COLOMBIA Law and Practice Contributed by: Rodrigo Castillo Cottin, Ana María López and Alejandra Becerra, Rimon, P.C.
portfolio theory. Certain exceptions may apply if gov - ernment assets or pension funds are involved.
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 Under Law 1996 of 2019, Colombia replaced judicial interdiction with a supported decision-making frame - work. A court proceeding is required only when no vol - untary arrangement (support agreement or advance directive) has been put in place, or when additional safeguards are needed. In such cases, an interested party (such as a relative or spouse) may request the family judge to appoint one or more support persons to assist the individual in handling their affairs. The court proceeding involves an assessment of the individual’s specific needs and determines the scope and duration of the support. Once appointed, the court retains supervisory authority: support arrange - ments are subject to periodic judicial review to ensure they remain appropriate and that the individual’s rights and autonomy are respected. The judge may modify or terminate the support if circumstances change. Voluntary mechanisms, such as support agreements (formalised before a notary or conciliation centre) and advance directives (executed by public deed), do not require court intervention for their creation, although they may be subject to judicial review if challenged by third parties. In practice, this has posed a difficulty in representing those individuals who were declared incapacitated under the previous legislation.
7. Citizenship and Residency 7.1 Requirements for Domicile, Residency and Citizenship It is understood that a foreigner is a resident in Colom - bia when they are the holder of a residence visa. An individual, whether Colombian or foreign, is a tax resident in Colombia if they remain in the country, continuously or discontinuously, for more than 183 calendar days in any period of 365 days. When a dis - continuous residence of more than 183 days occurs between two taxable periods, the individual will be considered a resident as of the second taxable period. Colombian nationals are considered as tax residents if: • their spouse, life partner or dependent children are Colombian residents; • 50% of the individual’s income is Colombian sourced; • 50% of the individual’s assets are managed or deemed located in Colombia; • the individual is unable to prove tax residency in another jurisdiction; and • the individual is resident in a jurisdiction consid - ered as a tax haven by the Colombian government. Colombian individuals who meet the above-mentioned requirements will not be considered tax residents if: • 50% or more of the individual’s income is sourced in the jurisdiction in which they are domiciled; or • 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.
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