How to pay contractors in Colombia from the US
Colombian contractors receive pesos through local transfers, and since 2025 the Bre-B instant system. Inbound foreign payments go through a foreign exchange intermediary that records the operation.
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Colombia, especially Medellín and Bogotá, is a growing hub for US companies' engineering and support teams. Paying there means choosing between a USD wire and a local peso payout.
Routes
| Route | What happens |
|---|---|
| USD wire to a Colombian bank | Converted through the exchange market, declared by the intermediary |
| COP local payout | Your provider converts and pays locally |
| USD to the contractor's dollar account | No conversion; fees apply |
What the contractor needs
- Account details in their name.
- A clear description of the service for the exchange declaration.
- An invoice for their tax records.
Your side
- W-8BEN.
- Invoice references on payments.
- Approvals for the payroll run.
A monthly run, step by step
- Collect the W-8BEN and the contractor's bank details, including the account type and their cédula number if the bank needs it.
- Agree in the contract whether the fee is set in USD or COP.
- Receive the invoice, pay on a fixed date and reference the invoice number.
- Send the receipt, which the contractor's bank may ask for when it records the exchange operation.
A contract that fixes the fee in USD but pays in COP should say which day's rate applies.
Paying into the United States: the local rail
| What | Detail |
|---|---|
| Local rail | ACH for batch payments; RTP and FedNow for instant transfers |
| Run by | Nacha for ACH; The Clearing House for RTP; the Federal Reserve for FedNow |
| Settlement | Same-day ACH within the business day, standard ACH the next; RTP and FedNow in seconds, 24/7, where both banks take part |
Source: Nacha: Same Day ACH. Checked when this guide was last updated; the scheme's own page has the current figures.
Where Rivet fits
Rivet pays contractors in Colombia in COP on local rails where available, from your USD balance, with fee and FX shown before you confirm, and pays 120+ other countries the same way. Rivet is not a bank; regulated partner institutions hold the funds. See paying contractors in Latin America.
Questions people ask
How do I pay a contractor in Colombia?
By USD wire to their Colombian bank, or by a provider that pays COP locally. Ask what they prefer.
What is the exchange declaration?
Inbound foreign currency operations are reported through the receiving intermediary under Banco de la República's rules, with a description of the operation.
What is Bre-B?
Colombia's instant payment system, run by Banco de la República, launched in 2025 for real-time peso transfers using keys.
Do I withhold US tax?
Not for non-US persons working entirely outside the US. Collect a W-8BEN.
Sources
Alexia compares the accounts, cards and payment tools companies weigh before they switch, and writes Rivet's market guides for founders in a specific country. Prices in Alexia's comparisons come from each provider's own pricing page on the date given in the article, rules come from the regulator or tax authority that sets them, and every source is listed at the end.
More from Alexia M. →This article is general information, not legal, tax or financial advice. Rules and fees change; check the sources above and the provider’s current terms before you act on them.
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