Residency in Colombia

Taking up residency in Colombia is an excellent decision if you want to live in a rapidly growing, extremely young, and dynamic country, where the opportunities for innovation and starting a business from scratch are impressive. Moving to Colombia offers, especially for young people, an interesting and vibrant environment where they can gain work experience. Moving to Colombia requires obtaining a Colombian residence permit, which isn't particularly difficult. In fact, transferring residency to Colombia doesn't even require a criminal record or pending charges, as required in other countries.

The application process for a residence visa or residency visa in Colombia is handled legally by our qualified lawyer for Italians. Therefore, obtaining residency in Colombia for Italians is simple with our legal assistance. In practical terms, moving to Colombia requires just a few steps and documents.

Transferring residency to Colombia: country information

Colombia is an attractive country for digital nomads from around the world. Located in the far northwestern corner of South America, with a surface area of ​​1,141,748 km2, it has both Pacific and Atlantic coasts. Crossed from south to north by the Andes, which, near the southern border, divide into three branches: the Western, Central, and Eastern mountain ranges. East of the Eastern mountain range lies the Orinoquía or Llanos and the Colombian Amazon. Beyond the Andes are the Serranía del Baudo and the Sierra Nevada de Santa Marta. There are six peaks over 5,000 meters.

Precipitation values ​​determine the different climates, of which two can be distinguished:

• Lowland or plain climate: altitude below 500 meters and average annual temperatures of 25 degrees Celsius;
• Mountain or slope or valley climate: altitudes above 500 meters, very humid, dry or very dry climate

Based on its GDP ($264.933 billion as of October 2020, IMF estimates), Colombia is the fourth-largest economy in Latin America and the 39th largest in the world. Colombia has experienced a 15-year expansionary cycle. However, since 2014, it has faced a continuous slowdown, accompanied by inflation, declining foreign investment, and rising public debt.

In 2019, the country recorded GDP growth of 3.2%, according to the IMF. The Fund forecasts a decline of 8.1% for 2020. Public debt is projected to reach 68.2% of GDP in 2020, and the budget deficit is projected to reach 9.4%. In 2020, inflation was 1.3% in October, and the unemployment rate was around 7.2%, according to the IMF.

How to obtain residency in Colombia

Living in Colombia as a resident is quite easy. To move to Colombia, you need to apply for residency. Residency in Colombia is initially temporary. Currently, as of October 21, 2022, instant permanent residence permits are no longer available. This means there is no permanent visa and only provisional visas that must be renewed annually, according to government provision 5477.

All permanent residence visas can only be obtained by first having a migrant visa for 2-5 years. The migrant visa is called the M , which is explained below. There are 14 types of M visas, which can be converted to permanent residence over the years if you live permanently in the country and don't spend time abroad. If you're a digital nomad, the best country to take up residency might definitely be Panama or Paraguay .

To move to Colombia, you need to apply for a residency or stay visa. Colombia is a very attractive country for those seeking foreign residency. Obtaining residency in Colombia is a relatively simple process when handled by a lawyer. Colombian residency allows you to live outside the country without any time restrictions. Furthermore, applying for residency in Colombia does not require the submission of criminal records or pending charges, making the process quicker and easier. But how do you obtain residency in Colombia?

To move to Colombia you can decide to apply for a

•  Resident Visa via Real Estate Investment (R), permanent residence with right to passport and Colombian citizenship
•  An Equity Investment Visa (M-6), temporary residence to be renewed
• A Migrant Visa via Real Estate Investment (M-10), temporary residence to be renewed
•  Beneficiary Visa, for all applicants applying for residency as dependent family members of those who have already obtained another residency visa (R or M)

Everyone is required to have health insurance in order to live in Colombia.

You can move to Colombia as a tourist for a limited period. A tourist can stay in Colombia for a maximum of 180 days. The tourist visa is valid for 90 days and can be extended to a total of 180 days. The extension can begin 20 days before the initial 90-day expiration date, either online or in person at the designated offices. To enter Colombia, you must have an exit flight within the terms of the tourist visa. Failure to meet the requirements carries a fine and the inability to re-enter the country for two consecutive years.

The Residency (R) visa, which began being offered in Colombia in December 2017, is similar to the previous RE visa. It is the current residency visa you must apply for to become a resident of Colombia. To transfer your residency to Colombia, you will need to decide which R visa category to apply for.

There are five categories of the new R visas for living in Colombia:

• Returning Colombian – In some cases, Colombians living in other countries were required to renounce their Colombian citizenship when they became citizens of their adoptive countries. This is the father or mother of a Colombian citizen by birth.
• category 1 to 3 immigrant ( M M-1 visa is a spousal visa. M-3 is a visa for citizens of Mercosur, Bolivia, and Chile, and M-2 is a visa for being the parent or child of a Colombian through adoption .
• You have continuously and uninterruptedly held for five years an M visa in category 4 to 11 , which includes retirement, work, student, and marriage visas.
• Or you have held a Type R beneficiary visa continuously for five years, called an accumulated time visa
• Investing more than 650 times the monthly minimum wage in Colombia. The minimum wage in Colombia in 2021 is 908,526 pesos per month. Therefore, 650 times equals 650,000,000 pesos, or $164,000 USD, at an exchange rate of 3.831 pesos to USD (the exchange rate will likely have changed by the time you read this article, so the value will be different). Note that there are separate migrant investment visas with lower investment requirements.

Previous RE visa regulations required TP-10 marriage visa holders to hold their visa for three years before becoming eligible for an RE visa. Under Resolution 6045 in late 2017, this requirement was reduced to two years for M-1 (marriage visa) holders before becoming eligible for an R visa.

The documents required for the R residence visa are as follows:

Photocopy of the first page of your valid passport where your personal information appears.

•  Certificate attesting to employment or source of income.
•  Migration Movement Certificate issued by Colombia Migration, dated within three months of the visa application.
• If you are receiving an R visa for investment, you must provide a notification issued by the Bank of the Republic's International Trade Department registering foreign direct investment in your name with an amount exceeding 650 times the monthly minimum wage.
• Health insurance policy certificate showing that you have international health insurance coverage. This policy must be valid for at least one year, as the validity period of your visa depends on the validity period of your international health insurance. This health insurance policy must demonstrate coverage of at least $100,000 USD. Additionally, you can use Colombian EPS health insurance to meet this requirement if the policy is in your name (not a beneficiary).
• Passport style face photo with white background, size 3cm wide X 4cm high, max size 300kb jpg file for online application.

Type R Visas for Residence in Colombia

Residency in Colombia with type R visas offers:

▶︎ Type R Visas : Mercosur – Marriage – Accumulated Time

The M-6 visa for investing in shares in a Colombian company provides only temporary residency, which never becomes permanent and must be renewed annually. The basic investment is 100 times the Colombian minimum salary, or COP$100,000,000.

Additionally, for the visa application you will need a series of documents, which are:

• A letter of request including the name, address, and tax identification number (NIT) of the incorporated commercial company or the company in which the investment was made. In the case of joint-stock companies, participation in the company is certified by a certificate of shareholding signed by a public accountant, indicating the amount of registered capital or assets paid by the foreign visa applicant, which indicates no less than the equivalent of 100 times the Colombian minimum monthly salary.
• Certificate of opening a bank account in the company's name. Support for the entry into Colombia of the full amount of the capital, as shown in the Chamber of Commerce.
• F4 Exchange Declaration Form.
• Foreign Investment Certificate issued by the Banco de la República.
• Share composition certificate drawn up by an accountant.
• Photocopy of the accountant's certificate. Photocopy of the accountant's professional card.
• Current certificate of the accountant's disciplinary background.
• Bank statements for the last 6 months in the name of the company (only if the company is not newly incorporated).
• Latest income statement in the name of the company (applicable only to companies more than 1 year old).

Residency in Colombia as a real estate investor requires purchasing property in Colombia. If you want to live in Colombia and are applying for an M-10 visa for real estate investment, you will need to invest at least 350 times the minimum Colombian monthly salary, which is 350,000,000 pesos or $91,650 USD (at an exchange rate of 3.819 pesos per USD). Additionally, for the visa application, you will need:

• Certificado de libertad y tradición della proprietà immobiliare proving ownership.
• Communication issued by the International Exchange Department of the Banco de la República, which registers the foreign direct investment for the purchase of real estate in the name of the foreign visa applicant.

Residency in Colombia as a real estate investor is granted only if the property is registered in the Land Registry. It is not possible to obtain residency in Colombia by purchasing a real estate project that is yet to be completed or if the purchased property has not yet been registered.

The Beneficiary Residence Visa in Colombia is the visa that allows you to take up residence in Colombia as a dependent family member of a current resident or an applicant for residency through a type R or M Colombian residence visa. For example, a husband and wife. If the husband or wife are the first applicant for residency in Colombia through one of the Residence or Migrant visas (R or M-10), then the dependent spouse, be it the wife or husband, must apply for residency in Colombia using the beneficiary visa.

The documents required for a Colombian residence visa as a beneficiary are:

• A photocopy of the first page of your valid passport containing your personal information. This includes a photocopy of the passport page with the last Colombian entry or departure stamp.
• If you have had a previous Colombian visa, a photocopy of this visa.
• Copy of the visa of the principal holder you wish to be a beneficiary of.
• Certified copy of the deed or civil registry certificate certifying the relationship, whether marital or family, with the principal holder. If it is a foreign document, it must be apostilled and include a Spanish translation.
• Written communication signed by the primary visa holder requesting the beneficiary visa and declaring dependency and financial responsibility for the beneficiary's travel and/or stay expenses in the national territory.
• Passport style face photo with white background, size 3cm wide X 4cm high, max size 300kb jpg file for online application.

Residency in Colombia with type M visas offers:

▶︎ Type M Visas : Marriage – Andean – Relatives of Colombian citizens – Marriage with domestic partnership – Investment / Real Estate – Mercosur – Work – Pension – Business – Freelancer

The time required to obtain your residence visa ranges from 20 to 60 days. As with the previous RE visa, if you leave Colombia for a period exceeding two consecutive years on an R visa without returning to Colombia, the R visa expires and is no longer valid.

However, if you intend to become a naturalized Colombian citizen, the restriction is different. While you hold an R visa and are out of the country for more than one continuous year, you are not eligible for citizenship. Therefore, if you intend to become a citizen with an R visa, you cannot leave Colombia for more than one year at a time.

Additionally, you can work in Colombia with a Resident (R) visa.

Living in Colombia is suitable for many, but not all. This beautiful country still has significant security gaps, and when it comes to taxation, it's not a tax haven by any means. Colombia is among the few countries that applies worldwide taxation to both residents and citizens, even if they take up residence abroad. Many choose to live in Colombia for a few months each year and spend the rest of their year in other neighboring countries.

In addition to obtaining your residency in Colombia, you will probably be interested in creating a life insurance policy on your tax situation by taking up a second tax residence in a country with territorial taxation, such as a residence in Panama or a residence in Paraguay.

To begin your residency transfer process, contact us at info@studiopanamaitalia.com, sending us a copy of your passport, and the exact dates to start and take up residency in the country of your choice, or contact us through the contact form on this website or via WhatsApp-Telegram at +1 786-623-8177

What is the taxation on the Italian pension in Colombia?

Taking up residency in Colombia is an opportunity for Italian retirees. Residency in Colombia as a retiree with a lifetime pension is a way to retire in an affordable country where it's easy to adapt. Retirees in Colombia are particularly comfortable in areas like Antioquia or La Costa. But how is pension taxed in Colombia?

Italian pensioners in Colombia can apply the full Colombian and non-Italian tax system when receiving a pension in Colombia. INPS provides this information in Message No. 4463/2020, which implements ratification laws No. 92/2020 (Colombia). In accordance with the standard OECD conventions, the tax regime varies depending on the type of pension received : a) if the recipients receive a pension from INPS's private pension schemes, proof of residency in Colombia is sufficient , citizenship of the aforementioned foreign countries is also required to exempt the benefit from taxation . private workers ' pension benefits must also be accompanied by appropriate documentation certifying the taxation of pension income earned in Colombia.

Self-employed workers

Furthermore, the 2020 Italy-Colombia pension double taxation treaty with Colombia provides for special rules for pensions derived from self-employment, which are subject to taxation in both countries (Colombia and Italy) regardless of residency. To eliminate double taxation, however, Colombian residents are granted a deduction from the pension income tax withheld at source in Italy by the Institute, acting as withholding agent, within the limits and conditions set by Colombian tax law.

Deciding which Colombian city to move to and establish residency in is, after understanding which type of visa you need, the most important decision you can make. Colombia is an extremely large and diverse country. Both in terms of customs and ethnicity, the country is extremely diverse, and its cities offer distinct lifestyles, paces of life, diets, and timetables, as well as climate, social status, and crime rates. When deciding to become a resident in Colombia, certain decisions must be carefully and thoughtfully justified, weighing the pros and cons of each city. So, let's look at which Colombian cities to move to and how to decide which Colombian city best suits your needs and tastes.

The various Colombian cities sought after by foreigners are:

Bogotá, the nation's political and administrative capital, is the only megalopolis in northern South America with a population of over 10 million.

Medellín, capital of Antioquia, Colombia's second largest city

Cali, Colombia's third largest city and capital of the Valle del Cauca.

Bogotá is the country's capital. The bustling and intense metropolitan life is dictated by the schedules of the corporations and multinationals that live and invest in the metropolis. All this is spiced up by the incessant political life, consisting of meetings, assemblies, and the presence of the President of the Republic and all the big names in Colombian politics. Bogotá is a sophisticated metropolis, filled with daily cultural events, international concerts, theaters, musicals, historic centers among the oldest in Latin America, restaurants both local Colombian and the best international food and wine, with a wide selection of Michelin-starred and Guided restaurants, as well as breathtaking views to be enjoyed in its surroundings. The temperate to cool climate at certain times of the year makes it perfect for those who hate the heat, can't tolerate mosquitoes, and adore the warm and comforting atmosphere and cocooning sensation of the Andean mountains. Bogotá is very safe compared to the rest of Colombia, and it couldn't be otherwise, considering the interests at stake and the eyes of the political and business world on this city. It has one of the best transportation systems in the country, but it is also the nation's busiest city. In Bogotá, the nightlife never stops, and there is no difference between Monday and Sunday. You can go out and dine even at midnight without any problem. Its inhabitants, Los Rolos, are welcoming and particularly polite, but they are not loud and party-loving like other Colombians. They follow European fashion very closely, so you will probably find the most attractive people, men and women, in their clothing than anyone else in Colombia. You will come to live in Bogotá because it is the city where any foreigner, whether European, Italian, or North American, would immediately feel at home, thanks to the endless possibilities it offers. Despite being the capital, it is also the cheapest city in Colombia. Bogotá does not suffer from drug trafficking and human trafficking like other cities in Colombia. The city of Bogotá is located 2,500 meters above sea level. Its airport is among the largest in South America and connects the entire world with direct flights.

Medellín, Antioquia, sits 1,500 meters above sea level. Medellín is famous for its eternally spring-like climate, which makes it attractive to anyone interested in living in a climate that averages between 20 and 28 degrees Celsius (68 and 82 degrees Fahrenheit) year-round. However, let's not forget that Medellín is among the rainiest cities in the world, with an average of five days a month of very heavy rain, and in certain periods like June, August, and September, it can rain up to 11 hours a day for almost ten days a month. It is a city surrounded by valleys and mountains, located in a valley 1,500 meters above sea level. The inhabitants are called paisas, and unlike the inhabitants of Bogotá, they are party animals and music lovers, but they have a much more reserved and strict pace of life. If in Bogotá you can decide every day of the week to go out at midnight or 2 in the morning for dinner or to party in some club, in Medellín after 9 pm during the week from Monday to Thursday you will only find closed restaurants and closed clubs. It is a city that wakes up very early, where life begins around 4 in the morning and then ends very early around 7 or 9 pm at the latest. People in Medellín have dinner between 6 pm and 7:30 pm. They go to sleep between 8:30 pm and 9:00 pm. In terms of safety it has made enormous progress, proving to be an acceptable city within certain limits. Unfortunately, it is in category 4 of the most unsafe cities for Americans to visit, one point away from the maximum unsafe category. In 2023 alone, 32 American tourists died in Medellin after dating on adult dating apps (Tinder, Bumble, etc.) because criminal organizations target tourists looking to meet women from Medellin to extort, kidnap, and often kill them. Another scourge of the city is child prostitution, so much so that the city is now adopting very serious and invasive prevention measures starting from the moment you arrive at the airport. The neighborhoods where you can move around without problems are El Poblado, Sabaneta, Envigado, and Laureles within certain time limits. Arriving at Medellin Airport, in Rio Negro, is traumatic. Migration queues often exceed three hours, in some cases five hours, due to poor management of the migration flow, which has increased over the years and has led to overcrowding at a mediocre and underdeveloped immigration office that has very few agents in Medellin, often only two or three agents for four or five planes landing at a time. Absolutely do not make any plans on the day you land in Medellin because you certainly won't be able to keep them. The city boasts the best subway in the country and a tunnel connecting the city to the airport that allows you to reach it in 50 minutes. The cost of living is on average higher than in Bogotá but generally affordable considering it's a Colombian COP.

Cali, Valle del Cauca, the country's third-largest city, is without a doubt the most affordable city in Colombia. It's a city of celebration, dancing, tradition, and music at any time of day or night. Its residents are considered among the country's most cheerful, and the city is bathed in warm, yellow sunshine year-round. The population is highly ethnically mixed, and thanks to the climate, both men and women are extremely friendly, open, and always well-dressed and attractive. The beauty of the city is that despite being a large city—the third largest in the country—it's the cheapest place in the country. Truly, living, touring, or moving to Cali is undoubtedly the best choice if you want to get started in a comfortable and affordable way. The city has no timetables, is very relaxed, and has little traffic.