Tax expat: How do you declare taxes in Colombia?

If you’re an expat in Colombia, figuring out taxes might feel like trying to decode an ancient language. It’s easy to feel overwhelmed between local regulations, tax residency rules, and potential double taxation. But don’t worry—you’re not alone. Understanding tax expat requirements in Colombia is crucial to staying compliant, avoiding hefty fines, and maximizing tax benefits.

With Colombia becoming a top destination for digital nomads, retirees, and foreign investors, more expats than ever face the reality of tax obligations in this country. In this guide, we’ll break down who needs to declare taxes, how the system works, and why working with experts (like Gutierrez Group) makes all the difference.

Do expats need to pay taxes in Colombia?

The short answer? It depends on your tax residency status.

Who qualifies as a tax resident?

According to DIAN (Colombia’s tax authority), you are considered a tax resident if:

• You spend over 183 days in Colombia (continuous or not) within 12 months.
• You have assets in Colombia (property, investments, businesses).
• You generate income from Colombian sources (salary, rental, business earnings).

If you qualify as a tax resident, you must declare and pay taxes on your worldwide income—not just what you earn in Colombia.

Non-residents vs. residents: what’s the difference?

• Non-tax residents: Only pay taxes on income generated in Colombia.
• Tax residents: Must report their global income and assets, even if they’re earning abroad.

This is where things get complicated. Many expats assume that just because they don’t have a job in Colombia, they don’t need to declare taxes—but that’s a big mistake.

How much tax do expats pay in Colombia?

The Colombian tax system works progressively, meaning the more you earn, the higher your tax rate.

Even if you don’t owe taxes, you may still need to file a tax return to prove compliance and avoid penalties.

Common tax mistakes expats make (and how to avoid them)

Assuming you don’t need to declare

Many expats think they don’t have to file taxes if they earn from foreign clients or live off savings. Wrong! Colombia requires tax residents to declare all global income.

Solution: Speak with a tax advisor to determine your obligations.

Forgetting to register with DIAN

You need a RUT (Registro Único Tributario)—Colombia’s tax ID to file taxes. Without it, you can’t legally declare income or get tax benefits.

Solution: Register with DIAN before your first tax deadline.

Not considering double taxation

If you’re paying taxes in Colombia and your home country, you might be eligible for tax credits through double taxation treaties (DTTs).

Solution: Verify if your country has a DTT with Colombia to avoid overpaying taxes.

How to declare taxes as an expat in Colombia

Filing your tax return in Colombia is not a one-size-fits-all process. The steps depend on your residency status, type of income, and assets.

Gather your financial documents

Before starting the process, make sure you have:
✔️ Your RUT number (Tax ID)
✔️ Bank statements (Colombian and foreign)
✔️ Income proof (salary, rental income, dividends)
✔️ Investment details (stocks, properties)
✔️ Foreign tax declarations (if applicable)

Determine your tax expat residency status

Use DIAN’s 183-day rule to confirm whether you qualify as a tax resident.

File online or with a tax expert

You can declare taxes through DIAN’s online system—but be warned, it’s in Spanish and can be confusing. A small mistake could lead to fines.

This is why 95% of expats work with tax advisors. Gutierrez Group ensures your taxes are filed correctly, maximizing deductions and avoiding unnecessary payments.

Why work with Gutierrez Group?

If you’re an expat in Colombia, dealing with taxes is one of those things you don’t want to get wrong. DIAN enforces strict penalties for errors, and tax regulations change frequently.

At Gutierrez Group, we make tax filing stress-free and straightforward.

✔️ Bilingual tax experts who understand Colombian tax laws and international tax treaties.
✔️ Personalized tax planning to help you legally reduce tax liability.
✔️ We file for you—so you don’t have to deal with DIAN’s Spanish tax forms.
✔️ Legal compliance & peace of mind—avoid fines and surprises down the line.

Conclusion

Declaring taxes in Colombia isn’t something you want to figure out at the last minute. Whether you’re an entrepreneur, investor, or retiree, knowing your tax expat obligations is crucial to avoid unnecessary risks.

If you want clarity, accuracy, and stress-free tax filing, contact Gutierrez Group today. Your finances should work for you—not against you.

Ready to simplify your expat taxes? Contact Gutierrez Group now!