PBH / colombia (travelguide, pictures) / post

the infamous formulario's

Hi all on PBH - this is my first post and I haven't been able to get a clear answer and we all know how much fun dealing with business institutions are in Colombia - as someone once said they really don't want your business...

that said my colombian wife and I are purchasing a home. As it's a new home I've sent the 30% downpayment directly to the construction company. The remainder 70% I've sent to my mother-in-law's bank account... all funds have been received and are sitting in a CDT... my question is does my suegra need to file any forms with the central bank? form 5????

Also upon closing of a new home what 'other' surprise fees could I expect to be hit with?

By gimmedub on Jun 6, 2008, 15:39 in Visa & paperwork.

sloopskipper says on Jun 6, 2008, 15:59:

I think that you had better halt in your tracks, until you get advice from the members who know the sytem., and learn about the how things work there, if there is any chance that you ever want to repatriate that money out of Colombia.

I have read there are some expensive consequenecs if you don't have ALL the forms.

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dwmte7 says on Jun 8, 2008, 08:43:

sure hope you trust your suegra......whew, really! why, friend, didn't you open your own bank account. duh

dwmte

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Gator says on Jun 9, 2008, 06:58:

You should, make that MUST, have and attorney and realtor you can trust-no exception! If you are not really careful someone may be facing some serious tax consequences.

Obtain a certificate or Certificado de Tradición about the history of the property for COP 7,000 (US$2.98) from the Registry Office.

A certificate from the municipality should be obtained certifying that all municipal taxes on the property have been paid (Paz y Salvo Predial and Paz y Salvo de Valorizacion.)
Hopefully you have and attorney to research property titles, which takes around 5 days to complete and costs vary depending on the complexity by should be around COP 1,000,000 (US$425.17). Also the attorney should prepare a preliminary deed or “Minuta."

Off to the notary who will do a lot more stamping and preparing of the public deed -be prepared to pay .25% of the value. Then the Public Deed must be registered at the Registry Office. The Registry Tax (Impuesto de Registro) according to value will be charged.

I would hold back about 3% of the cost to pay all the damn fees.

"Brevior Sltare Cum Deformibus Mulieribus Est Vita!" .

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aracne says on Jun 9, 2008, 08:26:

Yes, your "suegra" should have filed a form 5 for the Bank of the Republic; otherwise, she will have not received the money on her bank account. But this will probably represent that she is going to have to pay taxes next year, not to mention that you will not be allow to consider the purchase as an investment.

Because she actually does not have any reason for receiving that money other than serve as an intermediary in a transaction, she is going to have to declare that money and pay taxes for the next year.

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tomtom33 says on Jun 9, 2008, 08:47:

Douglas, open your own bank account? You make it sound like that is an easy thing to do.

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