Destination Guide

Colombia

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Services available in this country:

Employer of Record

Contractor Management

Payroll

Capital City

Bogota

Currency

Colombian Peso
(COL$, COP)

Languages

Spanish

Population size

52,886,363

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Working Conditions

Social Security

Taxes

Employment Termination

Education Options for Children

Healthcare Options

Paid Public Holidays

Business Setup Services

Work Authorization

Foreign nationals must obtain a work-authorized visa before starting employment in Colombia.

Process

Employers register with Ministry of Foreign Affairs; work starts only after visa issuance and social security registration.

Visa Categories

Main options: Migrant (M) Visa – Work for employment and Resident (R) Visa for long-term stay.

Working Hours

Maximum 48 hours per week, overtime paid at premium rates, and at least one rest day per week.

Discover working conditions in Mexico

Mandatory Registration

All employees, including foreigners, must register with Colombia’s social security system (SSO).

Contributions

Shared between employer and employee; rates depend on salary and risk level.

Coverage

Includes health (EPS), pension, work risk (ARL), and family compensation funds.

Exit Procedure

Upon termination, employers must deregister the employee and settle final contributions.

Discover social security in Colombia

Tax Authority

The DIAN administers income tax and payroll compliance in Colombia.

Withholding System

Income tax is withheld monthly by the employer and filed with DIAN.

Residency Rule

Staying 183+ days in a year = tax resident; residents are taxed on worldwide income.

Tax ID (NIT)

All income earners, including foreign workers, must hold a NIT for payroll and banking.

Taxation system in Colombia

Termination Types

Resignation, justified or unjustified dismissal, contract expiry, or mutual agreement.

Severance Pay

Unjustified dismissal entitles employees to statutory severance based on service length.

Notice Rules

Written notice required — usually 30 days for fixed-term contracts.

Final Steps

Employers must finalize salary, unused leave, social security deregistration, and issue termination documentation.

Employment termination in Colombia

Public Schools

Foreign children may attend with a valid residence permit; instruction is in Spanish.

International Schools

Programs include IB, American, British, French, German, mainly in Bogotá, Medellín, Cali.

Private Schools

Offer bilingual education, smaller classes, and international preparation.

Enrollment

Requires passport, residence permit, transcripts, and health records.

Education Options for Children

Public System (EPS)

EPS covers hospital and outpatient care, prescriptions, and emergency treatment.

International Clinics

Provide 24/7 care, multilingual staff, and premium facilities for expats.

Private Sector

Offers faster service, English-speaking doctors, and higher comfort.

Insurance

All employees must have EPS coverage; many add private or global insurance for extended access.

Religious

Navidad

December 25

Religious

Foreign ownership & investor access

Colombia allows 100% foreign ownership in most sectors and supports incorporation through digital processes backed by the Chamber of Commerce and DIAN.

Incorporation steps (quick overview)

Typical steps: name reservation → bylaws/documents → Chamber of Commerce registration → DIAN tax registration (NIT) → bank account → foreign investment registration (if applicable).

Company formation options

Common structures include S.A.S., Ltda., S.A., Branch Office, and Representative Office—with S.A.S. being the most widely used due to flexibility and no minimum capital.

Tax, invoicing, payroll & compliance

Businesses must handle CIT/VAT (if applicable), withholding obligations, monthly/annual filings, mandatory e-invoicing, and set up social security + payroll before hiring.

Business Setup Services

Download Colombia Destination Guide

Living Cost in Colombia

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FAQ

Colombia is emerging as a thriving tech hub, with over 150,000 IT professionals primarily in Medellín and Bogotá. The 2019 ICT Modernization Law underscores government commitment to technology growth. Gini Talent bridges global companies and Colombian tech talent, providing cost-efficient, high-quality recruitment that scales across geographies.

Colombia offers robust talent density, government support for ICT growth, cost advantages compared to major tech hubs, and a growing tech ecosystem in Medellín, Bogotá, and other cities.

There are over 150,000 IT professionals currently employed within Colombia, concentrated in major tech hubs.

The 2019 law catalyzed tech growth by modernizing regulations, incentivizing digital infrastructure, and encouraging foreign and domestic investment in innovation.

Medellín and Bogotá are major centers of tech innovation, hosting a large portion of Colombian software, app, e-commerce, and VR development.

We connect you with skilled Colombian tech talent, manage screening and sourcing, handle logistical hiring processes, and ensure role alignment for global teams.

Companies can access high quality software, mobile, e-commerce, and product engineering talent at more competitive rates compared to many North American and Western European markets.

Use the “Connect with us” form on the page. Provide details about your roles and hiring goals, and Gini Talent will build a Colombian recruitment roadmap.

Potential challenges include time zone coordination, language alignment, and adapting to local labor practices—but these are mitigated by Gini Talent’s local expertise and processes.