All about taxes for expats in Colombia

Gaming the system as it relates to paying taxes in Colombia.

Gaming the system is defined as using rules or laws in an unfair though legal way to get what one wants.

If the system is self-contradictory, defiant of logic or corrupt, a person said to be gaming the system may decide what is fair or unfair.  Since, by definition, gaming the system is legal, it is logical that courts or other legal authorities may not override this decision.

--

If Expat X presents his tax information to half a dozen tax experts -- each of whom determines a different dollar-amount tax obligation -- Expat X is within his legal rights to choose the expert determining the lowest dollar amount.  Whether Expat X has 'gamed the system' is a matter of opinion.

cccmedia

Appreciate the reply.  Legally determining and following the tourist rules is not gaming a system.

It states, “Colombian Nationals?”  It appears this does not apply to US Citizens staying 180 days per calendar year as a tourist?  So 180 days in 2021, then 180 days in 2022 as a tourist.  This is documented in the US State Department website for tourists.

Ronaldo / talk to tax accountnant / there is laws / you are constructing to support your own scenerio.
I am a united states citizen and have two cedula 3 year cedula cards and file colombian taxes for past 4 years. Why do i do that because i am honest integrity and dont cheet
First a expat comes to coñombia and is given a 90 day visa stamp on entry. After expat X decides that this place is ok he says i am going to extend for further 90 days. Remembering he can only stay in colombia for 183 days during 12 consecutive months not calendar months. expat x has two further options at 160 days or so want to apply for 3 yeat cedula card based on proof of income. Expat x needs,documents for proof of income. Any income arriving in colombia thru retirement pensions / ATM Debit cards foreign sources such as bank are taxable. DIAN the IRS in colombia have access to every transaction made by cedula card.which is your colombia social security number.
If you want to be educated on colombia taxes i will provide my competent and skilled tax accountant info -let me know.

ronaldo2021 wrote:

It states, “Colombian Nationals?”  It appears this does not apply to US Citizens staying 180 days per calendar year as a tourist?  So 180 days in 2021, then 180 days in 2022 as a tourist.  This is documented in the US State Department website for tourists.

Whether you are a Colombian national or not, if you stay in Colombia for more than 183 days total in any 365 day period not necessarily a calendar year, you are considered a tax resident by Colombia and your worldwide income is subject to taxation.

So if you stay 180 days you have no tax liability as far as Colombia is concerned.

https://www.gerencie.com/residencia-par … arios.html

From the above link,

Requisitos para ser residente fiscal en Colombia
El artículo 10 del estatuto tributario contiene los requisitos para ser residente fiscal en Colombia:

«Se consideran residentes en Colombia para efectos tributarios las personas naturales que cumplan con cualquiera de las siguientes condiciones:

1. Permanecer continua o discontinuamente en el país por más de ciento ochenta y tres (183) días calendario incluyendo días de entrada y salida del país, durante un periodo cualquiera de trescientos sesenta y cinco (365) días calendario consecutivos, en el entendido que, cuando la permanencia continua o discontinua en el país recaiga sobre más de un año o periodo gravable, se considerará que la persona es residente a partir del segundo año o periodo gravable.

The possible tax issues of living in Columbia is the reason I decided to retire to Mexico. Mexico does not tax Social Security by treaty with the USA. My SS is more than sufficient to live a very comfortable life in Mexico. Even if your SS is only the average amount, if you can afford to buy your residence it is super easy to afford a very comfortable life on SS. If you are the more frugal type, you can even save money to sock away. I do.

Not necessarily, I believe  if  you earn income  IN COLOMBIA, for example from airbnb, you have to file, regardless of  days in country.

One other thing to note, Colombia  tax returns are individual  returns (no joint filing) so couples need to be prepared to pay double filing fees in Colombia.

Double filing fees? Seems kinda punitive, discouraging Civil Unions (and marriages) where both partners are working...

Hi Doug,   I'm from Canada living in Medellin.  Can you give me the name of a competent tax consultant that I can use here please? Thanks.

Hi Ernie,
I'm Bill, from Canada, living in Medellin.  Would you please give me the name of your tax consultant here? I've heard there are many incompetent or dishonest consultants here, so I'm afraid to hire one without references.  Thanks.

Keep in mind that many Americans already pay income tax on at least part of their Social Security payments.  I assume Colombia recognizes these payments and  will not be “double-taxing” them?

“ If you:

- file a federal tax return as an "individual" and your combined income  is between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits.
more than $34,000, up to 85 percent of your benefits may be taxable.”

- file a joint return, and you and your spouse have a combined income* that is
between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits.
more than $44,000, up to 85 percent of your benefits may be taxable.

- are married and file a separate tax return, you probably will pay taxes on your benefits.


https://www.ssa.gov/benefits/retirement … taxes.html