Legal & Tax Guide for Freelancers in Colombia

Tax Regime

Simple Tax Regime (RST)

• Income up to ~$3,500M COP/year: Flat rate 1.8-3.8%
• Integrates VAT, income tax, withholding
• Bi-monthly declarations

Ordinary Regime

• Progressive rate 0%-39%
• Allowed deductions (25% without invoices)
• Annual tax return

Legal Structure

Individual (Persona Natural)

• Simple registration with DIAN (RUT)
• Low costs
• Get RUT at dian.gov.co

S.A.S (Simplified Corporation)

• Limited liability
• Higher setup cost ($250-750 USD)
• Mandatory accountant

Banking

Recommended:

• Wise: Best exchange rate, 0.5-1.2% fees
• Payoneer: For marketplaces
• Deel: Complete platform for contractors

Setup:

1. Wise for receiving USD
2. Nequi/Daviplata for daily expenses
3. Traditional bank for backup

Invoicing

Electronic Invoice

• Mandatory since 2020
• Use authorized provider:
  • Alegra: $10/month
  • Siigo: Robust option
  • DIAN portal: Free but limited

International:

• 0% VAT for service exports
• Record in COP at day's exchange rate

Resources

• DIAN: dian.gov.co
• Alegra: Online accounting
• Tributi: Automated tax filing

FAQs

Do I need RUT to freelance? Yes, mandatory to legally invoice in Colombia.

How much to save for taxes?

• Simple Regime: 2-4%
• Ordinary Regime: 15-25%

Update: February 11, 2026. Verify changes at dian.gov.co.