Colombia Expat Forum

Cocoquitlam
Joined 2017
Posts: 49

6 years ago

yet another tax question

6 years ago

My wife and I decided to buy an apartment in Medellin for retirement. Since she is a Colombian citizen, I thought it would be easiest for us to buy it in her name so i wouldn't have to bother with bank account, visa, cedula, etc. at this early stage. However, an accountant her family has used for quite some time is telling us that my wife will have to pay tax on the investment. Since she is a Colombian expat (we are living in the U.S. and will be for a few more years), the accountant says that she must pay tax on the larger of the actual income we derive from the apartment (which will likely be none), or the imputed income. DIAN assumes that to be 3.5% of the value of the home. She says the tax for expats is a flat 33%. So, starting with a round number for ease, if the apartment costs 1,000,000,000 COP, the imputed income is 35,000,000 COP and the tax is 11,550,000 COP (about $3,800). The accountant says this was a somewhat recent change to the tax code intended to discourage investments by Colombian expats. I dont understand why the government would want to discourage that. Anyway, has anyone run across this before? This seems bizarre to me, but i guess that doesn't mean it isn't true.

I'm sure this post will generate the usual comments about how bringing a wife to colombia is like bringing sand to the beach, but i kinda like the wife i've got and for some unknown reason she seems to like me. So, I'd appreciate hearing from anyone in a similar situation who did not have to pay this tax. Of course, we'll try to find another accounant to speak with as well.

Allianz Care

Flexible solutions allow you to tailor your cover to meet your needs and budget. Use Promocode: LIFE10 and get 10% off your international health insurance for life!
Get Quote

Allianz Care

Flexible solutions allow you to tailor your cover to meet your needs and budget. Use Promocode: LIFE10 and get 10% off your international health insurance for life!
Get Quote

Living in Colombia Guide

Expats in Colombia discuss the pros and cons of living in Colombia. From the Colombian people to driving to taxes and more. As challenging as it can be, expats in Colombia clearly find that there is a lot to love about a country that is a surprising expat hot spot.

Colombia Forum
Join our Colombia forum to meet other expats and talk about living in Colombia.

Contribute
Help other expats and newcomers by answering questions about the challenges and adventures of living in Colombia.

Best Places to Live in Colombia

If you're considering a move to Colombia, here are the 15 Best Places to Live in Colombia in 2023.

Healthcare in Colombia

Our guide to healthcare in Colombia covers public and private healthcare in Colombia, hospitals, vaccinations, prescription medications and more.

Cost of Living in Colombia

Expats offer insight into the cost of living in Colombia.

Moving to Colombia Guide

With its bustling cities, beautiful beaches and friendly Colombians, Colombia is an increasingly popular destination for expats of all ages. Expats in Colombia offer insightful tips for those moving to Colombia.

Real Estate in Colombia

Real estate listings in popular cities and towns in Colombia.

Pros & Cons of Living in Colombia

Take off your rose-colored glasses and learn what expats have to say about the biggest challenges and the greatest rewards of living in Colombia.

Retiring in Colombia

Advice for people retiring in Colombia.

10 Tips for Living in Colombia

If you've recently arrived in Colombia, here are 10 tips for digital nomads living in Colombia.

Additional Information:

Visit our Colombia Index for a Full List

Allianz Care

Flexible solutions allow you to tailor your cover to meet your needs and budget. Use Promocode: LIFE10 and get 10% off your international health insurance for life!
Get Quote

Allianz Care

Flexible solutions allow you to tailor your cover to meet your needs and budget. Use Promocode: LIFE10 and get 10% off your international health insurance for life!
Get Quote

Contribute
Help others in Colombia by answering questions about the challenges and adventures of living in Colombia.