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Taxes on global income and global assets for Colombian Residents

Encanta Medellin. I have been in Laureles for several months. I WISH I could live here.  I am happy here and have all I ever dreamed of.

If you stay here for 184 days in any 12-month period for any reason and under any visa then you become a TAX RESIDENT. You must file a tax return in Colombia declaring all assets globally and pay an asset tax, a small percentage of global assets. This includes traditional and Roth IRAs. You must pay a tax on global income including Social Security benefits and IRA distributions. Further, it is presumed that you have a minimum income of 3% of your global assets, and you must pay a tax on that whether or not you actually had any income.

I think that Colombia does not want retirees lounging about in Cafe Revolucion. It is probably better for a young person with no money, no skills, no education, no prospects - the less the better. I love it here, but I'm surprised I'm not alone.

See you all again in six months.

SanMarcos :

If you stay here for 184 days in any 12-month period for any reason and under any visa then you become a TAX RESIDENT. You must file a tax return in Colombia declaring all assets globally and pay an asset tax, a small percentage of global assets. This includes traditional and Roth IRAs. You must pay a tax on global income including Social Security benefits and IRA distributions. Further, it is presumed that you have a minimum income of 3% of your global assets, and you must pay a tax on that whether or not you actually had any income.

According to my calculations from the Colombian tax chart, I would have to pay 33 percent of my worldwide income to Colombia for any 12-month period in which I was in-country for 184-plus days.

That might be in addition to the global-assets tax that San Marcos posted on.

  -- cccmedia, resident of Ecuador where I pay no income tax ..
     nor do I pay federal income tax to my country of citizenship, USA. 
     Posted from Medellín.

Thanks for your reply.

SanMarcos :

If you stay here for 184 days in any 12-month period for any reason and under any visa then you become a TAX RESIDENT. You must file a tax return in Colombia declaring all assets globally and pay an asset tax, a small percentage of global assets. This includes traditional and Roth IRAs. You must pay a tax on global income, including Social Security benefits and IRA distributions. Further, it is presumed that you have a minimum income of 3% of your global assets, and you must pay a tax on that whether or not you actually had any income.

Based on my further research on Internet sites, it appears there is a consensus...

With 184-plus days in Colombia inside any 12 months, you would be required to pay either the worldwide-income tax of up to 33 percent .. OR .. the 3-percent tax on assets -- whichever is greater.  You do not pay both.

cccmedia from Medellín

It is not a 3% tax on assets. It is presumed that you make 3% income on your assets, and you pay a tax on that income, which you cannot, of course obtain from a US bank. Also - there's no choice - you pay a smaller tax on your global assets.

It seems to me that, beyond the tax itself, Colombian authorities want5 too much information.

Any truth to the post that said tax-residents are exempt from the presumed-assets-income taxation provided that the assets total less in value that one billion pesos?  That amount could be $333,000 to $350,000 US depending on the floating COP-USD exchange.

cccmedia

http://www.medellinlawyer.com/colombia- … claration/

the untaxed asset limit is 127,256,000 pesos.

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