Hello,
My wife and are Americans (we are not residents of Colombia, but have a TP7 visa) buying an apartment in Medellin and are looking for a reliable company to help us with our tax issues in Colombia.
We paid 345 million COP for this apartment. Our lawyer informed us that this must also be the registered "official" cadestral value that our potential presumptive taxes will be based off of. As we understand it, usually this "official" value and the market value paid is different, but she explained that these values have to match on all of the forms for bringing money into Colombia, etc.
Anyways, our question regards the presumptive income tax on this property.
Our ownership of the apartment is split 70% for me (242 million COP) and 30% (103 million COP) for my wife.
As we understand it, that would make me (but not her) liable to pay the presumptive income tax because I have ownership of assets greater than the threshold (123 million COP).
My questions are...
1. Is the presumptive income tax levied only in periods in which we rent the apartment out and it is producing income? What about if we live there for 6 months of the year and it is producing no income?
2. Is the amount levied for the presumptive income tax my entire 242 million COP ownership percentage, or just the amount that is above the threshold of 123 million COP (242 - 123 = 119 million COP of taxable base)?
3. Do I understand the situation correctly? Is there a way for us to more efficiently structure our affairs?
Thank you and kind regards,
Reggie
My wife and are Americans (we are not residents of Colombia, but have a TP7 visa) buying an apartment in Medellin and are looking for a reliable company to help us with our tax issues in Colombia.
We paid 345 million COP for this apartment. Our lawyer informed us that this must also be the registered "official" cadestral value that our potential presumptive taxes will be based off of. As we understand it, usually this "official" value and the market value paid is different, but she explained that these values have to match on all of the forms for bringing money into Colombia, etc.
Anyways, our question regards the presumptive income tax on this property.
Our ownership of the apartment is split 70% for me (242 million COP) and 30% (103 million COP) for my wife.
As we understand it, that would make me (but not her) liable to pay the presumptive income tax because I have ownership of assets greater than the threshold (123 million COP).
My questions are...
1. Is the presumptive income tax levied only in periods in which we rent the apartment out and it is producing income? What about if we live there for 6 months of the year and it is producing no income?
2. Is the amount levied for the presumptive income tax my entire 242 million COP ownership percentage, or just the amount that is above the threshold of 123 million COP (242 - 123 = 119 million COP of taxable base)?
3. Do I understand the situation correctly? Is there a way for us to more efficiently structure our affairs?
Thank you and kind regards,
Reggie
