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Everything you need to know before buying real estate is included in our Colombia Property Pack
Property taxes in Colombia are complex and vary significantly by municipality, property value, and type.
If you're considering buying property in Colombia, understanding the complete tax structure is crucial for accurate budgeting. Colombian property taxes include annual recurring taxes, one-time transfer fees, and development charges that can significantly impact your investment returns.
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.
Colombia's property tax system includes the annual Impuesto Predial Unificado (0.40%-1.20% of cadastral value), capital gains tax (15% on profits), and a new luxury stamp tax for properties over COP 995 million (1.5%-3% rates).
Major changes for 2025 include the reintroduction of stamp tax on high-value properties and increased UVT base amounts affecting all tax calculations.
| Tax Type | Rate/Amount | Who Pays |
|---|---|---|
| Impuesto Predial Unificado (Annual Property Tax) | 0.40%-1.20% of cadastral value | Property owner |
| Capital Gains Tax (Ganancias Ocasionales) | 15% of profit | Seller |
| Stamp Tax (Impuesto de Timbre) | 1.5%-3% for luxury properties | Buyer/seller (as agreed) |
| Property Registration | 1% of sale price | Buyer |
| Notary Fees | 0.54%-0.70% of transaction value | Split between parties |
| Building Permit Tax | 1%-1.7% of construction cost | Developer/owner |
| Betterment Tax (Valorización) | 0.5%-2% of value increase | Property owner |
What are all the property taxes that apply in Colombia in 2025?
Colombia has seven main property-related taxes and fees that apply to real estate ownership, transfer, and development in 2025.
The primary annual tax is the Impuesto Predial Unificado (Unified Property Tax), which ranges from 0.40% to 1.20% of cadastral value depending on your municipality. For transfers, you'll face the Impuesto de Ganancias Ocasionales (Capital Gains Tax) at 15% of profits, plus the newly reintroduced Impuesto de Timbre (Stamp Tax) for luxury properties over COP 995,980,000.
Registration and notary requirements add another 1.54% to 1.70% of transaction value through the Registro de Instrumentos Públicos (1% paid by buyer) and notary fees (0.54%-0.70% typically split between parties). Development projects trigger the Impuesto de Delineación Urbana (Building Permit Tax) at 1%-1.7% of construction cost and potentially the Contribución por Valorización (Betterment Tax) at 0.5%-2% when public works increase property values.
All property owners pay these taxes regardless of residency status, though non-residents face the same rates as Colombian residents. Companies and individuals are subject to identical property tax obligations, with the owner listed on the property title bearing responsibility for annual payments.
Who exactly pays each property tax in Colombia in 2025?
Tax responsibility in Colombia's real estate market is clearly defined by law, with specific obligations for owners, buyers, sellers, and developers.
The Impuesto Predial Unificado is always paid by the property owner listed on the title, whether they're Colombian residents, foreigners, individuals, or corporations. For the Impuesto de Ganancias Ocasionales, the seller bears full responsibility regardless of their residency status or legal structure. The new Impuesto de Timbre can be negotiated between buyer and seller, but typically falls on the buyer unless specifically agreed otherwise in the purchase contract.
Property registration costs (Registro de Instrumentos Públicos) are exclusively the buyer's responsibility, while notary fees are customarily split 50/50 between both parties. For development projects, the Impuesto de Delineación Urbana is paid by whoever requests the building permit—usually the developer or property owner undertaking construction.
Betterment taxes (Contribución por Valorización) are charged to property owners who benefit from public infrastructure improvements, regardless of whether they requested or supported the project. Municipal surcharges and other local fees typically follow the same payment structure as the primary property tax.
How is the tax base calculated for each Colombian property tax in 2025?
Colombian property taxes use different valuation methods depending on the specific tax type and local regulations.
The Impuesto Predial Unificado uses cadastral value (valor catastral) as its base, determined by municipal cadastral offices through property characteristics, location, and market comparisons. The formula is: Tax Due = Cadastral Value × Municipal Rate. In Bogotá, some properties may use commercial value if self-assessed above cadastral value.
Capital Gains Tax calculations use actual sale price minus adjusted fiscal cost: Tax Due = (Sale Price - Adjusted Cost) × 15%. The adjusted cost includes original purchase price, recognized improvements, and inflation adjustments based on Consumer Price Index changes since acquisition.
The new Stamp Tax applies to transaction value or cadastral value, whichever is higher. For properties between 20,000-50,000 UVT (COP 995,980,000 to COP 2,489,950,000), the rate is 1.5%. Above 50,000 UVT, it's 3% on the excess amount plus a fixed component.
Building permits use estimated construction cost or DIAN minimum values per square meter, while betterment taxes base on assessed property value increases resulting from public works. Registration fees always use the higher of sale price or official property valuation.
What changed in Colombia's property taxes between 2024 and 2025?
Several significant changes affect Colombian property taxes in 2025, with the most impactful being the reintroduction of stamp tax on luxury real estate.
The Impuesto de Timbre returned in February 2025 after being eliminated on most transactions in 2024. Properties over 20,000 UVT (COP 995,980,000) now face 1.5% tax, while those over 50,000 UVT (COP 2,489,950,000) pay 3% on the excess amount. This temporary measure runs through December 31, 2025, and primarily affects luxury residential sales in major cities.
The UVT (Tax Value Unit) increased to COP 49,799 from COP 47,065 in 2024, raising all tax thresholds by approximately 5.8%. This affects exemption limits, penalty calculations, and stamp tax brackets proportionally. Most municipal property tax rates remained stable, though some cities updated their rate bands for different property value segments.
Payment deadlines and discount periods generally stayed unchanged from 2024, with Bogotá maintaining its March 17 early payment deadline and Medellín keeping April 12. Several municipalities refined their exemption criteria for social housing (VIS) and first-time homebuyers, but the fundamental rate structures remained consistent.
| Tax Change | 2024 Status | 2025 Status |
|---|---|---|
| Stamp Tax (Luxury Properties) | 0% on most transactions | 1.5%-3% on properties >COP 995M |
| UVT Base Amount | COP 47,065 | COP 49,799 (+5.8%) |
| Property Tax Rates | 0.40%-1.20% | 0.40%-1.20% (unchanged) |
| Capital Gains Rate | 15% | 15% (unchanged) |
| Registration Fee | 1% | 1% (unchanged) |
When are Colombian property taxes due in 2025 and what are the payment schedules?
Colombian property tax payment schedules vary by municipality, with most major cities offering both annual and quarterly payment options.
Bogotá property owners can pay annually by March 17, 2025 (with 10% discount) or June 14, 2025 (full amount). Quarterly payments are due March, June, September, and November 2025. Medellín offers a 10% discount for payments by April 12, 2025, with full payment deadline at end of May 2025. Properties with annual tax over COP 300,000 qualify for quarterly installments.
Cali typically provides discount payment until March 2025 and full payment deadline by June 2025. Barranquilla's main deadline falls in June 2025, while Cartagena offers early payment discounts through March 2025 with final deadline in June 2025. The exact dates can shift slightly each year based on municipal decree updates.
Transfer taxes like capital gains and stamp tax are due within specific timeframes after property sale completion. Registration fees must be paid at the time of property title transfer. Building permit taxes are due before construction commencement, while betterment taxes follow municipal notification schedules tied to public works completion.
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What discounts and installment options are available for Colombian property taxes in 2025?
Colombian municipalities offer attractive early payment discounts and flexible installment plans to encourage timely property tax compliance.
Bogotá provides a 10% discount for property taxes paid by March 17, 2025, with quarterly installment options for any amount. Medellín offers the same 10% discount for payments by April 12, 2025, but limits quarterly payments to properties with annual tax exceeding COP 300,000. Cali, Barranquilla, and Cartagena typically offer 5%-10% discounts for March payments, though exact percentages and dates are confirmed in annual municipal decrees.
Most cities allow quarterly payments without interest charges if you meet the minimum threshold requirements. Some municipalities offer bi-annual options for mid-range properties. The installment privilege is automatically available for qualifying amounts—no special application required.
Early payment discounts apply only to the full annual amount and cannot be combined with installment plans. Late enrollment in installment programs after the first quarterly deadline usually forfeits discount eligibility. Several cities provide additional 2%-5% discounts for online payments or automatic bank debits.
What are the penalties and interest rates for late property tax payments in Colombia in 2025?
Colombia imposes substantial penalties and interest charges on late property tax payments, making timely compliance financially critical.
Late payment interest runs approximately 25% annually across most municipalities, compounded monthly from the original due date. This translates to about 2.08% monthly interest on outstanding balances. The effective annual cost reaches 28%-30% when accounting for compounding effects over a full year.
Fixed penalties start immediately after due dates, calculated in UVT multiples that increase monthly. First-month penalties typically range from 1-3 UVT (COP 49,799 to COP 149,397), escalating to 10-15 UVT (COP 497,990 to COP 747,985) after six months of delinquency. Some municipalities cap total penalties at 100%-200% of the original tax amount.
Collection procedures begin 90-120 days after due dates, potentially leading to property liens and forced sales for severely delinquent accounts. Interest continues accruing throughout collection processes, significantly increasing total amounts owed. Most cities offer payment plan negotiations before initiating formal collection actions.
What exemptions and preferential tax rates exist for Colombian properties in 2025?
Colombia offers various property tax exemptions and reduced rates targeting specific property types and owner categories.
Social Interest Housing (VIS) properties valued up to COP 135 million qualify for the lowest municipal tax rates or complete exemptions in many cities. First-time homebuyers often receive 25%-50% discounts for 1-3 years, though specific programs vary by municipality and require formal application during the first tax year.
Agricultural properties used for food production typically qualify for reduced rates of 0.1%-0.3%, well below standard residential rates. Heritage properties under official protection may receive partial or complete exemptions, contingent on maintaining historical preservation standards. Senior citizens over 65 and disabled individuals can access discounts of 10%-25% in participating municipalities, subject to income and property value limits.
Non-profit organizations and religious institutions often qualify for full exemptions on properties used exclusively for their stated purposes. Academic institutions and hospitals may receive preferential treatment. All exemption applications require annual renewal with supporting documentation proving continued eligibility.
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What one-time taxes and fees apply when buying or selling Colombian property in 2025?
Property transactions in Colombia trigger several mandatory one-time taxes and fees that significantly impact total acquisition costs.
Every property purchase requires registration fees of 1% of sale price or cadastral value (whichever is higher), paid exclusively by the buyer. Notary fees range from 0.54%-0.70% of transaction value and are typically split equally between buyer and seller, though parties can negotiate different arrangements.
The new stamp tax applies to luxury properties over COP 995,980,000, with rates of 1.5% for properties between 20,000-50,000 UVT and 3% above 50,000 UVT. This tax can be allocated between parties through contract negotiation, but defaults to the buyer if unspecified. Capital gains tax at 15% of profit is always the seller's responsibility.
Some municipalities impose minor surcharges like Impuesto de Avisos y Tableros (0.1%-0.2%) or fixed COP amounts for local services. Legal representation costs, though not mandatory, typically add 0.5%-1.0% of transaction value. Currency exchange fees may apply for foreign buyers using international financing.
| Fee Type | Rate | Paid By |
|---|---|---|
| Property Registration | 1% of sale price | Buyer |
| Notary Fees | 0.54%-0.70% | Split (negotiable) |
| Stamp Tax (Luxury) | 1.5%-3% | Buyer (negotiable) |
| Capital Gains | 15% of profit | Seller |
| Municipal Surcharges | 0.1%-0.2% | Varies by agreement |
What taxes apply to building or renovating properties in Colombia in 2025?
Construction and renovation projects in Colombia face specific taxes and contributions separate from standard property ownership costs.
The Impuesto de Delineación Urbana (Urban Delineation Tax) applies to all building permits, typically ranging from 1%-1.7% of total construction cost. This tax is calculated using either your submitted construction budget or DIAN minimum values per square meter if your estimate appears unrealistically low. Payment is required before permit approval and construction commencement.
Contribución por Valorización (Betterment Tax) may apply when your construction project benefits from new public infrastructure like roads, sewage systems, or utilities. Rates typically range from 0.5%-2% of assessed property value increase resulting from public works. This tax is imposed by municipal decree when infrastructure projects are completed in your area.
Development charges (Cargo de Desarrollo) apply to new construction projects based on density, infrastructure impact, and municipal planning requirements. These are typically calculated per square meter and vary significantly by city and project type. Large developments may face additional contributions for schools, parks, or community facilities.
Renovation projects generally face lower rates than new construction, especially if they don't increase total property square footage. Historic property renovations may qualify for tax incentives, while conversions changing property use (residential to commercial) often trigger higher assessment rates.
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What costs are confused with taxes but aren't actually taxes in Colombia?
Several regular property-related expenses in Colombia are often mistaken for taxes but are actually service fees and community charges.
Waste collection (Aseo) is a municipal service fee, not a tax, typically costing COP 18,000-60,000 monthly in Bogotá depending on property size and stratum. Administration fees for apartment buildings and condominiums range from COP 120,000-700,000 monthly in Bogotá, varying by stratum level and included services like security, maintenance, and common area upkeep.
Public lighting (Alumbrado Público) charges appear on utility bills at COP 7,000-25,000 monthly depending on electricity consumption and municipal rates. These charges fund street lighting and public safety infrastructure but are technically service fees rather than property taxes.
Strata-related security, cleaning, and building maintenance costs are private community expenses managed by property administration companies. Insurance, elevator maintenance, and common area utilities are also community charges, not government-imposed taxes. Water, electricity, and gas are utility services with separate billing structures.
1. **Bogotá monthly costs:** Waste COP 28,000, Admin COP 250,000, Lighting COP 7,0002. **Medellín monthly costs:** Waste COP 32,000, Admin COP 160,000, Lighting COP 10,000 3. **Cali monthly costs:** Waste COP 25,000, Admin COP 180,000, Lighting COP 8,0004. **Cartagena monthly costs:** Waste COP 35,000, Admin COP 300,000, Lighting COP 12,0005. **Barranquilla monthly costs:** Waste COP 30,000, Admin COP 200,000, Lighting COP 9,000Can you show me three detailed examples of Colombian property tax calculations for 2025?
These examples demonstrate total annual property costs and one-time purchase expenses for different property types across Colombian cities.
**Example 1: Modest Bogotá Apartment (Stratum 3)**A COP 220,000,000 cadastral value apartment in middle-class Bogotá faces annual property tax of COP 1,518,000 (0.69% rate). With early payment by March 17, this drops to COP 1,366,200. Monthly service costs include administration COP 250,000, waste collection COP 28,000, and public lighting COP 7,000, totaling COP 3,420,000 annually.
One-time purchase costs include notary fees COP 1,188,000 (split with seller) and registration COP 2,200,000 (buyer pays), totaling COP 3,388,000. No stamp tax applies since the property falls below the COP 995,980,000 threshold.
**Example 2: Medellín Family House**A COP 380,000,000 cadastral value house in Medellín incurs annual property tax of COP 3,610,000 (0.95% rate), reduced to COP 3,249,000 with April 12 early payment. Annual service costs total COP 2,424,000: administration COP 160,000 monthly, waste COP 32,000 monthly, lighting COP 10,000 monthly.
Purchase costs include notary COP 2,280,000 (split) and registration COP 3,800,000 (buyer), totaling COP 6,080,000. The property avoids stamp tax due to value below the luxury threshold.
**Example 3: Cartagena Coastal Luxury Home**A COP 1,900,000,000 cadastral value luxury property faces annual tax of COP 20,900,000 (1.1% rate), or COP 19,437,000 with early payment. This property triggers stamp tax as it exceeds 20,000 UVT: (38,170 UVT - 20,000) × 1.5% = COP 13,567,291.
Total one-time costs reach COP 45,867,291: notary COP 13,300,000, registration COP 19,000,000, stamp tax COP 13,567,291. Annual service costs include luxury administration COP 580,000 monthly, totaling COP 6,960,000 yearly.
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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.
Colombian property taxes in 2025 present a complex but manageable framework for real estate investors and homeowners.
The reintroduction of stamp tax on luxury properties and increased UVT values are the most significant changes affecting high-value transactions, while standard property taxes remain relatively stable across major cities.
It's something we develop in our Colombia property pack.
Sources
- Global Property Guide - Colombia Taxes and Costs
- PwC Tax Summaries - Colombia Corporate Taxes
- KPMG Colombia Tax Profile
- Orbitax - Colombia Tax Value Unit 2025
- Alejandro Broker - Colombia Stamp Tax 2025
- BDO Global - Colombia Stamp Tax Changes
- PwC Tax Summaries - Colombia Individual Taxes
- Chambers Practice Guides - Colombia Corporate Tax 2025