Taxes

US-Colombia tax obligations — guide for Colombian diaspora

Cross-border US-Colombia taxation: tax treaty, FBAR for Colombia accounts, FATCA implications, non-resident withholding, dual nationality.

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US-Colombia tax obligations

If you’re a Colombian citizen living in the US or US citizen with assets in Colombia, you have cross-border tax obligations with two systems: US IRS and Colombia tax authority. This guide covers main points.

Official IRS tax treaty status — verified data

Official source: IRS — US Income Tax Treaties A-Z

Verified on: 2026-05-25

❌ Colombia does NOT have a tax treaty with the US (verified against IRS on 2026-05-25).

NOT on IRS treaty list (negotiated but not in force)

Latin American countries with US tax treaty

Only 3 Latin American countries have a tax treaty with the US (IRS data 2026):

Chile (signed 2010, in force 2016)
Mexico (signed 1992, amended 2002)
Venezuela (signed 1999 — limited use due to sanctions)

Without treaty: what happens

If Colombia has NO tax treaty:

Colombia income is subject to US tax if you’re a US tax resident
NO reduced withholding rates on dividends/interest
Can claim Foreign Tax Credit (Form 1116) to avoid double taxation

Your Colombia tax ID

In Colombia, the tax ID is called Colombia NIT / Cédula. If you worked or had income in Colombia, you should have one.

Your US tax ID

If you have SSN: use it
If you don’t have SSN: you need ITIN from IRS — see ITIN complete guide
ITIN allows fulfilling US tax obligations without work authorization

⚠️ NO US-Colombia tax treaty

The US and Colombia do NOT have a bilateral tax treaty. This means:

30% withholding on US passive income for Colombian non-residents (dividends, interest, royalties, rentals)
NO automatic treaty reduction
Possible double taxation: paying Colombian tax authority on US-source income + IRS on same income
US Tax Credit (Form 1116) available for credits for taxes paid to Colombia (mitigates but doesn’t eliminate)

FBAR (FinCEN 114) — accounts in Colombia

If you’re a “US Person” (US citizen, permanent resident, or tax resident via Substantial Presence) and have bank accounts in Colombia whose combined balances exceeded $10,000 USD at any point in the year, you MUST file FBAR (FinCEN Form 114) annually.

Deadline: April 15 (automatic extension to October 15)
Cost: FREE (electronic via bsaefiling.fincen.treas.gov)
Penalties: $10,000-$100,000+ for non-filing

See: FBAR complete guide

FATCA (Form 8938) — assets in Colombia

If your Colombia financial assets (bank accounts, stocks, funds) exceed FATCA thresholds, you must file Form 8938 with your federal IRS return.

Thresholds (US Persons living in US):

Single: $50,000 at year-end
Married filing jointly: $100,000 at year-end

See: FATCA complete guide

US + Colombia dual nationality

Colombia allows dual nationality with US. If you naturalize as US citizen, you keep Colombian nationality (verify Colombia’s current rules).

Dual nationality tax implications:

Still tax with IRS on worldwide income (US taxes by citizenship)
Still tax with Colombia tax authority on income generated in Colombia (tax residency)
Cross Tax Credits (US Form 1116 + equivalent Colombia credits) mitigate double taxation

Currency and conversion

Colombia: COP (Peso colombiano). When reporting Colombian income to IRS, you must convert to USD using IRS-published annual average exchange rate or December 31 rate.

If you have a business (Self-Employment / Independent Contractor)

If you live in US with ITIN and have freelance/business income:

Schedule C (business profit/loss)
Schedule SE (Self-Employment Tax 15.3%)
1099-NEC from your US clients
FEIE does NOT apply (you’re IN the US, not abroad)

See: Filing taxes with ITIN

Official source: IRS International Taxpayers · FinCEN FBAR

Cross-border tax obligations are complex — consult a CPA or tax attorney with international experience.

Last verified: 2026-05-25.

General procedural information for educational purposes. Not legal, tax, or immigration advice. Laws and fees change — verify with the issuing agency before taking action. For case-specific guidance, consult a licensed immigration attorney or other appropriate professional.

ITIN — file federal taxes without SSN — required for federal and most state filings
ITIN-friendly business banking — for self-employment income
Form an LLC to structure business income — pass-through tax treatment under ITIN
Driver’s license requirements by state (DMV) — residency for state tax purposes
Find legal help for tax issues — VITA + low-income tax clinics

Frequently asked questions

Do the US and Colombia have a tax treaty?

No. Colombia is not on the IRS list of countries with a US income-tax treaty. Without a treaty there are no reduced treaty withholding rates, but you can still use the Foreign Tax Credit (Form 1116) to avoid being taxed twice on the same income.

Do I have to report my income from Colombia on my US taxes?

If you are a US tax resident (a citizen, green-card holder, or someone who meets the substantial-presence test), you generally report your worldwide income to the IRS — including income earned in Colombia. Non-residents are taxed only on US-source income. The Foreign Tax Credit or the Foreign Earned Income Exclusion can prevent double taxation.

Do I have to report my Colombia bank accounts (FBAR/FATCA)?

If the combined value of your foreign financial accounts — including accounts in Colombia — exceeds $10,000 at any point in the year, you must file an FBAR (FinCEN Form 114) electronically. Higher-value foreign assets may also require Form 8938 (FATCA) with your tax return. These are reporting forms, not extra taxes.

How do I avoid being taxed twice by the US and Colombia?

Two main tools: the Foreign Tax Credit (Form 1116) credits taxes you paid to Colombia against your US tax, and the Foreign Earned Income Exclusion (Form 2555) can exclude a large amount of foreign-earned wages if you live abroad. You generally choose the one that lowers your total tax — a cross-border preparer can confirm which fits your situation.

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General information, not legal advice. MigrantUSA is an independent publisher and is not a law firm; using this site does not create an attorney-client relationship, and this content is not a substitute for advice from a licensed attorney about your specific situation. US federal, state, and local government procedures, fees, and forms change. Always verify current details directly with the relevant agency before acting. For immigration, tax, or other legal matters specific to your situation, consult a licensed attorney or BIA-accredited representative.