The first thing that goes wrong for a Colombian developer who lands a US contract is usually the first invoice. The US company pays in dollars, the money arrives, and three months later the developer finds out their RUT was never updated to show they export services, and the VAT exemption they assumed they had doesn't apply.
That's fixable, and cheap to get right up front. This guide covers the paperwork, the time zone, the English bar, and what US teams look for when they hire from Colombia.
Key Takeaways
- Colombia is on UTC-5 all year: the same clock as New York in the US winter and one hour behind it in summer.
- Colombia scores 480 on EF's 2025 English index, but Bogota (513) and Medellin (516) score well above the national figure.
- Exported services can be VAT-exempt under Article 481 of the Tax Statute, but only with the formal requirements, including RUT registration as a service exporter.
- US teams hiring from Colombia get near-perfect overlap, so they expect you to be present and fast in live meetings.
The best overlap in South America
Colombia doesn't use daylight saving time. Bogota stays on UTC-5 (per the IANA time zone database), and the US shifts around it:
| US season | New York | Chicago | San Francisco |
|---|---|---|---|
| Winter (first Sunday of Nov to second Sunday of Mar) | Same time | You are 1 hour ahead | You are 3 hours ahead |
| Summer (second Sunday of Mar to first Sunday of Nov) | You are 1 hour behind | Same time | You are 2 hours ahead |
For an East Coast company, you're in the room for every meeting at a normal hour. That cuts both ways. A team that hires in Colombia because of the overlap will expect you in the 10am design review, answering in Slack within minutes, and on the incident call when production breaks at 3pm. If you want a job where you work mostly alone, the overlap sets expectations you should know about before you sign.
English: the national number isn't your number
Colombia scored 480 in the 2025 EF English Proficiency Index, 76th worldwide and eight points below the 488 global average (EF EPI 2025, Colombia). The city breakdown is more useful to you. Bucaramanga (518), Medellin (516), Manizales (515) and Bogota (513) all beat the national average. EF's sample is self-selected, so take the exact figures loosely.
Here's why the split matters. If you're a senior developer in Medellin, a US recruiter assumes you're competing with other Medellin engineers who already work in English. The bar is higher in the hubs. Our job posts ask for B2 or better, and client-facing roles in practice need something near C1. We test it live, in English, during the process. The fastest way to find out where you stand is to record yourself explaining a system you built, then listen back. Our guide to passing a technical interview in English has the drill.
The DIAN side of a US contract
General information, not legal or tax advice. Colombian rules are detailed and they change. Talk to a contador publico before your first invoice.
A developer contracting directly with a US company is running a professional activity, which means three pieces of paperwork show up early:
RUT. Your Registro Unico Tributario needs the right economic activity. To use the VAT exemption for exported services, you need to be registered as a service exporter in the RUT (Gerencie).
The Article 481 exemption. Exported services can be exempt from IVA when the service is provided from Colombia, used exclusively abroad, and contracted by a company or person without business activities in Colombia. You also need evidence of the deal, such as a signed contract or an accepted commercial offer, and invoice details that identify the foreign client and destination country (Gerencie). Miss the formal requirements and the exemption doesn't apply.
Reporting the income. DIAN has clarified that income from abroad is reported at the gross amount billed, before any foreign withholding, and that foreign taxes can be claimed later as credits to avoid paying twice (Infobae).
When the dollars cross into pesos through the exchange market, Banco de la Republica rules apply, and your bank will ask you for the basic details of the operation, which serve as your exchange declaration (declaracion de cambio). Your bank usually walks you through it.
If all of this sounds like too much for your first contract, an Employer of Record or a staffing firm handles the Colombian side for you. We compare the options in how LATAM developers get paid by US companies.
What a US team is actually hiring
In our screening, "worked on a US client project through a local agency" shows up on Colombian resumes constantly. So it doesn't stand out. What's rare is a developer who can show the decisions they made on that project.
So bring proof of judgment. A short write-up of a migration you led. A PR where you pushed back on a design and were right. A story about an outage you debugged. Then pick the role that matches your real depth: we're hiring for data engineers, Node.js backend engineers, and other stacks on the open roles page.
For practice outside work, MinTIC runs Colombia 5.0, the national digital ecosystem event formerly known as Colombia 4.0, as a free regional tour in 2026 starting in Manizales (MinTIC). Hackathons there are good material for a portfolio.
A Concrete Version
A composite, not a real person. Andres is a senior full-stack developer in Medellin, seven years in, currently at a local agency serving US clients. He wants to contract directly.
Before applying, he books one session with a contador. They update his RUT with the right activity and the service-exporter registration, set up electronic invoicing, and agree that every contract will be in writing with the US client's details, so the Article 481 exemption holds. Cost: one afternoon and a fee.
He applies, passes the coding assessment and the async English video interview, and joins an East Coast team in February, when their 9:30am standup is his 9:30am. In March the clocks change in New York and standup moves to 8:30am for him. He's fine with it. His first invoice goes out with the foreign client's details and the export treatment, the payment comes in, and his bank handles the exchange declaration when he converts part of it to pesos. At year end, he reports the gross amount billed, as DIAN requires.
The Honest Counterpoint
Direct contracting is a lot of admin for a developer who has never invoiced. If you get the RUT or the contract wrong, you can owe IVA you never charged. An Employer of Record costs the client more and may pay you less than a direct contract, but it keeps you out of that risk, and you may get benefits a contractor doesn't.
The overlap can also work against you. Some US teams treat Colombian contractors as always available because the clocks match. Set your hours in writing on day one. And if your English is below B2 today, work on that before applying; the time zone will not rescue a weak interview.
Frequently Asked Questions
Do I have to charge IVA to a US client?
Not if the service qualifies as an export under Article 481 and you meet the formal requirements. If you don't meet them, the exemption doesn't apply. Confirm with a contador.
Can I keep my income in dollars?
Many developers use foreign accounts or payment platforms and convert when needed. When money moves through the Colombian exchange market, the Banco de la Republica declaration rules apply. Ask your bank how they handle it.
Is Medellin or Bogota better for remote US work?
For remote work it matters little. Both score above the national English average, and your own interview is what counts.
The Bottom Line
Colombia gives you the easiest schedule in South America for US work. Use it, set boundaries, and get the DIAN paperwork right before the first dollar arrives. Then apply where your stack fits on the Ruzora jobs page. If you're still polishing your application, start with writing a developer resume for US tech companies.
Roberto Espinoza is CEO of Ruzora, which places senior LATAM engineers with US startups. Browse open roles.
