Starting a business in
🇨🇴Colombia
Checked November 4, 2026 · How we score
Corporate tax
35%
Top income tax
39%
Setup from
$800
all-in, first year
Time to form
10 days
can be done remotely
Taxes in Colombia
| Corporate income tax | 35% 35% corporate income tax with a 15% minimum tax on adjusted book profit. Free Trade Zone (Zona Franca) companies pay 20%; certain new tech and creative-economy companies and remote areas (ZESE) have lower or temporary rates. ICA municipal turnover tax (0.2%–1.4% of gross income) and the 4x1000 financial transactions tax also apply. |
|---|---|
| Personal income tax (top) | 39% Progressive 0%–39% on worldwide income for tax residents (183+ days in a 365-day period). Non-residents pay 35% on Colombian-source income. Digital nomad visa holders staying under 183 days are not tax residents. |
| Tax system | Worldwide income |
| Capital gains tax | 15%15% ganancia ocasional on assets held over two years (increased from 10% in 2023); 35% on lottery-type windfalls. Short-held assets taxed as ordinary income. |
| Dividend withholding (non-residents) | 20% |
| VAT / GST | 19% |
| Social security | IVA 19%. Employer payroll charges roughly 20%–30% (health, pension, parafiscales) unless exempt under Article 114-1. Dividends to non-residents are subject to 20% withholding, plus 35% corporate profits tax on non-taxed profits. |
Forming a company in Colombia
| Usual entity | S.A.S. (Sociedad por Acciones Simplificada) |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $800–$2,500 |
| Annual running cost | $2,500–$7,000 |
| Time to incorporate | 10 days |
| Form remotely as a foreigner | Yes |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | No |
| Statutory audit for small companies | No |
| Business banking for non-residents | Hard |
Residency and visas
The digital nomad visa requires income of three minimum monthly wages (about US$1,300 in 2026; verify the current figure) and is valid up to two years. The Migrant Investor visa needs roughly 100 monthly minimum wages (about US$40,000–$45,000, approximate) in real estate or business and can lead to permanent residency after five years, or three years in some cases.
| Digital nomad visa | Digital Nomad Visa (V-Digital Nomad), $1,300/month income |
|---|---|
| Golden visa | Yes, from $45k |
| Ease of residency for founders | 3/5 (1 = easiest) |
Special tax regimes
Digital Nomad Visa
Remote workers earning at least three monthly minimum wages can live in Colombia for up to two years; staying under 183 days avoids tax residency.
Zona Franca (Free Trade Zones)
Companies in free trade zones pay 20% corporate tax instead of 35% on qualifying export activity, subject to investment and employment commitments.
Investor visa (M-Investor)
Foreign investors who put roughly 100 minimum monthly wages into real estate or a company obtain a renewable investor residence visa.
Pros and cons
Why founders pick Colombia
- Low-cost S.A.S. with a simple governance model
- Digital nomad visa and an affordable investor visa
- Large, young talent pool and growing startup scene
- Treaty network and OECD membership
Watch out for
- 35% corporate tax and 39% top personal tax on worldwide income
- High compliance burden, ICA, 4x1000 and frequent reforms
- Opening a corporate bank account as a foreigner is slow
- Peso volatility and exchange-control reporting requirements
Best for: Remote workers who want a low-cost base and a nomad visa · Software and service exporters serving Latin American markets · Founders hiring skilled, affordable talent in MedellÃn or Bogotá
Colombia: common questions
What is the corporate tax rate in Colombia?
The standard corporate income tax rate is 35%, with a 15% minimum tax on adjusted book profit. Free Trade Zone companies pay 20%. Dividends paid to non-residents carry a 20% withholding tax, and local ICA turnover tax applies on top.
Does Colombia have a digital nomad visa?
Yes. The Digital Nomad Visa launched in 2022 for remote workers earning at least three monthly minimum wages (about US$1,300 in 2026). It lasts up to two years, and holders who stay under 183 days a year generally do not become Colombian tax residents.
Can a foreigner open an S.A.S. in Colombia?
Yes. A foreign person can own 100% of a Colombian S.A.S. with no minimum capital and no local director required, registered at the local Chamber of Commerce. You need an RUT tax ID, a registered address and in practice a local accountant; incorporation by power of attorney is common but a bank account often needs a visit.
How do I become a tax resident in Colombia?
You are a tax resident if you spend more than 183 consecutive or non-consecutive days in Colombia in any 365-day period, or if your main business or family center is there. Residents are taxed on worldwide income at up to 39%, so many nomads keep their stay under 183 days.
Is Colombia good for a startup?
It is a growing startup hub with low costs, but high tax rates and compliance reduce its appeal for purely online businesses. It suits teams that operate in Latin America and want local talent.
Sources
Similar countries
Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.