How to receive payment for remote work for a US company from Colombia

A contractor in Colombia who charges USD 3,000 monthly can lose between USD 40 and USD 120 every month just by choosing the wrong payment method or neglecting the conversion timing. 

The difference between those two extremes depends on three decisions made before receiving the first payment, and most professionals resolve them on the go, when they are already losing money.

Remote work for US companies from Colombia has a particularity that distinguishes it from other freelance schemes. 

The US company usually has a payment department with standardized processes, specific forms, and rigid deadlines. If you do not provide the correct information from the start, your first payment can be delayed for weeks.

Information requested by a US company before paying you

Before a single dollar arrives, the payment department needs two things from you: a tax form and your complete bank details.

The standard tax form for a contractor in Colombia working for a US company is the W-8BEN. This document confirms to the IRS that you are not a tax resident in the United States and that your income is treated under the regime of your country.

Colombia has a double taxation treaty with the US that can reduce or eliminate withholdings on your payments, but the specific application of that benefit depends on your personal situation.

Consulting with an accountant before completing the form avoids mistakes that later cost months of correction.

As for the bank details, the company will ask you for specific fields depending on the payment method they use.

For a SWIFT transfer, you need the full name of the account holder, account number, bank's SWIFT/BIC code, bank address, and beneficiary's address. 

If the company uses ACH, you need a routing number and an account number from an account in US territory, something that a traditional Colombian bank does not give you but certain digital platforms can offer.

What your invoice must include to activate the first payment

• Your full name or business name as it appears before the DIAN

• Colombian tax identification number (NIT or ID depending on your regime)

• Description of the service provided and period covered

• Amount in USD agreed with the company

• Complete bank details to receive payment

• Payment deadline (net 15, net 30 or whatever you have agreed)

To activate the first payment, it is advisable to send an email directly to the Finance contact with the subject "Payment setup, [your name], contractor" that includes the signed W-8BEN, the invoice, and the bank details in a single message. That avoids unnecessary back-and-forth.

How to choose the payment method from the US

The method you choose to get paid from a foreign company changes the real cost of each payment, and that cost feels different depending on the frequency. A professional who collects monthly pays commissions twelve times a year.

One who does a single project pays them only once. The total amount may be the same, but the cumulative impact of fixed commissions completely changes the equation.

Comparison of payment methods on USD 4,000 monthly

A SWIFT transfer from the United States to a Colombian bank has a cost on the sender's side plus a possible charge from the receiving bank. 

Crediting takes between 2 and 5 business days and the exchange rate applied by the Colombian bank when converting to pesos is rarely the most favorable.

International payment platforms offer percentage fees that are usually between 1% and 3% of the amount. 

For high amounts and frequent payments, the percentage weighs more than a fixed commission. For a one-time payment of a high amount, the difference is reversed because the fixed SWIFT commission is diluted while the platform's percentage grows.

Some digital solutions allow receiving payments through ACH, the United States domestic transfer system, with much lower costs. 

The real advantage of ACH is that many US companies prefer it because they already use it to pay their local employees, which simplifies the process for their finance department and can speed up the approval of your payment setup.

Converting dollars to pesos without giving away margin

Once the money arrives, the question remains of when and how to convert to pesos. 

The TRM fluctuates daily, and the difference between the exchange rate of a traditional Colombian bank and the TRM can represent hundreds of thousands of pesos that are lost in each conversion without appearing as a "commission" on any receipt.

Keeping dollars in an account that allows you to choose the conversion moment completely changes that dynamic. 

Instead of automatically receiving pesos at the exchange rate of the day the bank decides, you can wait for a moment when the TRM favors you or convert only what is necessary for immediate expenses.

At belo we designed a solution for this: you can receive payments from abroad and keep the balance in dollars from the app, with control over when and how much to convert according to your real need.

The tax part of this whole process—how to declare income from abroad in Colombia, what tax regime corresponds to you, if you must invoice electronically, and what withholdings apply—requires an accountant specialized in foreign trade of services.

Regulations change frequently and the consequences of an error range from fines to account blockages. Every well-made decision regarding data, payment method, and conversion translates into hundreds of dollars that stay on your side every year.

Download the belo app and check how to receive payments from abroad according to your account and current conditions.

Frequently asked questions on how to receive payment for remote work for a US company from Colombia

Does the W-8BEN expire or does it need to be renewed?

The W-8BEN form is valid for three years from the date of signature. When it expires, the paying company can withhold taxes on your payments until you deliver an updated one, so it is advisable to process the renewal in advance.

If you work with multiple US companies, each one needs its own form. It is not enough to deliver it only once to one of them.

Can I receive payments in dollars without opening an account abroad?

Yes. Certain digital wallets available in Colombia assign you international bank details that allow you to receive transfers in dollars without the need to operate with a physical bank abroad. The key is to verify that the platform accepts transfers from companies and not only from natural persons.

At belo we offer that possibility: you receive dollars from abroad and decide when to convert them to pesos, without the bank making that decision for you.

How long does it take for a SWIFT transfer from the US to Colombia to be credited?

The usual period is 2 to 5 business days, although it can be extended if the transfer goes through intermediary banks or if the receiving bank requests additional documentation to validate the origin of the funds.

To avoid delays, it is advisable to have the documents justifying the origin of the funds ready beforehand, especially for the first payments with a new company.

Is the US company obliged to withhold taxes on my payments?

It depends on whether you submit the W-8BEN correctly and on the terms of the double taxation treaty between Colombia and the US. Without that form, the company can apply a 30% withholding on each payment. With the form submitted, the withholding can be reduced or eliminated depending on your particular situation.

An accountant with experience in cross-border services can help you determine exactly what withholding applies in your case and if you can recover any amount withheld in error.

What happens if the company only pays via ACH and I do not have a US account?

Some digital platforms grant the user a routing number and an account number from an account in US territory, which works for practical purposes like a local account to receive payments by ACH. Those funds can then be transferred or converted from the same platform.

Before using that option, it is advisable to confirm with the paying company that they accept accounts assigned by digital platforms and not only traditional bank accounts, as some finance departments have restrictions regarding this.