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I wish to invest in taxis in Medellin.

I am interested in moving to Medellin from the United States and investing in taxis. Does anyone who is doing something similiar have advice regarding this business venture? I am most interested to understand more about paying taxes on profits and how to transfer my initial investment money into Colombia. If anyone know of a good business lawyer who can communicate in English, I would be most grateful. Thank you for your time.

By kevinmesser2 on Oct 28, 2007, 15:23 in Friendly Talkzone.

slguy says on Oct 28, 2007, 15:46:

We have a regular contributor who owns a taxi in Barranquilla,while he lives in NYC. He'll show up here tomorrow, I imagine. His ID here is Elmodefoque. He's a little shy, so you may have to pry information from him ;) - but he's a good guy. He'll have info for you, at least about taxis in BAQ. As I recall, he suggests tinted windows- to keep your customers safe from colombianas who are upset with them. You know- good, practical advice from the voice of experience.

Good luck!

Before you throw me out, make sure I pay my bar tab

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bopenyan says on Oct 28, 2007, 16:01:

How much research have you done on the licensing regimes in Colombia? The value of a taxi business in North America rests on the degree of control that the local or state/provincial governments have in issuing and regulating the transfer of licences. If the local government doesn't impose restrictive policies on the issuing of licences, then they have little to no value - but where the government does restrict their issue (New York City is a well-known example), a taxi medalliion will be worth hundreds of thousands of dollars and leasing it to operators is a lucrative business. I suspect, from the abundance of cabs I saw in Bogota and elsewhere, that it is relatively easy and inexpensive to get a licence. Would it be viable to lease out your licence? Would the only way available to make money is to operate it yourself?

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pedro says on Oct 28, 2007, 16:10:

It's been a while since I asked. The going rate for use of a taxi is about 40k per 12 hour shift, give or take? Or was that per day, I can't remember.

Obviously you pay the maintenance and depreciation on the vehicle. Remember, condition of roads is not that great in Medellin and the car will be doing a lot of kms.

If you don't speak Spanish, an important question is who is going to manage the taxi drivers. Who is going to collect if they fall behind, and manage the general shit from that direction?

que nota!

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vicshere says on Oct 28, 2007, 16:12:

not a good bus. to run from back home or even run here...its dog eat dog bus.

listo

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Mr. Hollywood says on Oct 28, 2007, 17:25:

It's not the government taxes I'd be worried about in Medellin but, rather, the paraco taxes.

Don't worry, they'll explain it to you.

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slguy says on Oct 28, 2007, 18:38:

jajajajajajajaja

Good point, Hollywood.

Before you throw me out, make sure I pay my bar tab

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kevinmesser2 says on Oct 28, 2007, 20:09:

Thank you all for your information. I actually have some friends (colombian) who used to own a taxi and they have given me some information regarding the business. I have talked to many drivers as well while I was vacation there. I am a bit familiar with the costs of the taxis and the cupos as well as the amount that I can expect to receive from the drivers. The part that I am unfamiliar with is the paying of taxes. I have heard that the people pay tax when their assests are worth over $40,000.00USD. But, I don't know much about paying tax on business income and such. Also, I am wanting to know more about how best to transfer investment money into Colombia.
Thank you again for your help. I hope to live one day in Colombia.

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vicshere says on Oct 28, 2007, 20:12:

for 40,000 US buy yourself a nice little farm and just relax you dont have to work....in 5 years it will be worth 3 times more and no headace

listo

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robi666 says on Oct 28, 2007, 20:31:

optimist... eh, Vic?
About taxes...
http://www.contabler.com.co/pastel/Rentaimp.htm

"I am a citizen of the most beautiful nation on earth. A nation whose laws are harsh yet simple, a nation that never cheats, which is immense and without borders, where life is lived in the present."

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pedro says on Oct 28, 2007, 21:12:

Tax adivce would be completely different depending on whether you put it in a company structure or had it as personal assets.

You might start by telling us which option you are planning on?

que nota!

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Gator says on Oct 29, 2007, 05:46:

If you are a gringo "horning in" on the local drivers you will last two days at best.

"Credidi pretio parvo emere et magno vendere tibi in animo fuisse!" .

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Joe12 says on Oct 29, 2007, 06:02:

Thanks Pedro.
I don't know that answer yet. I am trying to find a business lawyer who speaks English or another foreinger who has the same situation who can tell me what would be the most tax saving idea. I actually met a Canadian who currently lives in El Poblado. He was telling me that he owns 5 taxis and that this is how he affords to live in Medellin. Unfortunately at the time, I was not interested in relocating to Colombia and did not get his contact information. I am aware that the possiblity exists for me to do this business venture. I am really hoping to find out more of the "ins" of running this kind of business. I am currently a business owner in NJ. I will obviously be hiring local people for drivers and I am not concerned about "horning in" on the other locals. My understanding is that there are 20,000 taxis in Medellin. I am only looking to buy a few taxis and live a modest life in Colombia. If any of you run across a good English speaking business lawyer or an English speaking foreinger in this similiar situation, I would greatly appreciate the heads-up. Thank you very much.

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robi666 says on Oct 29, 2007, 06:09:

A small taxi costs something like 50 or 60 millions. Up to 300 millions for 5 taxis.
You'd probably better buy three small rental properties in El Poblado, that can give 24 million net per year, without loosing their value and working too hard to collect the fee.

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pedro says on Oct 29, 2007, 06:14:

Why would you get a lawyer involved? I would use an accountant, preferably.

Robi, the cars I see as taxis like base model Chevys and Hyundais have a list price of about 25 million or so. When you quote 50 million, is the rest a taxi licence, or what?

que nota!

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Joe12 says on Oct 29, 2007, 06:18:

Thanks robi666. I really appreciate your input. I am very seriously considering alternate ventures. I just don't know of many options. By the way, I am guessing from my best calculations that 24 million net per year is about $12,000 USD, right? If so, it seems like a small amount to receive from approximately $150,000 investment. It is around 8% return (not including property appreciation). That is definitely a safe and decent investment strategy. But, I was hoping for a more lucrative venture. But, I will keep my options open. Thanks again for your input. It is greatly appreciated.

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robi666 says on Oct 29, 2007, 06:40:

Yes Pedro, that's more or less the price of a new licensed taxi for what I've seen around.

Yes, Joe, it is just 8%. But, as you stated, you get also property appreciation. It can be high and it almost surely will keep pace with inflation. I don't know about the rental properties market in USA, but in Rome or Milan you get at best 3% from your properties.

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Joe12 says on Oct 29, 2007, 06:46:

Thanks robi666. I will continue contemplating at this moment. By the way, what would be a comfortable amount of money to live in Colombia. After buying a small house or apartment, I was thinking that 20,000USD per year income would probably be okay. Any ideas?

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vicshere says on Oct 29, 2007, 06:50:

what is comfortable for you...it means a big differance in colombia between 10,000 to 50,000 US

listo

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elmodefoque says on Oct 29, 2007, 06:57:

there you are! hey i only know from barranquilla, i hope it helps!

ASK NOT WHAT THE PUSSY CAN DO FOR YOU, BUT WHAT YOU CAN DO FOR THAT PUSSY!!!!!!!!!! CAT LOVER

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robi666 says on Oct 29, 2007, 06:59:

Is it just me or the guy changed his handle from kevinmesser2 (newbie) to Joe12 (newbie)? uhm...

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vicshere says on Oct 29, 2007, 07:05:

he forgot his password and made a new user name...maybe

listo

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morphus says on Oct 29, 2007, 07:14:

Why not just invest in business in U.S. or wherever, sit back in Colombia and collect some real money?

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coconut says on Oct 29, 2007, 07:15:

I think he is crazy

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gringolondinense says on Oct 29, 2007, 07:19:

Ive witnessed the perils of hiring out cars to taxi guys. They never come up with the money!!! Always "next week" with those guys.

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morphus says on Oct 29, 2007, 07:20:

Taxi business in Medellin....MUY LOCO!

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Joe12 says on Oct 29, 2007, 07:23:

Thanks morphus. I am currently researching this idea as well. The problem lies in the fact that almost all business require the owner to be present. If I invest in US then I am stuck there. But, should I run across a hands off business opportunity, I would definitely take it into account.

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elmodefoque says on Oct 29, 2007, 07:25:

if they don't come up with the money, a visit from a paraco will take care of that problem

ASK NOT WHAT THE PUSSY CAN DO FOR YOU, BUT WHAT YOU CAN DO FOR THAT PUSSY!!!!!!!!!! CAT LOVER

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gringolondinense says on Oct 29, 2007, 07:26:

what if he cant afford to pay the paraco???

:))

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elmodefoque says on Oct 29, 2007, 07:27:

then you get a guy from a real bad neighbohood, he'll do for only 20 mil pesos and a beer

ASK NOT WHAT THE PUSSY CAN DO FOR YOU, BUT WHAT YOU CAN DO FOR THAT PUSSY!!!!!!!!!! CAT LOVER

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morphus says on Oct 29, 2007, 07:28:

I gave good advice last night for a business venture in Medellin but the thread got deleted. Caribbean fast food joints in the malls of Medellin might work. I never seen a Jamaican patty in Colombia. There would be Jamiacan, Cuban and Dominican food on one menu. Call the chain "La Caribeña".

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elmodefoque says on Oct 29, 2007, 07:29:

heyyyyy morph not bad at all!!!

ASK NOT WHAT THE PUSSY CAN DO FOR YOU, BUT WHAT YOU CAN DO FOR THAT PUSSY!!!!!!!!!! CAT LOVER

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gringolondinense says on Oct 29, 2007, 07:33:

heres my business plan: First of all, I drink about 20 gallons of beer everyday. Second, sunbathe until Im like a lobster. Third, get some white socks and hawaiian shirts. Then I land myself a millionarie-ana and go and live in her mansion for the rest of my life. Sorted.

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robi666 says on Oct 29, 2007, 07:36:

"what if he cant afford to pay the paraco???"
He'll borrow the money from another paraco...

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Chelesupercono says on Oct 29, 2007, 08:46:

Taxi Business in Colombia? By a Gringo? Dude just find yourself a really good PRE-PAGO, enjoy yourself and then give her ALL of your money.......a lot less painful....

never go to bed with someone crazier then you are, you will do it and you will regret it.......

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rhydewithdis says on Oct 29, 2007, 14:05:

Out of curiosity, is there a such concept as a "Medallion" in Medellin (similar to NYC)? Is the taxi market regulated? How many new Medallions are issued per year? What is the cost?

I wonder how much it would cost to buy a portfolio of Medallions and lease the portfolio to a secondary company (owned by someone else) who would own and maintain the taxis.

They said I couldn't play football I was too small / They say I couldn't play basketball I wasn't tall / They say I couldn't play baseball at all / And now everyday of my life I ball.

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toneloc24 says on Oct 29, 2007, 15:01:

I would seriously re-consider this idea. The taxi racket is generally a mafia (paraco) racket. Know what you're walking into. It's serious business. An unconnected newcomer is competition to the status quo. YOU may not see it that way, but THEY may. If unwilling to pay "tribute," things might get interesting. Looking over your shoulder in Medellin, is not the same as looking over your shoulder in NYC.

The medallion runs between 7-10k USD, from what I was told.

"Don't tase me, bro!!!!"

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Joe12 says on Oct 29, 2007, 16:14:

Well, thanks to everyone who has contributed here. I have decided to go against some of the advice here and start investing with the taxis, anyway. I hope to meet some of you there soon. And, I hope that there is room for one more American in Medellin. I believe that there will be a lot more of us coming soon, don't you?

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toneloc24 says on Oct 29, 2007, 16:35:

Just be sure to post back here after 1 yr, good AND bad. For some reason, people generally don't get around to that part on this board.

"Don't tase me, bro!!!!"

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vicshere says on Oct 29, 2007, 19:14:

hey tone you got that right ...you only hear about the good results hardly ever heard about the bad experiences in business here in Colombia...a couple of years ago I wrote about my bad shit and I got raked over the coals.....guess other people don't want to go through that..fortunately I have thick skin

listo

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Tinto (Moderator) says on Oct 29, 2007, 20:09:

Maybe the guy has money to burn, but if I was new to the business, I certainly wouldn't start with six taxis (his comment in another thread).

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toneloc24 says on Oct 29, 2007, 21:22:

He's another dude hellbent on not listening, and knowing absolutely nothing about the culture in which he thinks he wants to make money, yet resistant to absorb any advice.

Elmo's taxi deal is a completely different deal in many ways to what this dude is suggesting. Elmo's nephew is connected to the right folks on the coast. He's also 100% Colombian. They don't fuck with him. You're asking Elmo about money transfers and shit?

Whatever, dude seems to have money to burn and a spare ass to replace the one that's gonna get taken right from under him. I can guarantee that he won't come back in a year to post that experience.

Real estate, bars, internet cafes, one thing. Taxis???

I swear, the things that men do for hot pussy.

"Don't tase me, bro!!!!"

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john_stark says on Oct 29, 2007, 21:36:

He should open a whorehouse and cater to gringo fools.

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toneloc24 says on Oct 29, 2007, 23:15:

Already twice done in Medellin.....no?

"Don't tase me, bro!!!!"

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Robert Jorge says on Oct 30, 2007, 00:10:

I will admit the taxi idea intrigued me also a while back. I did a little investigating, and I agree with what toneloc24 said. My buddy in Villavo has a taxi. He said politely that it would basically be stupid for a gringo, like myself, to try and do something like that. He implied the gringo probably wouldn't have a long life, if the gringo didn't pay vacuna (sp?) to the point where it wouldn't be worth even having the taxi. And on top of that, driving a taxi isn't the safest business to be in. Colombia is just like the US in that aspect. (Which I also didn't realize) Taxi drivers apparently turn up dead in Colombia quite often.

BEWARE of gold diggers.

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curramberochris says on Oct 30, 2007, 07:04:

Everyweek I see a picture of a taxi driver half hanging out of his cab. They are hit my mistake and also if the person they are driving happens to be a target. much safer driving a big bus, they rule the roads!

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Morrongo says on Oct 30, 2007, 09:11:

Kevin you seem a nice guy! So I am going to give you this advise. Have a search around your house for a rusty 6 inch nail , when you find one,give yourselve a good jab up the arse with it! hopefully reality will check in. Listen to these guys,your idea to compete is this market is floored. Yes invest here,but come here first,spent at least 6 months and explore,if you still think its a goer,do it.

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Joe12 says on Oct 30, 2007, 09:36:

Thank you all, once again. I really do take all advice, and I am listening.

But, there are some aspects to most of the negativity here that I have already planned for and solved. I will NOT be driving any taxis, for one. I will be renting them to local drivers. I already have a business partner that I trust and have known for years there. I won't be the Lone Gringo out there trying to make a fast buck off of the locals. My partner will be the face to the drivers. I will handle the finances. There is experience already built in here.
To Morrongo - thank you for your words. I don't think that I will be "competing" in the market. There are thousands of taxis there in Medellin. Many are owned by private individuals. I will start out slow and see if there are problems and then make adjustments.

If all of you will take a look at my original question, you will see that I really want to understand is the process of transfering capital to Colombia. I seem to have a bit of a road block there. And, I would like to understand more about the tax situation. I have received some (private) offers of help from an attorney and an accountant. So for this, I appreciate this forum and the advice.
Also, if there is another foreinger out there who is doing something along these lines, I would appreciate private correspondence.
Thank you so much.

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Morrongo says on Oct 30, 2007, 10:21:

It all looks complicated until you know the system.Its time consuming but not complicated.
if you are serious ,come to Colombia first ....and arrange things yourselve..its cheaper and you get a better understanding of how things work here.

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elmodefoque says on Oct 30, 2007, 11:15:

joe, i'm testing the waters with this taxi business and if all goes well then i might get a few more. The thing is to have locals you trust and most important those locals command repect from the other locals.
what the fok did i just said, does it make any sense? am i already loco?

ASK NOT WHAT THE PUSSY CAN DO FOR YOU, BUT WHAT YOU CAN DO FOR THAT PUSSY!!!!!!!!!! CAT LOVER

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robi666 says on Oct 30, 2007, 11:17:

"Is it just me or the guy changed his handle from kevinmesser2 (newbie) to Joe12 (newbie)? uhm..."
Again, the troll warning lights are all on now...

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Joe12 says on Oct 30, 2007, 18:45:

Hey, thanks go to Morrongo and Elmo. I am not sure what robi666 is talking about. Yes, I am new to PBH.
To morrongo - I have been searching for an apartment. I think I will look in either Belen or Laureles. I will live there for awhile and get to know the customs better before I go heavy into anything. I need to learn a lot more Spanish as well. I believe what you say to be true. That things will not seem as complicated once I have figured things out. I have actually been going to Colombia since 1999. I just have never spent more than 3 weeks at a time. I have been there dozens of times and I love the weather. Hope to meet some of you in the future.

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dwmte7 says on Oct 31, 2007, 07:52:

kevin...before i launched into a taxi inversion, i'd check with a periodic poster who is invested in the bus business and if i know him as i think i do, he'd be a gold mine of reliable infor for you.

DAVE HUW...HUNTER you out there, help this young man before he shoots himself in the foot.

dwmte

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gringolondinense says on Oct 31, 2007, 08:01:

I can see that starting taxi companies is becoming the lastest gringo fashion lol :)

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vicshere says on Oct 31, 2007, 08:57:

the major problem with having any vehicle in Colombia is the roads.....to keep a vehicle in good driving shape is very expensive......the roads are crap and they take their toll out on the cars.....tire, suspension, body....remember these cars are cheap little imports and are not made for the Colombian off roading streets.....if you are going to run any business by the book in Colombia your in for a fight of your life.....if your not prepared to cut corners and be an asshole boss stay home......business in Colombia is a dog eat dog life

listo

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poco says on Oct 31, 2007, 18:16:

Quote: remember these cars are cheap little imports and are not made for the Colombian off roading streets

Hummm, I thought many cars were made (assembled) in Colombia. Ha,, maybe the Colombians don't understand the market?

Oh,, wait, there is this.

Colombia is the third-largest car producer in Latin America but it is also a net importer. The automotive industry accounts for 1% of GDP, with around 25,000 people employed in car assembly and around 100,000 in component production.

"When you men get home and face an anti-war protester, look him in the eyes and shake his hand. Then, wink at his girlfriend, because she knows she's dating a pussy." Quote - General Tommy Franks

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vicshere says on Oct 31, 2007, 19:05:

(assembled) in Colombia
your right ....but still crappie imports Colombia doesn't have and auto industry just assembly...so all the crappy parts come from overseas so what's the difference

listo

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vicshere says on Nov 1, 2007, 06:24:

bazucjoe ==== colombianmike====vup.......same troll====ignore

listo

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vicshere says on Nov 1, 2007, 08:34:

ok right it doesn't take a genies to figure out who you really are...plain troll..you have to change your username evry day....I have had my username for many years...as I am real person unlike you....a troll

listo

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vicshere says on Nov 1, 2007, 08:54:

you who else

listo

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morphus says on Nov 1, 2007, 09:20:

Real person? I thought you were a pair of tetas :)

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vicshere says on Nov 1, 2007, 09:45:

real tetas to you

listo

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morphus says on Nov 1, 2007, 10:03:

Real tetas? Those are scarce in Colombia, no? Its hard to find more than a B cup. Any bigger than that and everybody within 500 miles is interested.

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rhydewithdis says on Nov 2, 2007, 06:11:

Joe12, thanks for coming here and sharing both your plans and soliciting advice. This is what helps build our community here... I know there are a lot of posts, with both positive and negative criticism, but if you get a chance, can you respond to my above inquiry (I'll cut and paste it again below)--thanks!:

Out of curiosity, is there a such concept as a "Medallion" in Medellin (similar to NYC)? Is the taxi market regulated? How many new Medallions are issued per year? What is the cost?

I wonder how much it would cost to buy a portfolio of Medallions and lease the portfolio to a secondary company (owned by someone else) who would own and maintain the taxis.

They said I couldn't play football I was too small / They say I couldn't play basketball I wasn't tall / They say I couldn't play baseball at all / And now everyday of my life I ball.

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morphus says on Nov 2, 2007, 07:25:

Why wish to invest in taxis in Medellin? If you have been granted wishes, its better to wish for some big money.

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dwmte7 says on Nov 2, 2007, 08:21:

thread poster...i was told by, noneother, than huw jones himself that he counseled you on the taxi business...IN FACT he forwarded copies of all the e's you (i can only presume 'you' are the same 'you', dave huw jones referred to) received from him??? and you still have questions? i'm no 'hak'', but my reading of the communiques let me to believe that dave left no stone unturned??? dw

dwmte

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