National and Foreign Source of Income: 2026 Guide for Tax Residents in Colombia

Are you a foreigner living in Colombia and feeling confused about your international taxes? Don’t worry, you’re not alone.

Understanding the difference between national source of income and foreign source of income is essential to properly comply with the DIAN without paying more than necessary.

In this approachable yet professional guide, we explain—with practical examples—how to distinguish national income from foreign income, which criteria the DIAN uses in 2026 to classify each source of income, and which income Colombia taxes—or does not—depending on whether you are a tax resident in Colombia.

Let’s clear up your questions in a clear and straightforward way.

What Is National Source of Income and Foreign Source of Income?

Before going into details, let’s clarify the basic concepts.
Colombian tax law classifies all income according to its source of income, either as national or foreign.

In simple terms:

• National source of income is income generated in Colombia.
  
  
• Foreign source of income is income generated outside Colombia.
  
  

Let’s look at each source of income in more detail.

National Source of Income

A national source of income is any income that originates within Colombian territory.

Current regulations establish that income is considered national source of income when it comes from the exploitation of tangible or intangible assets located in Colombia or from the provision of services performed within Colombian territory.

In other words, if money is earned thanks to an asset located in Colombia or an activity carried out in Colombia, it is considered income with a Colombian source of income.

Some typical examples of national source of income include:

• Rental income from properties in Colombia
  For example, renting an apartment in Medellín.
  
  
• Salaries or professional fees for work performed in Colombia
  If you physically work in Colombia, even for a foreign company, that income is considered national source of income.
  
  
• Interest from Colombian sources
  Returns from bank accounts in Colombia or loans granted within the country.
  
  
• Dividends from Colombian companies
  Profits paid by companies domiciled in Colombia.
  
  
• Payments from the Colombian government
  If the Colombian State pays for a service, the income is considered national source of income, even if the service was performed abroad.
  
  

In summary, any income generated thanks to assets, activities, or payers located in Colombia is considered national source of income.
These amounts are subject to taxation in Colombia simply because their source of income is located in the country, regardless of whether the recipient is a tax resident in Colombia or not.

Foreign Source of Income

By contrast, foreign source of income refers to any income that originates outside Colombia.

In general terms, this includes income derived from:

• Assets located abroad
  
  
• Activities or work performed outside Colombia
  
  
• Services rendered outside Colombian territory
  
  

Some common examples of foreign source of income include:

• Salaries for work performed abroad
  If you physically work in another country, that income is considered foreign source of income.
  
  
• Rental income from property located outside Colombia
  For example, income from renting an apartment in Spain.
  
  
• Interest from foreign accounts or investments
  Returns from foreign bank accounts or international bonds.
  
  
• Pensions paid by another country
  Retirement pensions granted by foreign governments or companies.
  
  

In short, if income is generated thanks to an asset, business, or activity located outside Colombia, the DIAN considers it foreign source of income.

This type of source of income is only taxed in Colombia if the individual is a tax resident in Colombia.
If the individual is not a tax resident, the DIAN does not tax that foreign source of income, although it may still be subject to taxation in the country where the income originates.

How Does the DIAN Determine Whether a Source of Income Is National or Foreign?

The DIAN does not focus on nationality. Instead, it analyzes where, how, and thanks to what the source of income is generated.

In 2026, the main criteria analyzed are:

1. Location of the Asset

If the income comes from an asset located in Colombia, it is considered national source of income.
If the asset is located abroad, it is considered foreign source of income.

2. Place Where the Activity or Service Is Performed

If the work or service is physically performed in Colombia, the source of income is national, even if the payer is located abroad.

Example: a freelancer providing services from Medellín to clients in the United States generates national source of income.

If the service is performed outside Colombia, the source of income will be foreign.

3. Who Pays or Where the Service Is Exploited

In some cases, the classification of the source of income depends on who pays or where the economic benefit is obtained.

For example:

• If the payer is the Colombian State, the income is considered national source of income.
  
  
• Royalties from intellectual property exploited in Colombia are considered national source of income, even if payment comes from abroad.
  
  
• Certain technical services executed entirely outside Colombia are classified as foreign source of income.
  
  

In summary, the DIAN identifies where the real economic source of income is located.

If it is in Colombia, it is Colombian source of income. If it is outside Colombia, it is foreign source of income, except for specific legal exceptions.

Which Source of Income Does the DIAN Tax If You Are a Tax Resident in Colombia?

This is one of the most important points for foreigners.

If You Are a Tax Resident in Colombia

Being a tax resident in Colombia does not depend on your visa, but mainly on how long you stay in the country (for example, 183 days or more within a 365-day period).

If you are a tax resident in Colombia, you are taxed on your worldwide source of income.
This means you must declare:

• National source of income
  
  
• Foreign source of income
  
  

Example:
If you live in Colombia and receive a pension from abroad and also earn income in Colombia, both sources of income must be included in your Colombian income tax return.

Colombia has mechanisms to avoid double taxation, but the general principle is clear:
tax resident in Colombia = taxation on national and foreign source of income.

If You Are NOT a Tax Resident in Colombia

If you do not meet the requirements for tax residency, you are only taxed in Colombia on income with a national source of income.

This means that:

• You declare and pay taxes only on income generated in Colombia.
  
  
• Your foreign source of income is not declared or taxed in Colombia.
  
  

Example:
A non-resident foreigner with a rental property in Colombia pays taxes on that rental income, but not on income generated abroad.

Key Summary

• Income with a national source of income is always taxed in Colombia.
  
  
• Income with a foreign source of income is only taxed if you are a tax resident in Colombia.
  
  

That is why correctly defining your tax status and each source of income is essential.

Practical Example: U.S. Pension and Rental Income in Medellín

Let’s assume John, a retired U.S. citizen, receives a pension from the United States and owns an apartment rented out in Medellín.

If John Is a Tax Resident in Colombia

• He declares the pension as foreign source of income.
  
  
• He declares the rental income as national source of income.
  
  
• He may apply tax credits or mechanisms to avoid double taxation.
  
  

If John Is NOT a Tax Resident in Colombia

• He is taxed only on the rental income in Medellín.
  
  
• The U.S. pension, as a foreign source of income, is neither declared nor taxed in Colombia.
  
  

Same income, completely different tax outcome.

Frequently Asked Questions (FAQs)

If I live in Colombia, do I have to declare my foreign source of income?

Only if you are a tax resident in Colombia.
If you are not, you only pay taxes on income with a national source of income.

Does Colombia tax foreign pensions?

Yes, but only if you are a tax resident in Colombia.
Foreign pensions are exempt up to approximately USD 149,000 per year (this amount may vary depending on the exchange rate).
If the pension exceeds that amount, the excess may be taxable.

How is international double taxation avoided?

Through:

• Double taxation treaties, when applicable.
  
  
• Foreign tax credits for taxes paid abroad.
  
  

These mechanisms prevent paying taxes twice on the same source of income.

Do I have to pay taxes in Colombia for an apartment rented abroad?

Only if you are a tax resident in Colombia.
If you are not, Colombia does not tax that foreign source of income.

Do You Need Advice?

If you have income from multiple sources of income in Colombia and abroad, an incorrect classification can result in penalties, interest, or unnecessary payments.

At Nexo Legal, we are experts in Colombian tax law for foreigners.
We help you correctly structure each source of income, comply with the DIAN, and optimize your tax burden.

📩 Contact us and receive personalized advice to enjoy Colombia with peace of mind and no tax surprises.