Remote Banking in Colombia

# Comprehensive Banking Guide for Colombia

If you are planning to live, work, or invest in Colombia, understanding the local banking system is crucial. This guide aims to provide comprehensive information on banking in Colombia, covering topics such as banks accepting foreigners, KYC requirements, the availability of digital banking services like Wise and Revolut, ATM fees, multi-currency options, the account opening process, currency exchange tips, and tax residency clarification.

## Banks Accepting Foreigners

In Colombia, most major banks do accept foreigners as customers. Some of the popular banks that cater to expatriates and foreign residents include Bancolombia, Davivienda, and BBVA. These banks provide a range of services tailored to the needs of international customers, such as multi-lingual customer support and English online banking platforms.

## KYC (Know Your Customer) Requirements

To open a bank account in Colombia, you will need to comply with the KYC requirements. This typically involves providing the following documents:

1. Valid Passport: Proof of identification. 2. Proof of Address: Utility bills or rental agreements. 3. Proof of Income: Payslips, employment contract, or tax returns. 4. Visa/Residence Permit: If applicable.

Some banks may have additional requirements, so it's advisable to contact the bank directly to confirm the documents needed.

## Availability of Wise and Revolut

Digital banking services like Wise (formerly TransferWise) and Revolut are increasingly popular among expatriates and travellers for their low-cost international transfers and multi-currency accounts. Both Wise and Revolut are available in Colombia, allowing customers to transfer money abroad easily and manage multiple currencies conveniently.

## ATM Fees

ATM fees in Colombia can vary depending on the bank and the type of account you hold. It's common for banks to charge a fee for using ATMs outside their network or for international transactions. To minimise ATM fees, consider using ATMs affiliated with your bank or using digital banking services for cashless transactions.

## Multi-Currency Options

While most Colombian banks primarily operate in Colombian Pesos (COP), some international banks offer multi-currency accounts that allow you to hold and transact in different currencies. This can be useful for expatriates or frequent travellers who deal with multiple currencies regularly.

## Account Opening Process

Opening a bank account in Colombia is a straightforward process, though it may vary slightly from one bank to another. Here is a general outline of the steps involved:

1. Choose a Bank: Research and select a bank that meets your needs. 2. Visit the Branch: Schedule an appointment or visit the nearest branch. 3. Provide Documents: Submit the required documents for KYC compliance. 4. Initial Deposit: Some banks may require an initial deposit to open an account. 5. Sign the Agreement: Review and sign the account agreement.

After completing these steps, you will receive your account details and can start using your new bank account for transactions.

## Currency Exchange Tips

When exchanging currency in Colombia, it's essential to compare rates from different sources to get the best deal. While banks offer currency exchange services, they may not always have the most competitive rates. Consider using specialised currency exchange offices or online platforms for better rates and lower fees.

## Tax Residency Clarification

Understanding your tax residency status in Colombia is important for compliance with local tax laws. If you are a resident in Colombia for tax purposes, you may be subject to taxation on your worldwide income. Non-residents are typically taxed only on income earned in Colombia. It's advisable to consult with a tax advisor or accountant to clarify your tax residency status and obligations.

In summary, banking in Colombia offers a range of options for foreigners, from traditional banks to digital banking services. By understanding the KYC requirements, availability of services like Wise and Revolut, ATM fees, multi-currency options, account opening process, currency exchange tips, and tax residency clarification, you can navigate the local banking system with confidence. Researching specific banks such as Bancolombia, Davivienda, and BBVA and following the outlined procedures will help you establish your financial footing in Colombia effectively.