Although the reforms have not yet been approved and the government has moderated several proposals, all of them indicate that the bill continues to generate considerable uncertainty in the business and investment sectors.

(This is a real estate ‘startup’ for buying homes in the US).

In September 2022, Colombia recorded the highest number of global web searches for real estate in Miamiaccording to a recent report from the Miami Association of Realtors.

Colombia’s share of South Florida international searches is increasing year on year, Colombia is number one in the top 10 countries looking for property to live in or invest in in Miami.

(Annual inflation in the United States fell to 8.2% in September).

1. Colombia
2. Argentina
3. Russia
4. Venezuela
5. United Kingdom
6. Philippines
7. China
8. Canada
9. Mexico
10. Spain

There are problems with reforms such as taxation of dividends for non-residents of 20%, which could result in an increase in foreign investors in jurisdictions where there is no agreement to avoid double taxation which will increase from 41.5% to 48%, according to Colombian lawyer Clara Viviana Plazas.

In the case of Colombians living in the United States, it is important to remember that there is no double taxation treaty with Colombia that allows the determination of where and under what conditions the income of an individual or entrepreneur who owns a business should be taxed, such as for example exports, imports or investments. .

In the absence of such agreement, the phenomenon of double taxation of income arising in different countries arises, which causes individuals or legal entities to fulfill their tax obligations based on the amount of their income, without estimating that the other country has paid the tax. tax such income with its own taxes, subject to double taxation, including taxes levied on real estate in both countries.

Isbely Glazer, of US Prime Realty LLC, explains that, in principle, when it comes to buying property in the United States, one of the most important recommendations for a foreign real estate or business buyer is to open a company or register a company in the United States.

According to Glazer, it’s not advisable to buy real estate privately, as this results in an additional 15% tax expense in addition to daily taxes and other selling costs, so it’s better to buy on behalf of the company.

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