Table of Contents
As an expat, sending money to Colombia can be complex and challenging. Ensuring that your hard-earned money is transferred safely and efficiently is essential. That’s why we have consulted with our financial experts to provide you with a comprehensive guide on sending money to Colombia.
Our guide covers everything you need to know, including the various methods available for sending money, the fees involved, and the steps you need to take to ensure that your transfer is successful. Whether you’re looking to invest in a Colombian business, buy property, or send personal savings, our guide will help you quickly navigate the process.
1st option: Money transfer via a broker account to Colombia
The initial step to investing in Colombia is to have a secure way to transfer and bring your money from abroad. Based on our experience, we have discovered that the most suitable option for speed, efficiency, and cost is through an account with a Broker. The question arises, why through a Broker? Because it is the best option to transfer a significant amount of money at a relatively low cost and because it is also a faster and more efficient process. Once the account is opened, we will help you with the steps to send and legalize the money, an essential part of the legal and immigration processes.
The requirements to open a broker account in Colombia are:
Passport
Recent and legible copy of your passport (photo and signatures pages) or your Colombian "Cédula de extranjería" (front and backside) if you already have it.
Income tax
Last available Income tax return of the country of origin. 1040 complete in PDF.
Bank statements
Last three bank statements of the bank account in your country of origin from where you are planning to transfer the funds.
Form and presentation letter
Lastly, fully complete the general information and make the presentation letter that the broker will provide you.
The process to open a broker account is:
Transferring funds to the broker
A. Transferring funds to the broker
Monetization of money in Colombia
Once the receipt of the money in USD/EUR/Others is confirmed in the broker’s corporate bank account, the broker procede to negotiate the currencies at the best convertion rate (TRM) an sends an email confirming such negotiation, and being confirmed by the client/ user proceeds to the legalization of the money before the Bank of the Republic of Colombia with the F4 or F5 forms and the documents that justify such investment.
Money in Colombia
Once the money is legalized in Colombia, the money is deposited in COP pesos in the 03. Broker (Personal) bank account, and the Client/User will have his money available to carry out the different operations in Colombia such as Transferring funds to the local banks in Colombia or through Cashier's checks.
Companies where you can open a broker account
Certified Colombian brokers such as Alianzas y Valores, Acciones y Valores S.A. specialize in helping expats make deposits on properties and business investments from foreign accounts. Brokers like these can help facilitate legal large-money transactions from foreign funds into Colombian accounts.
These companies can help you get your foreign money into Colombia and act as a buffer between you and the property seller, reducing the risk of money mishandling or financial disputes. Moreover, transferring money through a broker eliminates the need to set up a Colombian bank account, which can slow down the money transfer process when buying a property. Remember to legalize your direct foreign investment before Colombian Banco de la República.
For instance, if you want to buy a property in Colombia, you would need to do the following:
- Successfully negotiate the purchase of a property with a Colombian seller with a finalized bill of sale (or promesa de compraventa)
- Send the money to a vendor, either directly or through a broker
- Get the Banco de La República Certificate as as a requirement around foreign property investment in Colombia.
2nd option: Xoom money transfer to Colombia
Xoom is a PayPal-owned money transfer service that allows you to send money to Colombia. It’s one of the most popular solutions for expat-run businesses and expat workers to get their foreign money into the country. Xoom allows transfers to be deposited into Colombian bank accounts, sent to an official pickup point, or delivered straight to your home.
Furthermore, Xoom offers a money-back guarantee if you don’t receive the full amount you’ve ordered. It charges a nominal transaction fee depending on where you send your money.
3rd option: World Remit money transfer to Colombia
World Remit uses an app to transfer money to Colombia quickly and simply. Foreigners can choose between bank transfers, cash pickups, and mobile money transfers for people who use Daviplata. Regarding fees, World Remit charges typically don’t adjust to how much or little money you’re transferring.
However, World Remit’s exchange rates are occasionally more competitive than Xoom’s, so if you choose between the two platforms, make sure you weigh up the differences in transfer fees and exchange rates.
The RUT (Registro Único Tributario) is the DIAN's system for identifying and classifying individuals and entities in the tax system based on their economic activities, assets, and contributions. Click the button for professional assitance!
4th option: Remitly money transfer to Colombia
Remitly is now an established money transfer platform many foreigners use in Colombia. Offering fee-free transfers to first-time customers, its user-friendly platform makes sending money to Colombia seamless.
Interestingly, Remitly has partnered with many more Colombian banks than its rivals, World Remit and Xoom, offering transfers to many Colombian banks. Remitly’s fees depend on the speed and amount you want to transfer and the foreign currency you’re using.
Get advice to choose the best option for you.
Sending money to Colombia is becoming an increasingly streamlined process in 2024. With several options available to expats at competitive rates and a variety of services, your solution for bringing foreign money into Colombia is improving daily. If you’re unsure whether to use a particular money transfer service, use our suggestions as a guide for ensuring you receive your international transactions quickly and securely, or contact us for professional advice.
Get advice to choose the best option for you.
Sending money to Colombia is becoming an increasingly streamlined process in 2024. With several options available to expats at competitive rates and a variety of services, your solution for bringing foreign money into Colombia is improving daily. If you’re unsure whether to use a particular money transfer service, use our suggestions as a guide for ensuring you receive your international transactions quickly and securely, or contact us for professional advice.
Get a quote now
We offer expert guidance on immigration processes, business opportunities, housing, and investment, ensuring you have all the resources for a successful and smooth transition to life in Colombia.
