Private client—Colombia—Q&A guide

The following Private Client practice note provides comprehensive and up to date legal information covering:

  • Private client—Colombia—Q&A guide
  • 1. How does an individual become taxable in your jurisdiction?
  • 2. What, if any, taxes apply to an individual’s income?
  • 3. What, if any, taxes apply to an individual’s capital gains?
  • 4. What, if any, taxes apply if an individual makes lifetime gifts?
  • 5. What, if any, taxes apply to an individual’s transfers on death and to his or her estate following death?
  • 6. What, if any, taxes apply to an individual’s real property?
  • 7. What, if any, taxes apply on the import or export, for personal use and enjoyment, of assets other than cash by an individual to your jurisdiction?
  • 8. What, if any, other taxes may be particularly relevant to an individual?
  • 9. What, if any, taxes apply to trusts or other asset-holding vehicles in your jurisdiction, and how are such taxes imposed?
  • More...

Private client—Colombia—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to private client in Colombia published as part of the Lexology Getting the Deal Through series by Law Business Research (published: November 2020).

Authors: Baker McKenzie—Ciro Meza Martinez; Hanspeter Misteli; Alejandra Becerra

1. How does an individual become taxable in your jurisdiction?

An individual is subject to income tax in Colombia owing to residence status or upon deriving Colombian source income.

Non-residents

Non-residents are subject to income tax only on source income and they are only required to report income or assets derived or located in Colombia.

Colombian source income refers to income from activities undertaken within Colombian territory and certain activities rendered from abroad.

Applicable law refers to this as the provision of services inside Colombian territory, the transfer of assets located in Colombian territory at the time the transfer takes place and the exploitation of tangible or intangible assets located inside the country.

If Colombian-sourced payments are not subject to income tax withholdings, non-residents are required to file an income tax return in Colombia. If income tax withholdings are applied, this will be the individual's final tax liability in Colombia

Residents

An individual becomes a Colombian tax resident when he or she remains in the country, continuously or discontinuously, for more than 183 calendar days during a period of 365 days.

If the individual remains in the country continuously or discontinuously for 183

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