Colombia Expat Forum

BlueSeas
Joined 2015
Posts: 379

7 years ago

Non-Resident Income Tax Property Owners

7 years ago

I was looking for information specific to non-resident income tax filings for Colombia. Had little success on the forum focused on non-residents, We purchased what is a rental property today, but bought late last year had no income in 2015. Did we need to file? What would the taxes be longer term. This is what we got from two different Colombian tax accountants.

Just to reiterate, all of this is if you are not a tax resident in Colombia, and spend less than 183 days in the country.

No income tax filing is required for a non-resident with no income in Colombia. The key qualifier is no income. You could have a city apartment and a country finca, so long as the are for friends and family, no need to file income tax.

Should you own real property and rent it out, you pay a income tax of a fixed 33% of net income generated as a non-resident. There is also a concept, sort of like AMT in the US, called presumptive income. On a 200,000,000 COP apartment, the presumptive income is 3% of asset value, or 6,000,000 and the tax due on that 33% or 2,000,000 COP minimum tax per year. If you rent out a place full time, you will normally have more then the presumptive income.

None of the above has anything to do with "wealth tax". It's all about income tax.

Wealth tax this year is only due for those previously obligated. As a non-resident, it's not likely an issue even if it gets renewed in future years. You would need a billion pesos of assets in Colombia. If you have that, I never determined the outcome in this case.

However if you become a tax resident, and they look at worldwide assets, that's only about 350,000 USD, making it a potential issue. So beware.

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