Interest in Central and South American real estate has grown steadily among international buyers—particularly those seeking vacation homes, second passports, or strategic investments with long-term potential. Colombia, Costa Rica, and Panama have emerged as three of the most compelling countries for foreign investment in the region, thanks to their combination of lifestyle appeal, legal accessibility, and diverse real estate offerings.
International Buyers Welcome
All three countries welcome foreign buyers. However, as with most overseas real estate acquisitions, there are nuances.
In Colombia, foreigners can own property outright without restrictions, and the process is relatively straightforward if you have legal counsel with one exception. A foreign individual or legal entity cannot purchase or own any vacant land along Colombian national borders or its international shoreline. This extends to land or area adjudicated after 1940 by the Colombian government.
Costa Rica, with its stable democracy and eco-forward reputation, has long been a favorite among North American and European buyers. Foreigners have the same property rights as locals there, which simplifies transactions.
Panama stands out for its investor-friendly environment, dollarized economy, and tax incentives for expats and retirees. Property ownership laws are modern, and the legal system tends to be highly accommodating—especially in urban and resort areas with a long history of international investment. To obtain Panamanian residency via real estate, your investment must exceed $300,000.
In Colombia, foreigners can own property outright without restrictions, and the process is relatively straightforward if you have legal counsel with one exception. A foreign individual or legal entity cannot purchase or own any vacant land along Colombian national borders or its international shoreline. This extends to land or area adjudicated after 1940 by the Colombian government.
Costa Rica, with its stable democracy and eco-forward reputation, has long been a favorite among North American and European buyers. Foreigners have the same property rights as locals there, which simplifies transactions.
Panama stands out for its investor-friendly environment, dollarized economy, and tax incentives for expats and retirees. Property ownership laws are modern, and the legal system tends to be highly accommodating—especially in urban and resort areas with a long history of international investment. To obtain Panamanian residency via real estate, your investment must exceed $300,000.
What Each Country Offers Investors and Lifestyle Buyers
Each country brings something different to the table, and for those looking to buy property abroad, understanding the nuances is critical.
Columbia
Colombia is one of the most exciting places to watch right now. Bogotá, the capital, offers a blend of business and culture, with luxury apartments in areas like Zona G and Chico Norte catering to executives and diplomats.
Medellín, once stigmatized, has transformed into a clean, cosmopolitan city with excellent infrastructure and a thriving cultural scene. Foreign buyers are particularly active in neighborhoods like the high-end El Poblado, where modern condos with city views are still priced well below comparable units in North America. Laureles is a favorite, thanks to its verdant urban streets, the presence of Pontifical Bolivarian University, and its nightlife scene.
Cartagena offers an entirely different experience. With its historic colonial charm (the city is approaching its 500th birthday), Caribbean coastline, and restored properties inside the walled neighborhood of Old Town, investors are fond of the area's colonial coastline, walkability, and chic old-world vibe.
Medellín, once stigmatized, has transformed into a clean, cosmopolitan city with excellent infrastructure and a thriving cultural scene. Foreign buyers are particularly active in neighborhoods like the high-end El Poblado, where modern condos with city views are still priced well below comparable units in North America. Laureles is a favorite, thanks to its verdant urban streets, the presence of Pontifical Bolivarian University, and its nightlife scene.
Cartagena offers an entirely different experience. With its historic colonial charm (the city is approaching its 500th birthday), Caribbean coastline, and restored properties inside the walled neighborhood of Old Town, investors are fond of the area's colonial coastline, walkability, and chic old-world vibe.
Costa Rica
Costa Rica, on the other hand, has built its real estate market around lifestyle-driven buyers. The northwestern region of Guanacaste, which includes areas like Tamarindo, Nosara, and the Papagayo Peninsula, is known for its high-end resorts and villas, beach clubs, and yoga-meets-surf sensibility.
In the Central Valley—especially in neighborhoods like Escazú and Santa Ana—buyers will find luxury homes with mountain views, proximity to international schools and hospitals, and strong year-round rental demand. The Southern Pacific Coast has become increasingly attractive for those seeking privacy and dramatic landscapes, with properties perched above jungle cliffs offering panoramic ocean views.
In the Central Valley—especially in neighborhoods like Escazú and Santa Ana—buyers will find luxury homes with mountain views, proximity to international schools and hospitals, and strong year-round rental demand. The Southern Pacific Coast has become increasingly attractive for those seeking privacy and dramatic landscapes, with properties perched above jungle cliffs offering panoramic ocean views.
Panama
Panama is arguably the most business-friendly destination on the list. Using the U.S. dollar, an international airport hub, and incentives for foreign retirees and investors make it a favorite among lifestyle buyers and strategic investors. In Panama City, neighborhoods like Punta Pacifica, Avenida Balboa, and Costa del Este offer gleaming high-rises with five-star amenities, often priced far below comparable units in Miami or Dubai.
The mountain town of Boquete is a favorite among retirees, offering spring-like weather year-round and a welcoming expat community. For something more relaxed, Bocas del Toro has been developing into a boutique island destination with growing appeal among eco-conscious developers and digital nomads.
The mountain town of Boquete is a favorite among retirees, offering spring-like weather year-round and a welcoming expat community. For something more relaxed, Bocas del Toro has been developing into a boutique island destination with growing appeal among eco-conscious developers and digital nomads.
Currency, Financing, and Tax Considerations
Buyers should remember that while property ownership is generally straightforward, legal, financial, and logistical steps differ from buying in the U.S. or Europe. Due diligence is crucial. Title searches must be thorough, and working with a local real estate attorney who understands the nuances of foreign ownership is essential.
In countries like Costa Rica, coastal properties within the Maritime Zone require additional layers of approval or leasehold agreements from the government. In Colombia and Panama, verifying title, zoning, and liens should always be handled by a professional—not assumed.
Currency and financing are also part of the equation. While Costa Rica and Colombia use local currencies (the colón and peso, respectively), most luxury properties are listed in U.S. dollars, especially in areas that cater to international buyers. The dollar is the official currency in Panama, simplifying transactions for North American investors. Financing, however, can be tricky.
Most property purchases in these countries are cash-based. While some Panamanian banks offer financing to foreign nationals, terms are conservative, and documentation requirements can be complex. Buyers often turn to private or international lenders or fund the purchase outright.
Taxes and ongoing costs are generally lower than what most U.S. buyers are accustomed to. Property taxes are modest, and maintenance fees for condos or gated communities tend to be reasonable. That said, foreign owners generating rental income—especially in tourist-driven markets—should be prepared to report earnings locally and work with a cross-border tax specialist to remain compliant in both countries.
In countries like Costa Rica, coastal properties within the Maritime Zone require additional layers of approval or leasehold agreements from the government. In Colombia and Panama, verifying title, zoning, and liens should always be handled by a professional—not assumed.
Currency and financing are also part of the equation. While Costa Rica and Colombia use local currencies (the colón and peso, respectively), most luxury properties are listed in U.S. dollars, especially in areas that cater to international buyers. The dollar is the official currency in Panama, simplifying transactions for North American investors. Financing, however, can be tricky.
Most property purchases in these countries are cash-based. While some Panamanian banks offer financing to foreign nationals, terms are conservative, and documentation requirements can be complex. Buyers often turn to private or international lenders or fund the purchase outright.
Taxes and ongoing costs are generally lower than what most U.S. buyers are accustomed to. Property taxes are modest, and maintenance fees for condos or gated communities tend to be reasonable. That said, foreign owners generating rental income—especially in tourist-driven markets—should be prepared to report earnings locally and work with a cross-border tax specialist to remain compliant in both countries.
Central and South America Are Open for Investment
Perhaps the most important takeaway is that local expertise isn't optional—it's essential. A trustworthy real estate attorney, a well-connected local broker, and, if needed, a property manager can make all the difference. This is especially true in vacation or short-term rental markets where oversight, marketing, and maintenance are ongoing needs. In cities like Medellín, San José, or Panama City, you'll also want professionals who can guide you through local permitting, tax registration, and property management standards.
Buying property in Colombia, Costa Rica, or Panama offers a rare combination of value, lifestyle, and upside. These markets are not "emerging" in the traditional sense—they're already well-developed in many areas but offer entry points and investment returns that have become increasingly hard to find in Europe or North America. For the right buyer, they provide an opportunity to enjoy a new way of life while making a sound, globally diversified investment.
Buying property in Colombia, Costa Rica, or Panama offers a rare combination of value, lifestyle, and upside. These markets are not "emerging" in the traditional sense—they're already well-developed in many areas but offer entry points and investment returns that have become increasingly hard to find in Europe or North America. For the right buyer, they provide an opportunity to enjoy a new way of life while making a sound, globally diversified investment.
CHORD Speaks The Language
Though based in Nashville, our reach extends far beyond. Whether you're looking to diversify your property portfolio, acquire a second home, or invest in a vacation property, our global network offers exclusive access to some of the world's most desired properties, including those in Central and South America. We provide bespoke solutions that align with local regulations, cultural specifics, and market trends, ensuring an unparalleled experience for foreign buyers.
If you're ready to experience CHORD Real Estate's concierge relocation services, contact us today to meet our talented team of experienced professionals and learn how we can assist with your Central and South American investment journey.
If you're ready to experience CHORD Real Estate's concierge relocation services, contact us today to meet our talented team of experienced professionals and learn how we can assist with your Central and South American investment journey.
