🇨🇴 Taxes in Colombia · Rates and residency
Taxes in Colombia
A 2026 guide to residency, income tax and social security, corporate tax, VAT, the simple tax regime, property and inheritance, tax treaties and deadlines.
Colombia taxes residents on worldwide income at progressive rates of up to 39%, while non-residents pay a flat 35% on Colombian-source income only. A foreigner becomes resident after spending more than 183 days in the country within any 365-day period.
Colombia tax rates in 2026 at a glance
A quick reference to the current Tax Statute (Estatuto Tributario, Colombia's main tax code); details and worked examples follow below.
| Tax | 2026 rate | Who pays and on what |
|---|---|---|
| Personal income tax, residents | 0-39% | Progressive scale on worldwide income; no tax up to $18,000 (1,090 tax value units) a year |
| Personal income tax, non-residents | 35% | Flat rate on Colombian-source income |
| Employee contributions | 8% + 1-2% | Pension 4% and health 4%; a further 1-2% to the solidarity fund on salaries from 4 minimum wages |
| Employer contributions | 20.5% + 9% + risk cover | Pension 12%, health 8.5%, payroll levies 9%, occupational risk 0.522-6.96%; on salaries below 10 minimum wages the employer skips the 8.5% and 5 points of the 9% |
| Corporate income tax | 35% | Colombian companies on worldwide income; 15% minimum effective rate |
| Dividends to non-residents | 20% | Withheld at source |
| VAT | 19% | Standard rate; 5% on selected goods; restaurants charge an 8% consumption tax instead |
| Occasional gains (ganancia ocasional) | 15% | Sale of assets held 2 years or more, inheritances, gifts; lotteries and prizes 20% |
| Wealth tax | 0.5-1.5% | Individuals with net worth of $1.2 million (72,000 tax value units) or more on 1 January |
| Simple tax regime | from 1.2% | Single tax on gross revenue for resident small businesses and freelancers with revenue under $1.7 million (100,000 tax value units) |
| Property tax (predial) | 0.5-1.6% | Municipal, on the cadastral value |
| Financial transactions tax | 0.4% | 4 pesos on every 1,000 pesos debited from an account |
Thresholds are set in tax value units: one tax value unit is $17 (52,374 pesos) in 2026, up from $16 (49,799 pesos) in 2025, as fixed by the Colombian tax and customs office. Amounts are in US dollars, with pesos or tax value units in brackets. The 2026 minimum wage (SMMLV) rose 23% to $550 (1,750,905 pesos); contribution thresholds are multiples of it.
What changed. Emergency Decree 1474 of 29 December 2025 cut the wealth tax threshold to $660,000 (40,000 tax value units) with rates of up to 5%, but in April 2026 the Constitutional Court struck it down (ruling C-079 of 2026). Decree 173 of 24 February 2026 created a one-off wealth tax on large companies. A new government took office on 7 August 2026 and a tax bill on the 2027 rates sits in Congress.
We will calculate online the tax on your income and show how to pay less legally.
Compare taxes in 146 countries: relocation taxes 2026
Who is a tax resident of Colombia
A tax resident pays tax on worldwide income and reports assets worldwide; a non-resident pays only on Colombian-source income. The tests are in Article 10 of the Tax Statute, and meeting any one is enough.
| Test | How it works |
|---|---|
| More than 183 days | Physical presence of more than 183 calendar days, continuous or not, within any 365 consecutive days; arrival and departure days count |
| Period spanning two years | If the 183 days fall in a window covering two calendar years, the person is resident from the second year |
| Colombian foreign service | People linked to Colombia's diplomatic service who are exempt from tax in the host country |
| Colombian nationals: family | Spouse or dependent minor children are Colombian tax residents |
| Colombian nationals: income and assets | 50% or more of income is Colombian-source, or 50% or more of assets are managed in Colombia, or 50% or more of assets are deemed held in Colombia |
| Colombian nationals: no proof | Failed to prove residency elsewhere when asked by the tax office, or reside in a jurisdiction on Colombia's tax haven list |
For foreigners the day count is effectively the only test. The visa type is irrelevant: neither a work visa nor the digital nomad visa carries a special tax regime. The count runs over any rolling 365-day window, so a half here, half there pattern slips into residency easily. Day counting and dual residency are covered in our article on the 183-day rule.
The two-year rule in practice: arrive on 1 August 2026 and stay, and you only reach 183 days in January 2027, so residency starts in 2027. Arrive in February 2026 and stay through December, and you are resident for 2026. There is no split-year treatment, so plan on reporting worldwide income for the whole year.
One more subtlety: pay for work physically performed in Colombia is Colombian-source income even when a foreign employer pays into a foreign account. A non-resident working remotely from Medellín is, on paper, earning Colombian income.
Colombia tax residency rules: counting 183 days
Colombia counts days in a rolling 365-day window and includes arrival and departure days (Article 10 of the Tax Statute). The threshold is more than 183 days. If the window spans two years, you are resident in the second one: four months at the end of one year and three at the start of the next make you resident for the new year.
A resident pays 0-39% on worldwide income, and 15% on gains from assets held two years or more. The law holds Colombian citizens tighter: family in the country or half of income and assets here make them resident. The statute acts like a strict grandmother: grandchildren who moved away still count as hers until they show residency elsewhere. The calculator below finds your busiest 365-day window.
Mistakes cost more: a window across two years makes you resident earlier than expected, and the tax office checks a resident's foreign accounts through automatic data exchange. Murblz support removes these risks: we count days, plan trips, obtain the residency certificate and apply double tax treaties where they are in force. We guarantee professional work and a transparent process, and in most cases a result on the first filing.
183-day calculator
Tax residency calculator for Colombia
Enter your travel dates: the calculator shows whether you are a tax resident of Colombia today and at year end, and how many days are left before the threshold.
Counting by dates needs JavaScript. Below are the same rules by country.
Personal income tax: a progressive scale from 0 to 39%
Individual income tax follows a schedular system (sistema cedular): a general basket (salary, fees, business, rent, interest), pensions and dividends. After deductions the baskets are added up and taxed on the scale in Article 241. Occasional gains (ganancia ocasional) are taxed separately at 15%.
| Annual taxable income, US dollars | Tax value units | Pesos in 2026 | Rate | Tax, tax value units |
|---|---|---|---|---|
| up to $18,000 | up to 1,090 | up to 57,087,660 | 0% | 0 |
| $18,000-28,000 | 1,090-1,700 | 57.1-89.0 million | 19% | 19% of the excess over 1,090 |
| $28,000-67,000 | 1,700-4,100 | 89.0-214.7 million | 28% | 116 + 28% of the excess over 1,700 |
| $67,000-150,000 | 4,100-8,670 | 214.7-454.1 million | 33% | 788 + 33% of the excess over 4,100 |
| $150,000-310,000 | 8,670-18,970 | 454.1-993.5 million | 35% | 2,296 + 35% of the excess over 8,670 |
| $310,000-510,000 | 18,970-31,000 | 993.5 million to 1.62 billion | 37% | 5,901 + 37% of the excess over 18,970 |
| over $510,000 | over 31,000 | over 1.62 billion | 39% | 10,352 + 39% of the excess over 31,000 |
These are marginal rates: 39% applies only to the slice of income above $510,000 (31,000 tax value units). Because the scale is written in tax value units, only the peso thresholds move each year.
What reduces the base
Mandatory pension and health contributions are not income. Other reliefs share a common cap.
- 25% of employment income is exempt, up to $13,000 (790 tax value units) a year. Freelancers can use it too, but must choose between the 25% and their actual expenses.
- Overall cap: exempt income and special deductions together cannot exceed 40% of income after contributions, or $22,000 (1,340 tax value units) a year.
- Dependants: on top of the cap, an employee may deduct $1,200 (72 tax value units) per dependant, for up to four.
- Purchases backed by e-invoices: 1% of purchases supported by an electronic invoice, up to $4,000 (240 tax value units) a year.
- Mortgage interest, up to $20,000 (1,200 tax value units) a year; private health plans, up to $270 (16 tax value units) a month; voluntary pensions and AFC home-savings accounts, within their own limits.
Pensions, including foreign ones
Pensions are taxed only on the part above $17,000 (1,000 tax value units) a month. Article 206 explicitly extends this to pensions received from abroad. A retiree with an ordinary foreign pension is unlikely to owe Colombian tax on it, but must still report it.
Dividends
Dividends from Colombian companies are taxed on the scale, but residents get a 19% tax credit on the amount above $18,000 (1,090 tax value units), and the company withholds 15% on the same excess as a prepayment. Dividends from foreign companies are also taxed on the scale, with credit for foreign tax up to the Colombian tax on the same income.
Social security contributions and take-home pay
Social security covers pensions, health (via an EPS) and occupational risk (ARL), plus employer payroll levies for a family compensation fund, SENA (national training service) and ICBF (family welfare institute).
| Contribution | Employee | Employer |
|---|---|---|
| Pension | 4% | 12% |
| Health | 4% | 8.5%, but not on salaries below 10 minimum wages |
| Pension solidarity fund | 1% on salaries from 4 minimum wages, plus 0.2-1% from 16 minimum wages | none |
| Occupational risk (ARL) | none | 0.522-6.96% depending on risk class |
| Family compensation fund | none | 4% |
| SENA and ICBF | none | 2% + 3%, but not on salaries below 10 minimum wages |
Employers who pay income tax skip the 8.5% and 5% for staff earning under 10 minimum wages, $5,500 (17,509,050 pesos) a month in 2026. The contribution base is capped at 25 minimum wages, $14,000 (43,772,625 pesos). On an integral salary (salario integral, from 13 minimum wages) contributions apply to 70% of pay.
On 25 August 2026 the Constitutional Court upheld most of the pension reform (Law 2381 of 2024, ruling C-264 of 2026) and sent some articles back to Congress. The approved provisions are due to take effect on 1 April 2027, although Colpensiones has asked the Court to push the date to 2028. Under the law, solidarity fund contributions on higher salaries rise to 1.5-3%.
Under Law 100 of 1993, a foreign employee who already has pension coverage in another country may stay out of the Colombian pension system, provided this is documented.
Self-employed and freelancers
Independent workers (trabajadores independientes) pay monthly on a base of 40% of income: 12.5% for health and 16% for pension, plus 1% to the solidarity fund once the base reaches 4 minimum wages. The base runs from one to 25 minimum wages; ARL is compulsory for service contracts over a month. On $3,200 (10 million pesos) a month, contributions total $360 (1,140,000 pesos), or 11.4%.
Example: a $3,200 (10 million pesos) monthly salary at a private company
| Step | Amount, pesos |
|---|---|
| Gross salary | 10,000,000 |
| Employee pension, 4% | 400,000 |
| Pension solidarity fund, 1% | 100,000 |
| Employee health, 4% | 400,000 |
| Income after mandatory contributions | 9,100,000 |
| Exempt 25% of employment income | 2,275,000 |
| Withholding base (130.3 tax value units) | 6,825,000 |
| Tax withheld: 19% above 95 tax value units | about 351,000 |
| Take-home pay | about 8,749,000 |
| Take-home pay in US dollars | ~$2,800 |
| Employer pension, 12% | 1,200,000 |
| Compensation fund 4% and ARL 0.522% | 452,200 |
| Accruals for prima, cesantías, interest and holiday | about 2,183,000 |
| Total cost to employer | about 13,835,000 |
| Total cost to employer in US dollars | ~$4,400 |
Withholding follows the monthly table in Article 383: nothing up to $1,600 (95 tax value units), 19% from 95 to 150 tax value units, then 28%, 33%, 35%, 37% and 39%. The employee loses about $390 (1.25 million pesos), 12.5% of gross; the employer skips the 8.5% and 5% because pay is under 10 minimum wages.
On top of contributions the employer must accrue statutory benefits: prima de servicios (one month's pay a year), cesantías (another month a year paid into a severance fund), 12% annual interest on cesantías and 15 working days of paid holiday. Staff earning up to 2 minimum wages also receive a transport allowance, $78 (249,095 pesos) a month in 2026.
Let us check where you pay tax
Describe your situation in the chat and we will tell you right away where you are tax resident.
Corporate income tax and dividends
Colombian companies, most often a simplified stock company, pay corporate income tax at 35% on worldwide income. Foreign companies and their branches pay the same rate on Colombian-source income. Our company registration page explains the set-up process.
| Situation | Rate |
|---|---|
| General rate | 35% |
| Minimum effective rate (tasa mínima de tributación) | 15%: if the computed effective burden is lower, the company tops up |
| Banks, insurers and brokers with taxable income from $2 million (120,000 tax value units) | 35% + 5 points, through 2027 |
| Hydroelectric generators with taxable income from $490,000 (30,000 tax value units) | 35% + 3 points, through 2026 |
| Oil and coal extraction | Surtax on top of 35% linked to world prices, up to 15 points for oil |
| Qualifying free trade zone users | 20% on export income if the regime conditions are met, 35% on the rest |
| Corporate capital gains | 15% |
The tax year is the calendar year. Companies keep IFRS-based books, issue e-invoices and file monthly withholding returns, so bookkeeping support is a necessity, and Murblz specialists arrange it with local partners; our audit and reporting service can help.
Dividends
Dividends are taxed again on distribution, and the treatment depends on who receives them.
| Recipient | Tax |
|---|---|
| Colombian company | 10% withheld at source; the credit passes through to the final resident individual or foreign investor |
| Resident individual | Scale up to 39% with a 19% credit on the amount above $18,000 (1,090 tax value units); 15% withholding on the same excess |
| Non-resident individual or company | 20% withheld at source, unless a tax treaty gives a lower rate |
| Profits not taxed at company level | First 35%, then the recipient's rate on the remainder; roughly 48% in total for a non-resident |
For a non-resident owner extracting profits, the combined burden is 35% plus 20% of the remaining 65%, roughly 48%. That is heavy even by regional standards; compare taxes in Mexico.
The one-off 2026 wealth tax on companies
Decree 173 of 24 February 2026 (supplemented by Decree 240) imposed a 2026-only tax on legal entities with net equity of $3.3 million (200,000 tax value units) or more on 1 March 2026: 0.5%, or 1.6% for financial and extractive companies, paid on 1 April and 4 May. The Constitutional Court is reviewing it and has suspended the second instalment only for special-regime non-profits and companies in liquidation. Small businesses are unaffected.
For day-to-day operations the company will need a local or offshore business account.
VAT at 19%, consumption tax and the registration threshold
The standard rate of 19% (Article 468) did not change in 2026.
| Supply | Rate |
|---|---|
| Standard rate | 19% |
| Selected goods, including some farm produce and electric vehicles | 5% |
| Exports of goods and services, meat, fresh eggs, dairy | 0% with a right to recover input VAT |
| Restaurants, cafés, catering | 8% national consumption tax instead of VAT |
| Mobile phone services | 4% consumption tax |
| Municipal turnover tax ICA | Usually 0.2-1% of gross revenue, set by each municipality |
| Financial transactions tax | 0.4% of account debits |
Who must register for VAT
Companies register with their first taxable supply. An individual can stay outside the VAT system only if taxable revenue in the previous and current year is below $57,000 (3,500 tax value units), with at most one outlet or office, no franchise or customs activity, no single taxable contract of 3,500 tax value units or more, and taxable-activity bank deposits under 3,500 tax value units.
VAT returns are bimonthly for large taxpayers, exporters and anyone with prior-year revenue of $1.5 million (92,000 tax value units) or more; everyone else files every four months. VAT-registered businesses must issue electronic invoices through the tax office system.
Foreign providers of digital services to Colombian users must charge 19% VAT. Exported services are zero-rated with a refund right if the paperwork is in order: a contract, use of the service abroad and registration as an exporter.
Financial transactions tax: 4 pesos in every thousand
The financial transactions tax (Gravamen a los Movimientos Financieros) is taken by the bank on every debit: transfers, withdrawals, card payments. One designated savings account per individual is exempt up to $5,700 (350 tax value units) a month. Companies may deduct half of the financial transactions tax paid. Foreigners can open a personal account in Colombia, but banks usually ask for a Colombian ID document.
The simple tax regime for entrepreneurs, freelancers and small businesses
Colombia has no special regime for IT, expats or digital nomads. The main alternative for small businesses and freelancers is the simple tax regime, a single tax on gross revenue that replaces income tax, ICA and the restaurant consumption tax, but not VAT or social security.
It is open to individual entrepreneurs and to companies whose owners are individuals, Colombian or foreign, provided they are Colombian tax residents. Prior-year gross revenue must be below $1.7 million (100,000 tax value units). Existing taxpayers opt in by the last business day of February; newcomers can choose it when registering in the single tax register. A disguised employment relationship with a single client does not qualify.
| Activity | Revenue up to $98,000 (6,000 tax value units) | $98,000-250,000 (6,000-15,000) | $250,000-490,000 (15,000-30,000) | $490,000 to $1.7 million (30,000-100,000) |
|---|---|---|---|---|
| Small shops, mini-markets, hairdressers | 1.2% | 2.8% | 4.4% | 5.6% |
| Trade, technical services, construction, manufacturing and other | 1.6% | 2.0% | 3.5% | 4.5% |
| Food service and transport | 3.1% | 3.4% | 4.0% | 4.5% |
| Professional, consulting and scientific services | 5.9% | 7.3% | 12% | 14.5% |
In pesos the band limits are 314.2 million, 785.6 million and 1.57 billion in 2026. The rate is set by annual revenue and applies to the whole amount, not just the excess. For professional services, the Constitutional Court's ruling C-540 of 2023 revived the earlier 5.9-14.5% scale; check which group your activity code falls into before opting in. Food service adds the 8% consumption tax. Individuals with revenue up to $57,000 (3,500 tax value units) pay once a year; everyone else makes bimonthly advance payments.
Example: a resident consultant, ordinary regime or the simple tax regime
| Item, pesos | Revenue 120 million a year | Revenue 600 million a year |
|---|---|---|
| Revenue in US dollars | ~$38,000 | ~$190,000 |
| Contributions: 12.5% + 16% (and solidarity fund) on a 40% base | 13,680,000 | 70,800,000 |
| Income tax, ordinary regime, with the 25% exemption | about 4,304,000 (3.6% of revenue) | about 132,060,000 (22% of revenue) |
| Simple tax regime, professional services group | 5.9% = 7,080,000 | 7.3% = 43,800,000 |
The answer is not obvious. At modest revenue the ordinary regime with its 25% exemption is often cheaper, even though the simple tax regime includes ICA. As income grows the scale overtakes the simple tax regime, and at hundreds of millions of pesos the gap becomes several-fold. Run your own numbers, including your city's ICA.
Property, cars, inheritance, capital gains and crypto
Property tax and buying real estate
Property tax (impuesto predial unificado) is levied by the municipality on the cadastral value (avalúo catastral) at 5 to 16 per thousand, or 0.5-1.6% a year, more for vacant urban land. Each municipality sets its rate by stratum, use and value.
On purchase you pay registration tax (impuesto de registro, departmental, 0.5-1%), notary fees and, on expensive properties, stamp duty (impuesto de timbre): 1.5% on the part of the price between $330,000 (20,000 tax value units) and $820,000 (50,000 tax value units), and 3% above that. Ordinary apartments therefore escape stamp duty. Rental income is taxed on the general scale. More on our investment property in Colombia page.
Capital gains, inheritance and gifts
There is no standalone inheritance or gift tax. Inheritances, gifts and gains on assets held 2 years or more are occasional gains (ganancia ocasional) taxed at 15%; shorter holdings go on the scale of up to 39%, lotteries pay 20%.
| Occasional gains relief | Amount | In pesos for 2026 |
|---|---|---|
| Gain on selling your home, if the proceeds go into an AFC account and are spent on another home or a mortgage | first $82,000 (5,000 tax value units) of gain | 261,870,000 |
| Inherited home of the deceased | first $220,000 (13,000 tax value units) of value | 680,862,000 |
| Other inherited real estate | first $110,000 (6,500 tax value units) | 340,431,000 |
| Share of the spouse and each heir | first $53,000 (3,250 tax value units) | 170,215,500 |
| Gifts, and inheritances to people outside the forced heirs | 20% of value, up to $27,000 (1,625 tax value units) | up to 85,107,750 |
Wealth tax on individuals
The wealth tax (impuesto al patrimonio) applies to individuals whose net worth on 1 January is $1.2 million (72,000 tax value units) or more; non-residents pay on their Colombian assets. The first $200,000 (12,000 tax value units) of the main home is excluded.
| Net worth, US dollars | Tax value units | Marginal rate |
|---|---|---|
| up to $1.2 million | up to 72,000 | 0% |
| $1.2 million to $2 million | 72,000-122,000 | 0.5% |
| $2 million to $3.9 million | 122,000-239,000 | 1% |
| over $3.9 million | over 239,000 | 1.5% |
In 2026 the first instalment was due on 12-26 May and the second on 14 September. The $660,000 (40,000 tax value units) threshold and rates of up to 5% from Decree 1474 do not apply. The 1.5% band is temporary: from 2027 the top rate falls to 1%.
Vehicle tax
Vehicle tax (impuesto vehicular) is charged by the departments on the car's commercial value from an official table, at 1.5-3.5% depending on value. For electric vehicles the rate is capped by law at 1%.
Crypto
There is no dedicated crypto tax: the tax office treats crypto as an intangible asset listed in the return. Gains on coins held 2 years or more are taxed at 15%; short-term holdings, trading or mining go on the scale of up to 39%. On 31 October 2024 Colombia signed the international agreement on exchanging crypto-asset data. More in our article on crypto and taxes when relocating.
Non-residents and withholding taxes
A non-resident individual pays a flat 35% on Colombian-source income, with no progressive scale and no tax-free band. Foreign lecturers hired by universities for up to 182 days pay 7%. A non-resident does not have to file a return if all of their income was subject to withholding.
| Payment to a non-resident | Withholding rate |
|---|---|
| Dividends | 20% |
| Interest, fees, royalties, rent, personal services, software | 20% |
| Consulting, technical services and technical assistance, in Colombia or from abroad | 20% |
| Interest on foreign loans of 1 year or more | 15% |
| Management fees (administración o dirección) | 33% |
| Sales and services by companies with significant economic presence in Colombia | 10% withheld, or 3% of gross revenue by election |
| Capital gains | 15% |
The significant economic presence rule (presencia económica significativa) has applied since 2024 and targets digital businesses without a Colombian office that sell to Colombian customers: either 10% is withheld from each payment, or the business registers and pays 3% of gross revenue.
Non-residents holding Colombian assets pay predial, wealth tax on large holdings and 15% on disposal. Tax treaties lower withholding rates only when the recipient provides a certificate of tax residence.
Colombia's double tax treaties
Tax office lists 13 bilateral treaties in force plus the Andean Community's Decision 578, which covers Bolivia, Ecuador and Peru. There is no treaty with Russia or other former Soviet countries.
| Country | Status |
|---|---|
| Russia, Kazakhstan, Belarus, Armenia, Georgia and other former Soviet countries | No treaty |
| Spain | In force since 2008 |
| Chile | In force since 2009 |
| Switzerland, Canada | In force since 2012 |
| Mexico | In force since 2013 |
| India, South Korea | In force since 2014 |
| Portugal, Czech Republic | In force since 2015 |
| United Kingdom | In force since 2019 |
| Italy | In force since 2021 |
| France, Japan | In force since 2022 |
| Bolivia, Ecuador, Peru | Andean Community Decision 578, since 2005 |
| United Arab Emirates, Brazil, Netherlands, Uruguay, Luxembourg | Signed, but not on the tax office's list of treaties in force |
| United States, Germany, Argentina | No treaty |
Without a treaty, relief comes only from domestic law. A Colombian resident can credit foreign income tax, but only up to the Colombian tax on the same income; unused credits can be carried forward to later years, but only against Colombian tax on foreign income of the same kind. For income from a country without a treaty this means the foreign payer withholds at its own non-resident rates, Colombia taxes the same income on its own scale, and whatever foreign tax exceeds the Colombian tax is usually lost. There are no reduced withholding rates on dividends, interest or royalties.
This bites hardest on rent from a flat abroad, dividends from foreign companies and sales of property abroad: a resident must declare all of it in Colombia, converted into pesos, with documentary proof of the foreign tax. For regional comparison see taxes in Brazil and taxes in Argentina, or the full list on our taxes by country page.
Filing, deadlines and what can go wrong
| What | Deadline in 2026 |
|---|---|
| Individual return for 2025 | 12 August - 26 October, by the last two digits of the tax identification number; in areas hit by the 10 August 2026 earthquake (Cali, Pereira, Manizales, Armenia and others) some tax number groups have until 13 November (Decree 1226 of 2026) |
| Foreign assets return | With the individual return, if foreign assets on 1 January 2026 exceed $33,000 (2,000 tax value units) |
| Individual wealth tax | Return and first instalment 12-26 May, second instalment 14 September |
| Simple tax regime annual return for 2025 | 20-24 April |
| Opting into the simple tax regime for the current year | By the last business day of February |
| Corporate income tax for 2025 | Two instalments: 12-26 May and 9-23 July; large taxpayers pay three instalments from February to June |
| VAT | Every two or four months, depending on revenue |
| Withholding taxes and social security | Monthly |
An individual must file if annual income reached 1,400 tax value units, assets on 31 December exceeded 4,500 units, card spending, purchases or deposits reached 1,400 units, or they are VAT-registered. The 2025 return uses the 2025 unit: $22,000 (69,718,600 pesos) and $70,000 (224,095,500 pesos). Residents count foreign income and assets too.
Late filing costs 5% of the tax due for each month or part of a month, capped at 100% of the tax, plus interest. If no tax is due, the penalty is 0.5% of gross income per month, subject to limits. A late foreign assets return costs 0.5% of the assets' value per month if filed before the tax office issues a demand. The minimum penalty is $170 (10 tax value units) in 2026.
Who Colombia may not suit
Anyone counting on territorial taxation. Residents pay tax on worldwide income at up to 39%. There is no remittance basis and no new-resident regime of the kind found in Spain or Portugal.
People with income and assets in countries without a treaty. The credit is capped at the Colombian tax, and part of the foreign tax may simply be lost.
Owners of foreign companies. Residents are subject to controlled foreign entity rules (ECE): passive income of a foreign company controlled by Colombian residents can be taxed in the owner's hands straight away, without any dividend.
Digital nomads with long-term plans. The visa offers no protection from residency, and work done in Colombia is technically Colombian-source income from day one.
Anyone who values stable rules. 2026 alone brought an emergency tax decree and its annulment, a second emergency tax on companies, a 23% minimum wage jump and a change of government. Check every figure against the current law.
Anyone not ready for paperwork. The tax register, e-invoicing, monthly contributions and multiple returns need bookkeeping support even for a small business. Murblz specialists cover the legal side, and the Colombia page gives a country overview.
Your actual tax bill depends on your status, income mix and chosen regime - we go through your situation on a free consultation.
FAQ
What is the income tax rate in Colombia in 2026?
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Services
Murblz services in Colombia
The tax rate is only half the picture. The other half is where the company sits, where the money is held and who files the accounts. Murblz specialists help with that in the same country. The quote is fixed in writing before work starts.
See also
Related programs and destinations
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