American working remote from colombia

Member since 01 February 2019

dustyadam87Member01 February 2019 16:22:33

hello,

I am a American born with colombian mother US Citizen. I am considering and planning to begin working remote from colombia. Given my mother was born in colombia, I am allowed to apply for dual citizenship.

I am currently trying to find out anything I can from a residency/taxation standpoint. My work has basically given me a green light to make the move but they are seemingly more and more hesitant about legal/taxation implications? I live in IL currently, is anyone here familiar with a situation like mine? or does anyone have suggestions about who i can speak to to cover my bases?

OsageArcher Colombia Expert

Member since 11 February 2015

OsageArcherColombia Expert01 February 2019 18:17:17

1600

I don't see how your employer has any legal/taxation implications, but YOU would have.

If you are a tax resident in Colombia - a tax resident is anyone who is in the country for more than 183 days cumulative in any 365 day period - Colombia then asserts the right to tax your world-wide income.

Colombia has graduated marginal tax rates just as the USA does - but the rates start at lower income levels, and the percentages are higher.聽 You will start paying a 19% rate on any income over about $15.5K/year USD, which quickly goes up to a 28% rate for anything over about $18,790 USD at today's exchange rate.

There are deductions you may take which a good Colombia tax accountant or lawyer would help you find, to reduce your taxable income - you would not have to pay tax on the gross amount.

See this Wiki article for more information:

These two articles talk about being a tax resident (residente fiscal) and both refer to the 183+ day rule:

dustyadam87 Member

Member since 01 February 2019

dustyadam87Member01 February 2019 18:40:18

OsageArcher,

First of all thank you for your reply - I greatly appreciate the information. I think they are mainly concerned about my residency in IL. Their original condition was they didn't really care much about where I worked from as long as I kept my residency in IL? Not sure what they are trying to protect themselves against?