U.S. Taxes for Americans Living in Colombia: The 2026 Guide

Key takeaways

• The United States has no income tax treaty and no social security totalization agreement with Colombia, so relief from double tax comes only from each country's domestic rules.
• Colombia generally treats you as a tax resident once you spend more than 183 days in the country in any 365-day period, and residents are taxed on worldwide income and worldwide net wealth.
• Your US filing obligation continues regardless of where you live, and the foreign tax credit usually fits Colombian residents better than the Foreign Earned Income Exclusion because Colombian rates on mid and high incomes are comparable to or above US rates.
• Self-employed Americans can owe both US self-employment tax and Colombian pension and health contributions on the same income, with no agreement to prevent it.
• Colombian voluntary pension funds, investment funds and companies can trigger complex US reporting (PFIC, foreign trust and CFC rules), so check the US classification before you invest or incorporate.

Do Americans living in Colombia still file US taxes?

Yes. The United States taxes its citizens and green card holders on worldwide income wherever they live. Moving to Colombia does not end that obligation; only formally giving up citizenship or abandoning a green card does, and that has its own tax consequences (see "Leaving Colombia").

Filing thresholds (tax year 2025). You generally must file if your gross income is at least the standard deduction for your status. For 2025, IRS Publication 501 lists $15,750 for a single filer under 65, $23,625 for head of household under 65, and $31,500 for married filing jointly with both spouses under 65. Self-employed people generally must file if net self-employment earnings are $400 or more, even below those thresholds. These amounts are indexed annually.

Deadlines (tax year 2025). The regular due date was April 15, 2026. If you lived and worked outside the United States on that date, you received an automatic two-month extension to June 15, 2026, by attaching a statement to your return. Interest still runs from April 15 on any unpaid tax. Form 4868, filed by June 15, extends filing (not payment) to October 15, 2026. The FBAR is due April 15 with an automatic extension to October 15. If you are reading this after October 15, 2026, and have not filed your 2025 return, talk to a professional about late-filing options.

Indexed figures for 2026. Rev. Proc. 2025-32 set the 2026 Foreign Earned Income Exclusion at $132,900, up from $130,000 for 2025.

When does Colombia treat you as a tax resident, and what does it tax?

Residency is a tax test, not an immigration status. Holding a visitor permit, a digital nomad visa or a resident visa does not by itself decide your tax residency. Article 10 of Colombia's Estatuto Tributario (ET) does.

The day-count test. Under ET Article 10(1), you are resident if you stay in Colombia, continuously or not, for more than 183 calendar days, counting days of entry and exit, within any period of 365 consecutive days. When that period straddles two calendar years, you are treated as resident from the second year. DIAN confirmed in Concepto 612 of 2020 that the 183-day rule applies as written, even to days spent in Colombia during the COVID-19 lockdown.

Tests for Colombian nationals. Article 10 adds tests for Colombian nationals only (for example, a resident spouse or minor children, or 50% or more of income from Colombian sources). They matter for dual US–Colombian citizens.

The tax base, confirmed in the charging provision. ET Article 9 provides that resident individuals, Colombian or foreign, are subject to income tax on income and occasional gains from both Colombian and foreign sources, and on their net wealth held inside and outside Colombia. Nonresidents are taxed only on Colombian-source income and Colombian assets. Colombia is therefore a worldwide system for residents. Note that the old version of Article 9 limited foreign residents to Colombian-source income for their first years; that rule no longer appears in the current text.

Rates (año gravable 2025 and 2026). Most income (labor, capital, non-labor and pension income) is combined and taxed under the progressive table in ET Article 241, expressed in UVT (Unidad de Valor Tributario). Marginal rates are 0% up to 1,090 UVT, then 19%, 28%, 33%, 35% and 37%, reaching 39% above 31,000 UVT. The UVT was COP 49,799 for 2025 and is COP 52,374 for 2026 (DIAN Resolution 000238 of December 15, 2025). The UVT is indexed annually. Occasional gains, such as the sale of property held two years or more, are taxed separately at 15%.

Local filing (año gravable 2025). You generally must file Form 210 if you exceeded any of these during 2025: gross assets of 4,500 UVT (about COP 224.1 million) at December 31; gross income, credit card spending, total purchases, or bank deposits and investments of 1,400 UVT (about COP 69.7 million). The deadlines for individuals run from August 12 to October 26, 2026, by the last two digits of your tax ID (NIT). The Colombian tax year is the calendar year, the same as the US year.

Foreign assets return. Residents whose foreign assets exceed 2,000 UVT at January 1 must also file Form 160, the annual foreign assets declaration (ET Article 607). For 2026 that threshold is COP 104,748,000, per DIAN. For most Americans, US bank and brokerage accounts and US retirement accounts are "foreign" assets.

Wealth tax. Residents with net wealth at or above 72,000 UVT at January 1 owe the impuesto al patrimonio under Law 2277 of 2022, at marginal rates of 0.5% to 1.5%. Emergency Decree 1474 of December 29, 2025, would have lowered the 2026 threshold to 40,000 UVT and raised rates to 5%. The Constitutional Court suspended it on January 29, 2026 (Auto 084 of 2026) and later declared it unconstitutional (Sentencia C-079 of 2026, April 15, 2026), so the Law 2277 rules apply for 2026.

Pending legislation. A tax reform bill filed July 20, 2026 (Proyecto de Ley 004 de 2026, Cámara) would raise the top individual rate to 41%, lower the wealth tax threshold to 40,000 UVT and remove the dividend credit in ET Article 254-1. As of mid-October 2026 it was still before Congress. These are proposals, not law.

Is there a US–Colombia tax treaty?

No. Colombia does not appear on the IRS list of countries with income tax treaties in force (Table 3, updated through September 26, 2025). There is therefore no saving clause, no residence tie-breaker, no reduced withholding on dividends, and no treaty article assigning taxing rights over pensions.

What does exist:

• A Tax Information Exchange Agreement, signed in Bogotá on March 30, 2001, and in force since April 30, 2014. It covers information exchange, not tax relief.
• A FATCA intergovernmental agreement (Model 1), in force since August 27, 2015, per the Treasury FATCA table.

What applies instead. Each country relieves double tax unilaterally. The US offers the foreign tax credit and the Foreign Earned Income Exclusion. Colombia offers a credit for foreign taxes under ET Article 254. Because there is no tie-breaker, you can be a full tax resident of both countries at once, and many Americans in Colombia are.

How do you avoid paying tax twice?

For the general mechanics of the FEIE, the Foreign Tax Credit and the stacking rule outside Colombia-specific figures, see our guide on FEIE vs. Foreign Tax Credit.

Foreign tax credit versus exclusion. The Foreign Earned Income Exclusion (Form 2555) lets you exclude up to $130,000 of foreign earned income for 2025 if you meet the bona fide residence or physical presence test. The foreign tax credit (Form 1116) lets you offset US tax with Colombian income tax paid on foreign-source income. You cannot claim a credit for Colombian tax on income you have excluded.

Which tends to fit. Colombia's rates reach 33% and above at moderate incomes, so Colombian tax on wages often equals or exceeds US tax on the same wages. In that case the credit generally eliminates US tax on that income and leaves excess credits to carry back one year or forward ten. The exclusion can make sense when Colombian tax is low, for example in the first partial year before you become Colombian resident. Remember that the exclusion does not reduce US self-employment tax, and that once you revoke the exclusion election you generally cannot re-elect it for five years without IRS consent.

Baskets. Wages and business income generally go in the general basket. Interest, dividends and most investment income go in the passive basket. Credits from one basket cannot offset US tax in the other.

How Colombia's credit works. ET Article 254 lets residents credit income tax paid abroad, but only on foreign-source income and only up to the Colombian tax on that income. DIAN has said the credit is not available for income from services performed in Colombia, even when paid by a foreign client (Oficio 901335 of 2022). In practice:

• Wages or fees for work done in Colombia are Colombian-source for Colombia (ET Article 24) and foreign-source for the US. Colombia taxes first; the US gives a credit.
• US-source dividends and interest are foreign-source for Colombia. The US taxes them; Colombia then credits the US tax, up to its own tax on that income.
• Gains on US stocks. For a US citizen, IRC Section 865(g) generally sources the gain to the US unless your tax home is abroad and you pay at least 10% foreign tax on the gain. Model this case before selling a large position.

Whether DIAN will credit the full US tax charged to a citizen on US-source income, rather than only what the US would charge a nonresident, is a genuinely open question not addressed in DIAN's published guidance.

Timing. Both countries use the calendar year, so there is no tax-year mismatch. But the Colombian return for 2025 is filed and paid in August–October 2026, after the usual US deadline. Cash-method taxpayers may elect to claim credits on an accrual basis so the Colombian tax for 2025 is credited on the 2025 US return. Otherwise you may need to amend.

Social security: will you pay both?

No totalization agreement exists. The SSA's list of agreements in force does not include Colombia. Nothing coordinates US Social Security with Colombia's pension and health systems.

Employees. An American working in Colombia for a Colombian employer is generally not subject to US Social Security tax on those wages. On the Colombian side, Law 100 of 1993, Article 15 (as amended by Law 797 of 2003), contains a specific rule for foreigners who stay in Colombia under an employment contract, tied to whether they are covered by a pension regime in their home country or elsewhere. The wording is read in different ways. A common reading is that a foreign employee who remains covered by a home-country system, such as US Social Security, may join the Colombian pension system voluntarily rather than mandatorily. But the text itself places foreigners who are not covered elsewhere in the voluntary category, and the provision was challenged before the Constitutional Court (C-027 of 2009) on the ground that all employees should be treated alike. Get advice before relying on any exemption, and keep proof of your US coverage. Health contributions are a separate question, worth confirming with a Colombian adviser.

Americans employed by a US company while living in Colombia generally remain subject to US Social Security and Medicare withholding. Colombian contribution obligations in that case are unclear and worth confirming with a local adviser.

Self-employed. You generally owe US self-employment tax on net earnings of $400 or more, and the exclusion does not reduce it. Colombian independent workers generally contribute to pension and health on a base of 40% of monthly income, under Article 89 of Law 2277 of 2022, as applied by Decree 379 of 2026. Commonly cited rates are 16% for pension and 12.5% for health on that base. Without an agreement, there is no certificate of coverage and no way to claim an exemption from either system.

Effect on US benefits. Without totalization, Colombian contributions do not count toward US Social Security eligibility, and US credits do not count toward a Colombian pension.

Which US forms apply to accounts and assets in Colombia?

• FBAR (FinCEN Form 114): required if the combined value of your foreign financial accounts exceeded $10,000 at any time in the year. Filed with FinCEN, not the IRS.
• Form 8938: for taxpayers living abroad, required if specified foreign assets exceed $200,000 on the last day of the year or $300,000 at any time (unmarried), or $400,000 and $600,000 (married filing jointly). It does not replace the FBAR.
• Colombian banks and FATCA. Under the Model 1 agreement, Colombian banks report accounts of US persons to DIAN, which passes the information to the IRS. Expect to sign a W-9 or self-certification.
• CRS. Colombia committed to the OECD Common Reporting Standard with first exchanges in 2017. The US does not participate in CRS, which is why FATCA is the channel for US persons.

Colombian side: if your US accounts and other foreign assets exceed 2,000 UVT at January 1, file Form 160 with DIAN.

Local pensions, retirement accounts and investment funds

Colombian voluntary pension funds and AFC accounts. Voluntary funds (fondos de pensiones voluntarias) and AFC savings accounts enjoy Colombian tax benefits, but there is no treaty to give them US recognition. They usually hold pooled investments, which may make you a direct or indirect shareholder in PFICs, reportable on Form 8621 and taxed under punitive default rules — confirm this fund by fund with a preparer. For the full mechanics of the default regime and the available elections, see our guide on PFICs.

Mandatory individual pension accounts (AFPs). No IRS guidance specific to Colombia settles their US treatment; positions range from foreign trust to deferred compensation to social insurance. Rev. Proc. 2020-17 exempts qualifying "tax-favored foreign retirement trusts" from Forms 3520 and 3520-A, but not from the FBAR or Form 8938, and it does not resolve income tax or PFIC questions. Whether a given Colombian fund qualifies must be checked against its conditions.

Colombian investment funds (fondos de inversión colectiva) are generally treated as foreign corporations and are likely PFICs.

US retirement accounts held while resident in Colombia. Colombia taxes residents on worldwide income, and its foreign pension rule (below) covers pensions, not undistributed account growth. How DIAN treats annual growth in a 401(k) or IRA is a question not addressed in DIAN's published guidance. The accounts count as foreign assets for Form 160 and for the wealth tax.

Pensions received in Colombia. Since Law 2277 of 2022, ET Article 206, paragraph 3, extends the Colombian pension exemption (up to 1,000 UVT per month) to pensions obtained abroad. Whether US Social Security benefits count as a pension for this purpose is not confirmed by any published DIAN guidance. The US still taxes the benefits under US rules.

Running a business or company in Colombia

Check the per se list first. The Treasury regulation listing foreign entities that are always corporations for US tax purposes, 26 CFR 301.7701-2(b)(8), includes the Colombian Sociedad Anónima (S.A.). An S.A. cannot elect to be disregarded or treated as a partnership.

The SAS is different. The sociedad por acciones simplificada (SAS), the most common Colombian vehicle, is not on the per se list, so it is an eligible entity. Under the default rules, a foreign eligible entity whose owners all have limited liability is treated as a corporation, but it can elect on Form 8832 to be disregarded (single owner) or a partnership. The choice changes everything below, so make it deliberately and early.

CFC and NCTI. A Colombian company treated as a corporation and more than 50% owned by US shareholders is a controlled foreign corporation. US shareholders file Form 5471 and may include Subpart F income and, from 2026, net CFC tested income (NCTI) under Section 951A. NCTI replaced GILTI under the 2025 law known as the One Big Beautiful Bill Act; the old QBAI carve-out is gone. Individuals face higher effective rates than corporations on these inclusions unless they make a Section 962 election. Also relevant: Form 8992 (NCTI), Form 8858 (disregarded entity) and Form 8865 (partnership).

Self-employment tax. If you operate as a sole proprietor or through a disregarded SAS, your net earnings are generally subject to US self-employment tax, on top of Colombian contributions.

Colombian simplified regime. Colombia offers the Régimen Simple de Tributación, a substitute regime based on gross income. Whether its tax is creditable as an income tax for US purposes depends on the US foreign tax credit rules and should be analyzed before electing it.

Buying, renting and selling property

US side. The section 121 exclusion (up to $250,000 of gain, or $500,000 for qualifying joint filers) generally applies to a foreign principal residence if you meet the ownership and use tests. Gain is measured in US dollars, so peso moves affect the result.

Currency gain on a peso mortgage. If you borrow in pesos and the peso weakens before you repay, you repay fewer dollars. Under IRC Section 988, that gain on a personal loan is generally taxable, while a corresponding loss on a personal transaction is generally not deductible.

Colombian side. Gain on property held two years or more is an occasional gain taxed at 15%. Under ET Article 311-1, as amended by Law 2277 of 2022, the first 5,000 UVT of gain on the sale of your home is exempt if the property was held at least two years and the proceeds are used as the regulation requires (deposit in an AFC account, purchase of another home, or payment of the mortgage on the home sold). Decree 1920 of 2023 sets those conditions and confirms the cap fell from 7,500 to 5,000 UVT. The same decree reflects the real estate stamp tax: 1.5% on the portion of the sale value above 20,000 UVT and 3% above 50,000 UVT.

Rental income is taxable in both countries. Report it in Colombia within the general schedule and on Schedule E in the US, and credit Colombian tax against US tax on it.

Employment, equity compensation and remote work for a US employer

Source follows the place of work. Colombia treats wages and fees for work performed in Colombia as Colombian-source (ET Article 24), regardless of where the employer is. DIAN applied this to a Bogotá resident working remotely for a foreign project (Oficio 901335 of 2022). The US likewise treats pay for services performed abroad as foreign-source.

Remote workers for a US employer. Once you are Colombian resident, Colombia generally taxes your full salary. Your US employer will usually keep withholding US income tax and FICA; the credit or exclusion then reduces US income tax, but FICA usually continues. Your employer may also face Colombian permanent establishment and payroll questions, so raise them before you move.

RSUs and options. The US generally taxes RSUs at vesting and allocates the income between countries based on where you worked during the vesting period. Colombia's timing and sourcing rules for equity awards are not clearly settled in available sources. A mismatch in timing can strand foreign tax credits; model it with an adviser before a large vest.

State tax. Moving abroad does not automatically end US state tax residency — see our guide on state taxes after moving abroad.

Leaving Colombia

Colombian side. Residency ends when you no longer meet an Article 10 test. Because the 183-day count runs over any 365-day window, you may remain resident for the year you leave. You may still have to file for that year and, if you held foreign assets above the threshold on January 1, Form 160. Colombian nationals who become resident elsewhere must prove it with a foreign certificate of tax residence. Colombia does not appear to impose an exit tax on individuals.

US side. Moving away from Colombia changes nothing about US filing. Giving up citizenship or a long-term green card can trigger the expatriation tax for "covered expatriates" — see our guide on the US exit tax. For 2026, the average-tax test threshold is $211,000 and the exclusion amount for the deemed sale is $910,000.

Mistakes Americans commonly make in Colombia

1. Assuming a treaty protects them. There is none, so no tie-breaker, no reduced dividend withholding and no pension article.
2. Treating the visa as the tax answer. Tax residency comes from the 183-day count, not from the visa type.
3. Missing Form 160. US bank, brokerage and retirement accounts are "foreign" for Colombia, and the declaration is separate from the income tax return.
4. Using the exclusion by default. At Colombian rates, the credit often works better, and the exclusion still leaves self-employment tax.
5. Forgetting the wealth tax. Worldwide net wealth counts, including US retirement accounts and real estate.
6. Buying Colombian funds without checking PFIC status.
7. Forming a company without choosing its US classification. An S.A. is a corporation by default, with no choice; an SAS can elect, but only if you act.
8. Assuming Colombian contributions count toward US Social Security. They do not.

Checklist

Before moving: count your planned days in Colombia across rolling 365-day periods; decide whether the foreign tax credit or the exclusion fits your income mix; review US accounts that may restrict or close accounts for Colombian residents; if self-employed, budget for US self-employment tax plus Colombian contributions.

First 90 days: register for a Colombian tax ID (RUT/NIT) when required; tell your US employer and payroll provider your new location; track Colombian tax withheld and keep proof for Form 1116; check Colombian pension and health affiliation obligations with an adviser.

Every year: Form 160 if foreign assets exceed 2,000 UVT at January 1; wealth tax if net wealth is at or above 72,000 UVT at January 1; Colombian Form 210 between August and October; US Form 1040 by June 15 (automatic extension), with Forms 1116 or 2555, 8938, 8621, 5471 as relevant; FBAR by April 15 (automatically extended to October 15).

Before leaving: plan the departure date against the 183-day test; calculate tax on selling Colombian property in both countries; close out or document Colombian pension and investment accounts.

Frequently asked questions

Do I have to pay US taxes if I live in Colombia?

You must file if your income meets the thresholds. Whether you owe tax depends on credits for Colombian tax and the exclusion.

Is there a tax treaty between the US and Colombia?

No. Only an information exchange agreement and a FATCA agreement are in force.

How many days in Colombia make me a tax resident?

More than 183 days, continuous or not, within any 365-day period, counting entry and exit days.

Does Colombia tax my US Social Security or pension?

Colombia exempts foreign pensions up to 1,000 UVT per month under ET Article 206. Whether US Social Security qualifies is not confirmed in official guidance.

Do I have to report my US accounts to the DIAN?

Yes, on Form 160 if your foreign assets exceed 2,000 UVT at January 1, and in your income tax and wealth tax returns as applicable.

Can I use the Foreign Earned Income Exclusion in Colombia?

Yes, if you meet the residence or presence test, but it does not reduce self-employment tax and often saves less than the credit.

When to hire a professional

• Dual filing in both countries: a US enrolled agent or CPA with expatriate practice, working with a Colombian contador público.
• Pension affiliation and contributions: a Colombian labor and social security lawyer.
• Owning a Colombian company, especially with US partners: a US international tax adviser familiar with Forms 5471, 8832 and 8858, plus a Colombian corporate lawyer.
• Large investment portfolios, PFICs or Colombian pension funds: a US cross-border investment tax specialist.
• Late or missed filings, including FBARs: a US tax attorney or experienced CPA who can assess the IRS's disclosure options — see our guide on the Streamlined Filing Compliance Procedures.
• Renouncing citizenship: a US tax attorney before you schedule the consular appointment.

Sources

Source	URL	Used for	Page date
IRS — Table 3: List of Tax Treaties	https://www.irs.gov/pub/irs-lbi/table-3-list-of-tax-treaties.pdf	No Colombia treaty	Updated through 26-Sep-2025
SSA — Status of Totalization Agreements	https://www.ssa.gov/international/status.html	No US–Colombia totalization agreement	Accessed 17-Oct-2026
IRS — Publication 501 (2025)	https://www.irs.gov/publications/p501	2025 filing thresholds	2025
IRS — Automatic 2-month extension for citizens abroad	https://www.irs.gov/individuals/international-taxpayers/us-citizens-and-resident-aliens-abroad-automatic-2-month-extension-of-time-to-file	June 15 deadline rule	Accessed 17-Oct-2026
IRS — Comparison of Form 8938 and FBAR requirements	https://www.irs.gov/businesses/comparison-of-form-8938-and-fbar-requirements	FBAR/8938 thresholds	Accessed 17-Oct-2026
U.S. Treasury — FATCA agreements table	https://home.treasury.gov/policy-issues/tax-policy/foreign-account-tax-compliance-act	Model 1 IGA, 27-Aug-2015	Accessed 17-Oct-2026
26 CFR §301.7701-2 (Cornell LII)	https://www.law.cornell.edu/cfr/text/26/301.7701-2	Per se corporation list	Accessed 17-Oct-2026
DIAN — Estatuto Tributario, arts. 9, 10, 24, 241, 254, 311-1, 607	https://www.dian.gov.co/impuestos/personas/Renta_Personas_Naturales_2017/Preguntas_Frecuentes/	Residency, charging provisions, rates	Accessed 17-Oct-2026
DIAN — Oficio 901335 of 2022	https://normograma.dian.gov.co/dian/compilacion/docs/oficio_dian_901335_2022.htm	Remote work sourcing, Art. 254 credit scope	2022
DIAN — Decreto 1920 of 2023	https://normograma.dian.gov.co/dian/compilacion/docs/decreto_1920_2023.htm	Home-sale exemption, stamp tax	2023
Corte Constitucional — Sentencia C-079 de 2026	https://www.corteconstitucional.gov.co/relatoria/2026/C-079-26.htm	Decreto 1474/2025 declared unconstitutional	15-Apr-2026
Senado — Decreto 1474 of 2025 with suspension note	http://www.secretariasenado.gov.co/senado/basedoc/decreto_1474_2025.html	Wealth tax emergency decree, suspended	2025
Cancillería — Ley 797 of 2003	https://cancilleria.gov.co/normograma/compilacion/docs/ley_0797_2003.htm	Foreign employee pension affiliation	2003
UGPP — Decreto 379 of 2026	https://www.ugpp.gov.co/wp-content/uploads/2026/07/Decreto_379_de_2026_MinSalud.pdf	Independent worker contribution base	2026
Cámara de Representantes — Proyecto de Ley 004 de 2026	https://www.camara.gov.co/wp-content/uploads/2026/07/proyectos-ley/documentos/proyecto-36102/P.L.004-2026SC-REFORMA-TRIBUTARIA.pdf	Pending 2026 reform bill	2026
Law 2277 of 2022 text	https://vlex.com.co/vid/ley-2277-13-diciembre-1081513793	Pension exemption, wealth tax, independent contributions	2022
INCP; Portafolio; Siempre al Día; PwC Colombia; KPMG/EY (secondary)	—	Issue-spotting only: 2026 UVT, filing calendar, wealth tax commentary, reform bill status, Rev. Proc. 2025-32 figures	2025–2026

A note on scope: this guide is general information, not tax or legal advice. Whether a given fact pattern — a Colombian pension fund, an SAS you control, a large equity vest — triggers the rules described here depends on your own situation. Get advice from a US preparer experienced with Forms 1116, 5471, 8621 and 8938 and a Colombian contador público before you rely on anything in this guide.