US tax obligations while living in Colombia
Colombia — especially Medellín — is one of the world's hottest digital-nomad destinations: low cost of living, spring-like climate, and a 2023 Digital Nomad Visa. The tax point Americans miss: Colombia taxes residents (183+ days) on worldwide income with NO US treaty, so staying too long can trigger Colombian tax on US income.
TL;DR
Where Americans live in Colombia
Colombia hosts an approximately 40,000+ US expat population. The community concentrates in several cities with established expat infrastructure — international schools, English-speaking medical providers, American-style amenities, and active social communities. Below are the primary destinations.
Colombia's local tax — what you need to know
Colombia taxes RESIDENTS (present 183+ days in any 365-day period) on WORLDWIDE income, with progressive rates up to 39%. Once you become a Colombian tax resident, your US-source income can become Colombian-taxable too. With no US-Colombia treaty, double-tax relief depends on each country's foreign tax credit rather than a treaty.
Special tax regime details
No special expat regime and no US treaty. The decisive issue is RESIDENCY: under 183 days you are a non-resident taxed only on Colombian-source income; cross 183 days and Colombia taxes worldwide income up to 39%. US persons rely on the FTC (not a treaty) to avoid double tax; no totalization means full US SE tax for the self-employed.
✗ No US-Colombia income tax treaty
Without a tax treaty, double taxation is mitigated only through the unilateral Foreign Tax Credit (Form 1116) and FEIE (Form 2555). Withholding on US-source passive income (dividends, interest, royalties) is at the default 30% rate (rather than a treaty-reduced rate), which can materially affect investment returns for residents of Colombia. The treaty's absence does not mean no relief — FTC and FEIE still work — but planning is more constrained.
Social Security totalization agreement
The US does NOT have a Totalization Agreement with Colombia. This means if you're self-employed and a US citizen / Green Card holder, you owe US Self-Employment Tax (15.3% on net SE earnings up to the Social Security wage base) IN ADDITION to any Colombia social security contributions. This is a significant compliance cost — planning should consider whether to incorporate locally to avoid SE Tax exposure.
Residency and visa pathways to Colombia
Digital Nomad Visa (V-type, since 2023 — up to 2 years), Migrant (M) visas (marriage, work, pensioner), Resident (R) visa, Rentista. Medellín is one of Latin America's top nomad hubs.
Banking and FATCA notes for Colombia
Colombian banks (Bancolombia, Davivienda) require a cédula de extranjería for full accounts; many nomads run on Wise, Nu, and US cards plus cash. FATCA applies — declare any Colombian accounts on FBAR/8938. Track your day-count: it drives both Colombian residency and US-side planning.
FAQ — US Expats in Colombia
If your question isn't here, message me on Telegram for a personal reply.
Get your US taxes handled while you live in Colombia
Book a consultation to discuss your situation, get an exact price, and start filing or catching up.