COLOMBIA Law and Practice Contributed by: Rodrigo Castillo Cottin, Ana María López and Alejandra Becerra, Rimon, P.C.
• 50% or more of the individual’s assets are located in the jurisdiction in which they are domiciled. 7.2 Expeditious Citizenship Latin American or Caribbean citizens by birth may obtain Colombian citizenship if they are domiciled in Colombia for a term of one year. Spanish citizens may obtain Colombian citizenship if they are domiciled in Colombia for a term of two years. Foreigners who are not Latin American, Caribbean or Spanish nationals may obtain Colombian citizenship provided that they are domiciled in Colombia for a term of five years counted from their visa’s date of issue. This term may be reduced to two years if the individual is married to a Colombian national or has Colombian children. 8. Planning for Minors, Adults with Disabilities and Elders 8.1 Special Planning Mechanisms Foreign entities such as trusts and private foundations may be used to hold and manage assets for minor children or adults with disabilities and may be trans - ferred once specific conditions are met. 8.2 Appointment of a Guardian Individuals with limited capacity to handle their own affairs are deemed as capable under Colombian law provided that one of the following legal mechanisms is used: • support agreement – an individual may appoint one or various persons to assist them in the perfor - mance of their affairs; • advance directive – an individual may register their will in advance providing directives for all (or spe - cific) affairs during their lifetime; or • support provided by the court – an interested party (eg, relatives or a spouse) may request additional support or the appointment of a guardian to pro - vide assistance to handle the individual’s matters. 8.3 Elder Law In response to demographic trends and structural coverage gaps, Colombia enacted a major pension
reform under Law 2381 of 2024, scheduled to take effect on 1 July 2025. This reform, one of the few major legislative initiatives successfully passed by the current administration, emerged from a process of public consultation led by the Comisión de Reforma de Protección a la Vejez , and seeks to promote equity and long-term sustainability in the national pension system. The New System of Social Protection for Old Age The law introduces a four-pillar model under the new System of Social Protection for Old Age, aiming to expand coverage, address gender disparities, and provide more flexible retirement pathways. 1. Solidarity pillar This component is designed to support elderly indi - viduals living in poverty or vulnerability who are not eli - gible for a pension. It grants a Solidarity Basic Income, a non-pension benefit adjusted annually based on Colombia’s CPI. Eligibility depends on age, national - ity, residency, and socio-economic status, with special provisions for individuals with disabilities. While mod - est in value, this transfer plays a vital role in preventing extreme poverty among older adults. 2. Semi-contributory pillar Targeting individuals who contributed to the pension system but did not meet the minimum requirements, this pillar grants a Lifelong Annuity, financed partly by state subsidies. While not inheritable, the annuity is meant to provide a stable post-retirement income. Women receive a higher state contribution (30% v 20% for men), reflecting policy efforts to address gender-based inequities. 3. Contributory pillar This is the core of the reform and applies to all formal workers. It adopts a hybrid model: contributions on earnings up to 2.3 monthly minimum wages (approxi - mately USD 784 for 2025) go to “Colpensiones”, the public fund, while any excess is managed by private pension funds. The two components are integrated to form a unified pension. This design shifts part of the pension flow from private to public hands and changes the long-term dynamics of pension fund management.
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