300,000,000 COP...enough to live?

Colombia, not Columbia! (An easy mistake to make).

You will have no problem. A nice apartment in my region (Quindio) can be gotten for 50-75 G. For example I know of one : 3 bedroom in a gated community at 50 G and the monthly administration (‘HOA') is $70 monthly (COP 200,000).

That apartment rents right now at COP 800,000 (which includes HOA) so doing the math you can see that on the income you describe you'll have no problem.

True, all costs are higher in Cali, Medellin and certainly Bogotá, but that income is very high by any Colombian measure.

Now, if the Colombian peso increases in value that 300,000,000 could reduce to 250,000,000 and even less.

But still . . .

— LB

No problem with that annual income at all - it easily puts you in the top 1% of what Colombians earn.  Almost half of all Colombians earn only 1 million COP/month or less and you're receiving about 25 times that.

numbeo.com has some useful comparisons on cost of living.  Although Cartagena is a high-cost area in Colombia it is much cheaper than, say, Jacksonville, FL:

https://www.numbeo.com/cost-of-living/c … Comparison

Cmeyers186 wrote:

Hello I currently live in the United States and am considering a move to Columbia ... either Cartagena or Medellin. I have an annual pension of 108k USD...about 300 million COP. How does this compare to local salaries and can I expect it to support a lifestyle that includes  an apartment with typical American conveniences ( Air conditioning hot and cold running water safe and secure neighborhood).  My wife and I like to go out to eat and have a few drinks most nights of the week and enjoy traveling and exploring new areas.

Your kidding arent You?

I guess if your tastes are Ferraris, Yachts and top of the line prepagos on a daily basis, you might find it difficult.

Theoretically, if you satay more than 185 days you will be taxed at a rate of 30 to33% on that-minus any  US taxes paid and a few deductions

No. Not kidding. Researching.

*Colombia

In a first world country, an average salaried employee might reasonably anticipate the 30:30:30:10 ratio for the distribution of their income.  30% accommodation : 30% taxation : 30% food and 10% discretionary spending (or some such variation). 
In a third world country where the AVERAGE rent is ever so much cheaper and you will not have access to mortgage finance, your accommodation is unlikely to come anywhere near 30% of your income.  On the other hand,  if you reside in Colombia for in excess of 183 days a year, you will be required to pay taxes on your worldwide income.  How you decide to comply with your Colombian taxation obligations will determine your tax burden but in Colombia where income taxes alone will hit 33% of total income (with a tax free threshold of only COP 1 Million) and an IVA at 16%, you may anticipate your 30:30:30:10 ratio to look more along the lines of 10:45:15:30.  Of course these numbers are purely at your discretion and based upon your approach to taxation, accommodation and feeding yourself but you might well expect to be tucking away around 30% of your annual income as retained earnings.  I would keep in mind that Colombian auditors may rely upon a range of documents when determining your taxation obligations  These documents include bank accounts, PayPal statements, stock trading statements.  They may also assess your cost of living against your declared income. I use an accountant we affectionately refer to as Yoda to administer our taxation affairs so as pay only what is reasonably owed. I recommend you find yourself a Yoda and ask him to help you with your taxes   Woohooo.

Thanks for that info! I hadn't even considered taxes on my US income (not fair!)

"...income taxes alone will hit 33% of total income..."

This is misleading - the tax rates are marginal tax rates, meaning there are percentage steps which apply only once a certain income amount has been reached - the marginal rate does not apply to total income. 

The marginal tax rates used to be just three:  19% which kicked in on any monthly income over about $1300 USD, 28% on any monthly income over about $1700 USD, and 33% which applied only to any monthly income over about $3200 USD.

The new reforma tributaria has more tax brackets than 3, the top bracket being 35% and the lowest tax bracket starting at about $1000 USD (a little under 2.9 million COP).  However, although someone with an income as low as about 2.9 million COP per month must now file a declaración de renta, they will most likely not be liable for any taxes according to most authorities.  As a country which is more socialistic than the US, the Colombian government is in need of ever more money, extracted from the working populace, to pay for ever-expanding social programs and the costs of payments to FARC to help keep the peace.

However, you should be able to deduct any US taxes paid from your Colombia tax bill.  And there are other deductions which can lower the bill.  But things have changed a lot - it is estimated that for the few people who earn 8-10 million COP per month (about $2800-3500 USD per month) their tax bill will double.

You are considered a resident of Colombia for tax purposes, if you reside in Colombia 183 days or more in any 365 day period.  And Colombia will tax you in that case on your world-wide income, and you must file a declaración de renta.

You need to consult a Colombian tax professional, or even several.

You can find many articles discussing the new Colombian tax laws, most of them unfortunately short on details and numbers.  Search for
colombia reforma tributaria
...and look for articles published in the last year or so for the latest information.

Here's an article that details some changes:
https://www.incp.org.co/ya-sabe-cambio- … ributaria/

Thanks!

""The new reforma tributaria has more tax brackets than 3, the top bracket being 35% and the lowest tax bracket starting at about $1000 USD (a little under 2.9 million COP)."""

I'm sorry but this is also misleading.  The 35% marginal rate applies to Taxation of investment income and capital gains - not to labor income. 

The highest marginal rate for income derived from Labor Income is 33%.
*Edited to remove the underlining of "Labor Income is 33%"  This made the post appear more abrasive than was the intention.  Thank you.

Income tax on your $300,000,000 derived from any of the sources outlined above would be calculated along the following lines :
(table of taxation may be located here....)
https://home.kpmg.com/xx/en/home/insigh … e-tax.html

Taxable base : $300,000,000 COP
Formulate for Income tax :
(Taxable base minus $135,939,600) X 33% + 26,126,928
$300,000,000 minus $135,939,600 X 33% + 26,126,928.
164,060,400 X 33% = 54,139,932
54,139,923 + 26,126,928 = 80,266,860.
Total % of Income tax as a percentage of taxable base = 26.7%

If the income you are receiving constitutes a "dividend" from an investment or an "Investment income" then the higher 35% marginal rate would apply. 

Pls refer to charts here :
https://home.kpmg.com/xx/en/home/insigh … e-tax.html

God Bless.
Woooooohoooooooo

Thanks! My income is a "Government defined benefit plan" payment to which I made contributions while I worked.

Colombian "Auditors" what a joke.ja ja ja

****

Quechimba wrote:

Colombian 'auditors'? ... ja ja ja

From the point of view of the income-tax collectors at La DIAN, it would make tax-sense to hire proficient auditors to scrutinize the tax declarations of higher-income Expats. 

It would also make sense for those Colombian bureaucrats to give extra attention to non-filers whose foreign income had been declared on visa application documents or on other old papeleo. 

La DIAN, some attorneys say, is able to obtain certain records from Inmigración, by request .. in particular: recorded passport stamps showing number of days in country.

Will wide-net auditing of Colombia's foreign residents happen any time soon?  Will La DIAN manage to hire auditors with the competence to cross-check documents and finger the juiciest Expats to pursue?

No Expat can be certain. 

Unless, perhaps, that Expat goes by the name Quechimba.

----

I suspect that those most at risk for DIAN scrutiny will include Expats who have been here for years at a Colombian address reported into the system .. those who have listed their worldwide assets in prior years when that was technically required .. and those who have left a paper trail that is longer and more detailed than average.

cccmedia in Depto. de Nariño

Yeah..maybe it would make sense..if they want to end up like their neighbor to the east..

Maybe it will happen if Petro gets in

Maybe they will train the ex FARC members to be "auditers".. "Auditers with guns..


It was fun while it lasted..

Just spent a week there....went from Cartagena to Barranquilla, Santa Marta, and Valledupar and back...people drive like crazy in Colombia!!!!!