan, among other benefits including; affordable medical services, advanced telecommunications, warm climate, sandy beaches, wonderful landscapes, recently added airline connections from varies carriers. The Bill also provides generous benefits to both the land developer as well as those purchasing investment properties.

The National Council of Political and Social Economic Department has already approved the general guidelines for the proposal submitted by The Treasury Ministry and Public Financing department for the development and stimulation of the Colombia’s economy. The NCPSED have also recommended that the Bill allow for more elaboration of the plans proposed framework before it is submitted to Congress for approval.

The Bill is aimed at Colombian citizens living abroad and foreign investors with the objective of purchasing an investment property as a second or vacation home. It also includes plans and provisions for those who want to retire in Colombia sometime in the future. The new Bill includes many incentives to lure retirees from around the world to consider Colombia as a retirement option. The purchase of a property can also make for a profitable and safe alternative investment with regards to income property.

The objective of the Colombian Government is to enter into the investment market that has recently developed in Central and South American. Thanks to the positive advances that Colombia has made in recent years it has encouraged investors form North America as well as Europe to look at Colombia as having great investment potential outside of their respected countries. Investments from foreigners will help improve the economy and aid in the development and improvement of the Colombia’s infrastructure.
The benefits for investors
In order to develop a successful program in the second house market in Colombia it is necessary to approve benefits for these urban projects for potential investors.

An investor will not have to pay taxes on the purchase of the property.

The import of home furnishings, personal property, one automobile, will not be taxed as long as they are not sold in Colombia to another party.

You will not be taxed if you decide to rent your property to tourist visiting Colombia.

There is also an exemption on rent income originated outside of Colombia.

In order for investors to receive these benefits a person must demonstrate a minimum income whose amount you would need to meet which would be established by DIAN. They can not deny or refuse proposals with the exception being of national interest and security.

2 Comments

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  1. ROBIN WAYNE McARTHUR

    DEAR SIR, I AM A CANADIAN, RETIREE, I HAVE PURCHASED A CONDO IN PANAMA CITY, ”’BUT I HAVE TRAVELLED TO MEDELLIN”’ ON NOVEMBER 6TH, 2008 TO WAIT WHILE MY PANAMA CONDO IS FINISHED, I BELIEVE THE PANAMA CONDO WILL BE READY BY FEBRUARY 2009, IN THE MEAN TIME I HAVE BE RENTING HERE IN MEDELLIN, I AM NOW SERIOUSLY THINKING ABOUT SELLING MY PANAMA PROPERTY AND LIVING ”RETIRING” HERE IN MEDELLIN, BUT I THINK THE COLOMBIAN GOVERNMENT MUST IN ORDER TO ATTRACT PEOPLE SUCH AS MYSELF MAKE IT LESS DIFFICULT TO OBTAIN A RESIDENCY STATUS HERE IN COLOMBIA, AS AN EXAMPLE MY EARNINGS FROM CANADA =PENSION= INVESTMENT INCOME, WOULD ADD ANOTHER $80,000.00 TO THE COLOMBIAN ECONOMY, BUT THE PROBLEM REMAINS THAT IF YOU WANT TO COMPETE WITH PANAMA YOU MUST OFFER PEOPLE SUCH AS MYSELF COMPARABLE BENEFITS, ”’NO TAXES ON INCOME FROM OUTSIDE COLOMBIA, ”’NO PROPERTY TAX ON HOME OR CONDO FOR 20 YEARS, ”’ NO TAX ON INVESTMENT INCOME IF DERIVED FROM A COLOMBIAN BANK OR OTHER FINANCIAL INSTITUTION, ”’DISCOUNTS ON AIR FARES”’ DISCOUNTS ON RESTRAUNTS, ETC. THIS IS HOW PANAMA LURED MANY PERSONS TO IMMIGRATE TO PANAMA, MEDELLIN IS A MUCH NICER CITY THAT PANAMA CITY, THE PEOPLE ARE MORE FRIENDLY, AND THE CITY IS SIMPLY NICER, THE CLIMATE IS MORE SUITABLE TO NORTH AMERICAN PEOPLE. I SPENT MANY YEARS WORKING IN A PUBLIC RELATIONS TYPE FIELD, AND WOULD BE HAPPY TO BE ENGAGED TO PROMOTE, COLOMBIA, AS A RETIREMENT DESTINATION. ROBIN WAYNE MCARTHUR– REITRED CANADIAN

  2. Juan Florez

    I have a property in medellin and am interested in the renting out to tourist, and the tax free part. Will you please guide me the right way. Thank you very much!

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