How To Purchase Caribbean Real Estate: Colombia
We are always striving to bring value to Ushombi and save investors time when it comes to purchasing Caribbean real estate.
We have partnered with a real estate law firm in Cartagena, Colombia that has provided this outline for you. Lyda Tyurbec is a barred lawyer in New York and in Colombia and would love to help you acquire property in Cartagena!
So let’s take a look at how you purchase real estate in Colombia in the most tax efficient way possible.
– You can create a company and buy the property under the company’s name. This gives you liability protection and tax deductions. However, companies in Colombia pay annual registration fees and they are subjected to additional tax reporting and tax obligations. The most common entity in Colombia is the SAS.
– You can create a company with a foreign passport and you can buy a property under your personal name with a foreign passport.
– You can purchase a property under your personal name with a foreign passport.
– Wire the money to Colombia.
– When the money gets in Colombia, show the bank your sales contract and the bank will monetize the funds. Banks in Colombia request for evidence of the sale and proof of the source of income (anti-money laundering compliance).
– Register the foreign investment with the central Bank (Formulario #4 or 5). Big penalties await if you don’t do this.
– Buying property in Colombia remotely (while living overseas is possible with Power of Attorney).
– Creating a company involves more paperwork and fees. Incorporating fees and companies are subject to register with Chambers of Commerce and must renew the registration each year.
– Buying property in Colombia remotely while living overseas is possible with Power of Attorney.
– Individuals & Corporations can deduct expenses pertaining to their properties, but if you buy the property in your personal name then the tax rate is higher.
If you would like to get in touch with our real estate lawyer partner in Colombia then click here!