Top 1 Money Transfer Providers for Colombia to USA

Colombia and the US have long maintained diplomatic relations, with strong political, economic, and cultural ties between the countries. The US-Colombia Trade Promotion Agreement (CTPA), implemented in 2012 has further helped build the trading relationship, with the US being Colombia’s largest trading partner, with over $39.3bn of bilateral trade in 2022.

Colombia’s government has actively promoted and invested in the country’s infrastructure while developing efficient capital markets to attract more foreign direct investment (FDI). Its abundance of natural resources, an educated and growing middle class, and a safe and regulated financial sector have also helped to improve Colombia’s economy and make it more attractive to foreign investors.

According to the 2020 US Census, an estimated 1.4 million Hispanic people of Colombian origin are living in the US. With no restrictions on Colombian Citizens transferring money from Colombia to the US, a large number of transfers are made that exchange Colombian Pesos (COP) to US dollars (USD).

Banking and money

Both the COP and the USD have long been in circulation, with the currencies dating back to 1837 and 1792 respectively. With such a strong pattern of movement from Colombia to the US, it is unsurprising that the COP to USD is a common currency exchange.

When it comes to banking, having a US account if you move to the country will mean fewer restrictions and fees will help with everyday transactions. There are certain documents that you will need, such as either a passport or Colombian consular ID, further identification documents, and either an Individual Taxpayer Identification Number (ITIN) or Social Security number – different banks have different requirements, so you should check beforehand.

To send money to the US from Colombia, using a trusted money transfer service will save you on fees and likely offer better exchange rates, so be sure to make the most of our money transfer comparison tool.

Taxation

Colombian citizens who wish to live or work in the US are required to apply for the appropriate visa before entry into the US. For short-term visits, Colombian citizens must apply for a short-term visitor visa. If coming to the US for work, a work visa is required.

There are a variety of work visas, differentiated by profession and length of stay allowed. Colombian citizens who are coming to the US for a temporary stay or for work should refer to the US Embassy website for more information on visas before deciding which to apply for, and what documents are needed.

Colombian citizens who wish to purchase real estate in the US will find the process fairly easy, as few restrictions exist for foreigners who are legally in the US. However, it is important to know that anyone wishing to purchase property in America must provide an ITIN to finalise the purchase.

This number must be acquired through the IRS and may take up to five weeks or longer to receive. If considering a property purchase in the US, please plan ahead and apply for your ITIN early in the process to help facilitate your transaction and ensure there are no delays. Once your ITIN is received, you may then send money from Colombia to the US to fund your real estate purchase.

It is also important to know the details of US real estate laws. Because each state has real estate laws specific to that state, it is strongly recommended that you obtain the services of a licensed real estate attorney or real estate agent, who can advise on both regional and federal real estate laws throughout the entire purchasing process.

For property buyers in the US that don’t have citizenship, taxation will be different based on residency, double tax treaties, and whether the property is used to generate income. Speak to an expert before making any big decisions for a better understanding of your situation.

Voting

Colombian citizens and residents are not permitted to vote in American federal elections, as voting in an American federal election is restricted to American citizens only. Historically, some states have allowed non-citizens to vote in state elections, but today this is a rare occurrence. However some places may allow non-citizens to vote in local elections.

Studying in the US

Before applying for a study visa to attend an American institution, Colombian students must first apply for and be accepted to a US-based school or program. Once accepted by the school, you will then be supplied with the necessary approval documents by the school to apply for the student visa.

There are different types of student visa depending on your course, with the F1 Student Visa being for academic institutions such as universities, and M1 Student Visas for vocational courses.

The American healthcare system is a pay-as-you-go system. Health insurance is the most common way to pay for healthcare services, and the majority of US citizens receive their health insurance through their employer, if they are employed full-time.

It is advisable for Colombians who are planning to visit or live in the US to first purchase either travel insurance or a short-term health insurance policy as healthcare emergencies can generate high costs.

As a Colombian citizen living in the US, you may participate in the two publicly-funded health plans, Medicare and Medicaid, but only if you meet the qualification requirements.

Want to send money to the US from Colombia without high fees and unfavourable exchange rates? Try our money transfer comparison and see how much you could save.