Do non-resident owners have to file a Colombian tax return every year?

Non-resident owners generally don't need to file an annual Colombian tax return if 100 percent of their rental income was subject to definitive withholding at source, but if a tenant isn't an authorized withholding agent, or the withholding wasn't complete, filing Form 110 becomes necessary.

The core rule under Article 592 of the Tax Code

A non-resident isn't required to declare Colombian-source income as long as that income was subject to full withholding at source where applicable. This means the withholding, retención en la fuente, functions as the final, definitive tax rather than a mere prepayment, satisfying the non-resident's entire tax obligation on that specific income without a further filing requirement.

Why the tenant's status actually matters here

Why renting through a real estate agency simplifies this

Structuring a rental arrangement through a real estate agency that consistently applies the appropriate withholding, commonly cited around 20 percent for rental payments to non-residents, gives a non-resident owner a cleaner path toward not needing to file annually. This is a meaningfully different situation from renting directly to individual tenants who may not reliably apply or report withholding correctly.

What happens if withholding wasn't properly applied

A non-resident who received rental income without full, correct withholding, whether because the tenant wasn't a withholding agent or the withholding was incomplete, is required to file Form 110, the specific tax return form used by non-residents, distinct from Form 210 that Colombian tax residents use. Skipping this filing when it's actually required creates a real compliance gap that can surface later, particularly when selling the property and needing a clean tax history.

Why the property sale itself is a separate consideration

Even a non-resident who never needed to file an annual return for rental income will typically need to address tax obligations, ganancia ocasional specifically, when eventually selling the property, since that's a distinct transaction from the ongoing rental income question. Staying current on annual filing obligations, where they exist, avoids compounding complexity for that eventual capital gains filing at sale.

Why some non-residents choose to file even when not strictly required

Some non-resident owners file voluntarily even in situations where full withholding technically satisfies their obligation, since a documented filing history can simplify future transactions, financing applications, or sale proceedings by providing a clear paper trail of compliance rather than relying solely on withholding certificates from prior years.

This is a judgment call best made with a Colombian accountant who understands both your specific rental arrangement and your longer-term plans for the property.

What to actually confirm with your accountant each year

Rather than assuming your filing status from a prior year still applies, confirming annually whether your specific rental arrangement, tenant type, and income level still fall within the no-filing-required scenario is worth doing, since circumstances like a change in tenant or a rise in rental income can shift your obligation from one year to the next.

Why changing tenants mid-year can quietly change your obligation

A non-resident owner who rented previously through an agency applying full withholding, then switches to renting directly to an individual tenant who doesn't apply the same withholding correctly, can shift from a no-filing situation into one requiring Form 110, sometimes without immediately realizing the change. This kind of transition is exactly the moment to re-confirm your filing status with an accountant rather than assuming last year's arrangement still describes your current situation.

Owners who manage this transition proactively, checking in with their accountant whenever the rental arrangement changes, avoid discovering a filing gap only when preparing for an eventual property sale.

How this connects to the property's overall closing-cost picture at sale

A clean, consistent filing history, or clear documentation of why filing wasn't required in years it wasn't, becomes directly relevant when eventually navigating the full range of closing-day tax obligations at sale, since a buyer's attorney and the notary may both want assurance that the seller's tax affairs are genuinely in order before closing.

Does this filing requirement apply the same way to short-term rental income?

The underlying principle, whether withholding was full and definitive, applies similarly, though STR income involves its own additional RNT and platform-related considerations.

What form do Colombian tax residents use instead of Form 110?

Residents use Form 210, reflecting the different tax treatment and broader worldwide income scope that applies to resident filers.

Can I ask my tenant or agency to confirm what withholding rate they're applying?

Yes, and doing so proactively is a reasonable step to confirm your specific situation rather than assuming correct withholding without verification.

Does owning property through an SAS change this filing question?

Yes, an SAS has its own separate corporate filing obligations regardless of individual non-resident filing rules, a different framework entirely.

What penalties apply if I should have filed but didn't?

Penalties can apply for failing to file when required; consulting a Colombian accountant if you're uncertain about a prior year's obligation is worth doing rather than assuming no consequence.

Does having a RUT mean I'm automatically required to file annually?

No, having a RUT is a registration requirement, separate from whether your specific income situation actually triggers a filing obligation in a given year.

Talk to a Guatape Properties agent about your specific plans.