Living In Colombia as a US expatriate: How the Colombian Peso (COP) works
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- čas přidán 14. 02. 2023
- The Colombian Peso (COP) is the currency used in daily life in the country of Colombia. An often overlooked aspect of living as a US expatriate overseas, is how the local currencies work, the conversion value to US dollars and the best practices to transact in the local economy.
The Colombian peso is a non major currency pair and it isn't well known outside of the country. So when it comes time to convert your US dollars and live your life in COP, it is critically important to understand the value of the different bank notes and how much things should cost.
In this video, I walk through many different aspects of the Colombian Peso currency, financial system and how to transact your daily life in the country of Colombia.
00:46 Colombian Peso conversion rate to $1 US dollar
01:28 Our Orlando offices and tax service
01:53 $100.000 COP "cien mil", how much its worth and how it's used in country. Why it isn't widely used
03:14 Minimum salary in Colombia explained
03:33 $50.000 COP "cincuenta mil", how much it is worth, why it is the more commonly used high denomination note
04:07 Different variations of $50.000 COP "cincuenta mil" note, the old version and new version. Why you should use the new version...
04:40 How to use $50.000 COP "cincuenta mil" note in daily life
05:02 $20.000 COP "veinte mil" note, how it is used and why it is one of the more commonly used denominations
06:00 Smaller notes $10.000 COP "diez mil" why this is important to have for taxis, small tiendas and hand foods
06:30 Why having $10.000 COP "diez mil" is important to have and how it can save you from overpaying on a taxi fare
06:50 How taxi fares work in Colombia. How Medellin the meter means a monetary value and how Bogota uses a pricing code for the fare calculation
07:22 $5.000 COP "cinco mil" what you can buy with it, how resourceful this small bill can be in your daily life
08:02 $2.000 COP "dos mil", why this is the most popular small denomination note and why carrying a lot of these can help you with exact change. What small hand foods you can buy with it...
09:00 Coins "monedas" $1.000 COP "mil", Coin and bill. Why the bill isn't used anymore
09:30 How resourceful the $1.000 COP coin can be
09:50 500 COP coin "quinientos pesos", perfect for exact change and purchasing small things
10:10 200 COP coin "doscientos pesos", can be used for exact change. It can't buy very much...
10:25 100 COP coin "cien pesos" 50 COP coin"cincuenta pesos". It doesn't do much... You can buy little candies or gum with it.
10:43 Why Colombian culture respects money regardless of big or small denominations
11:36 The importance of learning foreign currency values
11:55 Physical cash usage and why cash is the most popular way to transact in the Colombian economy
12:05 Credit card and debit card usage, why it isn't as popular
12:30 Using credit or debit cards "tarjeta credito" in Colombia
12:50 Showing ID "Cedula" to complete a credit card transaction
13:18 The importance of carrying cash in Colombia
13:41 The importance of carrying cash in case of robbery
14:12 Major banks in Colombia (Bancolombia, Grupo Aval)
14:50 Using ATMs in Colombia
15:15 Transferring money into Colombia
15:35 Arriving to Airport, why to use ATM over currency change house
16:10 How much you can expect to lose converting physical US dollars to COP
17:20 Financial transaction tax when withdrawing cash
17:40 Transferring large amounts of cash
18:40 The importance of registering large currency transfers and declaring to customs
20:30 Taxes and the importance of filing while living abroad
If you do settle in Colombia as a US expat living abroad, you have a tax reporting obligation on your world wide income. Whether you acquire Colombian tax residency or not, you maintain a reporting requirement to the IRS and US government. When you need help with your tax situation, contact me directly through WhatsApp.
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Contact me today for your tax consultation at +1 (407) 864-2702, by phone or WhatsApp. Book your consultation by visiting our website at: quintilonetax.com/index.php/c...
Dylan Quintilone PTIN P02055728
Disclosures:
Dylan Quintilone is an investment advisor representative with Copper Canyon LLC, a state of Florida Registered Investment Advisor. He provides tax services separately and independently of Copper Canyon LLC. He does not render investment advice, or financial planning services as a service within the tax business. Mr. Quintilone is required to deliver disclosure documents consisting of Copper Canyon LLC’s Form ADV Part 2 Brochure, Portfolio Management Contract and other required documents.
Copper Canyon LLC
Dylan Quintilone
Investment Advisor Representative
CRD 6732024
#colombia #expat #medellin #bogota #gringo #paisa
Thankyou for that information it was very helpful, I am off to Colombia on my holiday today as it happens , just watched this as I ate my breakfast , Bucaramanga here we come
You definitely have a new subscriber. Thank you for the detailed explanation. Unlike your buddy..😅 I have been aware for the majority of my life that different countries do, in fact, use other denominations of currency. For me, it is understanding the exchange rate as it fluctuates. That is my challenge.
Soy ciudadano americano y mi novia es ciudadana colombiana. Ambos esperamos tener pronto la doble ciudadanía. En eso estamos trabajando. Me encanta ver videos sobre Colombia y obtener diferentes perspectivas. Especialmente, cuando se trata de un extranjero del país que habla inglés con fluidez. No me malinterpretes, también me encanta aprender de los lugareños, ¡pero escucharlo de alguien que realmente está viviendo lo que pretendemos vivir es definitivamente una bendición!
¡Muchas gracias por el contenido bellamente articulado!
Keep it up, Sir🫡
< I will not take any responsibility for the outcome of Google Translate😂>
Useful info I would not have otherwise been exposed to..Thx!
Thank you for the positive feedback! I tried giving a unique spin on the currency and financial system in Colombia. It is very practical information because many expats need to know the value of currency to exchange for goods and services. I wish I knew this information before going to Colombia, so I decided to share it.
-Dylan
Great video content, thank you so much for sharing
Thank you for the positive feedback, it motivates me to share and create more content!
-Dylan
Great video
Again, thank you Paul for introducing me to Colombia. -Dylan
What a great video. I was thinking to come for vacation in Colombia from Africa but don't know how to go abt it
First please forgive the run-on sentence I'm using voice recognition. Thank you very much for these videos I find them very informative. I I'm looking at retiring in Columbia to have the retirement pensioners Visa do you do any work with immigration?
Thank you for the comment. I have successfully applied and received my migrante and residente visas. I don’t apply on behalf of others, but I can walk you through the process.
It is really straight forward and I would not recommend paying a visa agency to procure the visa on your behalf. It only took me a day or two to apply and have the visas issued at Migración Colombia. -Dylan
@@quintilonetax thanks very much for that info a couple of people have said to do it on your own but it seemed quite convoluted I will contact you through your website
@@curmudgeoncapitalist Thank you, I post my phone number/WhatsApp in the description of my videos as well. The visa process in Colombia is much easier and faster than if you need to acquire a visa to live or visit the United States. -Dylan
Are social security payments taxable in Colombia?
I would advise you to seek the guidance of a Colombian tax professional. We work with 2 tax professionals out of Medellin and can pass their contact information along. -Dylan
Dylan, why doesn't the government just drop off the zeros, so that the 20,000 peso note just becomes a 20 peso? Etc.?
Thank you for the comment. Venezuela did exactly that in an effort to combat hyper inflation and as a result their currency/investor confidence and economy collapsed.
An effect of the Venezuelan crisis is there are millions of refugees living in the major cities of Colombia. Bogota and the border cities are overwhelmed as a result of the migrant crisis. You often see Venezuelan migrants weaving baskets out of the worthless Bolivars they brought from home. They often have stacks of the bills that are worth less than a penny or so.
In Colombia less focus is put on the “mil” aspect of the currency. The central bank prints the 50 then word “mil” so it acts sort of like the “50” value you are used to in the states. Colombia has done better than most Latin American countries maintaining their currency.
www.pbs.org/newshour/world/venezuela-knocks-5-zeros-off-its-currency-will-anything-change
@@quintilonetax Now that Colombia has a new government, can't the refugee problem be fixed with Maduro? Why would the economy collapse because of dropping zeros? It's just zeros with the bill called by a different "name". Of course the idea of printing the number 5, 10 or 50 in large print and the word mil/miles in small print is not a bad idea either.
@@dovygoodguy1296 I think the influx of new migrants from Venezuela is declining and things are stabilizing slightly there. I try to keep politics out of all my social media and professional pages.
I think the Venezuelan refugees do not want Maduro in power. He has effectively seized power and established an autocracy of sorts.
The three-way relationship between Colombia, Venezuela and USA is complicated. I think Biden warming up to the idea of reestablishing relations at the height of last years peak gas prices was a potential negative outcome for Venezuela. It would create stability within the Maduro regime and give legitimacy to his claim of office. I think a better future awaits Venezuela when Maduro leaves power and we shouldn't help the regime by allowing their oil on to the world markets.
Now with Petro coming into office, his socialist ideologies swings Colombia more into the sphere of Venezuela again. Relations are opening and thawing. It remains to be seen what the outcome will be. Historically, these countries have close ties and have helped each other in times of economic struggle. Venezuela used to be an economic power house in the 1990's and many Colombian's moved to Venezuela for better economic prospects.
Back to cutting zeros off the currency, it is a hallmark to failure of economic policy. Paper currency maintains purchasing power stability based on the trust in the economic system. When you are cutting zeros from a currency, you are admitting there may be a structural economic problem in your country. This erodes public confidence further and the value of your currency. It seems to be a vicious cycle.
Based on my friends first hand experiences in Venezuela, they are experiencing dollarization. The dollar is allowing the people who didn't leave the country to have some sense of normalcy to purchase common goods. -Dylan
@@quintilonetax I can't help thinking that the US interests wanted to grab Venezuela's assets and sought the same result as they carried out in Ukraine in 2014 and tried in the Arab world. But every single time they do it they create a horrible mess and failure. It all started with the fiasco in Vietnam. And of course there were the elements who profited from the cocaine trafficking from Colombia into the US. Alas, now the world is in a horrific situation.
@@dovygoodguy1296 There is no doubt the USA has a tendency to interfere in Latin American affairs. It could be a driving factor in the socialist leanings in South America at the moment. -Dylan
Did you just say that the annual salary is somewhere around 110.00 USD in Columbia?
The minimum monthly salary is roughly $273 or 1.300.606 COP. They use periods for monetary values in Colombia rather than commas to separate three digits. -Dylan
you said the annual salary is 200 and some change thats wrong man you mean monthly salary.
I am doing my taxes with you next year Dylan! 6 hours of TurboTax last night HAHA :(
Thank you bro. I blast through those 8949 reporting stock transactions! -Dylan
@@quintilonetax THANK GOD!
Great video