Tax on foreign income

Ctg Bound says on Mar 4, 2007, 04:27:

elk I wouldn't woory about it.

I could ask my accountant for you at my next meeting with him in the summer, if you want, put it in writing for me and give it to me next time you see me, otherwise I will probably forget.

tomtom33 says on Mar 4, 2007, 05:56:

I was told by my law firm in Bogota that, if I stayed more than 180 days in any calendar year in Colombia, Colombia "could" have a claim to tax my world-wide income.

I did file a Colombian tax return for 2005, but that was only because my apartment in Cartagena was worth more than 80 million pesos. The accountant who filed the return said not to worry about income taxes. And I owed no tax to Colombia for 2005.

I'm always interested in other opinions, CB.

The problem that I have found so far is that the Colombian government officials don't seem to know their own laws. I have received conflicting information more than once.

aztec says on Mar 4, 2007, 06:06:

One of the reasons... ...viewpoint elected to move to Panama instead of Colombia. The Colombian government does not make it easy for a foreigner to move or invest in the country.

We are still dealing with one of the Colombian agencies over a transfer of funds made two years ago and the correct forms were indeed filed. In fact, yesterday we faxed a response to one of their edicts. It is so inexplicable that it is funny if it didn't involve a possible fine.

The problem essentially is one of a Government agency not communicating with another. Too damn lazy to follow up on it themselves even though they have all of the numbers.

I will post this experience just as soon as final disposition. It is truly a catch 21 and further proof of how a third world country deals with finance. Reams and reams of bureaucratic regulations! So much so that one hand doesn't even what the other hand is doing.

aztec says on Mar 4, 2007, 06:09:

tomtom33 If you are a resident over four years you will be taxed on your total world wide income. Of course that assumes your income is sufficient to meet the threshold.

viewpoint says on Mar 4, 2007, 12:09:

AZTEC Wow I haven't posted on the website in many months and I was at my office today looking for things to do and pulled up PBH to see what was happening and saw my name (Viewpoint) posted by AZTEC.

I couldn't be happier with my decision to move to Panama City from Medellin. I still have my home in Medellin but only visit for a few days every quarter (3 months). Panama is light years ahead of Colombia in progressive policies inviting foreigners to invest and immigrate to their country. You can remain here in Panama continiously as a tourist exiting only for a few days at the end of each 90 day period and returning but it's so easy to obtain residency here in Panama requiring only a little effort and expense to apply.

My 21 year old son came here to live and work with me 8 months ago and in that time has became much more fluent in speaking spanish. He supervises his own crew of construction workers and has fallen in love with the local women. I see him during the workday but otherwise he never comes home to the house. He is off every weekend to the interior exploring Panama at it's best. My 19 year old son comes in the next few months. My daughter is even surrendering and sending here husband (arriving today) to explore Panama City as a place to live.

I my business I am seeing companies from all over the world and Latin America coming here to Panama City to locate their offices tapping into the local labor market for bilingual employees for their operations. They are choosing Panama City for it's "low cost" of labor and high percentage of bilingual "skilled" people for their international operations. You can find lower cost labor elsewhere but not bilingual to the extent Panama City is. Panama is a baby-step from the USA where Colombia is an ocean away. Panama wears and feels more like the USA than Puerto Rico.

Like AZTEC I continue to go through the exercises of Colombia's circus of economic oppression with a never ending stream of questions and investigations regarding money transfers and investments in Colombia. Everytime I think we have resolved the problem another agency steps into the picture and we start all over again. I file tax returns years in Colombia (because of real estate investments) which require significant tax payments and I don't even live there.

Panama is the extact opposite with free capital controls and a BIG green light welcoming investments and foreign people to their country. You would have to come here to Panama City and see the development to beleive it. They are beginning to experience a shortage of building materials and skilled labor just in the Panama City building boom without the canal expansion ever starting. There are about 150 new high rise condominium buildings being built here in various stages of construction.

Panama has upward mobility and you can make profits in business and with your investments much more than Colombia can offer. Colombia is well represented in Panama City both with their businesses located here and the Colombian people that have immigrated to Panama City. Many of our construction contractors and subcontractors orgiinally came from Colombia.

AZTEC I still have the apartment waiting for you and your wife.

tomtom33 says on Mar 4, 2007, 12:35:

Especially in Colombia I must practice patience. And I am developing a cadre of people to help with bullshit. Thank God for that cadre.

I wonder if Colombia is ever going to pull it's head out of it's ass?? I'm not holding my breath.

Miguel_Clavo says on Mar 4, 2007, 13:48:

Hey Elk! Thanks for the link...very helpful!!!! Just my opinion...and brought to you by a kinder and gentler

Miguel_Clavo =).....Colombia es pasión!

"F.A.R.C..S.U.C.K.S"

"I would rather die living life, than to live a dying life."........ Oh, and my PM is always ON. Great Bumper Sticker: "Home of the Free, Because of the Brave"

aztec says on Mar 7, 2007, 09:50:

viewpoint Good hearing from you! Tried to contact you via your PBH e-mail but it was not accepting e-mails. Will attempt to follow up with other e-mail account.

Mr. Hollywood says on Mar 7, 2007, 09:56:

Global income Good luck to the Colombian government trying to figure out what your "global income" is. They can't even get their own citizens to reliably pay taxes on the money they earn in country, much less the foreign earnings of foreigners.

Ctg Bound says on Mar 7, 2007, 10:54:

Mr. Hollywood elk did make a good point to me in a PM, that I hadn't thought about, on a pension visa he is declaring a income and giving proof of where the income comes from.

I suspect that if they do ever get around to taxing worldwide income it won't be anything significant as elk and others can just move to another Country, change visas etc.

elk says on Mar 7, 2007, 11:19:

Pension Visa and "back taxes" Ctg Bound:

One could have a problem if you hold the Colombian Pensionado visa and own property here in Colombia. If one day they decide to audit then you might find a government lien on your personnel residence until the "back tax and fines" are cleared. I'm not worried at this point, but something to consider. It may be time to switch to another type of visa.

In my case the Colombian government has a complete record of my income along with bank statements showing direct deposits to my U.S. bank account.

I will be required to furnish financial statements every twelve months to extent the Pensionado visa.

Mr. Hollywood says on Mar 7, 2007, 11:49:

Hmmm. Well, you're taxed on your retirement income in the US, right? And I believe the US and Colombia have a tax treaty that would prohibit double taxation. If not, the Colombian government would be idiotic to drive away the fledgling progress of attracting pensionados. I'm sure Panama would gladly take them all in and probably Costa Rica too.

Lostgringo says on Mar 7, 2007, 12:29:

Panama City Correct me if I am wrong. I have heard that Panama City is extremely hot and humid. Is this true?

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elk says on Mar 7, 2007, 12:40:

Lostgringo...Panama weather You would never make it in Panama at sea level. Remember temperature is controlled by "altitude" in Central America and not the season. It's hot until you reach 1,000 plus meters...This applies to Nicaragua, Honduras, Costa Rica and Panama. You happen to live in a very cool climate at the moment, Medellin.

aztec says on Mar 7, 2007, 13:28:

There is no tax treaty. You just need to stay on top of your situation. Most people here won't have a problem. However people like viewpoint must stay vigilent or they will be trapped owing taxes as a resident in Colombia and in the States. As indicated, that is one of the reasons he doesn't remain in Colombia more tha a few months at a time.