Income And Complementary Tax For Expatriates In Colombia

Miguel Torres Ruiz

Partner, AL Partners

On 10 of August 2021 start the deadline for the filing of the Income Tax for individuals (Colombians or foreigners) considered as Colombian residents according to the current tax code.

To know if any individual or foreigner is considered as tax resident should accomplish the following conditions as follow:

Staying continuously or discontinuously in Colombia for more than 183 days calendar days during any period of 365 consecutive calendar days.

Additionally, for Colombian nationals when the condition mentioned above is not met, the tax law stablishes additional sceneries to consider an individual as residence for tax purposes, as follow:

  1. Her/his permanent partner not legally separate or dependent children under age of 18, are tax residents in Colombia.
  2. 50% or more of its income are from national source
  3. 50% or more of its property is managed in the country
  4. 50% or more of its assets are understood to be owned in Colombia
  5. Having been required by the Tax Administration to do so, they do not prove their status as residents abroad for tax purposes
  6. Have tax residence in a jurisdiction classified by the National Government as a tax haven.

On the other hand, nationals who comply with any of the above conditions, will not be considered as tax residents if:

  1. That fifty percent (50%) or more of their annual income have their source in the jurisdiction in which they are domiciled.
  • That fifty percent (50%) or more of its assets are located in the jurisdiction in which they are domiciled. 

Individuals, nationals or foreigners, resident in the country and the illiquid successions of decease people residing in the country at the time of their death, are subject to income and supplementary tax with regard to its income and capital gains, both from a national source, as well as, from a foreign source, and to its equity owned inside and outside the country.

The individuals considered non-residents for fiscal purposes only are subject to its income and capital gains from the national source as well as its equity owned in the country.

The foreigners that are in Colombia working for national and multinational companies should have into consideration its own tax condition, considering that not only will become income taxpayers, but other obligations could be triggered, such as those for filing tax returns regarding to assets abroad and the wealth tax.


Contributing Advisors

Martha Stella Polo

Partner, AL Partners