|
Post by gallito on Jan 11, 2016 15:06:57 GMT -5
The money conversation comes up a lot when one thinks about traveling,moving or retiring in another country.In this thread we'll discuss the ins/outs of getting at your money,ATM,bank transfer,real estate purchases...
Feel free to interject your experiences.
|
|
|
Post by gallito on Jan 11, 2016 15:10:10 GMT -5
|
|
|
Post by gallito on Jan 11, 2016 22:27:59 GMT -5
Using Paypal to access your money in Colombia. I think they charge $1 or $1.5 per transaction and you can pull up to $400US a day.
Others use PayPal for purchasing. They charge a currency exchange fee of about 1% for ATMs Almost all foreigners here have a PayPal account. If you make some friends here, PayPal makes it easy to pass dollars/pesos back and forth.
|
|
|
Post by gallito on Jan 11, 2016 22:47:04 GMT -5
Pension Funds in Colombia
When you become an employee of almost any company here in Colombia, you will have to sign up for a pension fund. There aren't too many differences between pension fund companies except between public and private companies. For foreigners this topic is especially important. The main difference is that if you use a public pension fund, you will have to put in a certain amount of "weeks" of money before you can withdraw your money. If you arrive to be 57 (for women) or 62 (for men) and you haven't deposited the money necessary, there's nothing you can do. If you are a foreigner and you don't plan on working in Colombia for 1,150 weeks, it's much better to go with the private pension fund. That way, when you turn 57 or 62, you CAN withdraw your money even if you haven't accumulated the weeks required.
|
|
|
Post by flynnflanagan on Jan 12, 2016 8:47:01 GMT -5
For those of you who have been using xoom, have you noticed any differiences since PayPal aquired them?
|
|
|
Post by flynnflanagan on Jan 12, 2016 17:51:34 GMT -5
Regarding paypal. I don't see it's value unless you are trading on Ebay or similar. Their fees are quite high. Lots of complaints on some of the paypal interest forums that I have been scaning today. One interesting comment that I saw was a recommendation to buy a visa or mastercard prepaid card. You can buy a $500 card for $505. that's a 1% fee, which is much lower than paypal. You can only buy stuff in the N. America market with said card.
|
|
|
Post by gallito on Jan 12, 2016 19:57:28 GMT -5
|
|
|
Post by gallito on Jan 12, 2016 20:11:34 GMT -5
Geeks On Finance has a facts page on Paypal and other useful financial tips. www.geeksonfinance.com/how_6574541_send-money-colombia-paypal.htmlwww.geeksonfinance.com/how_8633861_avoid-personal-paypal-fee.htmlUnfortunately free fees only apply to domestic money transfers. You need to read the fine print: Warnings Do not select the option to transfer money using your debit or credit card; a 2.9% + $.30 fee will apply and be charged to either the sender or recipient. Only personal money transfers funded entirely from the PayPal balance or bank account are free. PayPal charges a cross-border fee for international money transfers no matter what funding method is used.
|
|
|
Post by barrumundi on Jan 16, 2016 9:08:54 GMT -5
Disclosing overseas assets.
As of October 22, 2015 individuals considered as resident in Colombia for tax purposes and obligated to file a Colombian income tax return must file an overseas assets declaration.
Resolution 00096 of September 14, 2015, issued by the Colombian tax authority (i) prescribes the declarative form to complete and submit in respect of overseas assets owned by individuals and (ii) determines who is liable to file the form. Individuals considered as resident in Colombia for tax purposes and obligated to file a Colombian income tax return are subject to completing and submitting this form, which must include a declaration of any assets owned outside of Colombia, at January 1, 2015.
home.kpmg.com/xx/en/home/insights/2015/09/flash-alert-2015-115.html
|
|
|
Post by scumbuster on Mar 24, 2016 15:31:38 GMT -5
Disclosing overseas assets.
As of October 22, 2015 individuals considered as resident in Colombia for tax purposes and obligated to file a Colombian income tax return must file an overseas assets declaration.
Resolution 00096 of September 14, 2015, issued by the Colombian tax authority (i) prescribes the declarative form to complete and submit in respect of overseas assets owned by individuals and (ii) determines who is liable to file the form. Individuals considered as resident in Colombia for tax purposes and obligated to file a Colombian income tax return are subject to completing and submitting this form, which must include a declaration of any assets owned outside of Colombia, at January 1, 2015.
home.kpmg.com/xx/en/home/insights/2015/09/flash-alert-2015-115.html Isnt this only if you reside over 1/2 the year in Colombia?
|
|
|
Post by barrumundi on Mar 24, 2016 15:38:48 GMT -5
"Isnt this only if you reside over 1/2 the year in Colombia?"
I think there is more to it than just being here more than 6 months of the year. I think there is also a mention of owning property above a certain value.
|
|
|
Post by barrumundi on Mar 24, 2016 15:42:48 GMT -5
|
|
|
Post by buenopues on Mar 24, 2016 19:23:01 GMT -5
If you use a debit card to withdraw money from a US bank it's a good idea to check the exchange rate you're given compared to the oficial rate published daily by the Banco de la Republica. Some US banks will give a terrible exchange rate and charge an international transaction fee on top of that. In many cases you get a better rate with a credit union than with the big US banks. If you trade stocks many brokerages will give you a no fee debit card but still important to check the rate. If you don't have a brokerage account a no fee option is a Capitol One 360 account. The exchange rate they give is something of a crap shoot though and will go from being within three or four pesos of the oficial rate to maybe fifty pesos below it. How this is determined remains to me a least a great mystery despite having been on the phone with them many times trying to get a straight answer. If your life in Colombia is fairly simple ie. you rent, don't own a car and just have normal utility bills you can get by perfectly well with out having a Colombian bank account paying your expenses with ATM withdrawals. This is ideal for staying under the radar but of course you don't get to do any bank transfers to pay bills and have to wait in the lines. If you do have to have an account in Colombia it is probably a good idea to keep only enough in the account to pay bills. Those are my thoughts anyway.
|
|
|
Post by scumbuster on Mar 24, 2016 20:13:33 GMT -5
If ever there was a time to have a Colombian bank account its now. While the exchange rate is down a little in the last month its still well above the normal range. Transfer the money at the high rate while you can. When it goes back down you will be set. I have found Charles Schwab Bank the best by far for transferring money with an ATM. They reimburse all ATM fees. No currency exchange fee and usually really close to the official rate. You can also have your card rate raised and lowered with a phone call. Nice if you want to bring funds for a car or pull a lot in a short period of time.
|
|
|
Post by dandl93 on Mar 24, 2016 20:31:23 GMT -5
Many years ago the best advice I ever got in Colombia
I asked a American friend of mine who invited me to Colombia for a investment project.I had only been in Colombia for a few days and was trying to get the Cop to $ figured out in my head.He told me always figure at 2000 cop to $1 If the COP is up bank it you will need it when it is down.I have kept that advice working for close to 15 years and it seems to still be working out.
|
|
|
Post by elexpatriado on Mar 25, 2016 13:08:52 GMT -5
If you use a debit card to withdraw money from a US bank it's a good idea to check the exchange rate you're given compared to the oficial rate published daily by the Banco de la Republica. Some US banks will give a terrible exchange rate and charge an international transaction fee on top of that. In many cases you get a better rate with a credit union than with the big US banks. If you trade stocks many brokerages will give you a no fee debit card but still important to check the rate. If you don't have a brokerage account a no fee option is a Capitol One 360 account. The exchange rate they give is something of a crap shoot though and will go from being within three or four pesos of the oficial rate to maybe fifty pesos below it. How this is determined remains to me a least a great mystery despite having been on the phone with them many times trying to get a straight answer. If your life in Colombia is fairly simple ie. you rent, don't own a car and just have normal utility bills you can get by perfectly well with out having a Colombian bank account paying your expenses with ATM withdrawals. This is ideal for staying under the radar but of course you don't get to do any bank transfers to pay bills and have to wait in the lines. If you do have to have an account in Colombia it is probably a good idea to keep only enough in the account to pay bills. Those are my thoughts anyway. I use my Canadian Bank debit card, and the rate I get (which I check almost every day) is usually within 1 or 2% of the XE.com official exchange rate. This includes the local bank ATM charge. Figure you cant do much better than that, even with PayPal or SWIFT depositing to a BancoColombia account (which is a bunch of extra work) I agree with your philosophy. Keep things simple and your money out of Colombia as much as humanly possible.
|
|
|
Post by elexpatriado on Mar 25, 2016 13:18:07 GMT -5
If ever there was a time to have a Colombian bank account its now. While the exchange rate is down a little in the last month its still well above the normal range. Transfer the money at the high rate while you can. When it goes back down you will be set. I have found Charles Schwab Bank the best by far for transferring money with an ATM. They reimburse all ATM fees. No currency exchange fee and usually really close to the official rate. You can also have your card rate raised and lowered with a phone call. Nice if you want to bring funds for a car or pull a lot in a short period of time. I agree with this philosophy if you are 100% comfortable with having a large sum of money in Colombia. As a matter of fact, I have heard bank of Colombia is offering 7.5% on a CD of $200,000 US right now. As oil prices rise (and they will) the value of the US dollar in COP will drop significantly in the future This is not for everyone,however.
|
|
|
Post by elexpatriado on Mar 25, 2016 13:23:28 GMT -5
|
|
|
Post by buenopues on Mar 25, 2016 17:01:04 GMT -5
Here is a website that shows in simple pictures who has to declarar renta and note it states for those who have spent more than 183 days in Colombia in 2015. Shown are the five ways they determine your responsibility for paying the tax. As I posted above your very best bet for avoiding this is to rent, have no Colombian bank account and no car. I think on this website they are being coy. If you want to consult their calculator you have to identify yourself. No way José. Also it is followed by many comments which may or may not be of interest. In any case there is no ambiguity regarding who has to "declarar". tudeclaracion.com/obligados-a-presentar-declaracion-de-renta-2016/
|
|
|
Post by barrumundi on Mar 25, 2016 18:40:22 GMT -5
buenopues ......good website. I am going to start a new thread that will be about gringo tax obligations in Colombia and I will transfer your post and some of the others to the new thread so we can keep 'banking' and 'tax obligations' separate.
|
|
|
Post by buenopues on Mar 25, 2016 18:40:46 GMT -5
What I haven't been able to find and maybe someone else can is a chart that would allow you to guestimate what you owe. At least not with out providing a lot of personal information.
|
|
|
Post by cordobes on Apr 13, 2016 10:42:20 GMT -5
Can anyone recommend a money exchange in Medellin, with good exchange rates
|
|
|
Post by scumbuster on Apr 13, 2016 10:49:52 GMT -5
Are you stuck with dollars you want to get rid of? ATM is probably the best bet. I have heard some people claim to get a better rate at an exchange house. That's not been my experience. If you use a debit card with no currency exchange fees you get a good rate.
|
|
|
Post by búfalo on Apr 13, 2016 11:30:25 GMT -5
What about bringing in cash? I knew a lot of peoole in a few countries that would always travel home with 10K because it didn't have to be declared. Still happens? I did that once for a friend years ago, hehad a legit business, then traveled by bus to CTG from SM. Bus got searched on the road. When the cop frisked me I told him the bulge in my belt was money. He said ok and then just moved on to the next guy. In hindsight I find that a bit surprising.
|
|
|
Post by scumbuster on Apr 13, 2016 12:22:28 GMT -5
I see some exchange houses in the malls in Bogota. The advertised rate is never very good but I heard if you have a large sum you can get a better deal.. But I never tried. 95% of the money we have brought to Colombia was from the ATM. I did 1 wire transfer when we bought our house. We needed to wire some additional funds to what we already had here. It was such a pain in the ass I swore I would never do it again. It was from a small local credit union in the US and I think it must have been the first one they ever did. LOL
|
|
|
Post by cordobes on Apr 13, 2016 12:30:18 GMT -5
Scumbuster; Thanks for the info...getting a small amount exchanged at the airport, maybe $400 USD...is that a good idea ?
|
|
|
Post by scumbuster on Apr 13, 2016 13:54:47 GMT -5
They will gouge you at the airport. I think there is an ATM in the luggage claim area. Take the max they offer on the menu. Probably something like 350,000 COP In some cases a little more. This will get you where you need to go with funds to spare. Is this your first trip to Colombia? Where are you flying into? I am only intimately familiar with Bogota. Somewhere else maybe another person can advise.
BTW.. Get used to the difference in costs. $400 USD is not a little amount..lol If your carrying more than 300,000 you have quite a lot on you. That's about just under $100
|
|
|
Post by scumbuster on Apr 13, 2016 14:18:29 GMT -5
Also I pay cash for everything. No reason to compromise your credit card and especially your debit card. I would never, never, never use a debit card to pay for something in Colombia. Only at an ATM where you need a PIN.
|
|
|
Post by caliconnection on Apr 13, 2016 16:28:36 GMT -5
Also I pay cash for everything. No reason to compromise your credit card and especially your debit card. I would never, never, never use a debit card to pay for something in Colombia. Only at an ATM where you need a PIN. I use my credit card in Colombia all the time. Never had a problem. Just be sure to check your credit card activity online on a regular basis. See any problems - call your bank - and get the card cancelled. The bank will reverse the fraudulent charges. At least that's how it works with Canadian banks. Every couple of years I'll see fraudulent activity on my card. No big deal.
|
|
|
Post by gallito on Apr 13, 2016 17:17:05 GMT -5
Can anyone recommend a money exchange in Medellin, with good exchange rates Holy crap; your font is eyecatching. I have a proposal;the forum will open up an informal bank;we can call it the Colombia Connection bank.For a small fee say 2% we can put currency sellers and buyers together.
|
|