Requirements for Cedular de Extranjero

Gator says on Jul 17, 2007, 14:18:

Local DAS can do the process. You will need passport containing you unexpired visa and three photography. You get a temp cedula and the "hard"copy will show up later-hopefully. Will expire when your visa does. Yes you will need it to buy a house.

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

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robi666 says on Jul 17, 2007, 14:48:

No, Gator, you won't need a cedula to buy a house. Passport is ok.
First time I see Gator making a mistake! ;-)

"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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Gator says on Jul 17, 2007, 20:29:

Correct Robi666. The "new" Colombian Constitution absolutely allows a non-Colombian to purchase and own property. All you will need to acquire title is a U. S. Passport or Cedula de Extranjeria from the DAS, Departamento Administrativo de Seguridad. Having said this, you are cautioned to be careful how you transmit your personal funds for this purchase-it will be a winding road and you can get lost.

There are laws and regulations in Colombia for the import and export of dollars and their conversion to pesos. If you do not follow instructions regarding forms and the time frames you will have a painful experience. The funds transferred may be taxed at 46% on the repatriation of the funds out of Colombia if you later sell and wish to send the funds back to the USA.

The reporting is done through Banco de la Republica in Colombia. You will have to file
Declaration No. 5 to report incoming funds. If the funds are remaining in Colombia you have no further reporting responsibilities for the importations of your dollars. However, if at a latter date you have a need to sell the property and repatriate, the funds will be taxed at a 46% rate.

Declaration No. 4 and Declaration No. 11: A Foreign Investment in real estate can also be done by filing forms 4 and 11. Declaration of the import of dollars are reported to the Banco de la Republica with Form 4. Within 3 months you must follow-up with Form 11 to legalize your purchase of any real estate. Form 11 must be presented along with the contract of purchase, or promesa de compra venta, with-in this 3 months time frame. There are some exceptions to the 3 months but better to avoid those complications if possible.

If you have used Form 4 and 11 for the foreign investment you will be able to repatriate the funds without the 46% government tax. You can purchase a house or apartment with this method.

Incidentally, you will need from DIAN a RUT (tax ID number). This number identifies you as a tax payer in the district and Country. You will use this number to report any annual tax liability on assets in the Country. You are responsible for any reporting to the Banco de la Republica. A lot of real estate agents and banks are not aware of these reporting requirements for foreign investors. I would find a good lawyer and tax accountant (Contaduría Pública) experienced with international money and real estate transactions.

BTW you might feel you do not NEED a Cedula de Extranjeria but just wait until you start with the notaries and the banks.

Sorry if I misled you.

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

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BAQ says on Jul 19, 2007, 13:26:

was the page of your passport containing your colombia visa not stamped with a warning that you MUST REGISTER with DAS withing FIFTEEN DAYS

Semper Fidelis !

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BAQ says on Jul 19, 2007, 13:26:

was the page of your passport containing your colombia visa not stamped with a warning that you MUST REGISTER with DAS withing FIFTEEN DAYS

Semper Fidelis !

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slashdave says on Jul 21, 2007, 08:06:

Hi, I am a british citizen living here in Colombia and I have got someone who can help you out, contact anthuertas at hotmail.com

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Maojaimes says on Aug 13, 2007, 11:22:

Some precisions about Gators' post:

"...The funds transferred may be taxed at 46% on the repatriation of the funds out of Colombia if you later sell and wish to send the funds back to the USA."

You can transfer funds to Colombia and later If you didn't have an income with that money, take it out without paying any tax. For example. You made a downpayment for a house, and then you regret of buying, you can take your money out without any tax.

Gators'
"...You will have to file Declaration No. 5 to report incoming funds. If the funds are remaining in Colombia you have no further reporting responsibilities for the importations of your dollars. However, if at a latter date you have a need to sell the property and repatriate, the funds will be taxed at a 46% rate..."

Declaration No. 5 is filed automatically by banks if you don´t want to repatriate the funds. The form that you have to be sure is filed in at the local bank is the No. 4, if you want to take your money out in the future.
When you sell the property, you'll be tax for the difference between the buying and selling price. I'm not sure where the 46% comes from.

Gators'

"...If you have used Form 4 and 11 for the foreign investment you will be able to repatriate the funds without the 46% government tax. You can purchase a house or apartment with this method.."

Forms 4 and 11 as he says is the right way to registered the foreign investment, but as I said you'll have to pay tax just for the difference between the buying and selling price.

Colombian updated tax information is well explained at http://www.deloittetaxguides.com/index.asp?country_id=1510000151&layou...

Mauricio
www.buycolombiarealty.com

The most complete guide about Colombia real estate

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usher127 says on Sep 6, 2007, 13:58:

Surprisingly this post didnt bring up the issue of registering Form 4, if you have already been in Colombia for 6 months or more... but this is ANOTHER potential problem... I think there are now are few posts on this...

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