Ruqayyah Snyder
Bolivia is open to foreign direct investment, and foreigners can buy property in the country. However, there are some restrictions and regulations in place. Foreigners cannot buy any kind of real estate if they are just tourists and need at least a temporary residence and a foreigner ID card provided by the Bolivian government. Additionally, there are restrictions on buying rural real estate and real estate near the borderlines of Bolivia. It is essential to be aware of the local laws and regulations, as well as to seek legal assistance, to navigate the process of buying property in Bolivia as a foreigner successfully.
| Characteristics | Values |
|---|---|
| House prices | One- to two-bedroom houses and condominiums are priced below US$50,000. Larger houses with several bedrooms located in the city are sold below US$100,000. |
| Rent prices | The monthly rent for one-bedroom apartments starts at US$75 while it is about US$150 for houses. In the capital city of La Paz, a two-bedroom apartment can be rented for US$215 per month. |
| Buying property costs | Around 4.5% of property value. The buyer pays for the 3% transfer tax and the 0.50% registration fee. The seller pays for the 1% legal fees. |
| Taxes | Rental income is taxed at a flat rate of 25%. Capital gains are taxed at the standard income tax rate of 13%. Inheritance tax is levied at 1% for spouses, ascendants, and descendants. Residents are taxed on their Bolivian-sourced income at 13%. |
| House hunting | You can hire a real estate agent to help you find a house, but it is not necessary. Many houses are found by driving or taking a taxi through neighbourhoods and looking for signs. |
| House buying process | Before buying a house, hire a lawyer to work with the government properties office (Derechos Reales) to investigate whether anyone else owns the right to the property or there is any lien on the property. Once ownership is verified, the lawyer will guide you through the paperwork to register the house in your name. |
| Illegal settlements | There is a huge problem with illegal settlements in Bolivia, especially in Santa Cruz. Migrants from other cities settle on land and begin to build, often having paid a corrupt official for a title. These land grabs have caused many disputes which can take years to resolve. |
| House characteristics | Most homes sold directly by owners may be stripped of all appliances, light fixtures or bulbs, and air conditioning. Be sure your contract stipulates what will and will not be included. |
| Housing market | Bolivia's housing market remains underdeveloped, offering a huge opportunity for foreign investors. There is a growing interest from Europeans, mainly Swiss and Germans. |
What You'll Learn
- The best cities to look for property in Bolivia are La Paz, Santa Cruz and Cochabamba
- Residential properties in Bolivia are much cheaper than in most parts of South America
- There is a huge problem with illegal settlements in Bolivia, especially in Santa Cruz
- The country is experiencing a construction boom, with more than 60 construction projects underway in Santa Cruz
- It is imperative to hire a lawyer familiar with real estate to investigate whether anyone else owns the right to the property
The best cities to look for property in Bolivia are La Paz, Santa Cruz and Cochabamba
Bolivia is currently experiencing a construction boom, with more than 60 construction projects underway in Santa Cruz, the country's most populous and economically prosperous city. This includes 46 residential projects, 13 for mixed residential and commercial use, four for office projects, and five for hotels.
The best cities to look for property in Bolivia are La Paz, Santa Cruz, and Cochabamba.
La Paz is the administrative capital of Bolivia, rising 3500m high on the Andean plateau. It is a popular city for property buyers, with desirable areas including San Pedro, Miraflores, Villa Copacabana, and Obrajes.
Santa Cruz is the largest and most populous city in Bolivia. It is currently the fastest-growing city in South America, and it offers a range of properties, from one- to two-bedroom houses and condominiums priced below US$50,000 to larger houses with several bedrooms located in the city, sold for less than US$100,000.
Cochabamba is another great option for property buyers, with Cruce Taquiña, Beiging, Sarco, Muturina, and Temporal being the five hot zones for real estate.
When looking to buy a property in Bolivia, it is important to be aware of the unique dynamics of the local real estate market. For example, there are no pre-qualifying exams or state certifications required to become a real estate agent in Bolivia, and sellers are not required to sign an exclusivity agreement with their agent. It is also common for homeowners to sell their properties directly, without the involvement of an agent.
Additionally, due to the problem of illegal settlements in the country, it is crucial to hire a lawyer familiar with real estate to investigate the ownership rights and liens on the property before finalizing any purchase.
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Residential properties in Bolivia are much cheaper than in most parts of South America
Bolivia is a country of stunning diversity, from the Andean peaks to the Amazon rainforest. It is currently experiencing a construction boom, with a focus on increasing the housing supply. This makes it an attractive prospect for anyone looking to buy a home in South America.
One of the most appealing aspects of the Bolivian real estate market is the low cost of residential properties compared to the rest of the continent. One- to two-bedroom houses and condominiums are priced below US$50,000, while larger houses with several bedrooms located in the city are sold for less than US$100,000. For example, a 1,200-square-foot home with three bedrooms and two bathrooms on an 8,000-square-foot lot just three miles from the Central Plaza would cost around $60,000.
The low prices of residential properties in Bolivia are also reflected in the rental market. Monthly rents for one-bedroom apartments start at US$75, while houses can be rented for approximately US$150. Even in the capital city of La Paz, a two-bedroom apartment can be rented for a mere US$215 per month.
However, it is essential to be aware of the unique dynamics of the Bolivian real estate market. There is no central listing service, and anyone can become a real estate agent without any formal qualifications or certifications. Additionally, there is a significant issue with illegal settlements, particularly in Santa Cruz, where migrants from other cities occupy land and obtain fraudulent ownership titles from corrupt officials.
When considering purchasing a property in Bolivia, it is crucial to conduct thorough due diligence. Engaging the services of a reputable lawyer familiar with the local real estate market is essential to ensure that the property is free of any ownership disputes or liens.
Despite these challenges, Bolivia presents a unique opportunity for those seeking affordable residential properties in South America. With its diverse landscapes, vibrant culture, and growing economy, it is a country worth considering for those looking for a new place to call home.
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There is a huge problem with illegal settlements in Bolivia, especially in Santa Cruz
Bolivia is currently experiencing a construction boom, with more than 60 construction projects underway in Santa Cruz, the country's most populous and economically prosperous city. However, despite this economic growth, there is a huge problem with illegal settlements in Bolivia, particularly in Santa Cruz.
Santa Cruz de la Sierra, commonly known as Santa Cruz, is the largest city in Bolivia and the capital of the Santa Cruz department. It is situated in the eastern Tropical Lowlands of Bolivia and has an estimated population of 2.4 million. The city has a tropical savanna climate and is an important business center in Bolivia, contributing to more than 35% of the country's gross domestic product. Santa Cruz is also the principal destination for national and international migrants in Bolivia.
The issue of illegal settlements in Santa Cruz is primarily caused by migrants from other cities who settle on land or plots of land without legal authorization. These migrants often pay corrupt officials to obtain fraudulent titles showing them as the owners of the land. As a result, there have been numerous land ownership disputes, which can take years to resolve. This has created a challenging situation for those seeking to buy property in the area, as it is imperative to conduct thorough investigations into the ownership and liens on the property.
To address this issue, it is recommended to hire a lawyer familiar with real estate and local laws to work with the government properties office (Derechos Reales) to verify ownership and ensure no outstanding liens on the property. This process is crucial to avoid legal complications and disputes over land ownership.
In addition to the challenges posed by illegal settlements, there are other considerations for those looking to buy property in Santa Cruz. The city has a varied landscape, ranging from the Andes chain to the rainforest of the Amazon basin. Therefore, it is essential to pay close attention to the surroundings and future development plans for the area before purchasing a property. Additionally, while Santa Cruz offers residential properties at relatively lower prices compared to other parts of South America, it is important to be aware of the local customs and practices when dealing with real estate agents and negotiating prices.
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The country is experiencing a construction boom, with more than 60 construction projects underway in Santa Cruz
Bolivia is currently experiencing a construction boom, with Santa Cruz, the country's most populous and economically prosperous city, at its heart. More than 60 construction projects are underway in Santa Cruz, according to Bolivia's construction institute, Cadecocruz. This includes 46 residential projects, 13 for mixed residential and commercial use, four office projects, and five hotels.
The construction boom is being driven by robust economic growth and government efforts to boost housing supply. The country's former government minister, Carlos Saavedra, has noted the interest of foreign investors, particularly Europeans, in Bolivia's undeveloped market. Residential properties in Bolivia are much cheaper than in most parts of South America, with one- to two-bedroom houses and condominiums priced below US$50,000.
Santa Cruz, specifically, is a hub for this construction boom. As the largest city in Bolivia and the capital of the Santa Cruz department, it contributes over 35% of the country's GDP and receives over 40% of foreign direct investment. The city is the principal destination for national and international migrants within Bolivia. Its population has grown rapidly, from 2.4 million in 2020 to an estimated 2.6 million in 2022.
The city's growth can be attributed to its low elevation, tropical climate, and strategic location in the Amazon basin. It is an important business center, with the main sectors driving its economy being oil, forestry, agribusiness, and construction. Santa Cruz also has a thriving tourism industry, boasting Bolivia's largest shopping mall, Ventura Mall, and its largest airport, Viru Viru International Airport.
The architectural landscape of Santa Cruz and Bolivia as a whole has evolved over time, influenced by historical, cultural, and religious factors. The arrival of Spanish settlers introduced European-style buildings and new materials, with big cities planned around cathedrals and palaces. Today, modern and postmodern buildings, including skyscrapers, dominate the skyline, particularly in cities like Santa Cruz.
The construction boom in Santa Cruz reflects the country's economic development and the government's efforts to meet the housing demands of its growing population. With over 60 projects underway, the city is a focal point for foreign investment and a driving force in Bolivia's thriving construction sector.
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It is imperative to hire a lawyer familiar with real estate to investigate whether anyone else owns the right to the property
Bolivia is currently experiencing a construction boom, with more than 60 construction projects underway in Santa Cruz, the country's most populous city. This, coupled with the country's robust economic growth, makes it an attractive prospect for foreign investors.
However, it is important to exercise caution when investing in Bolivian real estate. There is a huge problem with illegal settlements in Bolivia, especially in Santa Cruz. Migrants from other cities simply show up in large groups, settle on land or plots of land, and begin to build. They have usually paid a corrupt official to extend them a title showing them as the owner, and these land grabs have caused many disputes which can take years to resolve.
Therefore, it is imperative to hire a lawyer familiar with real estate to investigate whether anyone else owns the right to the property. This lawyer will work with the government properties office (Derechos Reales) to ensure that the property is not subject to any ownership disputes or liens. They will then guide you through the remaining paperwork and help you register the property in your name.
It is also worth noting that in Bolivia, almost anyone can be a real estate agent. There are no pre-qualifying exams or certifications to acquire, and real estate agencies are not entirely regulated. Therefore, it is crucial to seek independent legal advice before proceeding with any real estate transaction.
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Frequently asked questions
Yes, foreigners can buy property in Bolivia. However, it is recommended that you hire a lawyer familiar with real estate to help you navigate the process and ensure that there are no issues with the property's ownership.
The process of buying a house in Bolivia can vary. You can hire a real estate agent to help you find a property, but it is not necessary. It is important to verify the ownership of the property and ensure that there are no liens on it. A lawyer can help you with this process and guide you through the necessary paperwork and registration. If you are taking out a loan to buy a house, the bank will also provide guidance with their contracted lawyers.
Buying property costs are around 4.5% of the property value. The buyer typically pays for the 3% transfer tax and the 0.50% registration fee, while the seller covers the 1% legal fees. Residential properties in Bolivia are generally cheaper than in most parts of South America. One- to two-bedroom houses and condominiums are usually priced below US$50,000, while larger houses with several bedrooms located in the city are often sold for less than US$100,000.
