How to Transfer Money to Colombia: The Complete Expat Guide

For expats, remote workers, and digital nomads moving to Colombia, figuring out how to transfer money internationally is one of the first major hurdles. Traditional banks, wire transfer services, and local exchange houses often make it difficult to understand exactly how much your transfer is costing you, hiding fees inside markup exchange rates.

Whether you need to pay monthly rent in Medellín, buy property in Cartagena, or fund daily expenses via local apps like Nequi or Daviplata, using the right transfer method can save you hundreds of dollars a year in unnecessary bank fees and poor conversion rates.

The Hidden Cost of Traditional Bank Wire Transfers

When you send a traditional international wire transfer (SWIFT) from a US, European, or Canadian bank to a Colombian bank account, you typically encounter three separate fees:

• Outgoing Wire Fee: A flat fee charged by your home bank (usually $30 to $45 USD).
• Intermediary Bank Fees: Fees deducted by correspondent banks handling the transfer mid-transit (typically $10 to $20 USD).
• Exchange Rate Spread (Markup): The biggest hidden cost. Banks do not convert your money at the real mid-market exchange rate (the TRM). Instead, they add a 2.5% to 5% spread to the rate, meaning you receive significantly fewer Colombian Pesos (COP) for your dollars.

Wise: The Gold Standard for Expat Money Transfers

Wise (formerly TransferWise) has become the most popular money transfer service for expats in Colombia because of its transparency and low cost. Unlike traditional banks, Wise always converts your money using the real mid-market exchange rate (the official TRM) with zero hidden markups.

Instead of hiding fees, Wise charges a single, transparent fee (typically between 0.5% and 0.7% of the transfer amount). This means that for a $1,000 USD transfer, you often receive between $150,000 and $250,000 COP more than you would through a traditional bank transfer.

Step-by-Step Guide: Sending Money to Colombia via Wise

Setting up your first transfer to Colombia is straightforward. Follow these steps:

1. Create a Free Account: Sign up at Wise using the referral link above to ensure your first transfer is fee-free.
2. Enter Transfer Details: Select the amount of USD (or EUR/GBP) you want to send. Wise will display the exact fee, the current mid-market rate, and the precise amount of COP your recipient will receive.
3. Add Recipient Bank Details: Enter the recipient's Colombian bank details. You will need their full legal name, national ID number (Cédula de Ciudadanía or Cédula de Extranjería), bank name, account type (Ahorros or Corriente), and account number.
4. Fund Your Transfer: Pay for the transfer using an ACH bank debit, a wire transfer, or a debit card. ACH is usually the cheapest method.
5. Track Your Money: Wise will process the conversion and deposit the COP directly into the Colombian account. Most transfers are completed in under 24 hours.

Connecting Wise to Nequi and Daviplata

Local digital wallets like Nequi and Daviplata are essential for daily life in Colombia, allowing you to pay at local shops, pay rent, or send money to service providers instantly. You can easily fund these local apps using Wise by sending money to the bank account associated with the app (Bancolombia for Nequi, and Davivienda for Daviplata) using the phone number registered as the account number.

Frequently Asked Questions