The following overview provides a clear and data-driven explanation of the individual income tax framework in Colombia for 2025, including progressive rates, surcharge details, and essential compliance concepts. This guide is based strictly on the latest available data for Colombia’s income tax system.
Overview of Colombia’s Individual Income Tax System (2025)
Colombia imposes a progressive income tax on individuals. The assessment is based on total income, with the rate increasing across several brackets. The official currency for tax purposes is the Colombian Peso (COP).
Progressive Income Tax Rates for Individuals
The following table outlines the 2025 Colombian individual income tax brackets, with rates applied to the portion of income within each bracket. All amounts are expressed in Colombian Pesos (COP) and rates are on a percentage basis. Brackets are commonly denominated in Tax Value Units (UVT); here, values are shown as provided, in COP-equivalent income.
| Income Range (COP) | Rate (%) |
|---|---|
| 0 – 1,090 | 0% |
| 1,090 – 1,700 | 19% |
| 1,700 – 4,100 | 28% |
| 4,100 – 8,670 | 33% |
| 8,670 – 18,970 | 35% |
| 18,970 – 31,000 | 37% |
| Above 31,000 | 39% |
Colombia’s system is structured to increase the burden in line with the taxpayer’s ability to pay, applying the specified rate only to the portion of income within each band. Note that no rate is applied to the first 1,090 (COP), and rates climb steadily through seven brackets.
Assessment Basis and Application
All taxes are assessed on total individual taxable income. The assessment method is strictly income-based, with no flat rate applied across all taxpayers; the progressive schedule is obligatory.
Surtaxes and Dividend Taxation
Certain types of dividend income in Colombia are subject to additional taxation or surtaxes depending on residency status and how the dividends were previously taxed at the corporate level. The following table summarizes these additional taxes for 2025:
| Situation | Additional Surtax Rate (%) |
|---|---|
| Dividends received by non-residents | 20% |
| Dividends not taxed at corporate level (applies progressive rates on net amount) | 35% |
For non-resident individuals, a 20% tax applies on dividend income. If dividends were not subject to corporate tax, a 35% tax applies on the net amount, and the remaining amount is then taxed according to the progressive individual rates.
Withholding and Compliance Considerations
Colombia applies withholding requirements on certain income streams, particularly for non-residents. However, specific minimum or maximum holding periods for tax determination are not defined in the current data. Taxpayers should ensure clarity on what qualifies as taxable income and be aware of all applicable deductions, exclusions, and filing obligations as per Colombian regulations.
Pro Tips: Navigating Individual Income Tax in Colombia
- Ensure accurate classification of all income sources since different types may face additional surtaxes, notably dividend income for non-residents.
- Review the progressive tax brackets annually, as income bands and rates can be subject to change based on legislative updates each fiscal year.
- Take extra care when structuring investments: dividends that haven’t been taxed at the corporate level can carry substantially higher effective tax rates.
- For globally mobile professionals, note that Colombia’s residency and sourcing rules can affect your total tax liability—timely professional advice is crucial.
- Utilize official local resources such as the Dirección de Impuestos y Aduanas Nacionales (DIAN) for authoritative updates and guidelines.
Official Government Resources
- Dirección de Impuestos y Aduanas Nacionales (DIAN) – Colombia’s official tax authority
Colombia’s 2025 individual income tax framework remains firmly progressive, with carefully graduated brackets and notable surtaxes applicable on dividend income for both residents and non-residents. The structure underscores the importance of planning around income composition and understanding how additional taxes apply to global and domestic earnings. Staying current with official guidance and critically reviewing all sources of income will remain key for individuals operating or relocating in Colombia.