Although the reform has not yet been approved and the government has moderated some of the proposals, everything indicates that the bill continues to generate considerable uncertainty in the business and investment sector.
(This is the real estate ‘startup’ to buy a house in the US).
In the month of September 2022, Colombia registered the highest number of global web searches for real estate in Miamiaccording to the recent report from the Miami Association of Realtors.
Colombia’s share of South Florida international searches increases year over year, Colombia is number one in the top 10 countries looking for properties to live or invest in Miami.
(Annual inflation in the United States falls to 8.2% in September).
1. Colombia
2. Argentina
3. Russia
4. Venezuela
5. United Kingdom
6. Philippines
7.Chinese
8. Canada
9. Mexico
10. Spain
There are issues in the reform such as the taxation of dividends for non-residents at 20%, which could be generating an increase in foreign investors in jurisdictions where there is no agreement to avoid the double taxation that would go from 41.5% to 48%, according to Colombian lawyer Clara Viviana Plazas.
In the case of Colombians residing in the United States, it is important to bear in mind that there is no double taxation agreement with Colombia that allows determining where and under what conditions the income of natural persons or entrepreneurs who have businesses should be taxed, such as example exports, imports or investments.
In the absence of the agreement, the phenomenon of double taxation is generated against the income that is caused in different countries, which leads to a natural or legal person complying with their tax obligations based on their total income, without estimating that the other country has taxed that income with its own taxes, being subject to double taxation, including the taxes that fall on real estate in both countries.
Isbely Glazer, from US Prime Realty LLC, explained that, in principle, to buy a property in the United States, one of the most important recommendations for a foreign real estate or business buyer is open a company or register a corporation in the United States.
According to Glazer, it is not recommended to buy real estate on a personal basis, as this generates an additional tax cost of 15% in addition to everyday taxes and other sales costs, so it is preferable to buy in the name of a company.
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