How to Transfer Money from Colombia to USA
Colombia to USA Guide
Summary
Colombia and the United States have a solid political and investment relationship, with the US-Colombia Trade Promotion Agreement (CTPA), implemented in 2012, helping to strengthen those ties. Colombia’s government has actively promoted and invested in the country’s infrastructure and 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. Currently, there are no restrictions for Colombian citizens who wish to transfer money from Colombia to the US.
Visas, work permits and residency
Colombian citizens who wish to live or work in the United States 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.
Buying property in the US
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 United States. However, it is important to know that anyone wishing to purchase property in America must provide an Individual Taxpayer Identification Number (ITIN) to finalize the purchase. This number must be acquired through the Internal Revenue Service 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.
Taxation
Currently, there is no tax treaty in place between Colombia and the US. Because of this, Colombian citizens living and working in the United States must pay tax on any earned income at the rates outlined on the appropriate US tax return. For more information on taxation in the US, please refer to the IRS site. Although the Colombian government and financial authorities do have strict reporting requirements for transferring money into and out of the country, there are currently no restrictions on international money transfers from Colombia to the US.
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.
Colombian citizens 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 the student has officially been accepted by the school, they will then be supplied with the necessary approval documents by the school to apply for the student visa.
Healthcare
The American healthcare system is a pay-as-you-go system. Health insurance is the most common way for people to pay for their 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. It is mandatory in the US to have at least the minimum levels of health insurance, or risk facing a yearly tax.
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. Your declared income must be below the minimum threshold, and you must have lived in the US for at least five years and contributed to Medicare/Social Security for at least 10 years.
Importing from Colombia to the US
In 2013, Colombia was the 21st largest goods trading partner of the US, with two-way trade between the countries amounting to approximately USD $40 billion. Colombian imports into the US accounted for $22 billion of this total, with exports valued at approximately $19 billion. Colombia’s government has made it a priority to adopt and implement free market policies to help liberalize trade and investments within the country, with the goal of attracting foreign direct investment. In 2012, US foreign direct investment (FDI) into Colombia increased to USD $8.4 billion, representing a 30% increase over FDI from the previous year. Colombian FDI into US-based investments totaled $779 million for the same period, a decrease of 16.6% from the previous year.
Frequently Asked Questions
Are the money transfer companies shown above safe to use?
Yes, all the companies are safe and fully-regulated money transfer services.
Each are authorised and regulated by the relevant authority such as the Financial
Conduct Authority(FCA) in the UK, FinCEN in the US, FinTRAC in Canada or ASIC in Australia.
How long does an international money transfer take?
The speed of delivery will depend on where the money is being from and to and how
you are sending and receiving the money. Transfers sent using bank to bank transfers
can depend take anywhere from minutes to days and you should check the time estimates
from the relevant provider. Debit and credit card payments sometimes allow for faster
transfers for smaller amounts.
How do I use FXcompared?
First review the comparison results (such as for a table above) for a given amount
of money sending from Colombia to USA. Then select a provider based on
factors such as price, speed, their rating and click the green button to be taken to
their website. From there, you can register and sign up for an account. Once you have
done that and the provider has verified your identity to ensure the money can be send
safely, you will be ready to transfer money.
What payments methods can I use to send money overseas?
The results shown above are typically for bank to bank transfers. It is possible
via some providers to pay in your funds for the transfer via cash, debit or credit
cards as well but this is usually reserved for smaller amounts. Some providers also
give you different options for how the money will be received - to a bank account
(most common), to a debit card, to cash or to a digital or mobile wallet.
What if the price shown above isn’t exactly what I am offered when I try to transfer money?
There can be a number of reasons why the final price you are offered may be different
to that shown in the table above. Exchange rates between two currencies change all
the time and is the most common reason. Additionally, some providers offer different
pricing depending what method you are using to send funds or how the funds will be
received. Others may offer you a premium service for faster payments. In some cases
FXcompared has a special rate with a provider and this is reserved for first time
customers who sign up to the provider starting from FXcompared’s website.
As prices do change often, be sure to confirm the total cost with the provider
before transferring money.
Your Feedback
We welcome all suggestions for improvements. Send us an email at support@fxcompared.com.
Latest Money Transfer News Articles for US
