US taxes for Americans living in Colombia

Moving to Colombia does not end your relationship with the IRS. The United States taxes its citizens on worldwide income wherever they live, so an American in Bogotá, Medellín or Cartagena files a US return under the same basic rules as someone in Ohio, with a few tools designed for people abroad. At the same time, Colombia may tax you as a resident. This guide covers the US side: who must file, the deadlines, the main ways to avoid double taxation, and the reporting rules for Colombian accounts.

You still file a US return

The IRS states that if you are a US citizen or resident alien living or traveling outside the United States, you generally must file a return, and pay any tax due, if your income meets the filing threshold for your filing status. The thresholds are the same as for people living in the US. Your worldwide income counts: salary from a Colombian employer, remote pay from a US company, freelance income, pensions, Social Security, interest from Colombian banks and gains on Colombian property.

Deadlines for Americans abroad

• April 15 is the regular due date.
• June 15 is the automatic two-month extension for taxpayers whose tax home and abode are outside the US and Puerto Rico on the regular due date. You attach a statement explaining that you qualify. Interest still runs on unpaid tax from April 15.
• October 15 is available with Form 4868 if you request the regular six-month extension.

The foreign earned income exclusion

If you qualify, Form 2555 lets you exclude foreign earned income from US income tax. The IRS sets the maximum at $130,000 for tax year 2025 and $132,900 for tax year 2026, per qualifying person. Married couples who both work abroad and both qualify can each claim it.

To qualify, your tax home must be in a foreign country and you must meet one of two tests:

• Bona fide residence test: you are a bona fide resident of a foreign country for an uninterrupted period that includes an entire tax year.
• Physical presence test: you are physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.

The exclusion covers earned income only: wages, salaries and self-employment income for work done abroad. It does not cover pensions, Social Security, interest, dividends or capital gains. Work you perform while physically in the US is US-source income even if your employer is abroad.

The foreign housing exclusion or deduction

Taxpayers who qualify for the earned income exclusion may also exclude or deduct certain foreign housing costs above a base amount, up to a limit. The IRS sets the general limit at 30 percent of the maximum exclusion, which is $39,000 for 2025 and $39,870 for 2026. Some high-cost locations have higher limits. Check the IRS table for your city.

The foreign tax credit

If you pay income tax to Colombia, the foreign tax credit, claimed on Form 1116, can reduce your US tax on the same income. The IRS describes it as a way to avoid double taxation on income taxed by a foreign country. You cannot claim both the exclusion and the credit on the same income, but you can exclude some income and credit taxes on other income.

For Americans who become Colombian tax residents and pay Colombian income tax at rates comparable to US rates, the credit is often the more useful tool. Which approach works better depends on your income mix and the tax paid in Colombia.

No US-Colombia tax treaty

The IRS publishes a list of countries with which the US has income tax treaties. Colombia is not on it. That means no treaty tie-breaker rules for residence, no treaty reductions on withholding, and no treaty-based relief for pensions. The domestic tools above, the exclusion and the credit, are what you have.

Self-employment tax

The earned income exclusion reduces income tax, not self-employment tax. A self-employed American in Colombia generally still owes US self-employment tax on net earnings. Totalization agreements can change that for some countries, but the US has no such agreement with Colombia, according to the Social Security Administration's list of agreements.

FBAR: reporting Colombian accounts

If the combined value of your foreign financial accounts exceeds $10,000 at any time during the calendar year, you must file FinCEN Form 114, the Report of Foreign Bank and Financial Accounts. It is filed electronically with FinCEN, not with your tax return. The due date is April 15, with an automatic extension to October 15. Colombian savings accounts, current accounts, digital deposits and investment accounts count.

Form 8938

Under FATCA, you may also need to file Form 8938, Statement of Specified Foreign Financial Assets, with your tax return. For taxpayers living abroad, the IRS thresholds are:

• Single or married filing separately: more than $200,000 on the last day of the year or more than $300,000 at any time.
• Married filing jointly: more than $400,000 on the last day of the year or more than $600,000 at any time.

Lower thresholds apply if you live in the US. Form 8938 and the FBAR overlap but are separate obligations; you may need to file both.

Colombian taxes at the same time

Colombia's DIAN treats you as a tax resident if you are in Colombia more than 183 calendar days, continuous or not, within any 365-day period. Residents are taxed on worldwide income, including US income. For tax year 2025, Colombian individual returns were due between August 12 and October 26, 2026, according to the last digits of your NIT. Coordinating the two systems, including which year's Colombian tax you can credit on your US return, is one reason many expats keep careful records.

Records to keep

• Colombian payslips, contracts and invoices.
• Colombian tax returns and payment receipts.
• Bank statements for every account, with year-end and maximum balances.
• A day count of where you were, for the physical presence test and Colombian residence.
• Exchange rates used for conversions.

State taxes

Some US states continue to treat former residents as residents for tax purposes unless they clearly cut ties. Review your state's rules on domicile before you move, especially if you keep a home, a driver's license or voter registration there.

Converting pesos to dollars

Your US return is in dollars, so Colombian income, taxes and account balances must be converted. Use a consistent, documented exchange rate. For income received through the year, a yearly average rate is commonly used; for FBAR maximum balances, FinCEN's instructions call for the Treasury's year-end rate. Note the rate and its source in your records for each year, so you can explain your figures if asked.

A yearly routine

1. In January, download December statements for every Colombian and US account.
2. Update your day count for the previous year.
3. Gather Colombian payslips, withholding certificates and invoices.
4. Decide between the exclusion and the credit for each type of income.
5. File the US return by June 15, or extend.
6. File the FBAR by April 15, with the automatic extension to October 15.
7. Prepare the Colombian return for the DIAN deadline that matches your NIT.

Common questions

Do I still file US taxes if I live in Colombia? Yes. US citizens file on worldwide income wherever they live if income meets the filing threshold. Taxpayers abroad get an automatic extension to June 15.

What is the foreign earned income exclusion for 2026? Up to $132,900 per qualifying person for tax year 2026, and $130,000 for 2025, under the bona fide residence or 330-day physical presence test.

Is there a US-Colombia tax treaty? No. Colombia does not appear on the IRS list of US income tax treaty countries.