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Start here: the legal gateways every foreign investor crosses in Colombia

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Last verified: 2026-10-26

Colombia treats foreign capital exactly like domestic capital, needs no prior approval for foreign investment outside two closed sectors and a few special regimes, and guarantees the right to remit registered profits and sale proceeds in freely convertible currency. The money must come in through the regulated FX market, where the FX declaration itself registers the investment with Banco de la República; that registration is what unlocks the remittance rights. The usual vehicle is an SAS formed by a private document filed at a chamber of commerce, a foreign company with permanent business must open a registered branch, and the company must sit in the DIAN tax registry (RUT) before it starts trading; profits are taxed at 35 percent and dividends to foreign shareholders bear 20 percent withholding.

USD figures use the TRM (tasa representativa del mercado) of COP 3,158.43 per US dollar, valid 24 to 26 October 2026, from the official TRM series published by the Superintendencia Financiera on the national open data portal. Conversions are for orientation only.

Key facts

Foreign investment treated the same as resident investment	Yes, no discrimination and no more favourable treatment textDecreto 1068 de 2015 art. 2.17.2.2.1.1 (Decreto 119 de 2017), as of 2026-10-26 · in force
Prior authorization for foreign investment under the general regime	Not required, save special regimes textDecreto 1068 de 2015 art. 2.17.2.2.2.2, as of 2026-10-26 · in force
Sectors closed to foreign investment	Defence and national security; processing and disposal of toxic, hazardous or radioactive waste not produced in Colombia textDecreto 1068 de 2015 art. 2.17.2.2.2.1, as of 2026-10-26 · in force
Foreign investment inflows and returns must go through the FX market	Yes, via FX market intermediaries or compensation accounts textResolución Externa 1 de 2018 BR art. 41 and art. 54, as of 2026-10-26 · in force
Right to remit verified net profits of a registered investment in freely convertible currency	Yes, through the FX market textDecreto 1068 de 2015 art. 2.17.2.2.3.1; Resolución Externa 1 de 2018 art. 55, as of 2026-10-26 · in force
Deadline to register changes of holder, destination or receiving company, or cancellation, of a foreign investment	6 monthsDecreto 1068 de 2015 art. 2.17.2.5.1.1, as of 2026-10-26 · in force
Maximum term to pay subscribed SAS shares	2 yearsLey 1258 de 2008 art. 9, as of 2026-10-26 · in force
Chamber of commerce fee to inscribe an act such as a constitution document (6 UVB, 2026)	73000 COPDecreto 1074 de 2015 art. 2.2.2.46.1.4, as of 2026-10-26 · in force
Departmental registration tax on company constitution registered at a chamber of commerce (rate band set by law, other than share premium acts)	0.3 to 0.7 %Ley 223 de 1995 art. 230 lit. b (Ley 2069 de 2020), as of 2026-10-26 · in force
Corporate income tax, general rate	35 %Estatuto Tributario art. 240 (Ley 2277 de 2022 art. 10), as of 2026-10-26 · in force
Additional points for financial institutions with taxable income of 120,000 UVT or more, tax years 2023 to 2027	5 percentage pointsEstatuto Tributario art. 240 par. 2, as of 2026-10-26 · in force
Withholding on dividends to foreign companies and non resident individuals, out of taxed profits	20 %Estatuto Tributario art. 245 (Ley 2277 de 2022 art. 4), as of 2026-10-26 · in force
TRM used for USD conversions (valid 24 to 26 October 2026)	3158.43 COP per USDOfficial TRM series, Superintendencia Financiera de Colombia, as of 2026-10-24 · in force

The rule

1. Foreign investment in Colombia is treated for all purposes in the same way as investment by residents. Subject to special regimes, the state may not impose discriminatory conditions on foreign investors, nor give them more favourable treatment than residents.Decreto 1068 de 2015, Title 2 of Part 17 of Book 2, as replaced by Decreto 119 de 2017 (international investment regime), Art. 2.17.2.2.1.1, 2017-01-26 official text · verified 2026-10-26

2. Foreign investment may be made in every sector of the economy except (a) defence and national security activities and (b) processing, disposal and dumping of toxic, hazardous or radioactive waste not produced in Colombia. Outside the special regimes set out in the same title (for example the financial, insurance and securities sectors), a foreign investment needs no authorization. Every foreign investor must appoint an attorney in fact (apoderado) in Colombia; portfolio investment must go through an authorized administrator.
Cost to do it: No government fee or approval to invest; the cost is the local attorney in fact and advisers, which vary by provider.Decreto 1068 de 2015 as replaced by Decreto 119 de 2017, Art. 2.17.2.2.2.1, art. 2.17.2.2.2.2 and art. 2.17.2.2.2.3, 2017-01-26 official text · verified 2026-10-26

3. Foreign currency for foreign investment in Colombia, and the returns on it, must be channelled through the FX market: an authorized FX market intermediary (IMC, such as a bank) or a registered compensation account. Remittances of verified net profits and of proceeds from a sale, liquidation, capital reduction or reduction of a branch's supplementary investment must also be channelled through the FX market, and require the investment to be registered with Banco de la República.
Example: An equity contribution of US$1,000,000 is sold to a Colombian bank and converts to about COP 3,158,430,000 at the TRM; the FX declaration is filed with that bank. / US$1,000,000 wired from abroad to a Colombian bank, not to a personal or third party account abroad.Resolución Externa 1 de 2018 of the Board of Banco de la República (international exchange regime), Banco de la República compendium, Art. 41 (num. 3), art. 54 and art. 55, 2018-05-25 official text · verified 2026-10-26

4. Direct investment made in foreign currency is registered automatically with Banco de la República when the FX declaration (the minimum data of the exchange operation) for the inflow is transmitted by the FX intermediary or compensation account holder. Registration is a sworn statement that the Bank does not examine; it creates only the rights and duties of the exchange and investment rules and does not clean the origin of the funds. If the receiving company does not yet exist when the money is channelled, the declaration names it as a company in formation and the investor must later supply its details. Changes of holder, destination or receiving company, and cancellations, must be registered within six months of the change.
Cost to do it: Banco de la República charges nothing to register; the bank handling the FX conversion prices its own spread and fees.Decreto 1068 de 2015 as replaced by Decreto 119 de 2017; Circular Reglamentaria Externa DCIP-83 of Banco de la República (compendium updated to 26 May 2023), Decreto 1068 art. 2.17.2.5.1.1 and art. 2.17.2.5.1.3; DCIP-83 Chapter 7, num. 7.1.1 and 7.2.1.1, 2017-01-26 official text · verified 2026-10-26

5. Once the investment is made and registered, the foreign investor may reinvest or retain profits, capitalize amounts entitled to remittance, remit abroad in freely convertible currency the verified net profits of each financial year, and remit the proceeds of selling the investment in Colombia, liquidating the company or reducing its capital. The conditions for repaying the investment and remitting profits in force at the registration date may not be changed to the investor's detriment, except temporarily when international reserves fall below three months of imports. These rights are without prejudice to the powers of the Board of Banco de la República as monetary and exchange authority.
Example: A registered investor whose subsidiary declares a dividend of COP 315,843 may buy dollars through an IMC and remit them after the 20 percent withholding. / A US$100 dividend leaves US$80 to remit after withholding at 20 percent (see the tax rules below).Decreto 1068 de 2015 as replaced by Decreto 119 de 2017, Art. 2.17.2.2.3.1 and art. 2.17.2.2.3.2, 2017-01-26 official text · verified 2026-10-26

6. The simplified stock company (SAS) may be formed by one or more individuals or legal entities, who are liable only up to their contributions and, save for fraud cases under art. 42, are not liable for the company's labour, tax or other obligations. It is created by a contract or unilateral act in a private document, authenticated by the signatories (directly or through an attorney in fact), and becomes a legal person once registered in the Registro Mercantil of the chamber of commerce of its main domicile; until then it is a de facto partnership, or the sole founder is personally liable. The document must state at least the shareholders, name followed by S.A.S., domicile, term (indefinite if silent), purpose (any lawful activity if silent), authorized, subscribed and paid capital, and administration with at least one legal representative. Capital may be paid on flexible terms but never over more than two years. A public deed is needed only if contributed assets require one.
Cost to do it: National registry fees for 2026 under Decreto 1074 de 2015 art. 2.2.2.46.1.1 and art. 2.2.2.46.1.4: inscription of the constitution document 6 UVB, COP 73,000 (US$23.11); RUES form COP 8,500 (US$2.69); existence and legal representation certificate COP 12,100 (US$3.83); commercial registration (matrícula) on a sliding scale by assets, COP 24,220 plus COP 8,477 per COP 1,000,000 of assets in the lowest band. Departmental registration tax is extra (see the Ley 223 rule).
Example: An SAS opening with assets of COP 50,000,000: matrícula COP 448,070, plus COP 93,600 for inscription, form and one certificate, a total of COP 541,670 in chamber fees. / About US$171.50 in chamber fees for that SAS, before registration tax, notary authentication and advisers.Ley 1258 de 2008 (simplified stock company), Art. 1, art. 2, art. 5, art. 7 and art. 9, 2008-12-05 official text · verified 2026-10-26

7. Registration with a chamber of commerce of acts with a value, such as the constitution of a company, triggers the departmental registration tax. For incorporations and capital increases the taxable base is the total contribution, including subscribed capital and share premium. Each departmental assembly sets the rate within legal bands: 0.3 to 0.7 percent for acts with a value registered at a chamber of commerce other than those involving share premium, and 0.1 to 0.3 percent for acts involving the constitution with, or increase of, share premium.
Cost to do it: On subscribed capital of COP 50,000,000 the tax falls between COP 150,000 and COP 350,000 (US$47.49 to US$110.81) depending on the department's rate.
Example: Subscribed capital COP 50,000,000 at a 0.7 percent departmental rate: COP 350,000. / About US$110.81 at the top of the band.Ley 223 de 1995, as amended by Ley 1607 de 2012 (art. 229) and Ley 2069 de 2020 (art. 230), Art. 226, art. 229 and art. 230, 2020-12-31 official text · verified 2026-10-26

8. A foreign company that wants to carry on permanent business in Colombia must set up a branch domiciled in Colombia, starting by protocolizing before a notary at the chosen domicile authentic copies of its founding document, bylaws, the resolution approving the Colombian establishment and proof of its existence and of its representatives' powers. The resolution must state the business, the capital assigned to the branch, the domicile, the term, a general attorney in fact (mandatario general) with one or more alternates, and a statutory auditor (revisor fiscal) who is an individual permanently resident in Colombia. Permanent activities include opening offices even of a technical or advisory nature, acting as a contractor for works or services, extractive industry, and holding or exploiting a state concession. Branches are subject to state supervision.
Cost to do it: Branch matrícula and annual renewal are charged on the national scale of Decreto 1074 de 2015; notary protocolization, apostille or legalization and official translation of foreign documents, and a resident revisor fiscal, are extra and vary by provider.Código de Comercio (Decreto 410 de 1971), Art. 471, art. 472 and art. 474, 1971-03-27 official text · verified 2026-10-26

9. The RUT, run by DIAN, is the single register that identifies income taxpayers, VAT responsible persons, withholding agents, importers, exporters and other customs users; the NIT is the identification number of those registered. Registration must be completed before economic activity starts, at DIAN, the chambers of commerce or other authorized entities.Estatuto Tributario (Decreto 624 de 1989), paragraph 2 as amended by Ley 2155 de 2021, Art. 555-2, 2021-09-14 official text · verified 2026-10-26

10. The general income tax rate for Colombian companies, permanent establishments of foreign entities and foreign legal persons that must file a return is 35 percent. Financial institutions, insurers, brokers and certain market infrastructure providers with taxable income of 120,000 UVT or more add 5 points for tax years 2023 to 2027, a total of 40 percent.
Example: Taxable income of COP 1,000,000,000: income tax of COP 350,000,000. / About US$316,613 of taxable income: about US$110,815 of tax.Estatuto Tributario, as amended by Ley 2277 de 2022, Art. 240, first paragraph and paragraph 2, 2022-12-13 official text · verified 2026-10-26

11. Dividends paid to foreign companies without their main domicile in Colombia and to non resident individuals bear income tax at 20 percent, withheld at source on the gross payment. If the dividend comes from profits that were not taxed at company level (the art. 48 and 49 calculation), the art. 240 rate applies first and the 20 percent applies to the remainder.
Example: A dividend of COP 650,000,000 paid out of taxed profits to a foreign parent: withholding COP 130,000,000, net COP 520,000,000. / About US$205,798 declared, US$41,160 withheld, US$164,639 to the parent before any treaty relief.Estatuto Tributario, as amended by Ley 2010 de 2019 and Ley 2277 de 2022, Art. 245, first paragraph, paragraph 1 and paragraph 2, 2022-12-13 official text · verified 2026-10-26

Step	Rate	COP	Approx. USD
Taxable profit of the Colombian SAS		COP 1,000,000,000	US$316,613
Income tax	35%	COP 350,000,000	US$110,815
Dividend declared		COP 650,000,000	US$205,798
Withholding on dividend to foreign parent	20%	COP 130,000,000	US$41,160
Net to parent, remitted through the FX market		COP 520,000,000	US$164,639
Combined burden on pre tax profit	48%	COP 480,000,000	US$151,974

From COP 1,000,000,000 of taxable profit to cash in the foreign parent's hands, assuming taxable income equals book profit, all profit is distributed and no treaty applies (Estatuto Tributario art. 240 and 245). USD at the TRM of COP 3,158.43, for orientation only.

Item	Basis	COP	Approx. USD
Commercial registration (matrícula)	COP 24,220 plus COP 8,477 per COP 1,000,000 of assets	COP 448,070	US$141.86
Inscription of constitution document	6 UVB	COP 73,000	US$23.11
RUES form	0.7 UVB	COP 8,500	US$2.69
Existence and legal representation certificate	1 UVB	COP 12,100	US$3.83
Departmental registration tax	0.3% to 0.7% of contributed capital	COP 150,000 to COP 350,000	US$47.49 to US$110.81
Total		COP 691,670 to COP 891,670	US$218.99 to US$282.31

Chamber of commerce and registration tax costs for an SAS with subscribed capital and opening assets of COP 50,000,000, 2026 national tariff (Decreto 1074 de 2015) and Ley 223 de 1995 art. 230. Notary authentication and advisers are extra. USD at COP 3,158.43.

Worked example

A foreign parent signs and authenticates a private SAS constitution document with subscribed capital of COP 50,000,000 and files it at the chamber of commerce of the chosen city (Ley 1258 de 2008 art. 5). Chamber fees come to about COP 541,670 (US$171.50) plus departmental registration tax of COP 150,000 to COP 350,000 (Ley 223 de 1995 art. 230).
The SAS is registered in the RUT before it starts trading (Estatuto Tributario art. 555-2).
The parent wires US$1,000,000 of equity to a Colombian bank, about COP 3,158,430,000 at the TRM. The FX declaration filed with the bank registers the direct investment automatically (Resolución Externa 1 de 2018 art. 54; DCIP-83 num. 7.2.1.1).
In a later year the SAS has taxable profit of COP 1,000,000,000 (about US$316,613), pays COP 350,000,000 of income tax at 35 percent and declares the remaining COP 650,000,000. The SAS withholds COP 130,000,000 at 20 percent and the parent remits COP 520,000,000, about US$164,639, through the FX market as a registered investor (Estatuto Tributario art. 240 and 245; Decreto 1068 de 2015 art. 2.17.2.2.3.1).

Step by step

1. Check the sector: outside defence and security and the import of foreign toxic waste, no approval is needed (Decreto 1068 de 2015 art. 2.17.2.2.2.1 and 2.17.2.2.2.2); financial, insurance and securities investments follow special regimes.
2. Appoint an attorney in fact (apoderado) in Colombia for the foreign investor (art. 2.17.2.2.2.3).
3. Choose the vehicle: an SAS by authenticated private document filed at the chamber of commerce (Ley 1258 de 2008 art. 5), or, for a foreign company with permanent business, a branch under Código de Comercio art. 471 and 472 with a mandatario general and a resident revisor fiscal.
4. Pay chamber fees and the departmental registration tax on the contributed capital; the company exists only once registered (Ley 1258 art. 2 and 7).
5. Register in the RUT and obtain the NIT before economic activity begins (Estatuto Tributario art. 555-2).
6. Wire capital only through a Colombian FX market intermediary or a compensation account, filing the FX declaration that registers the investment (Resolución Externa 1 de 2018 art. 41 and 54; DCIP-83 num. 7.2.1.1). If the company is not yet formed, declare it as a company in formation and complete its details once constituted.
7. Register any change of holder, destination or receiving company, or a cancellation, within six months (Decreto 1068 de 2015 art. 2.17.2.5.1.1), and keep supporting documents for the full limitation period for exchange sanctions (art. 2.17.2.5.1.4).
8. Model the 35 percent income tax and the 20 percent dividend withholding (Estatuto Tributario art. 240 and 245), then check treaty relief in the taxes section.

Common traps

Paying capital into an account abroad or through an unregulated channel. Foreign investment must come through the FX market (Resolución Externa 1 de 2018 art. 41 num. 3 and art. 54); without registration the right to remit profits and sale proceeds through the FX market is not available (art. 55).
Treating Banco de la República registration as a clean bill of health. The declaration is sworn and unexamined, and registration does not clean the origin of funds (Decreto 1068 de 2015 art. 2.17.2.5.1.3; DCIP-83 num. 7.1.1).
Missing the six month window to register transfers of shares, changes of receiving company or cancellations (Decreto 1068 de 2015 art. 2.17.2.5.1.1).
Trading before the SAS is registered. Until registration it is a de facto partnership, and a sole founder answers personally (Ley 1258 de 2008 art. 7).
Running permanent operations without a branch. Opening even a technical or advisory office, or acting as contractor for works or services, counts as permanent business that requires a branch (Código de Comercio art. 471 and 474).
Naming a non resident revisor fiscal for a branch. The law requires an individual with permanent residence in Colombia (Código de Comercio art. 472 num. 6).
Starting activity before RUT registration (Estatuto Tributario art. 555-2 par. 2).
Assuming 20 percent is the whole dividend tax. If profits were not taxed at company level, the 35 percent rate applies first (Estatuto Tributario art. 245 par. 1).
Ignoring the registration tax. Departments charge it on capital contributions and increases, including share premium (Ley 223 de 1995 art. 229 and 230).

Sources

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