Taxation in Colombia

Thank you for the info I will be on top of this.  I already try the Dian  and waiting on their response.  You are correct the article is very confusing.

I'm faced with a similar situation and I think that you need to speak with a lawyer in Colombia on that situation.

For some strange reason there a lot of Westerners that have been living in Colombia for years but no one is willing to share the details.

It is my impression that Colombia considers all income as taxable income and more than likely people like us will end up being taxed at 33% which is crazy.

https://co.usembassy.gov/u-s-colombian-taxes/https://fascpaconsultants.com/five-new- … -colombia/https://www.taxesforexpats.com/colombia … ombia.htmlhttp://ryangoesabroad.com/hold-everythi … ing-about/https://brighttax.com/blog/us-expat-tax … ed-to-know

I would speak with a lawyer in Colombia who deals with foreigners retiring in their country.

I guess I will be looking into Costa Rica and Panama.

But if you are receiving a lot of non-taxable income in the US than it looks like Costa Rica or Panama maybe better options but their cost of living is probably a lot more than living in Colombia.

Decisions, decisions, decisions...

dcasanares wrote:

But if you are receiving a lot of non-taxable income in the US than it looks like Costa Rica or Panama maybe better options but their cost of living is probably a lot more than living in Colombia.

Decisions, decisions, decisions...

Regarding your earlier comment, why a Lawyer? I would be looking for an Accountant for anything financial, and depending on your budget, as I have said before I would look for a local Accountant who does business accounts as their main line of work, but then you do need a knowledge of Spanish if you take this route.

All income 'Worldwide' is supposed to be declared, Colombia doesn't give any leeway to Foreigners regarding tax, what is tax free elsewhere is taxable here. For example I get the first £10000 of my pension free of tax in the UK, but here nothing is free, therefore it is all the more important that you keep all your receipts, (If I buy so much as a bag of sand and another of cement for a minor repair, the receipt is logged) so the Accountant can right them off against tax, and until now that has meant I have paid no tax in Colombia, but with the recent changes in Tax Law, I think that is all about to change, for me at least.

Actually I was thinking about dealing with a Tax Attorney hoping that they would have more in-deph knowledge when it comes to my livelihood.

Colombia seems so good but they want to tax expats even though they have to contribute to the local economy simply from just living there.

I would think that pretty much every country, including the US, taxes expats, despite the fact that everyone contributes to the local economy. That has never been a reason for an exemption.

Every accountant has a different view and interpretation of things.
As a resident, you have to declare all your worldly incomes.
I am not aware of any reductions for costs and expenses here.

You are entitled to claim for any expense that involved improvement or maintenance to your property or vehicle, you are entitled to claim against your car tax, insurance, house insurance, healthcare payments, tools of your trade, and many more, that does not mean the whole payment is deducted. In addition, if there is a double tax treaty, or a local agreement between your own Countries Tax Dept and DIAN, tax paid at source is also deducted from any bill here. This was verified by DIAN when I first started making declarations.
I would be more inclined to ask your Accountant to verify what is required with DIAN, and then follow that course, after all it is DIAN that accepts or declines your declaration, it is their interpretation of the law that matters.

As I have continued investigating on taxation of foreign pensions in Colombia contacting various accountants I like to keep the forum posted because the season for 2017 declarations is about to start and the updated DIAN forms seem to be available.

1) The interpretation of "Decreto 2250 - 2017" as far as general tax exemption for foreign pensions up to appr. 33 Mio Pesos per month (equal to Colombian pensions) is concerned: still disputed, some accountants interprete it this way, others don't and stick to the old rules. DIAN has not yet commented.

2) Rules on the discount for income taxes paid abroad is to be found here: http://estatuto.co/?e=971

In my case the taxes I pay in Europe are slightly higher than what I would owe DIAN, so I am probably fortunate enough not to pay any taxes in Colombia. The discount applies to any foreign income and should reduce my tax liability to 0.
At least that is what I was told up to now by two professional sources.

I still maintain some confidance in a similar result based on 1) but in case it doesn't work out option 2) could be my rescue and help lots of others too. Meanwhile I like to invite anybody with some experience in the context of discount rules to share the benefits or perils.

Thanks, best
Ralf

Ralf27 wrote:

1) The interpretation of "Decreto 2250 - 2017" as far as general tax exemption for foreign pensions up to appr. 33 Mio Pesos per month (equal to Colombian pensions) is concerned: still disputed, some accountants interpret it this way, others don't and stick to the old rules.

It's unclear whether Ralf's post with "Mio" means that 33 mil or 33 millones per month or some other calculated amount is exempted regarding foreign pensions.

Based on an exchange
rate
of 3,000 pesos = 1 US dollar...

33 mil pesos = about eleven dollars ($11)

33 millones = 11,000 USD

33 mil is too little to make a difference for almost any Expat.

33 millones or $11,000 per month is, frankly, too large an exemption for these numbers to be credible.

If you post again, Ralf, please clarify .. and, if you have a checkable online source, kindly post it.

I invite Brother Archer to assist us in sorting out this particular exemption.

cccmedia in Depto. de Nariño

Sorry about the confusion, the figures and sources were mentioned before in this forum. According to the current norms Colombian pensions up to 1.000 UVT per month are exempted from tax.

source (check no 5): http://estatuto.co/?e=1043

In 2017 1 UVT was set by DIAN at 31.859 Pesos (33.156 Pesos in 2018), so 1.000 UVT was equal to 31.859.000 Pesos, equal to approximately 10.629 US $. This can be verified by DIAN's publications and various other sources, for example:

https://www.incp.org.co/la-dian-fijo-el … scal-2017/

Indeed an incredible amount to go untaxed!! That's the current norm. Probably this will change, but right now the ordinary and very well above the ordinary Colombian pension is received tax free. It seems like only ex presidents, ministers, highest ranks of officials, top managers etc. pay taxes on any amount above 10.629US$.   

My focus is rather on taxation of foreign pensions / income. 

Ralf

Yes, Colombian pensions up to 1000 UVT/month are exempt.

I have never seen anything that modifies that to include foreign pensions - it seems quite clear that applies to COLOMBIAN pensions only, as outlined here:

https://www.gerencie.com/tratamiento-de … ombia.html

This relevant excerpt makes it clear from the very first words they're talking about foreign pensions being taxed, and also the phrase underlined in the original article clearly states only Colombian pensions are exempt from taxation:

'...la DIAN mediante oficio 58213 de 2014 deja claro que en el caso de las pensiones extranjeras, las mismas se encuentran gravadas en su totalidad en Colombia.

El oficio señala en su parte resolutiva:

“Luego, en atención a lo dispuesto por el artículo 27 del Código Civil, según el cual “[c]uando el sentido de la ley sea claro, no se desatenderá su tenor literal a pretexto de consultar su espíritu” – lo cual, conduce a aseverar que el beneficio previsto en el numeral 5 del artículo 206 ibídem únicamente se circunscribe a pensiones obtenidas en Colombia a través del Sistema de Seguridad Social Integral, toda vez que es requisito que el contribuyente cumpla los requisitos necesarios conforme la Ley 100 de 1993 – y estándose a lo resuelto por la Corte Constitucional en la sentencia previamente reseñada, este Despacho no encuentra mérito para reconsiderar el Oficio número 016055 del 28 de febrero de 2007 frente al tratamiento tributario de las pensiones de jubilación del exterior, motivo por el cual se confirma la doctrina expresada en el mismo.” (Subrayado propio)

Y al ser gravadas tributaran dependiendo de la categoría tributaria en la que califique la persona. '

Roughly translated from el beneficio previsto, "...the provided benefit in number 5 of article 206 in the same place is limited only to pensions obtained in Colombia by means of the Sistema de Seguridad Social Integral  (Integrated Social Security System)..."

And then in the Oficio 016055 mentioned above, here at this link:

https://actualicese.com/normatividad/20 … 8-02-2007/

...this excerpt makes clear that foreign pensions do not enjoy the exemption from taxation:

"En lo que respecta a la diferencia en el tratamiento tributario cuando las pólizas o planes de pensión se adquieren de compañías colombianas, se encuentran exentas del impuesto sobre la renta las pensiones de jubilación, invalidez, vejez, de sobrevivientes y sobre riesgos profesionales que cumplan los requisitos previstos en la ley de seguridad social (Ley 100 de 1993) y, como tal, sean reconocidas por el sistema General de Pensiones, conforme con lo dispuesto en el numeral 5º y parágrafo 3° del artículo 206 del Estatuto Tributario, razón por la cual, las pensiones reconocidas por entidades extranjeras no gozan de este beneficio."

"...no gozan de este beneficio", they do not enjoy this benefit, referring to the benefit of exemption from taxation mentioned at the beginning of this single overly-long and complicated sentence, the benefit is NOT enjoyed by "pensiones reconocidas por entidades extranjeras", pensions recognized by foreign entities...

All of us would like for our foreign pensions to be tax-free.  But everything in all relevant documents repeats over and over, the foreign pension is NOT exempt from taxes, it's income and is taxed as such.  Just my opinion, I think pinning your hopes on what you would like it to be in this case is like playing Russian roulette with a semi-automatic pistol with a full clip and one in the chamber...

Maybe you are correct but taxing people at 35% of their non-taxable income seems rather extreme.

dcasanares wrote:

Maybe you are correct but taxing people at 35% of their non-taxable income seems rather extreme.

You are misinformed.  The highest marginal tax rate is still 33%, and that rate doesn't kick in until any income over about $3200 USD per month, $38400 USD per year.  That amount is rich by Colombian standards - many Colombians would do almost anything to make that much each year.  Also there is a 25% to 35% discount on taxable income right off the bat that can be taken as well as other deductions.

As far as Colombia and their tax laws are concerned it is not "non-taxable income" just because we want it to be.  It may not be taxed in your home country but that does not mean you can move to whatever country in the world you want and expect the same tax treatment.

There are many countries in the world that have much higher average income tax rates.  Colombia doesn't even make the Top 25:

https://www.worldatlas.com/articles/cou … world.html

If you go to statistics for the OECD (Organization for Economic Cooperation and Development) at:
http://stats.oecd.org/

...you can see that Colombia's tax revenues as a percent of GDP are below 20%, which is much lower than the OECD countries' average of 34% and almost in the lowest third of all Latin American and Caribbean countries, only 8 countries being lower and 15 countries being higher.

Yes, hope as a strategy in cases of taxation is not to be recommended.

In March we discussed the implications of "Decreto 2250 - 2017" on foreign pensions in this forum, and so far the outcome is not clear to me. Up to now none of the relevant sources quoted here mentions the supplements / complements within the "Decreto", neither does DIAN. It may or may not imply that foreign pensions are taxed equally to Colombian pensions. Three of the accountants / lawyers I contacted say it does, three say it doesn't. The first three support their view by the "Decreto" and "asesores" within their association of accountants, saying it will take DIAN up to two months to incorporate the 'new' rules and make reliable information available.

The other three made me aware of "Estatuto Tributario, Art. 254", making it possible to discount taxes paid abroad, as I mentioned in my previous post. Speaking under correction:

If the tax on foreign income paid abroad is equal or higher than the amount due in Colombia the discount would be 100%. That seems to be my situation. In that case a fiscal resident still has to file a declaration in Colombia but owes 0 Pesos in income tax.

Please feel free to comment and / or correct any of the above. The forum might help some people making the right decisions. Thanks!

Ralf

Ralf, every document I've seen that mentions foreign pensions at all, says they are taxed.  I have cited them, given the links and included the texts in Spanish, and translated most of them, too.

Can you please point to anything that would support the idea that foreign pensions are exempt from taxation?

If something is not specifically mentioned that does not mean we can make up our own rules about it!  But nothing about foreign pensions is implied - rather, they are specifically mentioned - they are taxed.

Also, in reference to Decreto 2250 - there is no ambiguity at all about rentas de pensiones - it makes clear that only Colombian pensions are being referenced in Artículo 1.2.1.20.2. which classifies the different types of renta (income):

2. Rentas de pensiones: Se incluyen en esta cédula los ingresos de pensiones de jubilación, invalidez, vejez, de sobrevivientes y sobre riesgos laborales, así como aquellas provenientes de indemnizaciones sustitutivas de las pensiones o las devoluciones de saldos de ahorro pensional, obtenidos de conformidad con la legislación colombiana.

I have bolded the text above, where it says in plain Spanish that when talking about rentas de pensiones, they are talking about pensions obtained in conformity with Colombian legislation.

That would not include any foreign pensions.

It goes on to say in the next paragraph of Decreto 2250 that the limitation in numeral 5 artículo 206 does not apply to foreign pensions.  And what is that limitation?  It is that only that part of the pension that exceeds 1000 UVT per month is taxable.  So, it says plainly, that exemption from taxation does not apply to foreign pensions even if their amount is under 1000 UVT.

Osage Archer, there is a misunderstanding. I never said foreign pensions are not taxed in Colombia, but

(1) MAYBE treated equal to Colombian pensions as of 2017 or 2018 (we already discussed that in March along with the wording of the source, "Decreto 2250-2017" - in some accountant's opinion there is a new complement excluding foreign pensions from the obligation to conform with Colombian pension laws - but the different interpretations need to rest until DIAN will have its final say);

(2) income taxes paid abroad can be discounted from what one owes in Colombia,

(3) the sources you mention might be partly outdated (the recent changes are not reflected, at least I don't see 2018 updates in those).

The source for (2) I posted already, please check it. This is an excerpt of "Art. 254 Estatuto Tributario":

"Art. 254. Descuento por impuestos pagados en el exterior.
**-Modificado- Artículo 254. Descuento por impuestos pagados en el exterior. Las personas naturales residentes en el país y las sociedades y entidades nacionales, que sean contribuyentes del impuesto sobre la renta y complementarios y que perciban rentas de fuente extranjera sujetas al impuesto sobre la renta en el país de origen, tienen derecho a descontar del monto del impuesto colombiano de renta y complementarios, el impuesto sobre la renta pagado en el país de origen, cualquiera sea su denominación (...)"

My summary, based on a rough translation: 'natural persons with residence in Colombia receiving foreign income and are taxed in the country of origin can discount the amount paid abroad from the taxes due in Colombia'.

Please check and comment / correct me if necessary.

The discount norm (2) was amended in 2014 already, so at the moment it looks like a more reliable way than (1) to reduce taxes on foreign pensions in Colombia.

Hope this solves to avoid the impression I try to make my own rules. Its simply the outcome of three months consulting accountants and lawyers in Colombia.

Ralf

Yes, Ralf, I did misunderstand.  But  also we always have known you could discount your foreign taxes paid, against any Colombian taxes owed.  That is of little benefit for some who may pay no taxes in their home country but who would owe taxes in Colombia!

And I don't understand what you mean by foreign pensions may be treated as equal to Colombian taxes...

Foreign pensions are income and are taxed as such.

OsageArcher, according to your indepth analysis of "Decreto 2250-2017" in March there are no changes for foreign pensions. The discussion was and still is about the "limitacion" ruled inapplicable for foreign pensions in the new complement to taxation of pensions. Some accountant's advised me the outcome is that foreign pensions from now on are treated in the same way as Colombian pensions, because the "limitacion"  to comply with Colombian pension laws does not apply in those cases.
But it would not make much sense to repeat the discussion as long as there is no official statement on that. Could take some weeks or months.
Ralf

I agree with Ralf's wait-until-DIAN-weighs-in approach for folks impacted by the pension issue.

----

Beyond what has already been said, there is one factor not yet mentioned:

Colombia will be electing a new administration in a few days (June 17, 2018) .. and when that administration takes office (probably in early August) and then noodles out the tax-year-2017 law .. the potential foreign-pension exclusion could become clear.

Or the matter could be even messier and more unclear than it is now.

Expats subject to an August tax-return deadline may become extremely confused   .. and may need to find out now if a deadline extension is possible.   

----

It's quite remarkable that three of the tax professionals Ralf consulted considered foreign pensions exempt up to the high UVT limit (close to $11,000 US per month) .. and the other three said there is no such exemption for foreign pensions.

----

Also remarkable is what Herr Moeller, the prominent Medellín tax attorney, told me months ago about my 2017 Colombia taxes:

He said it would take him nine hours of research (at a $100 US per-hour attorney's fee) simply to figure out how much I should pay Colombia in taxes.   

Nine hours!

cccmedia in Depto. de Nariño

I would make this recommendation in the case of DIAN lack of clarity approaching the filing deadline...

Use an accountant or attorney who gives you the benefit of the doubt on the foreign-pension issue.

Is there a risk in following this strategy?

Hey, it's Colombia.  There's always a risk .. unless you don't mind paying through the nose.

cccmedia

The new government will most likely interfere with the existing tax reform, I agree with cccmedia. But declarations for 2017 should still work out according to existing norms and its interpretations, including foreign pensions and the option to discount taxes paid abroad from taxes due in Colombia.

OsageArcher made me aware the discount rules are common knowledge here, well it's new to me.
Amongst other sources I checked this one:

https://actualicese.com/actualidad/2016 … -exterior/

What I figure out from all that - For example: 12.000 US$ income tax paid in Europe can be deducted from the tax levied in Colombia on that type of income, appr. 11.900 US$, reducing the tax payable in Colombia to 0.   

Can someone give me advice on this and the perils involved, limitations, restrictions, etc.?

Refering to cccmedia's observation of how much accountants / lawyers might charge expats for well needed advice my second question is if there is any forum where one could find comments / ratings on those professionals and how much they charge. I am willing to share my experiences here or elsewhere as long as there is some demand, feed back, contributions by others. Right now I can recommend Langdon Law Group for general legal advice. They charged 120 US$ to look at my information, the applicable norms (foreign pensions, discounts), incl. a roughly calculated estimate of taxes payable. As an accountant Paula Cruz of Medellin has served me well so far with reasonable fees: 50US$ for an hour of very efficient personal consultation, incl. checking my information in detail and additional email and phone contact, 140 US$ for a tax declaration + 70 US$ for the CREE declaration, including a test run. Medellinguru has recommended her in this forum before, she deals mostly with expats.   

Ralf

If you use a tax professional and they make an error resulting in a penalty, I assume that unlike most big preparation firms in the USA they would not pay the penalty and interests involved. Does anyone have a bead on that?

Currently my wife and I file jointly in the USA. There is no joint filing in Colombia. How do they handle that? Split the joint return down the middle? Could result in lower tax bracket for married individuals?

LPd

Lpdiver wrote:

There is no joint filing in Colombia. How do they handle that? Split the joint return down the middle?

There is no such thing as "married filing jointly in Colombia."  Everybody files separately.

  -- medellinliving.com

Lpdiver wrote:

If you use a tax professional and they make an error resulting in a penalty, I assume that unlike most big preparation firms in the USA they would not pay the penalty and interests involved. Does anyone have a bead on that?

There is no way this question can reliably be answered on a nationwide basis, so yours might be a reasonable assumption.

Each tax preparer could have his or her own policy on this.

I suspect that most preparers will not pay 100 percent of your obligation if an error is made.  Frankly, the tax-law situation is murky and ever-changing and the pros' opinions vary when it comes to Expat obligations.

If a lot of money is at stake, I might not want to rely on the "tax professional" who goofed up.  Then it might be time to bring in the heavy hitters like Moeller or Langon Law to negotiate a revised deal.

cccmedia

Wow.. read all of this and it's putting a damper on my plans.

For one if I were to be here Nov/Dec2018 and I leave late 2018 or early 2019 then return shortly thereafter in 2019 for the remainder of the 180 days I'm allowed in 2019 I already qualify to pay taxes?  As I'd be on a tourist visa would they stop me at the airport, would I receive a letter from the IRS saying I owe Colombia money..??

My plan was to do the Rentista Visa.  Is anyone on here using that visa and how has your tax liability been?  Seems crazy they would give a visa you can't work on then require that taxes be payed..  especially when the visa requirement is robust income that obviously will be spent in country. 

Anyone know a lawyer or knowledgeable tax person in Cartagena?

Many thanks for all the info so far and for any future assistance.

You ask some great questions, Derf.    And, by  the way, welcome to the Colombia forums of expat.com ....

First up: 

The rule is that one becomes a tax resident of Colombia, theoretically liable for paying taxes on his or her worldwide income, after spending any 183 or more days out of any 365-day period in La República.  The calendar year(s) are not relevant, except that if the 183-plus days spans two years, the taxes are due in the calendar year following the second year.

cccmedia

The Colombian follow-up question(s) call for informed speculation, since it is not possible to predict with absolute certainty how Colombian officials will act.

Let's say that in your case, you spend 185 days out of 365 in Colombia spanning parts of 2018 and 2019.

Since any tax liability is not due to be cancelado by you until August or September of 2020, it is a near certainty you would not be bothered by La DIAN at an airport or a border before 2021.

In 2021, it is unlikely you would have any problem other than possibly to receive a bill stating late payment or non-filing (if applicable) -- in other words, no deportation exposure or limits on your visa/tourist permit, etc.  The bill could theoretically contain notice of late fees and/or a fine (based on duration of supposed lateness and other factors).

cccmedia

I have never seen an Expat's report saying he was arrested or jailed over a first-time tax obligation.

More likely, I believe, is that such an Expat would either not be contacted or would be served with DIAN papers indicating a possible tax infraction.  That's when you need a highly-recommended accountant or tax attorney on your side.

Various classes of Expat tax avoiders/evaders are more liable to tax prosecution than a first-timer IMO....

1.  Someone with a permanent visa, Colombian citizenship or a three-year visa.

2.  Someone with a long-time permanent residency address that is known to Colombian authorities, including Inmigración or La DIAN.

3.  Someone who openly challenges the government.

4.  Someone whose high-income status is somehow known to the government.

5.  A famous Expat.

6.  Someone, especially in Bogotá, with an extremely expensive home.

7.  Someone who has filed one or more annual tax returns, especially if the tax obligation as seen by Colombia is of high value.

8.  Someone who goes to La DIAN multiple times asking a lot of questions.

9.  Someone with a tax number.

10.  Someone who has so ticked off a Colombian or another Expat, that they snitch on him to La DIAN.

  -- cccmedia

The new presidente, El Duque, has commented on tax collections since his inauguration this month.

He indicated a primary focus on collecting more from tax-evading corporations.

The report I saw did not indicate any focus on Expat tax-payers.  Expats are still a tiny, tiny part of Colombia's resident population.

cccmedia

Derf123 wrote:

My plan was to do the Rentista Visa.  Is anyone on here using that visa and how has your tax liability been.

I had a one-year rentista visa (based on non-governmental or annuity income) that expired in March of this year. I stayed on in Colombia well past March by doing a double-border-crossing dance step.

In contacting various accountants and a tax attorney this year, none of them indicated that my visa status had anything to do with my tax liability for tax year 2017.

in Colombia, one's tax liability is based on income factors and whether residence in-country lasted for most of a 365-day period, not on the type of visa one may have had.

cccmedia

Derf123 wrote:

Seems crazy they would give a (rentista) visa you can't work on, then require that taxes be payed..  especially when the visa requirement is robust income that obviously will be spent in country.

Well, it's not all that crazy IMO.

In fact, it's the norm here in South America, where the mentality of most governments is to protect jobs that can go to their citizens .. and not to Gringos who already have $3,000 US per month or more in retirement income as most rentista-visa holders do.

Your point about your income potentially being spent in-country .. is valid.  However, that point does not outweigh the desire to keep Colombia nationals employed and provide jobs to young Colombians entering the job market.

cccmedia

Derf123 wrote:

As I'd be on a tourist visa would they stop me at the airport, would I receive a letter from the IRS saying I owe Colombia money..??

This is a fascinating question for speculation.

How, indeed, would the Colombian tax collectors (known as La DIAN, by the way, not IRS) contact a Gringo who spent 183-plus days in Colombia .. wised up to the tax racket .. and never established permanent residency in La República?

Would they send him dunning emails?  Would that strategy compel anybody to fork over tax on worldwide income received three years before?

Would they put him on a list in order to serve papers if he ever flew back into Colombia or crossed a land-border into the country?

The most unlikely scenario is to send out a letter via Colombian mail. Even if they have franking privileges inside Colombia, they would have to pay for overseas delivery if the recipient is outside its borders.  The delivery success-rate of the Colombian mail service is disturbingly low, anyway, so why even bother with that method!

cccmedia

Derf123 wrote:

Anyone know a lawyer or knowledgeable tax person in Cartagena?

In gaming the Colombia system, an Expat is not limited to Cartagena, Bucaramanga or Nalgas del Cerdo.  You can pick and choose from all the tax professionals and attorneys in La República.

My permanent address is in Quito, while my USA accountant is in metro Las Vegas, Nevada, USA .. and i've never met him in person (or on Skype).  My accountant for Colombia was in Ipiales, Colombia .. and I only met her once, briefly.  The law firm that got me a year-long visa (Langon Law) is in Medellín and I was in Quindío, Colombia, during the entire process, never meeting the paralegal who did the heavy lifting.

cccmedia

If the inheritance potentially exposes you to a lot of taxes a second opinion may be in order. One generally gets what one pays for.

Regards,

LPd

Inheritance?  What inheritance?

....

With baby boomers reaching retirement age this decade in record numbers, the handling of inheritances -- called the greatest generational transfer of wealth in history -- is an important consideration when it comes to taxes.

In recent years, Colombia has been taxing cash inheritances as capital gains at a rate of ten percent.

However, in the case of property transfer to (multiple) heirs, the sale of the property may reveal real-estate appreciation that could be taxed at a higher rate.

Also, inheritances that produce a steady cash flow such as trust-fund income may call for an interpretation by La DIAN.  Is it inheritance?  Is it a trust?  Is it a pension?  How much is the tax?

These scenarios may be screaming for multiple tax opinions from accountants or tax attorneys.

I agree with LPd to get a second opinion .. and with Brother Archer to get a third one.

Playing this game intelligently requires getting as many numbers and concepts as is practical.  An Expat who relies on only one opinion is in danger of getting/paying an inflated tax bill that does not take into account any deductions, loopholes, favorable opinions, other tricks and recent but unpublicized changes in tax law.

Given the putative tax on worldwide income, what tax resident would pay to La DIAN more in taxes than is legally required?

cccmedia