600,000 Colombians abroad could be required to file income tax returns this year.

The 2025 Income Tax Return for individuals is about to begin in Colombia, and with it, the National Tax and Customs Directorate (DIAN) is putting its radar on Colombians living outside the country. Many of them, even though they are abroad, maintain economic ties to Colombia.

Whether in the form of property, bank accounts, investments, or income, these types of assets generate tax liabilities for taxpayers, who are required to comply with these obligations.

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According to figures from the Ministry of Foreign Affairs, more than 600,000 Colombians currently live abroad, and a significant portion of them could be affected by the tax return requirements, which run from August 12 to October 24, based on the last digit of their identification document.

It's worth remembering here that the government's goals are ambitious, and it expects to collect more than $20 billion from this tax. Because of this, compatriots living abroad are not exempt from this calculation, and it's best to start seeking advice to avoid problems with the tax authorities.

The problem is that many of these citizens are unaware that they are required to file taxes, or they make mistakes that end up costing them millions in fines. In fact, the firm Russell Bedford Colombia estimates that in recent years there has been a 30% increase in tax errors committed by migrants, highlighting a critical gap in tax education and specialized advice.

The main point of confusion revolves around tax residency, as living in another country for more than a year is not enough to be exempt from filing taxes in Colombia. National legislation considers a tax resident to be anyone who has spent more than 183 days, continuous or not, in Colombia over a 365-day period, or who maintains the majority of their income or assets in the country, or who cannot prove tax residency in another territory.

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This means that a Colombian who has not applied for tax residency in the country where he or she lives, or who continues to receive income from Colombia, could continue to be considered a Colombian tax resident, even if he or she has been away for years. In these cases, they must file a tax return with the DIAN (National Tax Agency) using Form 210 (for residents). If, on the other hand, they are no longer considered a tax resident, they must use Form 110, designed for non-residents.

"Additionally, there is a technical element that strengthens fiscal control: the automatic exchange of international financial information. Thanks to agreements such as the CRS (Common Reporting Standard) and FATCA (Foreign Account Tax Compliance Act), Colombia receives information on the accounts and financial transactions of its citizens in other countries," said Russell Bedford.

Added to this mechanism are the double taxation agreements that Colombia has in place with countries such as Spain, Mexico, Chile, Canada, Italy, and the United Kingdom. In these cases, if a citizen has already paid taxes on their income abroad, they can avoid the double tax burden, provided they present a tax residency certificate issued by the country in question.

"For those living in non-taxable nations, such as the United States or Australia, it is possible to apply for tax deductions from the Dian (National Tax Agency), with the proper documentation. The experts' recommendation is clear: update your RUT (Tax Identification Number) with your foreign address, verify your tax residency status, and, if in doubt, seek specialized advice," they noted.

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Olga Viviana Tapias, RBC's Tax partner, stated that "filing a tax return doesn't always mean paying, but failing to do so or filing it incorrectly can lead to penalties, loss of benefits, or even garnishment proceedings."

In addition, it is suggested to review the voluntary savings portfolio (such as the ACCAI funds), monitor the funds' actual net profitability, and actively monitor macroeconomic indicators that could impact the value of savings, such as inflation, interest rates, and the dollar's performance.