Colombia's $1,100/Month Retirement Visa and Tax-Free Pensions

Colombia has transformed from a country Canadians once avoided into one of Latin America's most compelling retirement and relocation destinations. With the lowest visa income requirement in the region—just ~$1,100 CAD per month—world-class healthcare ranked 22nd globally by the WHO, and a cost of living 50-60% below Canadian cities, Colombia offers exceptional value for Canadians seeking adventure without financial strain.

But here's what makes Colombia particularly attractive: foreign pension income is now tax-exempt up to approximately $16,000 CAD per year. Combined with Canada's tax treaty reducing withholding rates to 15%, many Canadian retirees can structure their income to pay minimal taxes on either side of the border.

Whether you're drawn to Medellín's eternal spring weather, Cartagena's Caribbean colonial charm, or the emerging coffee region towns, this guide covers everything you need to know about making Colombia your new home.

Key Takeaways

• Pensionado visa requires just ~$1,100 CAD/month in pension income—the lowest threshold in Latin America
• Foreign pension income exempt from Colombian tax up to 1,000 UVT (~$16,000 CAD/year) as of 2025
• Canada-Colombia Tax Treaty (2008) reduces withholding on dividends, interest, and royalties to 15%
• Cost of living 50-60% below Canada—comfortable couples live on $1,500-$2,500 CAD/month
• Healthcare ranked 22nd globally—world-class private hospitals at a fraction of Canadian costs
• No Social Security Agreement—CPP/OAS portable but Colombian contributions don't count toward Canadian benefits
• 183-day residency rule—stay over 183 days and you become a Colombian tax resident

Colombia's Retirement Visa (Pensionado M-11)

Colombia's M-Type Retirement Visa (Pensionado) is specifically designed for foreigners with stable pension income. It's one of the most accessible retirement visas in the Americas.

Income Requirements

The pension income requirement is remarkably low:

• Minimum monthly pension: 3× Colombian minimum wage
• 2025 requirement: Approximately COP 4,270,000/month (~$1,100 CAD)
• Income must be verifiable and from a lifetime pension (not temporary income)
• Acceptable sources: Government pensions (CPP, OAS), employer pensions, annuities, Social Security

Important: Lump-sum payments and temporary income sources don't qualify—the income must be permanent and verifiable through official documentation.

Visa Duration and Path to Residency

Critical rule: You must remain in Colombia for at least 180 days per year. Leaving for more than 6 consecutive months voids your visa.

Required Documents

To apply for the Pensionado visa, you'll need:

• Valid passport (6+ months validity)
• Passport-sized photos (3×4 cm, white background)
• Pension certification letter from your pension provider showing:
  • Monthly amount (meeting minimum threshold)
  • Confirmation it's a lifetime pension
  • Official letterhead with contact information
• FBI background check equivalent (Canadian Police Certificate from RCMP)
• Health insurance valid in Colombia
• Proof of health (medical certificate)
• All documents must be apostilled and translated into Spanish by a certified translator

Application Process

1. Gather and apostille documents in Canada (Global Affairs Canada handles apostilles)
2. Complete online application via Colombia's Ministry of Foreign Affairs website
3. Pay study fee: USD $55
4. Submit application online with PDF documents
5. Wait for approval: Typically 30 days
6. Pay issuance fee: USD $271 upon approval
7. Enter Colombia and register with Migración Colombia within 15 days
8. Obtain Cédula de Extranjería (foreigner ID card)—required for banking, healthcare, daily life

Pro tip: Many Canadians work with licensed Colombian immigration lawyers to navigate the bureaucracy. Fees typically run $500-$1,500 CAD depending on complexity.

Dependent Visas

Your spouse, permanent partner, and dependent children can join you:

• Spouse/partner: Marriage certificate or declaration of de facto union required
• Children: Birth certificates required; must be financially dependent
• Each dependent requires a separate visa application
• Additional income documentation may be required

How Colombia Taxes Foreign Pension Income

Colombia's tax treatment of foreign pensions has become significantly more favourable for retirees. Understanding the system is crucial for tax planning.

Tax Residency Rules

You become a Colombian tax resident if you spend more than 183 days in Colombia during any 365-day period. Tax residents are subject to Colombian tax on worldwide income—but with important exemptions.

Foreign Pension Exemption (2025)

Here's the good news for Canadian retirees:

Foreign pension income is exempt from Colombian income tax up to 1,000 UVT per month.

For 2025:

• 1 UVT = COP 49,799
• 1,000 UVT = COP 49,799,000/month ($16,000 CAD/month or **$192,000 CAD/year**)

What this means: If your combined CPP, OAS, and employer pension income is under approximately $16,000 CAD per month, you pay zero Colombian income tax on that pension income.

For the vast majority of Canadian retirees, this effectively means no Colombian tax on pension income.

Colombian Tax Rates (If Applicable)

If you have Colombian-sourced income or exceed the pension exemption, progressive tax rates apply:

Other Tax Considerations

• Wealth tax: Applies if net assets exceed COP 3.58 billion (~$1.1 million CAD) as of January 1
• Capital gains: Taxed at 15% on asset sales (stocks, real estate)
• Property tax: Municipal tax of 0.4-1.2% annually depending on property value and location
• No inheritance-specific tax: But inheritances treated as capital gains (15%)

The Canada-Colombia Tax Treaty

Canada and Colombia signed a comprehensive Double Taxation Agreement (DTA) on November 21, 2008, which entered into force in July 2012. This treaty provides important protections for Canadians.

Withholding Tax Rates

The treaty reduces Canadian withholding tax on payments to Colombian residents:

How It Works for Canadian Retirees

When you become a Colombian tax resident:

1. Canada withholds 15% on non-resident pension payments (reduced from 25%)
2. Colombia exempts pension income up to 1,000 UVT (~$16,000 CAD/month)
3. Net result: You pay only the 15% Canadian withholding on most pension income

Example: A Canadian receiving $4,000 CAD/month combined from CPP, OAS, and a defined benefit pension:

• Canada withholds: 15% × $4,000 = $600/month
• Colombia taxes: $0 (under exemption threshold)
• Total tax: $600/month or 15% effective rate

No Social Security Agreement

Important: Canada does NOT have a Social Security (Totalization) Agreement with Colombia. This means:

• CPP and OAS remain fully portable—you'll receive your benefits in Colombia
• Colombian pension contributions don't count toward Canadian benefits
• You cannot combine contribution periods between countries
• Each country's pension system operates independently

What Canadian Expats Actually Pay

Let's work through the complete tax picture for a typical Canadian retiree in Colombia.

Scenario: Retired Couple, $60,000 CAD Annual Income

Income sources:

• CPP (combined): $18,000/year
• OAS (combined): $16,000/year
• Employer pension: $26,000/year
• Total: $60,000/year (~$5,000/month)

Canadian Tax (Non-Resident):

• 15% withholding on pension income (treaty rate): $9,000/year
• OAS clawback: None (under ~$90,000 threshold)

Colombian Tax:

• Foreign pension exempt up to 1,000 UVT/month: $0

Total annual tax: $9,000 CAD (15% effective rate)

Compared to staying in Canada:

• Ontario resident paying ~$6,500 in federal/provincial tax
• Plus loss of provincial health coverage savings in Colombia

The tax situation is roughly comparable, but Colombia's dramatically lower cost of living means your after-tax dollars stretch 2-3× further.

The Departure Tax Consideration

Before celebrating the low taxes, remember that leaving Canada has its own tax costs. When you become a non-resident, Canada treats you as having sold your assets at fair market value—the "departure tax" or deemed disposition.

This can trigger significant capital gains on:

• Non-registered investments
• Rental properties
• Business interests
• Certain personal property

The departure tax calculation is complex and highly individual. Factors include your RRSP/RRIF balances (not deemed disposed but subject to withholding on withdrawal), principal residence exemption, and treaty tie-breaker rules.

If you're considering Colombia, calculate your potential departure tax exposure before making any decisions. The difference between good planning and poor planning can be tens or hundreds of thousands of dollars.

Cost of Living: Your Dollar Goes Further

Colombia consistently ranks as one of the world's most affordable countries for expats. International Living named it the cheapest place to live in 2025.

Monthly Budget by City

Detailed Monthly Expenses (Medellín)

Housing:

• One-bedroom apartment (El Poblado/Laureles): $700-$1,200 CAD
• One-bedroom apartment (Envigado/Sabaneta): $500-$800 CAD
• Utilities (electricity, water, gas, internet): $80-$150 CAD

Food:

• Groceries (local markets): $250-$400 CAD
• Dining out (menú del día lunch): $4-$7 CAD
• Nice restaurant dinner: $20-$40 CAD per person
• Specialty coffee: $3-$4 CAD

Transportation:

• Metro/bus ride: $1 CAD
• Uber across city: $5-$10 CAD
• Monthly transportation: $50-$100 CAD

Healthcare:

• EPS public insurance: 12% of declared income
• Private insurance (medicina prepagada): $70-$250 CAD/month
• Doctor visit (private): $25-$70 CAD

Lifestyle:

• Gym membership (Smart Fit): $15-$40 CAD/month
• Domestic helper (full-time): $350-$500 CAD/month
• Movie ticket: $5-$8 CAD

Currency Advantage

The Colombian peso (COP) trades at approximately 3,200-3,400 COP per CAD (fluctuates). Earning in Canadian dollars while spending in pesos provides significant purchasing power—your retirement income buys substantially more than it would in Canada.

Healthcare: World-Class at a Fraction of the Cost

Colombia's healthcare system is a major draw for international retirees. The WHO ranks it 22nd globally for efficiency—above Canada, the US, and Australia.

Healthcare System Overview

Colombia operates a dual public-private system:

EPS (Entidades Promotoras de Salud) - Public Insurance:

• Available to all legal residents with a cédula
• Contribution: 12.5% of declared monthly income
• Covers comprehensive care including specialist visits, hospitalization, prescriptions
• Wait times can be long for non-emergency care
• Quality excellent in major cities; basic in rural areas

Medicina Prepagada - Private Insurance:

• Supplements or replaces EPS coverage
• Monthly premiums: $70-$250 CAD depending on age and coverage
• Access to private hospitals, shorter wait times
• English-speaking doctors common
• Direct specialist access without referrals

Healthcare Costs Without Insurance

Even paying out of pocket, costs are remarkably low:

Top Hospitals

Medellín (medical tourism hub):

• Hospital Pablo Tobón Uribe (JCI accredited)
• Clinica Las Americas
• Hospital San Vicente Fundación
• Clinica Medellin

Bogotá:

• Fundación Santa Fe de Bogotá (JCI accredited)
• Fundación Cardioinfantil (cardiac specialty)
• Hospital Universitario San Ignacio
• Clinica del Country

Cartagena:

• Clinica Madre Bernarda
• Hospital Naval de Cartagena

Medical Tourism

Colombia is a major medical tourism destination, particularly for:

• Cosmetic/plastic surgery
• Dental work
• Cardiac procedures
• Orthopaedic surgery
• Fertility treatments

Many private hospitals have international patient departments with English-speaking coordinators.

Where to Live: City-by-City Guide

Medellín: City of Eternal Spring

Climate: 18-28°C year-round (no heating or AC needed)
Altitude: 1,500 metres
Population: 2.5 million metro

Why Canadians love it:

• Perfect weather 365 days/year
• Modern infrastructure (clean metro system)
• Largest expat community in Colombia
• Excellent healthcare facilities
• Vibrant cultural scene
• Entrepreneurial energy

Best neighbourhoods for expats:

• El Poblado: Upscale, most foreign-friendly, highest prices
• Laureles: Local feel, walkable, good restaurants, better value
• Envigado: Residential suburb, family-friendly, affordable
• Sabaneta: Small-town feel, 30 minutes from centre

Monthly budget: $1,500-$2,200 CAD comfortable; $2,500+ luxury

Bogotá: The Capital

Climate: 7-20°C (cooler, bring layers)
Altitude: 2,640 metres
Population: 8+ million metro

Why choose Bogotá:

• Cultural capital (museums, theatre, cuisine)
• Economic hub with more job opportunities
• Direct flights to Toronto
• Excellent universities and international schools
• Best restaurant scene in Colombia

Best neighbourhoods:

• Chapinero: Hip, walkable, LGBTQ+ friendly
• Zona Rosa/Parque 93: Upscale, nightlife, shopping
• Usaquén: Colonial charm, Sunday market, quieter
• La Candelaria: Historic centre (budget-friendly but watch safety)

Monthly budget: $1,800-$2,500 CAD comfortable; $3,000+ luxury

Cartagena: Caribbean Colonial

Climate: 24-32°C (hot and humid year-round)
Altitude: Sea level
Population: 1+ million

Why choose Cartagena:

• UNESCO World Heritage walled city
• Beach access
• Caribbean culture and food
• Colonial architecture
• Romantic atmosphere

Best neighbourhoods:

• Centro/Walled City: Historic, tourist-heavy, expensive
• Getsemaní: Artsy, nightlife, good value
• Bocagrande: Beachfront high-rises, modern amenities

Monthly budget: $1,800-$2,400 CAD comfortable; $3,000+ luxury

Emerging Destinations

Santa Marta: Beach town near Tayrona National Park. More affordable than Cartagena, growing expat scene. $1,200-$1,800/month.

Bucaramanga: Lower costs, good weather, emerging healthcare hub. Very affordable at $1,000-$1,500/month.

Coffee Region (Pereira, Manizales, Armenia): Stunning mountain landscapes, authentic Colombian life, lowest costs. $1,000-$1,600/month.

Safety: What You Need to Know

Colombia's security has improved dramatically over the past two decades, but awareness remains essential.

Current Travel Advisories

• Canada: "Exercise a high degree of caution" (standard for most of Latin America)
• US: Level 3 "Reconsider Travel" overall; Level 4 "Do Not Travel" for border regions and some rural areas
• Australia: "Exercise a high degree of caution"

Safe Areas for Expats

The major expat destinations—Medellín, Bogotá, Cartagena, Santa Marta—are generally safe with standard urban precautions:

• Medellín: El Poblado, Laureles, Envigado, Sabaneta are considered safe
• Bogotá: Chapinero, Zona Rosa, Usaquén are safe; avoid southern areas
• Cartagena: Walled City and Bocagrande are safe; be careful at night in Getsemaní

Areas to Avoid

Do Not Travel zones (per US State Department):

• Venezuela border region (within 20km)
• Ecuador border region (except official crossings)
• Arauca department
• Cauca department (except Popayán)
• Norte de Santander (Catatumbo region)
• Parts of Chocó

Practical Safety Tips

Colombian wisdom: "No dar papaya" (don't make yourself an easy target)

Do:

• Use Uber, Didi, or Cabify instead of street taxis
• Keep valuables hidden
• Stay in well-lit, populated areas
• Tell someone where you're going
• Use hotel safes for passports and valuables
• Trust your instincts

Don't:

• Flash expensive jewellery, watches, or phones
• Accept drinks from strangers (scopolamine drugging is real)
• Walk alone late at night in unfamiliar areas
• Use dating apps carelessly (scam risk is high)
• Carry large amounts of cash

Crime Context

Most expats report feeling safe in Colombia—often safer than many American cities. Common crimes targeting foreigners are typically opportunistic:

• Pickpocketing in crowds
• Phone snatching
• Express kidnappings (forced ATM withdrawals) - rare but happen
• Dating app scams - significant risk

Violent crime exists but typically involves drug trade participants, not random tourists or expats.

Practical Considerations

Language

Spanish proficiency matters significantly in Colombia:

• Healthcare: Many private doctors speak English; public system is Spanish-only
• Daily life: Outside tourist areas, English is limited
• Banking: Documents and customer service in Spanish
• Government: All visa and legal matters in Spanish

Recommendation: Invest in Spanish lessons before and after arriving. Even basic conversational Spanish dramatically improves quality of life.

Banking and Money

Opening a Colombian bank account:

• Requires cédula de extranjería
• Major banks: Bancolombia, Davivienda, BBVA Colombia
• Process can be bureaucratic; some banks more foreigner-friendly than others

Transferring money from Canada:

• Wise (formerly TransferWise): Best exchange rates, low fees
• OFX or Remitly: Good alternatives
• Direct wire: Expensive; avoid if possible

ATMs:

• Widely available; most accept foreign cards
• Withdrawal limits typically 600,000-800,000 COP (~$200-$275 CAD)
• Fees: $3-$5 CAD per withdrawal

Internet and Connectivity

Colombia has excellent internet infrastructure:

• Fibre-optic available in major cities (100-300 Mbps)
• Mobile data: Claro, Movistar, Tigo networks
• SIM cards: $10-$20 CAD with 10-20 GB data
• Home internet: $30-$50 CAD/month for high-speed

Medellín in particular has become a digital nomad hub with abundant coworking spaces and reliable connectivity.

Property Ownership

Foreigners can own property in Colombia with essentially the same rights as citizens:

• No restrictions on purchasing residential or commercial property
• Financing available but typically requires residency
• Property appreciation has been strong in expat-popular areas
• Rental income taxable in Colombia if you're a resident

Real Estate Investment Visa: Invest 350 SMLV (~$115,000 CAD) in Colombian property and qualify for a separate investor visa category.

Is Colombia Right for You?

Colombia Might Be Perfect If You:

• ✅ Want the lowest visa income requirement in Latin America
• ✅ Seek world-class healthcare at budget prices
• ✅ Love warm weather year-round
• ✅ Want to stretch retirement dollars 2-3× further
• ✅ Are willing to learn Spanish
• ✅ Enjoy vibrant culture, food, and nightlife
• ✅ Can handle some bureaucracy and adjustment period
• ✅ Are comfortable with Latin American urban realities

Colombia Might Not Suit You If You:

• ❌ Need English-only environments
• ❌ Prefer developed-world infrastructure everywhere
• ❌ Are uncomfortable with security awareness requirements
• ❌ Can't handle altitude (Bogotá, Medellín)
• ❌ Dislike heat/humidity (Cartagena, coast)
• ❌ Want absolute predictability and efficiency

The Bottom Line

Colombia offers perhaps the best value proposition for Canadian retirees in Latin America:

• Lowest income requirement (~$1,100 CAD/month)
• Excellent tax treatment for foreign pensions
• World-class healthcare at budget prices
• Dramatic cost savings on daily living
• Modern infrastructure in major cities
• Welcoming culture and growing expat community

The tradeoff is accepting Latin American realities: some bureaucracy, the need to learn Spanish, and urban awareness that Canadians may not be accustomed to.

Before You Make the Move

Moving to Colombia—or any country—involves complex tax and financial planning that goes far beyond visa requirements. The decisions you make around timing, asset disposition, and residency status can have enormous financial consequences.

Key questions to answer before committing:

• What's your potential departure tax exposure on investments, property, or business interests?
• How will your RRSP/RRIF withdrawals be taxed as a non-resident?
• Should you draw down RRSPs before leaving or after?
• What's the optimal timing to maximize OAS while minimizing clawback?
• How do you properly sever Canadian tax residency?
• What happens to your provincial health coverage?

These decisions are interconnected and highly individual. A mistake can cost tens of thousands of dollars.

Calculate your departure tax exposure before making any decisions. Understanding your complete tax picture is the first step to a successful international move.

Frequently Asked Questions

Can I collect CPP and OAS while living in Colombia?

Yes. Both CPP and OAS are fully portable. Canada will deposit payments to your Canadian bank account regardless of where you live. However, 15% withholding applies under the tax treaty once you're a non-resident.

Do I need to give up Canadian citizenship?

No. Canada allows dual citizenship. You can become a Colombian permanent resident and eventually citizen while retaining Canadian citizenship.

How long does the visa process take?

Typically 2-3 months from document gathering to visa approval. The actual application review takes about 30 days.

Can I work on a Pensionado visa?

The Pensionado visa is specifically for retirees and does not authorize employment in Colombia. If you want to work, you'd need a different visa category.

What about Canadian provincial health coverage?

Most provinces cancel health coverage after 6-7 months abroad. You'll need Colombian health insurance (EPS or private) or international health insurance.

Is the healthcare really as good as they say?

In major cities, yes. Medellín and Bogotá have hospitals meeting international standards (JCI accredited). Rural healthcare is more limited.

How safe is Colombia really?

Major expat areas are generally safe with standard urban precautions. The country has improved dramatically, but awareness matters. It's not dangerous, but it's not Iceland either.

This guide is for educational purposes only and does not constitute legal, tax, or immigration advice. Tax laws and visa requirements change frequently. Always consult with qualified Canadian and Colombian tax professionals and immigration lawyers before making relocation decisions.