When and why fill form 11

There's a thousand small details in every transaction but not all of them are so complicated. Even so, I have seen a lot of problems because of the forms for the Bank of the Republic, once a foreigner makes a purchase; here's some hints that you guys could use:

1. Regardless if you want to declare an investment through your purchase of a property or simply enjoy it, please make sure that the forms filled are the right ones.

2. There are four (4) different forms that can be use once you bring money to Colombia:
a. Form 4: This is used when you acquire a real estate property, want to build one, renew it, improve it or remodel it. This form is filled by the bank who actually receives the money from you (as long as it comes from a foreing country). Please, please, please, make sure the bank fill this form and no other.
b. Form 5: This is used when you send money or bring it through a Colombian bank with a different purpose than acquire a real estate property or build one or renew, improve or remodel one. It is also filled by the bank according the information provided by the person who received it.
c. Form 11: This is used when you need to complete (and believe me, you need to complete it) the procedure of the investment or wire transfer of money from a foreign country. It has to be filled during the next three months after the wire transfer, but the term can be extended another three months if you present a petition to the Bank of the Republic explaining why you need more time.
d. Form 17: This is used when you complete the procedure before the Bank of the Republic, after six months counting from when the money actually came into Colombia.

3. I repeat: Forms 4 and 5 are filled by the bank who receives the money according to the information provided by the bank account owner. Forms 11 and 17 needs to be filled by the person who sent the money to Colombia.

4. To fill the form 11 you just have to take care of this details:
a. Please make sure that you include in your contract (promise of it or whatever document you agree with the owners) the obligation for them to fill the correct form once they receive the money on their bank accounts.
b. Ask for a copy of that form once they fill it; the information it contains will be your guide to fill form 11 because both of them must contain the exact same information regarding dates and amounts.

5. If, by any chance, the person who receives the money fills form 5 and not 4 when he complete the transaction, the world is not going to end. The consequence is that this transaction wouldn't be declare as an investment; therefor, once you sale the property you will have to pay taxes for capital gains (37%) if you try to take the money out of Colombia. And, of course, the person who received the money will have to give a thousand explanations to the Colombian government about the reasons to receive that amount of money with no apparent purpose.

By aracne on Mar 18, 09:56 in Visa & paperwork.

fecherklyn says on Mar 18, 15:33:

Aracne,

Informative posts....thanks.

But where do you get the Form 11? My bank completed the Form 4 but looked blank and bemused when I mentioned a Form 11.

robi666 says on Mar 18, 15:35:

On the internet
https://quimbaya.banrep.gov.co/secinternet/operaciones.jsp?opcion=inve...
Fetch, if you need an help with that PM me.

"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."

elk says on Mar 19, 06:22:

If you filed form 4 and failed to file form 11 within 90 days then a penalty of 200% of the property value is due. Viewpoint wrote a long and informative article on this subject.

When purchasing property in Colombia form 5 is normally used by Colombians and many foreigners. True, you must pay a very high tax if you later sell the property and return the proceeds to your home country.

You have two options:

1) Purchase using form #5.

2) Purchase using form #4 followed by form #11 within 90 days.

aztec says on Mar 19, 09:29:

Not at all surprised about your bank reaction to form 11. The hard reality is that Most bankers and Most lawyers have no idea how to handle foreign investments. The Bank should have form 11 but as you see from a poster here it can be downloaded from the National Bank site.

Don't let any of them tell you it is unnecessary that you file form 11 if you ever plan to repatriate the funds. We had the same reactions from our first contacts with the bank. I will never forget the female manager taking umbrage when we suggested she check with the main bank for information about the various requirements for the foreign investors. She was rude to me and my wife. We had no problems with Citibank.

Actually, while not a bank problem, we had to return the money to the States because the builder could not provide within the time frame required the documents necessary for filing form 11. Since then the National Bank has changed the requirements so that only a performance contract is sufficient. One must follow up later with the final paperwork.

I suggest you look for a bank manager and lawyer familiar with requirements faced by the foreign investor.

aracne says on Mar 19, 16:21:

Elk, it's interest your mention to a 200% penalty because, I don't think there's nothing in Colombia that could represent such amount of money as penalization for failing a procedure. Also I have little doubt that there are many web sites with this kind of information. I can tell you that as happen in any other relatively civilized country in the world, any penalization would have to follow to a whole procedure were you will have the chance to present as much explanations as needed.

aztec says on Mar 19, 16:24:

Why don't you read viewpoints comments on what happened to him regarding the penalty?

Gator says on Mar 19, 21:03:

Don't kid yourself, the penalty can be UP TO 200 % but the exact amount is discretionary

"Brevior Sltare Cum Deformibus Mulieribus Est Vita!" .

Gator says on Mar 19, 21:05:

"'...follow to a whole procedure were you will have the chance to present as much explanations as needed."

True but the funds are locked.

"Brevior Sltare Cum Deformibus Mulieribus Est Vita!" .

Rubito says on Mar 19, 22:02:

I have form here but still haven't filled it out or know if I need to. In my case the money went down mostly by ATM withdrawal a bit at a time, there was only one time I used a wire transfer.

---Violence is the price of freedom.---

robi666 says on Mar 19, 22:04:

That's the right way to do it, Rubi.

RAAAY says on Mar 19, 22:50:

Yeah Rub..........well done.......you should'nt have any problem......

.

.........Its useless to argue with ignorance

Rubito says on Mar 20, 00:26:

cept for I could never take those funds too easily OUT of Colombia again.

Well, I don't move big amounts like you rich folks so I guess I don't have to worry :P

---Violence is the price of freedom.---

robi666 says on Mar 20, 07:47:

All transactions over 5,000 USD must be accompanied by a declaration.
Obviously, VISA and ATM transactions are an automated method, not easily regulated.

Take a few at a time, put it under your mattress, until you have enough and you show up to buy an apartment in cash and you may have someone (DIAN guys) visit you and ask for an explanation and make you pay big dollars.

aztec says on Mar 20, 09:23:

"Take a few at a time, put it under your mattress, until you have enough and you show up to buy an apartment in cash and you may have someone (DIAN guys) visit you and ask for an explanation and make you pay big dollars." robi666

That is exactly what happened to viewpoint. He left everything up to his local accountant/lawyer. He assumed everything was taken care of and there would be no problem. Two years almost exactly to the date of transfer he received the notice of violation. He eventually had to pay a penalty. Of course he was transferring much larger amounts than most of us.

In our own case, about one year after our transfer, we received the official letter from Dian demanding we present ourselves in ten days or be in violation of the order. Can you imagine our consternation since we were already back in the States. Fortunately my wife was able to communicate via phone with an official in the department who was able to tell us the proper procedures for dealing with the questions raised. Even then it took us several months before it was satisfactorily resolved.

I don't have the slightest idea how Rubito should handle his situation. I am willing to wager that no one at any bank including the National Bank can give him a definitive answer.

RAAAY says on Mar 20, 09:31:

.

Rubito will be fine..........he's in Bogota............he'll take no shit from DIAN........in fact, if they even think of messing with him.......he shove the DIAN agents into his meat grinder....

.

.

.........Its useless to argue with ignorance

Rubito says on Mar 20, 10:47:

First off, it wouldn't be ME dealing with the Aguilas Negras or any other group of punk kids trying to push people around, I know lots of people who would take them down of their own accord. What I said was that kind of shit wouldn't be tolerated in Bogota and it wouldn't. The people who run the streets in Bogota are a little more shall we say libertine in their outlook than they are in Medellin.

If the DIAN comes down on me for something, that's a whole nother can of worms. But I'm not really worried about it, because I have broken no laws, and I'm not moving amounts that would even make them BLINK. My only worry is if I ever wanted to move the money out of Colombia quickly. But that's a long long shot at this point since it's going to be frozen in real estate anyways.

---Violence is the price of freedom.---

Gator says on Mar 20, 13:37:

Rubito is correct-his only problem would come with the exportation of the funds.

"Brevior Sltare Cum Deformibus Mulieribus Est Vita!" .