Have heard from a number of sources that as a result of tax legislation passed near the end of 2022, foreign pension income such as U.S. Social Security is now exempt from taxation in Colombia up to a certain annual amount as determined by application of a formula. Currently, I believe this works out to a bit over $100,000 U.S. dollars annually. Was surprised not to see this mentioned at any point of the interview, and would be pleased to see this confirmed by Mauricio in some kind of follow-up addendum.
I was considering a move to Colombia but given the nature of corruption coupled with having to declare all of your assets there is no chance of that. To visit is fine. If the tax bureaucracy is like that of immigration it's not worth it. If they some day enter into a tax treaty with the USA I would reconsider. I doubt this will happen because they see net value as a fantastic way of generating revenue and honestly don't care to see more people moving to Colombia. No wealthy person in their right mind would would consider that passport. If the wrong people get ahold of your entire net worth that would be the end of you. Great Healthcare so that's a bummer but the Healthcare isn't worth the risk. The positive effects of good Healthcare would be offset by the stress of bureaucracy. Perhaps loosing temporary residency and being told to leave for no reason and still owing Colombian tax while getting double taxed in some cases by your home country. Criminal organizations finding out your net worth and knowing where you live. No thanks.
Now that make sense why I'm IDed in Colombia anywhere i go and do stuff (from exchanging currency, renting car, airbnb rentals, visiting parks and attractions, BREATHIN THE MF AIR,...)
Great video! I'd also like to hear from an expert on pension and health insurance requirements as a foreigner. These are supposedly based on a % of income and separate from the tax bill.
Hmm, I had thought about pursuing residency in Colombia but am reluctant because of the wealth tax. I wonder how the Colombian tax authorities would even be able to account for all one's net worth if held in another country?
They would not have the means to do that. However if you listened closely, if you purchase anything over $45000 in real estate or any assets in Colombia they will have now reason to question you on how much you are spending in Colombia, and throw some of their own estimate on how much you owe for tax.
What about pensions? Is my partner is a pensionate, and he decides to live in Colombia. How that works? In colombia normallly pensions are not taxable. But I dont know how it works with pensions abroad.
Frankly, most of expats I know in this situation simply don't bother filing even though technically they are tax residents by amount of time spent in country, and so far at least this has not been to their detriment.
Sounds like the system is completly broken and needs to be reworked. Even transfering money to a family member and then later in the year them returning it it counts as income for both people. (went through this 5 years ago and even worse system now)
Visitors from most countries - in other words, those having "visa exempt" status - may enter and stay in Colombia for up to 90 days (with the option to extend for another 90) without being formally issued any kind of visa - this is technically known as a "tourist permit". If you plan on moving to and living in the country, then you should research the various (V) Visitor and (M) Migrant visa category options available, for which a wealth of information can be found via a simple Google search. While some claim to have opened a Colombian bank account while in tourist status with just their passports, it will be far easier if you have an actual visa and the Colombian cedula (national ID card) that is issued with it.
On day 182, I am out! Too many other beautiful tax-friendly countries to spend the rest of the days. Sorry Colombia, you're chasing away some of your best visitors, SMH.
Pardon my ignorance but Colombia will have no way of knowing if you've earned income from an overseas source because they have no access to your bank accounts or anything else.
so the entire video boils down to: if you actually make any money, just leave after 182 days and return next year Im especially baffled by the wealth tax. When will countries learn that nobody will pay this extortion, ever?
Following this video, I contacted them to figure out my taxes...Very highly Unrecommend! Spent money for nothing. The accountant, I would not let her do my sixth grader math homework. Save your money and stay away!!!
📞 Get in Touch with Nexo Legal here: bit.ly/contactnexolegal
Filing taxes versus paying taxes has a difference. Great video!
Have heard from a number of sources that as a result of tax legislation passed near the end of 2022, foreign pension income such as U.S. Social Security is now exempt from taxation in Colombia up to a certain annual amount as determined by application of a formula. Currently, I believe this works out to a bit over $100,000 U.S. dollars annually. Was surprised not to see this mentioned at any point of the interview, and would be pleased to see this confirmed by Mauricio in some kind of follow-up addendum.
I have the same question. And is money in retirement accounts (IRA, 401k, HSA, etc) considered part of net assets upon which wealth tax must be paid?
Based on this will make sure to keep my time in Colombia to well under that 180 days, spend plenty of time in other countries.
I am also interested in how social security income
Great video AK!
I was considering a move to Colombia but given the nature of corruption coupled with having to declare all of your assets there is no chance of that. To visit is fine. If the tax bureaucracy is like that of immigration it's not worth it. If they some day enter into a tax treaty with the USA I would reconsider. I doubt this will happen because they see net value as a fantastic way of generating revenue and honestly don't care to see more people moving to Colombia. No wealthy person in their right mind would would consider that passport. If the wrong people get ahold of your entire net worth that would be the end of you. Great Healthcare so that's a bummer but the Healthcare isn't worth the risk. The positive effects of good Healthcare would be offset by the stress of bureaucracy. Perhaps loosing temporary residency and being told to leave for no reason and still owing Colombian tax while getting double taxed in some cases by your home country. Criminal organizations finding out your net worth and knowing where you live. No thanks.
Spot on. Colombia has been crossed off the list of many prospective expats due to the tax bureaucracy.
Now that make sense why I'm IDed in Colombia anywhere i go and do stuff (from exchanging currency, renting car, airbnb rentals, visiting parks and attractions, BREATHIN THE MF AIR,...)
Great video! I'd also like to hear from an expert on pension and health insurance requirements as a foreigner. These are supposedly based on a % of income and separate from the tax bill.
Hmm, I had thought about pursuing residency in Colombia but am reluctant because of the wealth tax. I wonder how the Colombian tax authorities would even be able to account for all one's net worth if held in another country?
The fact of the matter is that for all practical purposes, they can't.
@@juanvaldez7633 I'm sure the wealthy Colombians find 'workarounds.'
They would not have the means to do that. However if you listened closely, if you purchase anything over $45000 in real estate or any assets in Colombia they will have now reason to question you on how much you are spending in Colombia, and throw some of their own estimate on how much you owe for tax.
What about pensions? Is my partner is a pensionate, and he decides to live in Colombia. How that works? In colombia normallly pensions are not taxable. But I dont know how it works with pensions abroad.
Thank you!
I have another question as well is military service in Colombia compulsory?
Yes it is
Are USA pensions like social security and disability exempt from taxes up to a certain amount? Thnx.
If I don’t open up a bank account in Colombia, and I’m just receiving my social security income from the USA it sounds like it won’t be taxed?
Frankly, most of expats I know in this situation simply don't bother filing even though technically they are tax residents by amount of time spent in country, and so far at least this has not been to their detriment.
Sounds like the system is completly broken and needs to be reworked. Even transfering money to a family member and then later in the year them returning it it counts as income for both people. (went through this 5 years ago and even worse system now)
@AKJoel where do i go to apply for tourist visa in Colombia also how can i open up a Banco de Colombia bank account?
Visitors from most countries - in other words, those having "visa exempt" status - may enter and stay in Colombia for up to 90 days (with the option to extend for another 90) without being formally issued any kind of visa - this is technically known as a "tourist permit". If you plan on moving to and living in the country, then you should research the various (V) Visitor and (M) Migrant visa category options available, for which a wealth of information can be found via a simple Google search. While some claim to have opened a Colombian bank account while in tourist status with just their passports, it will be far easier if you have an actual visa and the Colombian cedula (national ID card) that is issued with it.
On day 182, I am out! Too many other beautiful tax-friendly countries to spend the rest of the days. Sorry Colombia, you're chasing away some of your best visitors, SMH.
Pardon my ignorance but Colombia will have no way of knowing if you've earned income from an overseas source because they have no access to your bank accounts or anything else.
True enough, and for this reason most expats I know generally don't bother to file.
so the entire video boils down to: if you actually make any money, just leave after 182 days and return next year
Im especially baffled by the wealth tax. When will countries learn that nobody will pay this extortion, ever?
I’ve wanted to retire in Colombia but with an $800k annual income… I fear I’ll be given the shaft
Following this video, I contacted them to figure out my taxes...Very highly Unrecommend!
Spent money for nothing. The accountant, I would not let her do my sixth grader math homework. Save your money and stay away!!!
I’ve wanted to retire in Colombia but with an $800k annual income… I fear I’ll be given the shaft