Tax system in Colombia
Colombia taxes fiscal residents on worldwide income and gains. Non-residents are generally taxed on Colombian-source income, gains and certain Colombian assets, subject to treaty relief and special withholding rules.
Resident personal income is calculated through cedular categories and a progressive table from 0% to 39%. Salaries and many payments are subject to withholding, but withholding is not always the final tax.
The wider system adds 35% corporate income tax, a 15% gains-occasional rate, a recurring wealth tax, 19% general VAT, payroll contributions, local industry-and-commerce tax, consumption taxes and transaction taxes.
Tax rates at a glance
- Income tax
- 0% - 39%Progressive
- Wealth tax
- 0.5% - 1.5%
- Inheritance and gift gains
- 15%
- Capital gains tax
- 15%
- Corporate tax
- 35%
- Dividend withholding
- 0% / 15% / 20%+
- VAT
- 19%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Local operatorsEmployeesRegional foundersInvestorsCross-border businesses
Watch out for
- Colombia is not a simple low-tax base. Residency can bring worldwide taxation, while social-security contributions, withholding, VAT and local taxes can materially change the effective cost.
- The 2026 wealth-tax rules need careful separation: the ordinary regime applies to qualifying individuals and specified non-resident asset holders, while a temporary 2026 regime applies to qualifying income-tax-reporting legal entities above 200,000 UVT.
- Colombia's tax year uses the UVT. The 2026 UVT is COP 52,374, so thresholds move in pesos every year.
- The 2026 emergency-tax measures have already changed and been litigated. The rates and deadlines on this page should be rechecked before a filing, restructuring or distribution.
Frequently asked questions
Is Colombia a high-tax country?
Colombia is a medium-to-high tax jurisdiction for many residents and operating businesses. The headline rates are only part of the result because social security, withholding, VAT and local taxes also matter.
Does Colombia tax foreign income?
Yes, generally for Colombian tax residents. Non-residents are generally taxed on Colombian-source income and assets, with treaties and special regimes able to change the result.
Does Colombia have wealth tax?
Yes. The ordinary wealth tax applies above a 72,000 UVT net-worth threshold, and a separate temporary 2026 regime applies to qualifying legal entities above 200,000 UVT.