Tax residency in Colombia: the 183-day rule explained

One of the first questions international clients ask is whether they will be taxed in Colombia. The answer depends largely on tax residency.

1. The basic rule

In general, an individual is considered a tax resident in Colombia when they stay in the country for more than 183 calendar days, consecutive or not, within any period of 365 consecutive days. Days of entry and exit count. Other circumstances can also lead to residency, including some cases involving Colombian nationals.

2. Why it matters

Residents are generally taxed on their worldwide income and assets, while non-residents are taxed mainly on income from Colombian sources. The rates, filing duties and withholding rules differ between the two groups.

3. Typical situations

• Retirees and remote workers who spend long periods in Colombia.
• Property owners who rent or sell a property in Colombia while living abroad.
• Investors who receive dividends or interest from Colombian companies.

4. Double taxation

Colombia has tax treaties with several countries that can reduce or prevent double taxation. Whether a treaty applies depends on your country and the type of income.

5. What to do before you move or invest

• Keep a precise record of your entries and exits.
• List your income sources and where each is taxed.
• Plan the structure of the investment before you buy or incorporate.

Tax rules change frequently and each case is different. Contact us to review your situation with your travel dates and income in hand. This article is general information and not tax advice for a specific case.