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Update form 4 and 11

I finally found a lawyer in Cartagena that does a lot of real estate investments for foreigners and really seems to know about forms 4 and 11.

From what he told me you really should have the place you want to buy picked out and have the paper work started before you wire the money down to Colombia if you are planning on filing form 4 because you only have a short time between filing form 4 and form 11 otherwise you can get a fine. You can also get a fine for filing form 4 and then never following through and filing form 11.

Form 4 and 11 are only good for making sure that you can send the money back out of Colombia without paying taxes. However filing one or both of them incorrectly can subject you to fines.

If you simply go with the form 5 when wiring money into Colombia you can buy Colombian real estate without any fear of fines but you will be taxed considerably if you want to wire the money out of the country after you sell your place.

The big plus to using form 5 is that there isn't a time frame with which you must purchase a property and file form 11 so you can take advantage of wiring money when the exchange rate is high and take your time looking for a good deal on the real estate market.

Those are the pros and cons

By calipro on Oct 20, 2008, 14:41 in Friendly Talkzone.

ujay says on Oct 20, 2008, 15:10:

4 and 11,
is this the same as 7.11 ,24 hours that is .

http://www.jukelightning.com

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calipro says on Oct 20, 2008, 15:20:

I believe that forms 4 and 11 are unique and not to be confused with a 7 eleven store that is open 24 hours a day. LOL !!!

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Beachbros (☼Travelguide writer) says on Oct 20, 2008, 16:22:

Well i think technically you need to present a signed compraventa to the bank in order for them to release the money and have it changed into pesos. Also you need to show the title or compraventa to banco republica in order to register the investment, you can't bring the money here unless it is for a specific investment, i.e. real estate. So do you need to have a place picked out? You need to be buying.

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aztec says on Oct 20, 2008, 16:25:

I haven't looked at it recently but last time I did one could lose about 45% of their investment upon repatriation if 4 and 11 are not used. It is true there is a time frame when form 11 must be exercised. That was the reason we canceled a construction contract with Pedro Gomez. They could not deliver a contract of completion before the deadline. I believe this rigid restriction may have been ameliorated somewhat with recent edicts from the National Bank.

It is also true you can create problems for yourself if you fill form 4 and don't respond with Form 11. As an example we filled 4 but returned our funds back to the States before the deadline for completing form 11. One year later we received a summons that we must report to authorities within 10 days. This despite our having returned to the States.

My wife attempted to provide sufficient response over the phone and Internet. But anyone ever having a problem with the bureaucracy in Colombia will understand that it took a return trip for her before they were satisfied with the explanation. Turns out no one had ever returned investment funds before the deadline and there was no precedent in the law for administration.

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ujay says on Oct 20, 2008, 16:37:

Just bring your money ,don't fill in nothing ,don't even get in the system,buy your place ,no one here going to even ask where the money came from ,and when you sell it take it out the same way ,
I went to San Diego,I have to buy potters and printers ,I had 85.000 dollars on me ,I filled in that paper to declare I had more than 10.000 ,when I got to Miami .I had to go to them and tell them ,hey what I do now I got more than 10.000 ,they never even asked me nothing ,how much more ,what's it for nothing , just that I had filled the form in ,if you don't fill it in ,and say you got more and they look you lose it all.
So just bring it.

http://www.jukelightning.com

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calipro says on Oct 20, 2008, 16:41:

BeachBros

I believe you are correct in that you have to have proof of a specific investment and yes you should have a compra venta or something showing proof that you are buying.

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mail@bjorndeboeck.com says on Oct 20, 2008, 16:53:

I just bought a place in Bogota for cash. I got all the money in through ATM withdrawals. Do I need to register my investment? Do I need to fill in Form 4 and 11?

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ujay says on Oct 20, 2008, 17:11:

they worry too much ,its bloody colombia ,not mars ,just bring your money .

http://www.jukelightning.com

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calipro says on Oct 20, 2008, 17:50:

Bjorndeboeck

If you didn't wire the money into Colombia I don't think it is posible for you to file form 4 or 11.

If I were you I wouldn't do anything because it may cause you problems rather than help your situation out.

Just keep in mind that if you sell you won't be able to wire the money back out of the country with out paying a very stiff tax.

If you have a bank account you can with draw it from ATMs here in the states.

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Beachbros (☼Travelguide writer) says on Oct 20, 2008, 17:56:

I just spoke with my colombian assistant who went to check at the banco republica in bogota about the procedures this morning. It had to be quick and I'll clear up what he learned at a later date but he said they I should use my form 4 to get my temp visa from MRE and then afterwards register my funds because it can take 5 to 15 days for them to conduct there study. They also suggested I only register the money once I had certificad de tradicion y libertad, but as my compraventa process is 3 months i will need to register the first payment before I have the title in my name, the 3 month rule. I guess I could ask for an extension which i might do. I wait to talk to them in person on wednesday. I'll be sure to get back to everyone on this. And Ujay, i know ill look back on this an realized I worried way to much about this, but you have to cover your ass and provide yourself with some sort of security of your investment. Also Ujay, i sent you a message on your wall, not sure if you saw it. Cheers

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ujay says on Oct 20, 2008, 17:59:

beach yes i just read it ,
where you staying ,how long you in town ,call me if you want a place to stay.

http://www.jukelightning.com

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ujay says on Oct 20, 2008, 18:17:

My maid just said some thing funny ,.....
Tell gringos buy house not apartment ,....
Why's that ,
If any thing happen ,burn down ,earthquake ,bomb ,any thing ,you end up with just space in air if other people not got money to build ,how you going to put your apartment back ,if nothing below you ,.....

http://www.jukelightning.com

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Beachbros (☼Travelguide writer) says on Oct 20, 2008, 18:24:

Thats hilarious. as I am buying a house.

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