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What Every Overseas Property Buyer Needs to Know about Moving Money around the World
Key to buying a piece of real estate in another country is getting the cash required to close the sale where it needs to be when it needs to be there. In fact, as a would-be overseas property owner, you potentially face four international money management requirements. First, when you buy; second, if you renovate; third, if you rent your place out when you're not using it; and fourth, if and when you sell.
The most important thing to understand before wiring money to another country is whether that country imposes any currency restrictions. Most don't, but some do, as we've discussed. If the country where you intend to buy real estate does, you want to know what the restrictions are before you agree to any purchase there. This is something to discuss and clarify with your local attorney. Colombia, for example, requires that any incoming funds be registered with the country's central bank. If the funds are for living expenses, for example, then you complete one form (Form 4). If the funds are for investment, then you complete a different form (Form 5), indicating what type of investment you're making. If you complete the incorrect form or fail to file one at all, you will have a difficult time repatriating your capital and any associated profits. Complete and file all the paperwork correctly, and you should have no problem taking your money back out of the country if and when you decide you'd ...
