8 Expensive Things in Medellín
March 11, 2015 By 17 CommentsIn January, I looked at 10 surprisingly cheap things in Medellín, which contribute to the low-cost of living in the city. I also recently provided an updated look at our cost of living for a couple in Medellín here.
Apartments also tend to be cheaper in Medellin than in the United States, which was covered in a post on this site looking at the cost of renting unfurnished apartments in Medellín.
But not everything in Medellín is cheaper than in the U.S. This article looks at eight expensive things in Medellín, items that tend to be more expensive than in the U.S. Note the list is in no particular order.
1. AutomobilesCars can be expensive in Colombia due to import duties of up to 35 percent. Over 60 percent of the vehicles sold in Colombia are imported resulting in many models of cars being more expensive in Colombia than in the U.S.
However, the free trade agreement between Colombia and the U.S. that went into effect in 2012 is phasing out the import duty for vehicles over a 10-year period.
Colombia has more free trade agreements with other countries that will be phasing out import duties for automobiles that will help cut costs for imported autos over time.
Medellín has several automobile dealerships, which tend to be significantly smaller than the large auto dealerships found in the United States.
There is also a growing used vehicle market in Medellín. If you want to own a car, the used market may be the best way to avoid the high initial new car cost.
Perhaps the largest online portal to look for new and used vehicles in Colombia is Carroya.com. Looking at this site it is possible to see some of the higher prices for vehicles in Colombia.
For example, a new Honda Fit 2015, sells for 45,990,000 pesos ($17,810) in Colombia, which is a car with a $15,650 MSRP in the U.S.
Small cars are very popular in Colombia. The top two selling cars in Colombia last year were reportedly the Chevrolet Spark and Sail. The Spark Lite starts at 20,390,000 pesos ($7,894) and the Sail starts at 30,050,000 pesos ($11,635).
Both the Spark and Sail are manufactured in Bogotá by GM Colmotores. Besides GM, Renault and Mazda also produce cars in Colombia.
Note that Colombia does not allow the shipment of used cars into the country.
However, with the inexpensive taxis, metro and buses in Medellín it is possible to live without a car and avoid this significant expense. I have resided in Medellín for nearly four years without a car.
2. GasolineDespite being a major Latin American oil exporting country, Colombia doesn’t have enough refining capacity so it must import a substantial proportion of refined oil products, with the U.S. being the primary source.
If you own a car in Medellín, you will be paying higher prices for gasoline than in the United States. Gas prices in Medellín have dropped recently to about the lowest prices in terms of Colombian pesos since 2010.
At a Terpel gas station near Los Molinos mall in Belén, I recently saw a price of 7,840 pesos ($3.04) for a gallon of regular and 7,800 pesos for a gallon of diesel.
In the U.S. according to the AAA Fuel Gauge report regular gas is currently averaging $2.46 per gallon of regular.
In nearly four years of living in Medellín, I have never seen gas prices that are cheaper than in the U.S. So if you own a car in Medellín, you will be paying more than in the U.S. to fill it up.
3. Books and MagazinesColombia doesn’t have a very large publishing industry, and there aren’t that many bookstores in cities, except in Bogotá.
Hardback Spanish language books are expensive in terms of the minimum wage. Many I have seen cost 60,000 pesos or more, which is almost 10 percent of the monthly legal minimum wage in Colombia of 644,350 pesos.
In Medellín, you can find bookstores in some but not all the shopping malls. Plus there’s Panamericana in El Poblado, which is a large bookstore with a limited choice of English titles.
English language books and magazines are harder to find in Colombia and are expensive. If you miss reading the latest bestseller, it is cheaper to buy them on Amazon in electronic format if available.
At the Liberia National bookstore at Premium Plaza, I saw an English language Economist magazine selling for 26,500 pesos ($10.26) with a U.S. cover price of $7.99.
I also saw a recent English language bestseller paperback selling for 24,600 pesos ($9.53) with a U.S. cover price of $7.99 as well as a hardback book that sells for $20.99 in the U.S. selling for 69,900 pesos ($27.07).
4. TaxesColombia doesn’t have very high property taxes, so if you own property in Medellín you won’t get hit by very high property taxes like you will in many states in the United States.
However, Colombia does have a 16 percent IVA tax (a value added tax) on many products, which makes buying many things more expensive. Some grocery items such as milk and fruits and several other items are exempt from the IVA tax.
In addition lower cost computers and tablets are also exempt, which can make some computers and tablets less expensive than in the United States, which we previously looked at here.
If you need to pay income taxes in Colombia, the country has progressive tax rates like in the U.S. that max out in Colombia at 33 percent.
Note that an individual is considered a Colombian resident for tax purpose if he or she stays in Colombia for more than 183 days during a year.
Taxable income ranges in Colombia are based on the UVT (tax value unit), which is 28,279 pesos for 2015.
The tax rates in Colombia are:
- 0 percent for UVT 0 to UVT 1,090
- 19 percent for UVT 1,091 to UVT 1,700
- 28 percent for UVT 1,701 to UVT 4,100
- 33 percent for UVT 4,101 and above
Everyone’s tax situation is different, and we are not tax experts so if you think you may be liable for Colombian income taxes, we recommend talking to a tax expert.
5. SmartphonesWe looked at buying and using cellphones in Colombia at the end of last year. Smartphones tend to be more somewhat more expensive in Medellín and other cities in Colombia than in the United States.
Last year I bought a new unlocked Samsung S5 Mini in a store in Monterrey with a price of 900,000 pesos ($379). On Amazon the same unlocked cell phone sells for $326.
Falabella is currently selling an unlocked 16GB iPhone 6 for 2,099,900 pesos ($813) and unlocked 16GB iPhone 6 Plus for 2,449,900 ($949). On Amazon an unlocked 16GB iPhone 6 sells for $715 and unlocked 16GB iPhone 6 Plus for $809.
The bottom line is that you can save some money on unlocked smartphones by buying in the U.S. to use in Colombia.
6. High end computers and other electronicsHigh-end computers that are subject to the IVA tax will typically be 15-25 percent higher cost in Colombia than in the U.S.
Many other electronics like televisions can be more expensive as well but if you shop around looking for the fairly frequent promotions, you can find prices that are similar to what is found in the U.S.
When I started traveling to Colombia from the U.S. in 2006, I often saw Colombians checking flat screen televisions and carrying laptop boxes on planes. But I haven’t seen this on recent flights as prices have dropped in Colombia.
Now I have seen this phenomenon on flights from Colombia to Brazil. Brazil has very high import duties that can essentially double the cost of electronics so Brazilians are now coming to Colombia to buy electronics.
7. Drugstore ItemsSomething I quickly noticed when I started living in Colombia is the higher cost of many drugstore items I normally buy – like shampoo and other hair products, toothpaste and toothbrushes, shavers and shaving cream and many other items.
Most imported drugstore items in Medellín tend to be more expensive than in the United States.
For example, at Jumbo I saw Gillette 200 ml shaving gel selling for 19,900 pesos ($7.71). The same product sells for $4.59 at CVS in the U.S. – making it 68 percent more expensive in Colombia.
I also saw Dove 400 ml shampoo selling for 14,300 pesos ($5.53), which sells for about $4.99 at CVS in the U.S. – about 11 percent more expensive.
I recommend looking for sales promotions to cut the cost of drugstore items in Medellín. Both Exito and Jumbo often have sales of drugstore items – such as buy one get one 50 percent off.
8. Fast foodFast food places tend to be more expensive in Medellín and other cities in Colombia than in the U.S. I don’t really understand why this is because labor costs in Colombia are lower than in the U.S.
For example, Dominos in the U.S. costs $5.99 for a two topping medium pizza, here in Medellín the same two-topping medium pizza from Dominos costs 21,900 pesos ($8.48) – 42 percent more expensive.
Frisby, which is a favorite fast food chain in Colombia, sells relatively expensive chicken. For example, at the Frisby in Los Molinos mall in Belén, a combo with two pieces of fried chicken with rice, potato salad and a small soda costs 18,800 pesos ($7.29).
The Bottom LineMany things in Medellín are cheaper than in the U.S., while some things have similar prices. But some items like the ones found on this list are typically more expensive in Medellín than in the U.S.
Several things on this list can be avoided like cars and gasoline if you choose to substitute inexpensive taxis, the metro, and/or buses. For drugstore items you can change brands and use lower cost local brands.
You can also choose to buy a smartphone in the U.S. where they tend to be cheaper. And of course you can choose not to eat at the fast food places.
Ultimately, while some things may be more expensive, the overall cost of living in Medellín is lower than in the U.S.