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Everything you need to know before buying real estate is included in our Colombia Property Pack
Property taxes for apartments in Colombia range from 0.4% to 1.2% annually based on the official assessed value.
Beyond the basic property tax, apartment owners face additional costs including administration fees, registration fees, and potentially wealth taxes depending on their total assets. Understanding these tax obligations is crucial for anyone considering purchasing an apartment in Colombia, whether for investment or personal use.
If you want to go deeper, you can check our pack of documents related to the real estate market in Colombia, based on reliable facts and data, not opinions or rumors.
Property taxes in Colombia typically cost between 0.4% to 1.2% of the official property value annually, with most apartments falling in the 0.6% to 1% range.
Additional costs include administration fees, notary and registration fees during purchase, and potential wealth taxes for high-value property owners.
| Cost Type | Annual Amount (500M COP Apartment) | Notes |
|---|---|---|
| Property Tax | 2M - 5M COP | Based on municipal rates |
| Administration Fees | 2.5M - 6.7M COP | Varies by building amenities |
| Garbage Collection | 120K - 360K COP | If charged separately |
| Registration Fee (one-time) | 2.5M - 5M COP | 0.5% - 1% of purchase price |
| Notary Fee (one-time) | 1.25M - 2.5M COP | 0.3% - 0.5% of purchase price |
| Rental Income Tax | 35% of net income | For non-resident landlords |
| Wealth Tax | 0.5% - 2% | Only if total wealth > 2B COP |
What's the average annual property tax rate for apartments in Colombia?
The unified property tax (Impuesto Predial Unificado) in Colombia typically ranges from 0.4% to 1.2% of the official assessed value.
In major cities like Bogotá, the rate structure is more complex, ranging from 0.3% to 3.3%, but most residential apartments fall within the lower bands of 0.4% to 1.2%. The exact rate depends on your specific municipality and the property's valuation band.
Most apartments in cities like Bogotá and MedellĂn have effective rates closer to 0.6% to 1% of the cadastral value. The cadastral value is typically lower than the market value, often representing 60% to 80% of what you would actually pay for the property.
As of September 2025, these rates remain relatively stable across Colombian municipalities, with minor adjustments made annually based on local government budgets and infrastructure needs.
How much would that rate cost in Colombian pesos for properties worth 200 million, 500 million, and 1 billion COP?
| Property Value (COP) | At 0.4% Rate (COP) | At 0.8% Rate (COP) | At 1.2% Rate (COP) |
|---|---|---|---|
| 200,000,000 | 800,000 | 1,600,000 | 2,400,000 |
| 500,000,000 | 2,000,000 | 4,000,000 | 6,000,000 |
| 1,000,000,000 | 4,000,000 | 8,000,000 | 12,000,000 |
Are there additional municipal taxes apart from property tax, and how much are they?
Yes, there are additional municipal taxes beyond the basic property tax.
The Industry and Commerce Tax (ICA) primarily applies to commercial properties and rental activities, ranging from 0.2% to 1% of gross receipts. In Bogotá, ICA rates range from 0.414% to 1.38% for commercial activities, but residential rental income typically falls at the lower end.
Urban development or improvement levies are occasionally imposed for specific infrastructure projects. These are not annual taxes but special assessments that vary widely depending on the project scope and location.
Some municipalities also include small emergency services or infrastructure maintenance fees in utility bills, typically ranging from 5,000 to 15,000 COP per month.
What is the annual garbage collection fee for an apartment, and how much does it vary by city?
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Garbage collection fees are not uniformly charged as separate municipal bills in most Colombian cities.
In most cases, waste management costs are included in monthly utility bills or building administration fees. Where charged separately, fees typically range from 10,000 to 30,000 COP per month, translating to 120,000 to 360,000 COP annually.
Bogotá includes waste management in utility bills through the public utilities companies. MedellĂn follows a similar model, while smaller cities may have separate waste collection fees ranging from 8,000 to 25,000 COP monthly.
High-end buildings often include enhanced waste management services in their administration fees, which can be significantly higher but provide additional services like recycling and bulk waste removal.
How much is the average yearly fire department or emergency services tax?
Colombia does not impose a uniform nationwide fire department or emergency services tax at the apartment level.
Some cities include nominal emergency services charges in utility bills or administration fees, typically amounting to no more than 2,000 to 5,000 COP per month, or 24,000 to 60,000 COP annually.
These charges are often integrated into broader municipal service fees rather than being itemized separately. Emergency services are primarily funded through general municipal budgets rather than direct property-specific taxes.
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Is there a wealth tax applied to property owners, and what percentage applies?
Yes, Colombia imposes a wealth tax on individuals with significant assets as of 2025.
The wealth tax applies to total individual net wealth above 40,000 UVT (Unidad de Valor Tributario). For 2025, with 1 UVT equal to 49,799 COP, the threshold is approximately 1,991,960,000 COP (roughly 2 billion COP).
Tax rates are progressive, starting at 0.5% and reaching up to 2% depending on the total declared wealth. This tax applies to all assets, including real estate, financial investments, and other valuable property.
Property owners with apartments valued below 2 billion COP in total net worth are not subject to this wealth tax. However, those exceeding the threshold pay the applicable percentage on their entire net taxable wealth above the threshold amount.
How much would notary and registration fees be when purchasing apartments at different price points?
Notary and registration fees are one-time costs paid during the property purchase process.
Registration fees range from 0.5% to 1.0% of the purchase price, set by individual departments. Notary fees typically cost 0.3% to 0.5% of the transaction value, often split between buyer and seller, though buyers pay all registration costs.
For properties above 20,000 UVT (approximately 995,980,000 COP), an additional 1% stamp tax applies as of 2025.
| Property Price (COP) | Registration Fee (COP) | Notary Fee (COP) | Stamp Tax (COP) |
|---|---|---|---|
| 200,000,000 | 1,000,000 - 2,000,000 | 600,000 - 1,000,000 | None |
| 500,000,000 | 2,500,000 - 5,000,000 | 1,250,000 - 2,500,000 | None |
| 1,000,000,000 | 5,000,000 - 10,000,000 | 2,000,000 - 5,000,000 | 10,000,000 |
What is the approximate yearly cost for property valuation updates required for tax purposes?
Property valuation updates (avalĂşo catastral) are not required annually unless specifically requested or mandated by the municipality.
When required, professional property valuations cost between 300,000 to 750,000 COP, depending on the property size, location, and municipality. These costs typically arise only when making significant improvements to the property or when requesting reassessment.
Most municipalities update cadastral values automatically every few years based on market surveys and construction cost indices. Property owners are not responsible for these routine municipal updates.
Some owners request updated valuations to ensure their tax assessments reflect current market conditions, particularly if they believe their property is overvalued for tax purposes.
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Are condominium or building administration fees taxed separately, and how much do they cost?
Condominium and building administration fees are not taxed separately but are mandatory monthly payments to the owners' association.
In Bogotá, administration fees typically range from 3,000 to 8,000 COP per square meter per month. For a standard 70-square-meter apartment, this translates to 210,000 to 560,000 COP monthly, or 2.5 million to 6.7 million COP annually.
These fees cover building maintenance, security, common area utilities, cleaning, and management services. Higher-end buildings with amenities like gyms, pools, or 24-hour concierge services charge significantly more.
Administration fees are deductible from rental income for tax purposes, making them an important consideration for property investors. The fees are set by the building's owners' association and can vary significantly based on building age, amenities, and location.
If you rent the apartment out, what percentage of rental income is taxed?
Rental income taxation depends on your residence status in Colombia.
Non-resident landlords pay a flat 35% tax on net rental income after deductible expenses like administration fees, property taxes, and maintenance costs. Resident landlords face progressive tax rates up to 39% after deductions.
Net rental income is calculated by subtracting legitimate expenses from gross rental income. Deductible expenses include property taxes, administration fees, insurance, repairs, and professional management fees.
| Monthly Rent (COP) | Annual Gross Income (COP) | Estimated Net Income (COP) | Tax at 35% (COP) |
|---|---|---|---|
| 2,000,000 | 24,000,000 | 20,000,000 | 7,000,000 |
| 4,000,000 | 48,000,000 | 40,000,000 | 14,000,000 |
| 6,000,000 | 72,000,000 | 60,000,000 | 21,000,000 |
How much are the penalties or interest if you pay your property taxes late?
Late property tax payments incur interest charges of 1.5% per month, equivalent to 18% annually.
This interest compounds monthly on the overdue amount, making delays increasingly expensive. Some municipalities also impose flat late payment fines in addition to the interest charges.
For example, if you owe 3 million COP in property taxes and pay three months late, you would pay an additional 135,000 COP in interest charges. The longer the delay, the more substantial these penalties become.
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Are there discounts available for paying early, and how much could you save?
Yes, most Colombian municipalities offer early payment discounts for property taxes ranging from 5% to 12% of the annual tax bill.
For a 500 million COP apartment with a 1% property tax rate (5 million COP annual tax), early payment could save between 250,000 to 600,000 COP annually. The specific discount percentage and deadline vary by municipality.
These discounts are typically available for payments made during the first quarter of the tax year. Some cities offer tiered discounts, with larger savings for very early payments.
Early payment discounts help municipalities improve cash flow while providing property owners with meaningful savings. Taking advantage of these discounts can significantly reduce your annual property tax burden.
It's something we develop in our Colombia property pack.
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 tax obligations is crucial for successful property investment in Colombia.
Property taxes and associated costs can significantly impact your investment returns, so careful planning and budgeting are essential before purchasing.
Sources
- Global Property Guide - Colombia Taxes and Costs
- The LatinVestor - Bogotá Property Taxes and Fees
- RegFollower - Colombia Tax Reform
- Microeconomic Insights - Taxing Wealth in Colombia
- CMS Law - Property Buying Costs Colombia
- Multilaw - Real Estate Guide Colombia
- Global Property Guide - Colombia Rental Income Tax
- PwC Tax Summaries - Colombia Individual Taxes