No more automatic Residency Visas for Property Investments in Colombia
One of the most drastic changes which occurred with the Colombian Immigration reform of October 2022 was to do away with the direct Residency Visa for high-value Real Estate Investments. Though it has been several months, this change still comes as a surprise to many expats and it is our most asked about subject behind the new Colombian Digital Nomad Visa. In this article we will discuss the change that occurred and our experience with property investment visas since the reforms.
The Change in Colombian Real Estate Investment Visas
Before the immigration reforms were enacted in October 2022, Colombian property investments were split into two categories for immigration purposes. In 2022, property purchases valued above 350 Colombian minimum wages (roughly $75,000 USD at the time) would qualify a foreigner for a Migrant (M) Investment Visa and real estate investments over 650 Colombian minimum wages (roughly $135,000 USD at the time) would qualify the foreign investor for a direct path to a Colombian Residency (R) Visa (the rough equivalent of a US Green Card).
The immigration reforms did away with the latter category, meaning all foreign investors who make a qualifying property investment (of 350 Colombian minimum wages or more) can only receive a Migrant (M) investment Visa, no matter how much more they invest.
Colombian Migrant (M) Real Estate Investment Visa
The Migrant (M) Real Estate Investment Visa is still an important and valuable document, especially for those who are seeking to permanently move to Colombia. It allows the holder to live in Colombia during its validity and after 5 years of continuous validity, allows the holder to apply for Colombian Permanent Residency. Especially since the October 2022 immigration reforms have both limited the number of categories leading to Residency and made obtaining Residency more difficult across the board, having this migrant investment visa path toward residency is still a extemely valuable tool.
If the Migrant Visa still exists, what is the issue?
What worries and upsets some foreign investors about the elimination of the automatic Residency category, is that the Migrant Visa category is temporary in nature and that it comes with less rights. Migrant Visas are meant to act as a trial period (much like the conditional US Green Card given after marriage) while Colombian Residents are seen both legally and in practice as part of Colombian society. The Residency Visa only needs to be renewed every 5 years. The Migrant Visa can be issued for up to three years but it is at the immigration official’s discretion and they often only make them valid for one year at a time. With a Residency Visa you only have to be physically present in Colombia every 2 years to maintain its validity while with the Migrant Visa it is every 6 months. This impermanence scares and seems unfair to foreign investors who may have spent nearly a million USD investing in a property to convert into a hotel or buying a luxury home in the hills above Medellin or on the beachfront of Cartagena.
Good news
It is still early on but so far Colombian immigration has been awarding Migrant (M) Real Estate Investment visas for applicants with qualifying properties without issue. And they have been awarding Residency visas for applicants who have accrued 5 years under a Migrant Investment Visa in the cases we have presented. There was a fear that the October 2022 immigration reforms signaled that the new Colombian government was taking a hardline, anti-foreign investment stance and would possibly begin needlessly complicating or outright denying applications, but that has not been the case.
Conclusion
If you have any further questions about the Colombian Real Estate Investment Visa or about purchasing a property in Colombia, feel free to contact us at Restrepo Legal. We are here to help.
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