Each day foreign business executives see Latin America as a great place to start a business, initiate projects, or buy properties. Bolivia is one of the countries where foreign citizens can buy property at affordable prices and for greater economic value in the future. Learn about the key tips and regulations that need to be considered to buy property in Bolivia as a foreign citizen.
What you need to know when buying property in Bolivia as a foreign citizen
Buying property in Bolivia as a foreign citizen is not as complicated as it was a few years ago. During the last ten years, the Real Estate Market in Bolivia has grown tremendously and continues to expand in key cities such as La Paz and Santa Cruz.
Bolivia, with an area of 1,098,580 km2, is considered a large country. The Andean country has approximately a population of eleven million inhabitants, maintaining a very low population density of 10 habitants per km2. For this reason, properties and lands in Bolivia that can be acquired at a low price compared to other countries in the region.
For example, Santa Cruz is the fastest-growing region and occupies a third (33.74%) of Bolivian territory. This region is considered as the economic capital of Bolivia due to its constant economic growth and foreign investment. Throughout the last decade, the construction and real estate sectors have made significant investments in this region.
Furthermore, Bolivia is now experiencing a ‘construction boom’, stimulated by the country’s robust economic growth coupled with the government efforts to boost housing supply. More than 60 construction projects are underway in Santa Cruz, the country’s most populous and economically prosperous city. According to the Santa Cruz Chamber of Commerce – Cadecocruz – of these 60 construction plans, 46 are residential projects, 13 for mixed residential and commercial use, four for office projects, and 5 for hotels.
Residential properties in Bolivia are much cheaper than most other nations of South America. One- to two-bedroom houses and condominiums are priced below US$50,000. Likewise, larger houses with several bedrooms located in the city are sold below US$100,000.
Key tips for buying property in Bolivia as a foreign citizen
Business executives from all countries can invest in real estate and buy property in Bolivia. These are the key tips for buying property in Bolivia as a foreign citizen:
Valid passport: A valid passport is required to buy property in Bolivia.
Legal documentation: Before buying a property in Bolivia as a foreign citizen you must hire a local trusted lawyer. Each region in Bolivia has its own local laws for buying properties so it is important to know which documents have to be registered before the local Government Property Office.
Check if the information provided by the seller is correct: When buying a Property in Bolivia as a foreign citizen, it is essential to verify if all the property information provided by the seller is registered at the Local Government Property Office. Note that there are some illegal settlements in Bolivia that can cause disputes with legal owners of the property.
Option to work with a real estate agency: Note that real estate agencies are not entirely regulated. They can assist you to choose a property according to your needs and budget, but there’s no guarantee that the property complies with all tax obligations or if the real estate agent is aware of land-ownership local law. You must seek professional legal assistance.
Ownership verification: Once a local legal advisor has verified that the property hasn’t any legal problems, the next step is to guide yourself through all the remaining paperwork that must be presented to authorities. Then, the property must be registered in the name of the foreign citizen as the new owner. Transfer tax needs to be paid and the percentage amount will be calculated from the final price of the property.
Payments: Before buying property in Bolivia as a foreign citizen, you need to ask your lawyer the moment and secure methods to pay before doing it. For example, if you are going to pay in cash, you need to be sure that all paperwork and documents are correct before giving the money to the seller. In order to avoid problems, it is better to make the transfer to the owner’s bank account.
Property administration: After buying property in Bolivia as a foreign citizen, you can delegate its administration to your local lawyer or a third person and obtain profits from it. Note that if you are considering living in Bolivia, it will be much easier to obtain your residency if you own a property in this country. Once you count with legal residency, you can buy property in Bolivia as a foreign citizen and even apply for a bank loan to acquire more properties.
Buy real estate in Bolivia with the help of an expert
It can be a struggle for foreign citizens to understand local regulations and requirements when investing in real estate in Latin America. However, buying property in Bolivia can be an extremely beneficial investment when doing business in the country. Engage with a local lawyer when buying a property in Bolivia as a foreign citizen to avoid risks.
At Biz Latin Hub, our legal team in Bolivia is able to advise, assist, represent and help you in the process of buying a property in the country or even act on your behalf through a notarized power of attorney. Our team of multilingual specialists are equipped to help you through this process to make it a smooth sailing one. Get in touch with us today to find out more about how we can assist you in buying a property in Bolivia as a foreign citizen.
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