Colombia property tax for foreigners: on the way in, every year, on the rent, on the way out.

What taxes do you pay when buying property in Colombia?

The departmental registration tax (impuesto de registro), set by each departmental assembly between 0.5% and 1% of the value of the deed registered at the ORIP. There is no VAT on new homes today, and the 2% national consumption tax on property sales was struck down. Notary fees carry IVA.

The 5% VAT on the first sale of new homes above 26,800 UVT was repealed by Ley 1943 de 2018 and again by Ley 2010 de 2019. The 2% consumption tax on sales above 26,800 UVT is marked inexequible, citing Constitutional Court ruling C-593/19. The departmental rate for a specific city was not verified for this page. All one-off costs: Colombia property buying costs.

What is the annual property tax (predial) in Colombia?

The impuesto predial unificado, a municipal tax set by each city council between 5 and 16 per thousand (0.5% to 1.6%) of the cadastral value (avalúo). Rates vary by socio-economic stratum, land use, area and value. The rate a specific city charges was not verified for this page.

• Lower band: minimums from 1 per thousand apply to strata 1 to 3 homes under 135 monthly minimum wages.
• Undeveloped urban land: can be taxed up to 33 per thousand.
• City rates: Bogotá and Medellín set their own by stratum. Get the current rate from the city's Secretaría de Hacienda before you model the holding cost.

Does a foreign owner pay wealth tax in Colombia?

Only on large holdings. Non-resident individuals pay wealth tax on wealth held directly in Colombia where their net wealth on 1 January is 72,000 UVT or more, about COP 3.77 billion in 2026. Marginal rates are 0.5%, 1.0% and 1.5%, and the 1.5% band is temporary for 2023 to 2026.

• 0.5%: 72,000 to 122,000 UVT.
• 1.0%: 122,000 to 239,000 UVT.
• 1.5%: above 239,000 UVT, for 2023 to 2026. From 2027 the top rate is 1.0%.

The peso figure uses the 2026 UVT of COP 52,374 set by DIAN Resolución 000238. Whether any part of a home is excluded for a non-resident was not checked for this page. Companies and permanent establishments face a separate 2026 wealth tax set by emergency decree: 0.5% from 200,000 UVT.

How is rental income taxed for a non-resident owner in Colombia?

Rent paid to a non-resident is subject to 20% withholding on the gross payment, and the non-resident income tax rate is a flat 35% on Colombian-source taxable income. A non-resident whose income was all subject to the withholding in Articles 407 to 411 of the Estatuto Tributario is not required to file.

The catch is who withholds. In practice the 20% depends on the tenant being a withholding agent: companies usually are, many individual tenants are not. Where nothing is withheld, the owner may have to file and pay at 35% on net rental income. That interaction was not confirmed with DIAN for this page, so treat it as a question for a Colombian tax adviser, not a single number. The 20% rate predates the 2022 tax reform.

What is capital gains tax on Colombian property?

A gain on property held as a fixed asset for two years or more is ganancia ocasional, taxed at 15% for non-resident individuals. A gain on property held for less than two years is ordinary income, taxed at the 35% non-resident rate. The 15% rate replaced 10% under Ley 2277 de 2022.

Some commercial guides still show 10%. That is the pre-2023 rate. An individual selling a fixed asset also suffers 1% withholding on the sale value, paid before the notary executes the transfer; whether and how that applies to a non-resident seller was not confirmed. The exit in full: selling property in Colombia as a foreigner.

Will Colombia's property tax rates for foreigners change?

Possibly. Colombia declared an economic, social and ecological emergency in 2026, and emergency decrees amended the Estatuto Tributario for the year 2026. As of 31 August 2026 the Senate compilation showed no change to the rates on this page: 1% seller withholding, 20% rent withholding, 35%, the two-year test and 15%.

The 2026 emergency changes that were shown include the company wealth tax and a new 16% tax on online gambling. The status of the 2025 financing bill and of the Constitutional Court's review of the emergency decrees was not checked. Treat every rate here as a 2026 figure and check again for 2027.

Header photo: Dr. Thomas Liptak, CC BY-SA 4.0, via Wikimedia Commons. All credits: image credits.