Paying taxes to DAIN on the sale of an apartment.

Ctg Bound says on Oct 28, 2008, 16:49:

calipro,

"and not on the sale of the apartment because the sale price of the apartment was the same in pesos."

What did you buy the apt for which was registered on the Escritura and the matricula, plus sell it for regsitered in the same place?

The same amount?

If it is ZERO capital gains taxs to pay, I hope both (or one) prices were above the amount on the pre-dial tax form

They probably were as Notaries are not supposed to let to register the sale otherwise.

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calipro says on Oct 28, 2008, 17:03:

Well I don't remember the exact amount but the amounts on the Escritura and the matricula where well below the actual buy and sell price. But you are right about the notory so I think my lawyer made the sell price about 2 millioin more than the previous one.

If that is what they go by then I guess I owe taxes on about 2 million of capital gains.

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Ctg Bound says on Oct 29, 2008, 05:31:

calipro,

Thats what they go by, I (my accountant) have been submitting Colombian Tax declarations for the year 2002 onwards, later years have declarations including capital gains I have made.

So your capital gains will be OFFICIALY virtually nothing, possibly nothing if it has be above a certain amount before it kicks in.

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Ctg Bound says on Oct 30, 2008, 03:32:

gringoloid,

Any leases I do or rent are 1-2 years, 2 years is the norm here from what I have seen.

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rhydewithdis (☼Travelguide writer) says on Oct 30, 2008, 08:20:

Ctg Bound says on Oct 30, 2008, 09:53:

gringoloid,

Rent goes up each year, normally at inflation or so, there may be a Colombian law to stop somebody raising the rent by more than a certain amount, I seem to recall hearing something like that, but having had nobody try and raise more than what I deem a fair increase I haven't had need to look into it.

Its common practise for Colombians to be paying their rent 10-20 days late, my businesses pay on time to early, so the renters are very happy with us, so are unlikely to try it on to much, if they do, time to move, there are always units coming available.

Safest way is always to own you own though, although you need more capital then.

NO shopping mall I am in takes a cut of sales or profits.

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Ctg Bound says on Nov 4, 2008, 02:41:

gringoloid,

Not many.

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Maojaimes says on Nov 6, 2008, 06:19:

If you sold the apartment for the same value in pesos that is registered in the deed, you didn't have any ocasional gain, so there would'nt be a reason to pay taxes for.
If you registered the apartament as a foreign investment, you could repatriate the profits of the sale investment without problem.
I don't know how tax auditing works in the US, but I think the problem would be abroad in order to justify a 20K increase of your capital.

www.buycolombiarealty.com - The most complete guide about How to buy Colombia Real Estate

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Ctg Bound says on Nov 8, 2008, 16:13:

gringoloid,

Rio Negro, I haven't looked for space, but in 2009 I will be doing research into possibly renting a unit there, depending on the outcome of the research.

As to if Rio Negro is better or not, it really depends on the products you are selling, I need several shops in the Medellin area plus possibly 1 in Rio Negro, but opening more than that wouldn't be worthwhile for my products, so there maybe no reason why you can't open in both areas.

Labour is cheap in Colombia, so maintenance is, at least in Medellin, on the coast like Ctg for example the shitty air there destroys a lot of things, making maintenace costs a lot higher.

Maybe a business option, but its pretty easy to get most thing repaired in Colombia I find, not like the UK, which I imagine is like the US but probably to an even lesser degree, both throw away cultures.

BUT you have to pay large admin fees to the Centro comercial you are located, but that gets taken into consideration in the rental pricing and the products you are selling.

ADMIN FEE may or may not be included in the rent, some places are, some aren't.

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