South America · South America

Colombia

55moderate

Overall Score

Colombia is a South America jurisdiction. with a standard worldwide income tax regime applicable to tax residents. Corporate profits are taxed at 35%. The jurisdiction offers a digital nomad visa for qualifying individuals.

Talk to an expert on Colombia Compare jurisdictions

Corporate Tax

35%

Personal Income Tax

39%

Capital Gains

15%

VAT / GST

19%

Overview

Key Data

Taxation

Personal Income Tax (max)39%

Personal Income Tax (min)0%

Corporate Tax Rate35%

Capital Gains Tax15%

VAT / GST19%

Dividend Tax Rate10%

Withholding Tax15%

Territorial TaxationNo

Foreign Income Exempt—

Remittance-Based Tax—

CFC RulesYes

Tax Residency Days183 days/year

Tax Treaties—

Residency & Visa

Digital Nomad VisaYes

Golden VisaNo

Retirement VisaYes

Investment VisaYes

EU MemberNo

Schengen AreaNo

EU PassportNo

Min. Days Required / Year—

Min. Monthly Income—

Min. Investment (residency)—

Citizenship Path—

Setup Difficulty—

Business & Cost of Living

Cost of Living Index38/100

Avg. Monthly Cost—

Company Formation Time—

Formation Cost (est.)—

Annual Compliance Cost—

Free Zone AvailableNo

Banking Easemoderate

Internet Qualitygood

Compliance & Reputation

FATF Statuscompliant

EU Blacklist Statusnot_listed

OECD Compliance—

CRS Participant—

FATCA Compliant—

BEPS Participant—

Treaty Network Quality—

Personal Tax Residency

Tax residency in Colombia is generally triggered by physical presence exceeding 183 days in a calendar year. Foreign income treatment: unknown. Controlled Foreign Corporation (CFC) rules are in force. Residents who own or control foreign entities may face attribution of that entity's undistributed profits under local anti-avoidance provisions.

Digital Nomad visa launched 2022 (up to 2 years). Non-residents taxed only on Colombian-source income. Medellín/Bogotá major expat hubs. Pensionado visa from USD 750/month pension.

Company Setup & Business Taxation

The standard corporate income tax rate is 35%. Establishing a legal presence here involves a higher degree of administrative complexity, often requiring local legal assistance.

Banking & Financial Access

Banking access in Colombia is attainable but may require more documentation and time than in simpler jurisdictions. Internet connectivity is generally good, with consistent broadband availability in business districts and main population centres.

Compliance & International Reputation

Colombia is a member of the Financial Action Task Force (FATF) and meets its anti-money-laundering standards. EU tax blacklist status: not_listed. Structures involving this jurisdiction may attract additional scrutiny or reporting obligations under EU member state rules.

Who This Jurisdiction Works Best For

Based on our scoring model, Colombia ranks highest for Digital Nomad and Freelancer. It offers a reasonable proposition for digital nomad (score: 60/100). It offers a reasonable proposition for freelancer (score: 56/100).

Legal Notice

The information on this page is for general informational purposes only and does not constitute legal, tax, or financial advice. Tax laws and residency rules change frequently and vary significantly by individual circumstances. Always consult a qualified professional licensed in the relevant jurisdictions before making any decisions.