What 159 Medellín expats wish they knew
Educational information, not legal or tax advice. Rules change; confirm with a licensed Colombian lawyer or certified public accountant, and with a licensed tax professional in your country of residence and, where relevant, a licensed lawyer in that country.
Someone in a Medellín expats group asked: what is the one thing you wish someone had warned you about before moving here? 159 people answered. We read the answers and grouped them.
The most common ones need no explanation: the noise (bring earplugs), the dating scene, and no dar papaya: don't show valuables, and be careful who you bring home. Below are the answers that involve money, property or paperwork, in the group's own words, with what sits behind each one.
"Get itemized quotes and receipts for everything"
A common theme in the thread was that people do not always do what they said they would. In money terms, this is a quote that changes at the end. One commenter described being quoted one price orally and charged another once the work was done, with nothing in writing to point to.
This applies well beyond handymen. The commitments that matter when you buy or own property here are documents: the promesa de compraventa, the escritura, and the bank's exchange declaration for the money you brought in. An oral promise is hard to enforce later. If it matters, get it in writing, itemized. Keep a copy. Our guide to the promesa de compraventa covers what the first purchase contract should say.
"El vivo vive del bobo"
"The sharp one lives off the fool" came up more than once. Commenters warned about being overcharged as a foreigner, and one answer named real estate agents and scams in the same breath.
You cannot check everything. One commenter noted that background checks on people are hard to run here, so you end up "doing everything in the blind." Another answered that due diligence matters more here, not less. For a property, the document that does that work is the certificado de tradición y libertad: the official record of who owns it and what liens or limits are registered against it. Read it, or have a lawyer do a full title study, before any money moves. See how to read the certificado de tradición y libertad.
"Préstamo means loan. But it's never really a loan."
Several answers warned against lending money. There is no paperwork fix for this one. The group's advice was close to unanimous: if you lend it, assume it is a gift.
"The tax situation does not make Colombia a prime place to retire"
One commenter pointed at the lack of a US–Colombia tax treaty. That part is accurate: Colombia does not appear on the IRS's list of US income tax treaties. That is only half the picture. If you paid Colombian tax on income the US also taxes, you may be able to take a foreign tax credit for it, claimed on Form 1116. The credit exists for that overlap. Whether it applies to you, and how much it covers, is a question for a preparer who does international returns.
What does not go away: US citizens report their worldwide income wherever they live. And if the combined value of your foreign accounts went over $10,000 at any time during the year, you file an FBAR. How rental income appears on a US return depends on how you own and run the property. Our guide to US tax reporting for Colombian property goes through each piece.
The rest
The postal service and international deliveries ("be patient" was the whole advice), and deliveries that arrive on the day, by 8pm, or the day after. None of these has a fix. Plan extra time for them.
A short checklist if you own or are buying
- Every quote, contract and payment in writing, with receipts kept.
- A current certificado de tradición y libertad read before any money moves.
- The money for the purchase wired to a Colombian bank and declared, with a copy of the exchange declaration kept with your escritura. See registering your foreign investment.
- US persons: foreign accounts checked against the FBAR threshold every year, and Colombian tax paid kept on file for the foreign tax credit.
We made a free 7-question check that shows which registrations and filings likely apply to you. No signup, in English or Spanish: take the free owner check.
Frequently asked questions
Is there a US–Colombia income tax treaty?
No. Colombia does not appear on the IRS list of US income tax treaties. Colombian tax paid on income the US also taxes may still be claimed as a foreign tax credit on Form 1116.
When do I need to file an FBAR for Colombian bank accounts?
If you are a US person and the combined value of your foreign accounts went over $10,000 at any time during the year.
What should I check before paying for a property in Colombia?
Read a current certificado de tradición y libertad, or have a lawyer do a full title study, and get every commitment in writing before any money moves.
Not sure which topics to raise? Take the quiz. The Colombia Owner Kit (US$79, instant download) turns this guide into a checklist, a calendar entry and a question list: see what’s included. Or start with the free sample: Chapter 4, the due-diligence checklist.