France-Colombia tax treaty: threshold of 20 %, 183 days and tax credit

The tax treaty between France and Colombia was signed in Bogotá on June 25, 2015. It entered into force on January 1, 2022, and has been applicable since January 1, 2023. It limits the withholding tax at the source to 5% or 15% on dividends, 10% on interest, and 10% on royalties. It does not apply to inheritances. This page follows the signed text, as found on impots.gouv.fr, and explains what it does not cover.

A recent agreement: 2015, in force 2022, implemented 2023

The BOFiP (version of September 25, 2024) gives the steps: signature in Bogota on June 25, 2015, with a protocol which is part of the convention; approval law no. 2016-1325 of October 7, 2016; publication decree no. 2022-47 of January 21, 2022; entry into force on January 1, 2022.

The application is postponed to January 1, 2023:

• for withholding taxes, the amounts taxable from that date; ;
• for other income taxes, the years or fiscal years that begin from that date; ;
• for other taxes, the taxable events from that date.

The administrative list of conventions classifies it as follows: "C 25 June 2015", taxes covered "IR – IF", without mention of inheritance or gift tax. Colombia is not included in the list of conventions modified by the multilateral convention (MLI) as of 29 April 2026.

The rates of the agreement in a table

Dividends: a threshold of 20 % and no holding period

The 5% tax rate requires a beneficial owner company that directly holds at least 20% of the distributing company's capital. All other cases fall under the 15% rate. The text does not specify a holding period: the condition applies only to the percentage, assessed without a written reference period. The difference between 19% and 20% is detailed below.

On the French side, the "My Dividends" page of the tax authorities, intended for non-resident individuals, indicates a rate of 12.80% for dividends from French sources that they receive (rate in effect as of January 1, 2026), subject to more favorable provisions under international tax treaties. The rate applicable to a company was not consulted: this page does not provide one, and the actual withholding tax applied must be verified with the tax authorities.

Capital gains: 50 %, 25 % and the remainder

Article 13 includes, in particular, the following rules:

• gains on real estate are taxable in the State where they are located (§ 1 a)); ;
• Capital gains of an entity whose assets consist of more than 50% of their value in real estate are taxable in the State where that property is situated (§ 1 b)); ;
• the transfer of a shareholding which entitles the holder to 25 % or more of the profits of a company is taxable in the State of residence of that company (§ 4 a)); ;
• other gains are taxable only in the State of residence of the transferor (§ 5).

The text also includes § 2 (assets of a permanent establishment), § 3 (ships and aircraft, with the place of effective management) and § 4 b) (cases of deferral of taxation), which this page does not detail.

The text does not specify a reference period for the 50 % and 25 % thresholds. Exit tax when leaving France is addressed on our page about departures.

Salaries: 183 days over twelve months that begin or end in the fiscal year

Article 14 considers the State of residence, unless the employment is carried out in the other State. The exception applies if three conditions are met: the stay in the other State does not exceed a total of 183 days during any twelve-month period beginning or ending in the tax year concerned; the employer is not a resident of the other State; and the expense is not borne by a permanent establishment.

The window period is therefore twelve months, not the calendar year: a stay at the end of the year can be added to those of the following year. Our page on the 183-day rule details the calculation method.

Pensions: the state of residence

Pensions and similar remuneration paid in respect of previous employment are taxable only in the state of residence of the beneficiary (Article 17). This rule is subject to Article 18 § 2, concerning public functions, which is not detailed on this page.

Who is a resident?

Article 4, paragraph 1, concerns a person subject to taxation in a state according to its legislation. When an individual is resident in both states, paragraph 2 applies, in order: permanent home; with a home in each state, the closest personal and economic ties; habitual residence; nationality; failing that, the amicable agreement of the competent authorities. The Colombian residency criterion is addressed on our page about living in Colombia.

A French tax credit, a Colombian deduction

For a resident of France, taxable income in Colombia is included in the French tax base, Colombian tax is not deductible, and a tax credit is granted. This credit is equal to the corresponding French tax for income other than that referred to in (ii). For income covered in particular by Articles 7, 10, 11, 12, and 13, it is equal to the Colombian tax paid, without exceeding the corresponding French tax.

For a resident of Colombia, the legislation provides for a deduction ("descuento") equal to the income tax paid in France, up to the limit of the Colombian tax applicable to the income in question. The legislation places these rules in Article 22; the BOFiP (Official Bulletin of Public Finances) refers to Article 23 on this subject: see the numbering in the official text.

Fortune and inheritance

Article 21 addresses wealth: real estate in the state where it is located, assets of a permanent establishment in the state of the establishment, and other assets only in the state of residence. The signed text refers to the wealth tax; the BOFiP (Official Bulletin of Public Finances) cites the real estate wealth tax. This page makes no mention of its application to the IFI (Real Estate Wealth Tax).

Inheritances and donations are not covered: the administrative list makes no mention of inheritance or donation for Colombia.

Limitation of benefits, disputes, duration

Article 26 addresses the case where obtaining the benefit is the principal objective, or one of the principal objectives, of conducting the transactions; the text adds a concept of related persons (one holding at least 50% of the beneficial interest in the other) and, in paragraph 2, a rule on the beneficial owner. This page only provides a partial reading. A case of taxation contrary to the convention must be submitted to the competent authority within three years of the first notification (Article 24). The convention may be terminated by giving at least six months' notice before the end of any calendar year (Article 31).

Dividend threshold of 20 %: numerical example (fictitious profile)

Situation. A Colombian company, a fictitious profile, receives €100,000 in gross dividends from a French company. It directly holds a share of the latter's capital.

Issue. She wants to know the withholding ceiling of Article 10 § 2 according to her participation: 19 % or 20 %.

Strategy. She checks her share of direct ownership before payment is made, then compares it to the applicable limit.

Result. With 19 % of capital, the limit is 15 %, or €15,000. With 20 %, it is 5 %, or €5,000. One percentage point of participation therefore separates the €10,000 limit. These figures are the limits stipulated in the agreement; the actual withholding tax applied depends on French domestic law, which is not detailed here. The percentage and amount are hypothetical.

What changes depending on your situation

• Your residence as defined in Article 4, if you have links with both countries.
• The nature of the income: dividend, interest, royalty, gain, pension, salary.
• Your status as a natural person or company, and your direct share of the capital.
• The nature of the asset transferred: building, company with real estate assets, other security.
• The count of your days over twelve months.
• Proof of residence required to obtain the reduced rate.

The agreement is read in light of the facts of your case; no result is guaranteed in advance.

What this page does not cover

Neither the Colombian tax itself, nor Article 18 on public functions, nor the detailed exemptions of Article 11, nor paragraphs 2, 3 and 4(b) of Article 13, nor the details of Article 26 (related persons, beneficial owner), nor Articles 7, 15, 16, 19, 20, 25 and 27, nor the Protocol. It does not address the application to the IFI (French Wealth Tax).