International money transfer to buy Colombia Real estate
Today local banks has representatives all over the world. Ask to your bank the time is gonna take transferring the money, the name of the local partner overseas, and the ways to track your money transfer.
In many ways, we are considered very progressive. The banking system is one of them.
You can work through a Colombian bank with no doubts. It could be the easiest, sure and fastest way.
When buying a new house or apartment, In some cases the developer can have an international account and you will be able to do a money transfer directly to the seller's overseas account.
In most of the cases you can wire the money from your bank to the developer's Fiduciary Account in Colombia (similar to an Escrow Account) . The process is simplified because there is already established a relationship between the bank and the developer.
Just as everything, exception confirms the rule, and you can have some troubles in the meantime. Papers can be missed by inefficient employees. Here is when a professional real estate agent makes the difference. It is important to have a local person who can help you to deal with real people, in local language.
Money transfer overseas has some requirements to prevent money laundering. The Colombian government is not the exception. The rest depends on you.
Your home bank can document your credibility as an honest person with "clean money" because they already know you, they have your transactions records, your credit history with and so on. If you have nothing to "hide", this simple record will also help establish you in Colombia. as a law abiding person.
This cash transfer is not subject to any taxes, whenever it is registered as a foreign investment, So..
For example if you wish to repatriate the funds in the future then you must file Form #4 (Formulario No.4).
A professional real estate agent could assist you to make sure your money is received in Colombia with a form #4 at a Colombian Bank.
If don’t want to register as a foreign investment, banks will automatically file Form No. 5 (Formulario No. 5). That is OK whenever you have no need to repatriate the money.
Until August 30th of 2010 a Form No. 11 was required by Central Bank (Banco de la Republica) to register your money transfer to buy real estate as a foreign investment.
Now this has changed and this procedure is made automatically, when Form No. 4 is filed at the local bank receiving the money. Having done that you can exercise your foreign exchange rights, such remitting abroad the product of the sale and its profits once you need to resell the property. Just as simple as that.