Cost of Living in Colombia: Local and Foreign Insights

Colombia’s cost of living distinguishes itself from the rest of Latin America through its affordability and the country’s quality of life, an asset that complements its rich cultural background and diverse geography. This article provides an in-depth analysis of the various aspects of Colombia’s cost of living, offering insights into the economic landscape of this vibrant nation.

Affordability beyond housing

In Colombia, when housing expenses are not considered, the cost of living reveals an intriguing aspect of its economy. This affordability extends to essential items such as food, transportation, and services. In urban areas like Bogota, Medellin, and Cali, housing costs, while a major component of living expenses, are more affordable compared to global standards. Renting a studio apartment in central Bogota, for example, averages around USD 412, a significant part of the average income for independent living in Colombia, estimated at USD 637.6. This highlights the challenges urban Colombians face in balancing housing costs with other living expenses.

Inflation, currently at 7.35%, significantly impacts the cost of living in Colombia. It affects the price of goods and services, posing challenges for families trying to maintain their standard of living and their consumption patterns. The government’s response to inflation and its economic policies are crucial in managing these challenges and ensuring the affordability of essential items. Comparing Colombia’s economy with other Latin American nations, its cost of living stands out as relatively low. This comparison sheds light on the economic strategies employed by Colombia and the effectiveness of its policies in maintaining affordability for its citizens.

Global comparison of living costs

Globally, Colombia’s cost of living, excluding housing, is relatively affordable. This is evident in the pricing of basic goods and everyday necessities. Data from Livingcost.org shows that the average cost of living in Colombia is $673, 1.52 times less expensive than the world average. The average salary after taxes in Colombia is $368, covering living expenses for half a month. InternationalLiving.com notes the low cost of living in Colombia, especially for retirees, with monthly expenses averaging between $1,000 and $2,000, and highlights the variation in living costs across different neighborhoods and the affordability of utilities and healthcare.

Thus, Colombia stands as one of the OECD countries with the lowest price levels, only surpassed by India and Turkey. In comparison to Brazil, which has a nearly identical Human Development Index value, Colombia’s price level index is 33 percent lower (41 versus 61). However, the general cost of living in Colombia is contrasted by increasingly high housing expenses in urban areas, although these remain much lower than in other OECD countries. This situation highlights the need for economic policies that focus on affordable housing to improve the quality of life in Colombian urban centers.

Colombias’s cost of living according to a digital nomad

The perception of living costs in a country can greatly vary between locals and foreigners. In Colombia’s case, the country is becoming an increasingly popular destination for digital nomads, notably because of the affordability of high-quality services for foreigners with incomes higher than the Colombian average. ColombiaOne collected testimonials from Luke, a digital nomad from the United Kingdom who has been living in Medellin for several months now. With an income fluctuating between $1,600 and $2,300 per month, his lifestyle is incomparable to what he could afford in the UK—not just in terms of quantity, but also quality.

Housing, for example, is spectacular in Medellin, with incredible locations and views. Secured residences offer various services, including swimming pools, saunas, and gyms; a level of comfort unaffordable in Western Europe or the US with a similar budget. Another notable aspect is the quality of food and restaurants; high-end establishments offering quality on par with Western standards are accessible at reasonable prices. When asked about what he couldn’t afford, Luke humorously mentioned “a sports car and going out every night,” a statement that nonetheless underscores the high quality of life available in Colombia.

Although Colombia has actively promoted and sustained international digital nomadism, particularly through a two-year Digital Nomad visa, this influx from high-income countries has led to a significant rise in the cost of living for locals, especially in cities like Medellin, Bogota, and Cartagena. This trend has notably affected real estate and rental prices, with a gentrification phenomenon in certain neighborhoods, such as Medellin’s Laureles and El Poblado.

An affordable lifestyle paired with an amazing culture

The lifestyle in Colombia is influenced by its cultural richness and diversity. Colombians enjoy a variety of cultural activities, from traditional festivals and music to modern arts and entertainment. The cost of participating in these cultural activities is generally lower than in many Western countries, making it accessible to a broader segment of the population.

Food and cuisine in Colombia are another aspect of its culture that impacts the cost of living. Colombian cuisine is diverse and affordable, with a wide range of options from street food to fine dining. The cost of groceries is also lower, allowing families to enjoy a variety of foods without a significant financial burden.

Colombia’s diverse geography, from its coastal regions to the Andes mountains, impacts the cost of living in different areas. Coastal cities like Cartagena and Barranquilla tend to have a higher cost of living due to tourism and higher demand for services. In contrast, inland cities and rural areas offer a more affordable lifestyle, with lower costs for housing and basic necessities.

The environmental policies of Colombia also play a role in its economic landscape. Efforts to preserve its natural resources and promote sustainable practices have led to a growing eco-tourism industry, which provides economic opportunities while maintaining a focus on environmental conservation. Recently, the Colombian government won a lawsuit against an oil company to halt drilling near the protected area of Caño Cristales.

High-quality public and private services

Education in Colombia has seen significant improvements over the years, with increased government investment and a growing number of educational institutions. The cost of education, from primary to higher levels, is generally more affordable compared to many developed countries, making it accessible to a wider population.

Healthcare in Colombia is known for its high quality and accessibility, with costs significantly lower than in many developed countries. Ranking 22nd worldwide, the Colombian healthcare system offers a range of services from basic medical care to advanced treatments, contributing to the overall well-being of the population. The quality of its care has even made Colombia a major destination for medical tourism, particularly in the fields of cosmetic surgery and dental care.

Public services in Colombia, including transportation and utilities, are generally reliable and affordable. The public transport in major cities is efficient and cost-effective, contributing to the lower overall cost of living, with Medellin’s MetroCable and Bogota’s TransMiCable standing as models of success. Utilities such as electricity, water, and internet are also more affordable compared to many OECD countries. The government’s focus on improving infrastructure, such as roads, public transportation, and telecommunications, has enhanced the quality of life and facilitated economic growth. These developments have a direct impact on the cost of living, making daily life more convenient and accessible for the majority of Colombians.