Colombia
South America • UTC-5 • America/BogotaColombian Income Tax System
Colombia's tax system includes progressive income tax rates, a competitive corporate tax rate, and a standard VAT rate applied to most goods and services.
Income Tax
0%–39%
Progressive rates based on income
Corporate Tax
35%
Standard corporate tax rate
VAT / GST
19%
Standard VAT rate
Nomad Visa
Available
Digital Nomad Visa
Tax System Overview
Colombia has a progressive tax system where residents are taxed on worldwide income and non-residents are taxed only on Colombian-source income. The system includes Personal Income Tax, Corporate Tax, and VAT.
System Type
Progressive personal income tax
Resident Taxation
Taxed on worldwide income.
Non-Resident Taxation
Taxed only on Colombian-source income.
Tax Year
January 1 – December 31
Income Tax Bands
Colombia's progressive income tax bands based on annual taxable income in COP (2025).
Tax Treaty
Double Taxation Agreements reduce withholding taxes and avoid double taxation on income from foreign sources.
Spain
Treaty ActiveColombia and Spain have a double taxation treaty that prevents individuals and businesses from being taxed twice on the same income, reduces withholding taxes on dividends, interest, and royalties, and clarifies tax residency rules.
Key Benefits
Prevents double taxation on income earned in both countries.- Reduced withholding tax on dividends, interest, and royalties.
- Clarifies tax residency to determine where taxes should be paid.
Totalization Agreement
These agreements coordinate social security systems, ensuring workers pay into only one system at a time.
Spain
Agreement ActiveColombia and Spain have a social security totalization agreement that prevents workers from paying social security in both countries simultaneously.
Coverage Areas
Facts
- Prevents double taxation of social security contributions for Colombia–Spain workers.
- Allows workers who split careers between the two countries to combine contribution periods.
Other Countries with Agreements
Business & Freelancing
Corporate Tax Rate
35% standard rate
VAT Registration
Mandatory if annual turnover exceeds COP 150 million.
Freelancer Rules
Freelancers must register and pay taxes on income exceeding COP 4 million monthly.
Crypto Policy
Cryptocurrency gains are taxed as ordinary income.
Frequently Asked Questions
Digital Nomad & Benefits
Visa Details
Tax Perks
- No wealth tax on foreign assets.
- Exemption on foreign pension income under certain conditions.
Filing Roadmap
Obtain Your RUT (Tax ID)
Register for a Colombian tax identification number (RUT) at the DIAN office.
Gather Income Documents
Collect all income statements, including employment slips and bank interest certificates.
File Your Tax Return Online
Submit your tax return via the DIAN website by the April 30 deadline.
Pay Any Tax Due
Pay any taxes owed by the filing deadline to avoid penalties.