Investments abroad and the DIAN: when to declare assets

What is the declaration of assets abroad

The annual declaration of assets abroad is an informational obligation to the DIAN. Its purpose is for the tax authority to know the assets and rights that Colombian tax residents hold outside the country. It is not a tax itself, but non-compliance may result in penalties.

It is submitted virtually using Form 160, according to the DIAN website.

Who must file it

According to article 607 of the Tax Statute and the DIAN, taxpayers of income tax or substitute regimes who own assets abroad of any nature with a patrimonial value exceeding 2,000 UVT as of January 1 each year are required to file.

Assets valued over 3,580 UVT must be detailed individually; others may be declared aggregated by country or jurisdiction.

What counts as an asset abroad

The regulation refers to assets of any kind: bank accounts, investments, real estate, shares in companies, and economic rights, among others. If you invest in assets located outside Colombia, such as fractions of accommodations in Miami, Madrid, or Capri, it is advisable to consult with an accountant on how they are classified and valued for your income tax return and for the declaration of assets abroad.

The connection with the income tax return

Tax residents in Colombia are taxed on their worldwide income. This means that income you receive from assets abroad may need to be declared in Colombia, regardless of the taxes paid in the country where the asset is located and the mechanisms to avoid double taxation. Each case depends on tax residency, type of income, and applicable treaties.

• Keep your statements and certificates from the platform.
• Record the exchange rate used in each transaction.
• Separate income received from the sales of fractions.
• Consult an accountant before the DIAN deadlines.

How CityFraction helps you

In your account, you will find a monthly statement with your income, purchases, sales, and withdrawals, as well as a report of your portfolio. This information makes it easier for your accountant to prepare your returns. CityFraction does not provide tax advice: the responsibility to declare lies with each investor.

Dates and penalties

The declaration of assets abroad is submitted on the same dates as the income tax return, according to the tax calendar published annually by DIAN, and usually depends on the last digits of the NIT. Filing late, not filing, or filing with errors can result in penalties calculated on the value of undeclared assets.

Therefore, it is advisable to check in advance if you exceed the threshold as of January 1, gather statements from your platforms and banks, and value assets in pesos using the exchange rate indicated by the regulation. An accountant can help you avoid common mistakes, such as forgetting small accounts abroad or mixing assets from different years.

Conclusion

Investing abroad is a legitimate way to diversify but comes with reporting obligations. Knowing the 2,000 UVT rule and keeping your records in order will save you penalties and surprises.

• Frequently asked questions about taxes