How to Obtain a Colombian RUT and Build Credit as a Foreigner

If you plan on being in Colombia long term, there are many things to consider. One of these is to start to build credit here in Colombia. Your credit built back home means very little if anything here. So, if you plan to make Colombia your long term home, getting a RUT is the first step to becoming more of a permanent fixture in Colombia.

I purchased a home here with a mortgage, and this is because when I moved here, I got a RUT, and started building credit and methodically building it up and that culminated in buying an apartment with a mortgage loan. That is a whole process that will blow you away. It's night and day different, and spoiler alert, fixed rate loans aren't fixed rate. But I digress.

What Is a RUT?

The RUT is Colombia’s tax identification number issued by the DIAN (Dirección de Impuestos y Aduanas Nacionales). It’s required for any tax-related activities, including opening a bank account, registering a business, and filing taxes. Even if you’re not earning an income in Colombia, a RUT can be useful for formalizing your financial presence.

Step 1: Determine If You Need a RUT

Before obtaining a RUT, confirm that you need one. Common reasons include:

• Working in Colombia (employed or freelance).

• Starting a business.

• Opening a bank account or applying for loans.

• Importing goods.

Step 2: Gather the Required Documents

To apply for a RUT, you'll need to gather the following:

1. Valid Passport: Include a copy of the photo page and the page with your most recent Colombian visa or entry stamp.

2. Visa or Permit: If you’re on a work, business, or residence visa, ensure you have a copy.

3. Proof of Address: Utility bills, rental contracts, or a signed letter from your landlord will suffice.

4. Colombian Phone Number: Essential for communication with DIAN.

Step 3: Download and Fill Out the Pre-Registration Form

Before heading to a DIAN office, you can start the process online:

1. Visit the DIAN website at www.dian.gov.co.

2. Go to the RUT Pre-Registration section.

3. Fill out the online form with your personal details, including:

   • Full name

   • Passport number

   • Nationality

   • Address and phone number in Colombia

4. Download and print the completed pre-registration form.

Tip: Use Google Translate if you’re not fluent in Spanish, as the website is primarily in Spanish.

Step 4: Schedule an Appointment with DIAN

Due to high demand, DIAN requires appointments for RUT registration. To schedule:

1. Visit the DIAN website and navigate to the Appointment Scheduling section.

2. Select the service: Inscripción en el RUT (RUT Registration).

3. Choose your nearest DIAN office.

4. Pick a date and time convenient for you.

5. Confirm the appointment and save the confirmation email.

Step 5: Attend Your DIAN Appointment

On the day of your appointment:

1. Arrive 15 minutes early.

2. Bring all required documents, including the pre-registration form.

3. Present your documents to the DIAN officer.

4. Verify your information with the officer.

Once your application is approved, you will receive your RUT immediately. This document contains your unique tax identification number.

Building Credit in Colombia

After obtaining your RUT, you can start building credit, which is crucial for accessing loans, financing vehicles, or even renting apartments. Here's how:

Step 1: Open a Colombian Bank Account

Choose a reputable bank such as Bancolombia, Davivienda, or BBVA. To open an account:

1. Provide your passport, RUT, proof of address, and a small initial deposit.

2. Choose between savings (cuenta de ahorros) or checking accounts (cuenta corriente).

3. Sign up for online banking to manage your account easily.

Step 2: Apply for a Credit Card

Building credit starts with using credit responsibly. Most banks offer starter credit cards for new account holders. Requirements include:

• Valid RUT

• Proof of income (such as a work contract or freelance invoices).

• Bank account history.

Tip: If you’re initially denied a credit card, ask about prepaid or secured credit card options.

Step 3: Pay Bills on Time

Your credit score in Colombia is influenced by timely payments. Set up automatic payments for:

• Utilities

• Phone and internet bills

• Credit card bills

Step 4: Monitor Your Credit Score

In Colombia, credit scores are managed by credit bureaus like Datacredito and Cifin. You can request a free annual credit report to track your progress.

Resources and Forms

DIAN Resources

• DIAN Website: www.dian.gov.co

• RUT Pre-Registration: Direct Link (ensure accuracy when filling out the form).

Forms to Download

1. RUT Pre-Registration Form: Available online after completing pre-registration.

2. Appointment Confirmation: Download after scheduling your appointment.

Banking Resources

• Bancolombia: www.bancolombia.com

• Davivienda: www.davivienda.com

• BBVA: www.bbva.com.co

Final Tips

1. Be Patient: The process can take time, especially if you’re unfamiliar with the language or bureaucracy.

2. Learn Basic Spanish: It’s helpful for navigating official websites and communicating during appointments.

3. Keep Copies of Everything: Always have digital and physical copies of your documents.

4. Seek Professional Help: Consider hiring a local accountant or lawyer if you encounter difficulties. Contacting someone with experience such as Carolina Restrepo is a very good idea to help

By following these steps, you’ll be well on your way to securing a RUT and establishing credit in Colombia. Once integrated into the financial system, you’ll find it easier to manage your finances and enjoy your time here. I can tell you that planning ahead will help you to be in a better place down the road.