Foreigners can invest in Real Estate in Bolivia: Each day foreign trade officials see Latin America as a great place to start a business, start projects, or buy properties. Bolivia is one of the countries where foreign citizens can buy property at cheaper prices and for greater economic value in the future.
What you need to know when buying a property in Bolivia as a foreign citizen
Bolivia is one of the countries where international citizens can buy property at affordable prices. Purchasing property in Bolivia as a foreign citizen is not as complex as it was a few years ago.
Bolivia is considered a large country with an area of 1,098,580 km2. The Andean country has a population of approximately eleven million inhabitants, maintaining a very low population density of 10 habitats per km2. For this reason, properties and lands in Bolivia can be acquired at a lower price than other countries in the region.
The region is considered the economic capital of Bolivia due to continuous economic growth and foreign investment. During the last decade, the construction and real estate sectors have made significant investments in this sector.
Furthermore, Bolivia is now experiencing a ‘construction boom’, driven by the country’s strong economic growth and linked to government efforts to boost housing supplies.
Residential property in Bolivia is very affordable compared to most other countries in South America. One to two-bedroom homes and Cambodians cost less than the US $ 50,000. Similarly, many one-bedroom large houses located in the city are sold below the US $ 100,000.
Important tips for buying a property in Bolivia as a foreign citizen
Buying a property in Bolivia can be a highly profitable investment when doing business in the country. Business administrators from all countries can invest in real estate and buy a home in Bolivia.
These are important tips for buying a property in Bolivia as a foreign citizen:
Valid passport: A valid passport is required to purchase property in Bolivia.
Legal Documents: As a foreign national you should appoint a local trusted lawyer before buying a property in Bolivia. Each region in Bolivia has its local laws for purchasing property, so it is important to know what documents are to be registered before the local government property office.
Check that the information provided by the seller is correct: As a foreign national when purchasing a property in Bolivia, it is necessary to verify whether all property information provided by the seller is registered with the local government property office. Note that some illegal settlements in Bolivia may cause disputes with the legal owners of the property.
Option to work with a real estate agency: Note that real estate agencies are not fully regulated. They can help you choose a property according to your needs and budget, but there is no guarantee that the property complies with all tax obligations or if the real estate agent is aware of land-owned local law. You should seek professional legal assistance.
Ownership Verification: After being verified by the local legal advisor that there is no legal issue with the property, the next step is to guide yourself through all the remaining paperwork that must be presented to the authorities. Then, the property must be registered in the name of the foreign national as the new owner. Transfer tax has to be paid and the percentage amount will be calculated from the final value of the property.
Payment: Before buying a property in Bolivia as a foreign citizen, you need to do it before asking your lawyer the moment and the safe way. For example, if you are going to pay in cash, you need to make sure that all the paperwork and documents are correct before you give the money to the seller. To avoid problems, it would be better to transfer to the bank account of the owner.
Property Administration: Note that if you are considering living in Bolivia, it will be very easy to get your residence if you own property in this country. Once you count with legal residency, you can buy property in Bolivia as a foreign citizen and apply for a bank loan to get more property.
Purchase real estate in Bolivia with the help of an expert
Local citizens may have to struggle to understand local regulations and requirements when investing in real estate in Latin America. However, buying a property in Bolivia can be an extremely profitable investment when doing business in the country. Engage with a local lawyer when purchasing a property in Bolivia as a foreign national to avoid risk.
Residential property in Bolivia is very affordable compared to most parts of South America. One to two-bedroom homes and Cambodians cost less than the US $ 50,000. On the other hand, many one-bedroom large houses located in the city are sold below the US $ 100,000.
An American-style brick and cement house with a 1,200-square-foot interior, 3 bedrooms, and 2 bathrooms, 8,000 square feet, cost about $ 60,000.
Residential rents are also low. The monthly rent for a one-bedroom apartment begins at the just US $ 75, while it is about US $ 150 for homes. In the capital city of La Paz, a two-bedroom apartment can be rented for only US $ 215 per month.
Taxes and costs
Taxes are moderate in Bolivia.
Rental Income: Rental income earned by individuals is taxed at the rate of 25%.
Capital Gains: Capital gains are considered as income shares and have a standard income tax rate of 13%.
Inheritance: Spouses, descendants, and descendants are taxed at the rate of 1%.
Resident: Residents are taxed at the rate of 13% on their Bolivia-income.
Property cost in Bolivia is low
Buying the property price is about 4.5% of the value of the property. The buyer pays a 3% transfer tax and a 0.50% registration fee. The seller pays a 1% legal fee.