How to Withdraw Your Prop Firm Profits in Colombia: Complete Guide

If you are a trader in Colombia operating with prop firms, you have probably already asked yourself: how do I withdraw my profits? And more importantly: what options do I have and how do they work?

> IMPORTANT - Tax Obligation: All profits obtained from prop firms constitute income and must be declared to DIAN according to current Colombian legislation. The choice of payment method does not modify your tax obligations. This guide is informational about how different payment methods work, not tax advice. Always consult with an accountant.

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## Payment Methods and How They Work

### Methods with Automatic DIAN Reporting

These methods automatically report transactions to the Colombian financial system:

### Methods without Automatic Reporting

These methods do not have an automatic reporting mechanism:

> Remember: Just because a method has no automatic reporting does NOT mean you don't have to declare that income. The tax obligation exists regardless of the payment method. Balances on exchanges also constitute declarable assets.

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## The 4x1000: Tax on All Bank Movements

In Colombia there is a tax that affects ALL your bank movements:

This means: If you withdraw $1,000 USD, you pay $4 USD just for moving it.

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## Special Case: Wise Does NOT Work in Colombia

Wise is not directly available for Colombia. Unlike Argentina or Mexico, you cannot open a Wise account with a Colombian address.

### Alternatives to Wise in Colombia:

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## Recommended Method: Direct Bancolombia

Bancolombia is the most used bank by Colombian traders to receive payments from prop firms.

### How it works:

1. You configure Bancolombia as the withdrawal method in the prop firm 2. The prop firm sends an international transfer 3. The dollars arrive in your account

### Important change since January 2025:

Before it arrived directly to your peso account. Since January it no longer arrives directly, now you must:

1. Receive the transfer 2. Enter Sucursal Virtual Personas (PC) 3. Go to "International Transfers" 4. Accept the transfer 5. It gets credited to your account

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## Alternative Method: Global66

Global66 is a Colombian fintech that gives you access to accounts in dollars and other currencies.

### Advantages: - USD account - High limit with KYC (>$25,000 USD/month) - Receives crypto and transfers to national banks

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## Crypto Method: Binance P2P + Nequi

If you prefer using cryptocurrencies, this is a popular route:

Prop Firm → Crypto (USDT) → Binance P2P → Nequi/Bancolombia

### Banks compatible with Binance P2P Colombia: - Bancolombia - Davivienda - Nequi - Daviplata

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## PayPal in Colombia

If the prop firm pays via PayPal:

### Option 1: PayPal → Banco W → Your bank

Every PayPal withdrawal to any Colombian bank is received through Banco W. They are the intermediary bank and the ones who deposit to your bank. It usually takes one day. PayPal only charges $3,500 COP per withdrawal but the exchange rate is not very good.

Important tip: Make sure when filling out the form for your first transfer that data like address, phone, name etc. match exactly as you have them in PayPal.

### Option 2: PayPal → Nequi (Faster)

With Nequi the transfer is immediate, you just link PayPal to your Nequi. The only requirement is that your Nequi email and phone number are the same as registered in PayPal. Nequi charges a % per transferred amount.

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## Paying for Funding Tests from Colombia

### Cards that work:

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## Tax Obligations in Colombia

### DIAN Declaration

### Penalties for non-compliance

- Inaccuracy (Art. 647 ET): Penalty of 100% to 200% of the higher tax - Asset omission: May constitute a criminal offense

### Additional obligations

- Report accounts and assets on foreign exchanges - Keep records of all transactions for 5 years

Recommendation: Consult with a certified Colombian public accountant for your specific case.

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## Summary: Method Comparison

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## Legal Disclaimer

This guide is exclusively informational and does not constitute tax, legal, or financial advice.

- All profits must be declared to DIAN according to Colombian legislation - The choice of payment method does not exempt you from tax obligations - Balances on foreign exchanges constitute declarable assets - Tax laws can change; verify current regulations - Always consult with a Colombian accountant specialized in this area - Each personal situation is different and requires individual analysis