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When investing in Cartagena real estate, understanding the complete tax landscape is crucial for accurate financial planning and compliance.
Property owners in Cartagena, Colombia face multiple tax obligations throughout the year, from annual unified property tax (Impuesto Predial Unificado) to capital gains levies upon sale, with rates and requirements that have been updated for 2025.
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Cartagena property owners pay unified property tax (IPU) at rates between 0.1% and 3.3% of cadastral value annually, with early payment discounts up to 20% available until April 11, 2025.
Additional obligations include municipal charges for waste collection, public lighting, and potential valorización levies, plus specialized taxes for rental properties and tourist accommodations.
| Tax Type | Rate/Amount | Due Date 2025 |
|---|---|---|
| Unified Property Tax (IPU) | 0.1% - 3.3% of cadastral value | July 31 (with early discounts) |
| Early Payment Discount | 20% discount until April 11 | April 11, 2025 |
| Late Payment Interest | Starts August 1, 2025 | From August 1 |
| Capital Gains Tax | 10% (properties held 2+ years) | At time of sale |
| Transfer Tax | 1% of transaction value | At time of purchase |
| Short-term Rental Tax | 19% VAT + ICA 0.4-1.38% | Quarterly/Monthly |
| Rental Income Tax | 0-39% progressive rates | Annual declaration |
Which Cartagena are we discussing and how do I identify my property for tax purposes?
This comprehensive guide covers Cartagena, Colombia, specifically the Tourist and Cultural District of Cartagena de Indias in Bolívar Department.
To obtain precise tax calculations for 2025, you need your property's cadastral reference number (referencia catastral), which uniquely identifies your property in the municipal tax system. This 20-digit alphanumeric code appears on previous tax bills, property deeds, and public utility invoices.
You can verify your property's official information and generate tax bills through the municipal tax portal at portaltributario.cartagena.gov.co by entering either your cadastral reference, identity document number, or property address. The system immediately displays current assessed values, outstanding balances, and payment options.
For properties without readily available cadastral references, visit the Area Metropolitana de Barranquilla (AMB) offices, which became Cartagena's new cadastral operator in January 2025, replacing the previous system and requiring database harmonization.
What is my property's official assessed value for 2025 and how does it compare to market price?
Colombian properties receive annual cadastral value updates based on the Consumer Price Index (CPI), with 2025 assessments increased by 3% from 2024 levels according to Decree 1609 of 2024.
The cadastral value (avalúo catastral) serves as the official tax base and typically ranges from 50% to 70% of actual market value. For example, a property with a market value of COP 400 million might have a cadastral value of COP 200-280 million for tax calculation purposes.
You can find your property's exact 2025 cadastral value on your Impuesto Predial Unificado (IPU) bill issued from January 20, 2025, or by consulting the municipal tax portal. This value determines not only property tax but also serves as the base for calculating transfer taxes, inheritance taxes, and other property-related levies.
Recently updated properties that underwent detailed technical reassessment in 2024 are exempt from the automatic 3% increase and maintain their specifically evaluated cadastral values.
Which annual property tax applies in 2025 and what are the exact rates?
Cartagena levies the Impuesto Predial Unificado (IPU) as the primary annual property tax, with rates varying by property use and socioeconomic stratum classification.
Residential properties in stratum 6 (highest socioeconomic level) pay 0.71% of cadastral value, while commercial properties pay 1.5% and undeveloped urban lots face the maximum rate of 3.3%. The rate structure incentivizes property development and applies differential treatment based on property characteristics and location within the city.
The exact formula multiplies your property's cadastral value by the applicable rate: IPU = Cadastral Value × Rate Percentage. For instance, a stratum 6 residential property with a cadastral value of COP 200 million pays COP 1,420,000 annually (200,000,000 × 0.71%).
Rate brackets are established by Municipal Agreement 025 of 2016 and remain consistent for 2025, providing predictability for property owners planning their annual tax obligations.
What other municipal charges and special assessments apply to my property in 2025?
Beyond the IPU, Cartagena property owners face several additional municipal charges that vary by property location and characteristics.
| Municipal Charge | Rate/Amount | Application |
|---|---|---|
| Public Lighting | Variable by neighborhood | All urban properties |
| Waste Collection | Fixed monthly amount | Properties receiving service |
| Valorización Levies | Based on infrastructure projects | Properties benefiting from improvements |
| Pro-Sports and Recreation Fee | 2% of contracts over 50 SMMLV | Construction/renovation projects |
| Urban Development Contribution | Varies by project scope | New construction/major renovations |
| Fire Department Surcharge | Included in commercial tax | Commercial and industrial properties |
| Delineation Tax | 1.5% of construction value | Properties requiring building permits |
Valorización assessments are project-specific special levies imposed when your property benefits from infrastructure improvements like road construction, sewer upgrades, or public space enhancements. These assessments are calculated based on the improvement's cost and the proportional benefit to your property.
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What are the exact payment due dates and installment options for 2025?
The 2025 Cartagena tax calendar establishes specific deadlines designed to encourage timely payment while providing flexibility for property owners.
IPU bills are issued starting January 20, 2025, with the final payment deadline of July 31, 2025, to avoid late payment interest. Property owners who pay at least 50% by July 31 can defer the remaining balance until December 31, 2025, without additional interest charges.
Early payment incentives offer substantial savings: 20% discount for payments made by April 11, 2025, and 10% discount for payments between April 12 and May 23, 2025. These discounts apply to the full annual tax amount and represent significant savings for prompt taxpayers.
Payment options include bank transfers through PSE, credit card payments (Visa and Mastercard), direct bank deposits at authorized branches (Banco de Bogotá, Davivienda, Banco de Occidente, GNB Sudameris, and BBVA), and automatic debit arrangements through the municipal portal.
Starting August 1, 2025, late payment interest begins accruing daily on unpaid balances, making early payment financially advantageous beyond the discount periods.
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What late payment penalties and interest rates apply in 2025?
Cartagena's 2025 tax statute imposes progressive penalties for late property tax payments, with interest beginning to accrue from August 1, 2025, for unpaid IPU obligations.
Late payment interest follows Colombia's standard moratory interest rate, which adjusts monthly based on banking superintendency calculations. As of September 2025, this rate stands at approximately 1.32% monthly, compounding on outstanding balances.
The penalty structure includes both interest charges and administrative fines. Initial notices incur minimal administrative costs, but enforcement proceedings (vía ejecutiva) triggered after 90 days of non-payment add substantial collection fees and legal costs to the original debt.
Maximum penalties are capped at 200% of the original tax amount, meaning a COP 1 million tax bill cannot exceed COP 3 million total including interest and penalties. However, reaching this maximum typically requires years of non-payment and active avoidance of collection efforts.
Property liens automatically attach to delinquent properties, preventing sale or transfer until all tax obligations are satisfied, making prompt payment essential for maintaining clear property title.
Which exemptions and reduced rates exist for 2025?
Cartagena's tax code provides several exemption categories designed to support vulnerable populations and encourage specific behaviors.
Primary residence exemptions reduce tax liability for properties valued below certain thresholds, particularly benefiting homeowners in strata 1 and 2 neighborhoods. Senior citizens over 65 years old may qualify for reduced rates on their primary residence, subject to income and property value limitations.
Disability exemptions provide significant relief for property owners with officially recognized disabilities, requiring certification from authorized health institutions and annual renewal of documentation. These exemptions can reduce tax liability by 50% to 100% depending on disability severity and property characteristics.
Heritage property exemptions apply to buildings with historical or architectural significance within Cartagena's UNESCO World Heritage zones, encouraging preservation through reduced tax burdens. Energy-efficient upgrades and green building certifications may qualify for temporary tax reductions as part of environmental incentive programs.
Low-income exemptions target properties in strata 1 and 2, with income verification requirements and property value caps determining eligibility. Application processes require extensive documentation and annual renewal to maintain exemption status.
What taxes apply to long-term rental properties in 2025?
Long-term rental property owners in Cartagena face multiple tax obligations beyond standard property taxes, creating a complex compliance environment.
Rental income taxation follows Colombia's progressive income tax structure, with rates ranging from 0% to 39% based on total annual income. Property owners can deduct legitimate expenses including property taxes, maintenance costs, insurance premiums, and management fees when calculating taxable rental income.
The Industry and Commerce Tax (ICA) applies to rental activities at rates between 0.4% and 1.38% of gross rental income, depending on property location and rental income volume. Properties generating more than a minimum threshold require formal business registration and quarterly tax filings.
Withholding tax obligations may apply when rental agreements exceed certain amounts or involve corporate tenants, requiring monthly declarations and payments to maintain compliance with national tax requirements.
Municipal business permits and operating licenses may be required for properties rented continuously, adding administrative costs and regulatory compliance obligations to the investment equation.
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What licenses and taxes are required for short-term and tourist rentals in 2025?
Short-term rental operations in Cartagena require comprehensive licensing and face multiple taxation levels as of 2025.
All properties rented for periods under 30 days must register with Colombia's National Tourism Registry (RNT) through the local Chamber of Commerce, with registration numbers prominently displayed on rental platforms. This registration process verifies compliance with safety standards and municipal regulations.
VAT at 19% applies to short-term rental income, though temporary exemptions for tourism services to Colombian residents continue through December 2025. International guests and business travelers remain subject to full VAT obligations on accommodation charges.
Municipal ICA taxes range from 0.4% to 1.38% of gross rental earnings, calculated monthly or quarterly depending on income volume. Properties in prime tourist zones may face higher ICA rates due to their commercial classification and infrastructure usage.
Tourist tax collections vary by municipality, with some areas implementing per-night charges ranging from COP 3,000 to COP 15,000 per guest, collected by accommodation providers and remitted to municipal authorities. Income tax obligations follow the same progressive structure as long-term rentals, but with fewer deductible expenses due to the commercial nature of short-term operations.
Which one-time taxes and fees apply when purchasing property in 2025?
Property purchases in Cartagena trigger several one-time taxes and administrative fees that buyers must budget for beyond the purchase price.
Transfer tax (Impuesto de Registro) applies at 1% of the higher value between cadastral assessment and actual purchase price, paid by the buyer during the registration process. This tax directly supports municipal revenue and property registration systems.
Notary fees vary based on property value, ranging from 0.3% to 0.54% of the transaction amount, covering document authentication and legal verification services required for valid property transfers.
Registry office fees (Registro de Instrumentos Públicos) cost between 0.5% and 1.6% of property value, depending on transaction size and complexity, ensuring proper title recording and legal protection for new owners.
Real estate agent commissions typically range from 3% to 6% of purchase price, split between buyer and seller representation, though commission structures vary significantly based on property type and market conditions.
Legal representation costs for due diligence, contract review, and closing procedures range from COP 2 million to COP 8 million depending on transaction complexity and attorney expertise.
What taxes apply when selling property in 2025?
Property sales in Cartagena trigger capital gains taxation and municipal levies that sellers must account for in their transaction planning.
Capital gains tax applies at 10% for properties held longer than two years, calculated on the difference between inflation-adjusted purchase price and sale price. Properties sold within two years of acquisition face income tax at rates up to 33% for non-residents, significantly impacting short-term investment strategies.
Municipal plusvalía tax (tax on increased land value) ranges from 15% to 33% of the land value increase since the last ownership transfer, calculated using municipal formulas that consider location, time held, and infrastructure improvements in the area.
The taxable capital gains calculation allows deductions for purchase costs, improvement expenses, transfer fees, and inflation adjustments using Colombia's Consumer Price Index. Proper documentation of all improvement costs and legitimate expenses significantly reduces tax liability.
Non-resident sellers face additional withholding requirements, with 1% of the sale price retained as advance payment against potential capital gains obligations, requiring subsequent tax filings to recover excess withholdings or pay additional amounts due.
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What is the total estimated yearly cost for a concrete example in 2025?
For planning purposes, consider a 100 m² apartment in Cartagena with a cadastral value of COP 150 million (approximately $37,500 USD), representing a typical mid-range residential property.
| Tax/Fee Description | Amount (COP) | Due Date 2025 |
|---|---|---|
| Unified Property Tax (IPU) - 0.71% | 1,065,000 | July 31 |
| Early Payment Discount (20%) | (213,000) | If paid by April 11 |
| Public Lighting Fee | 180,000 | Monthly with utilities |
| Waste Collection Service | 240,000 | Quarterly |
| Building Administration (if applicable) | 600,000 | Monthly |
| Property Insurance (recommended) | 450,000 | Annual |
| Total Annual Cost (with discount) | 2,322,000 | Various dates |
| Total Annual Cost (without discount) | 2,535,000 | Various dates |
This example demonstrates that timely payment with early discount saves COP 213,000 annually, representing 8.4% savings on the total property tax obligation. Additional costs like valorización assessments, building improvements, or rental activity would increase annual obligations proportionally.
Monthly cash flow planning should account for COP 193,500 to COP 211,250 depending on payment timing, with the majority concentrated in the first half of the year when property tax discounts are available.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Understanding Cartagena's property tax landscape empowers investors to make informed decisions and maintain compliance with all municipal and national obligations.
With proper planning and early payment strategies, property owners can significantly reduce their annual tax burden while ensuring full legal compliance in this vibrant coastal investment market.
Sources
- Alcaldía Mayor de Cartagena de Indias - Calendario Tributario 2025
- Nexo Legal - Property Tax Assessment Colombia 2025
- Paul Juan Realty - Property Tax Rate in Cartagena
- Global Property Guide - Colombia Property Taxes
- PWC Tax Summaries - Colombia Individual Taxes
- TheLatinvestor - Cartagena Airbnb Profitability
- Siempre al Día - Calendario Tributario Cartagena
- Portal Tributario Cartagena