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Disputes in Colombia: courts, conciliation, commercial arbitration, enforcing foreign judgments and awards, and ICSID

Argentina. For full detail on Argentina, go to The Argentine Thread.

Last verified: 2026-10-26 · Status: Stable

Commercial disputes in Colombia go to the civil courts, which must decide a first instance case within one year of serving the defendant, or to arbitration, which most foreign investors prefer and which Ley 1563 de 2012 regulates on UNCITRAL Model Law lines for international cases. Before suing in most civil matters you must first try out of court conciliation, which pauses limitation periods for up to three months; a signed conciliation record is enforceable like a judgment. Foreign arbitral awards are recognised by the Supreme Court under the New York Convention on narrow grounds, foreign court judgments need exequatur and reciprocity, and ICSID awards against Colombia are binding as final judgments since the Convention entered into force for Colombia on 14 August 1997.

USD figures use the TRM (tasa representativa del mercado) of COP 3,158.43 per US dollar, valid 24 to 26 October 2026, from the official TRM series published by the Superintendencia Financiera on the national open data portal. Peso figures in UVB use the 2026 UVB of COP 12,110 (Res. MinHacienda 3488 de 2025); figures in minimum wages use the 2026 monthly minimum wage of COP 1,750,905 (Decreto 1469 de 2025). Conversions are for orientation only.

Key facts

Party to the 1958 New York Convention on foreign arbitral awardsyes yes or noLey 37 de 1979; Ley 39 de 1990, as of 2026-10-26 · in force
Date the New York Convention entered into force for Colombia1979-12-24 dateLey 37 de 1979; Ley 39 de 1990, as of 2026-10-26 · in force
Reciprocity or commercial reservations under the New York Conventionnone listed textUNCITRAL status table, as of 2026-10-26 · in force
Contracting state of the ICSID Conventionyes yes or noLey 267 de 1996, as of 2026-10-26 · in force
Date the ICSID Convention entered into force for Colombia1997-08-14 dateLey 267 de 1996, as of 2026-10-26 · in force
Arbitration statute (domestic and international, Model Law based international section)Ley 1563 de 2012 textLey 1563 de 2012, as of 2026-10-26 · in force
Default duration of a domestic arbitration from the first procedural hearing, extendable by up to 6 more months6 monthsLey 1563 de 2012 art. 10, as of 2026-10-26 · in force
Deadline to file annulment of a domestic award30 daysLey 1563 de 2012 art. 40, as of 2026-10-26 · in force
Deadline to file annulment of an international award seated in Colombia1 monthsLey 1563 de 2012 art. 109, as of 2026-10-26 · in force
Parties with no domicile or residence in Colombia may waive annulment of an international awardyes yes or noLey 1563 de 2012 art. 107, as of 2026-10-26 · in force
Court that recognises foreign arbitral awards (private parties)Corte Suprema de Justicia, Sala de Casación Civil textLey 1563 de 2012 art. 68, as of 2026-10-26 · in force
Time for the court to decide recognition after the 10 day response period20 daysLey 1563 de 2012 art. 115, as of 2026-10-26 · in force
Foreign judgments enforced by treaty or, absent a treaty, legislative reciprocity, after exequaturyes yes or noLey 1564 de 2012 art. 605 to 607, as of 2026-10-26 · in force
Maximum time for a first instance civil judgment from service on the defendant12 monthsLey 1564 de 2012 art. 121, as of 2026-10-26 · in force
Maximum time to decide a civil appeal from receipt of the file6 monthsLey 1564 de 2012 art. 121, as of 2026-10-26 · in force
Civil claims above this value are higher value (mayor cuantía) cases in 2026 (150 minimum wages)262635750 COPLey 1564 de 2012 art. 25; Decreto 1469 de 2025, as of 2026-10-26 · in force
Out of court conciliation required before most civil declaratory claimsyes yes or noLey 2220 de 2022 art. 67 and 68, as of 2026-10-26 · in force
Maximum conciliation fee at non profit centres and notaries in 2026 (3,236.07 UVB)39188808 COPDecreto 1069 de 2015 art. 2.2.4.2.6.1.1 (Decreto 42 de 2026), as of 2026-10-26 · in force
Maximum fee per arbitrator for claims above 190,281.71 UVB1.5 %Decreto 1069 de 2015 art. 2.2.4.2.6.2.1 (Decreto 42 de 2026), as of 2026-10-26 · in force
Deadline to sue for annulment of an administrative act with restoration of rights4 monthsLey 1437 de 2011 art. 164, as of 2026-10-26 · in force

The rule

1. Arbitration lets the parties take disputes over rights they can freely dispose of (or that the law allows) away from the courts. An arbitration agreement, either a clause in the contract or a separate submission agreement, means the parties waive the right to sue in court. If the agreement does not say otherwise the award is decided at law, and if it does not say whether arbitration is ad hoc or institutional it is institutional, administered by an arbitration centre. Disputes over state contracts must be decided at law and follow the institutional rules. A domestic case is of higher value (mayor cuantía) when claims exceed 400 monthly minimum wages.
Cost to do it: Higher value threshold in 2026: 400 minimum wages = COP 700,362,000 (about US$221,744).
Example: A COP 2,000,000,000 supply claim exceeds the COP 700,362,000 threshold and is a higher value arbitration. / About US$633,226 of claims against a threshold of about US$221,744.Ley 1563 de 2012 (Estatuto de Arbitraje Nacional e Internacional), art. 1, 2, 3 and 4, 2012-07-12 official text · verified 2026-10-26
2. Unless the agreement sets another term, a domestic arbitration must be decided, including any request to clarify, correct or add to the award, within six months from the end of the first procedural hearing, extendable at the parties' request by up to six more months in total. Fees are set by the tribunal after conciliation fails; each party must deposit its share within ten days, and if one party does not pay, the other may pay for it within five days and then collect through executive proceedings. The only ordinary challenge is the extraordinary annulment remedy, filed with the tribunal within 30 days of notice of the award on listed grounds (for example lack of jurisdiction, improper constitution, award issued after the deadline, deciding in equity when law was required, or ruling beyond the request). It is heard by the civil chamber of the district superior court where the tribunal sat (the Consejo de Estado if a public entity is a party), must be decided within three months, does not suspend compliance unless a losing public entity asks, and cannot review the merits.Ley 1563 de 2012, art. 10, 25, 27, 40, 41, 42 and 46, 2012-07-12 official text · verified 2026-10-26
3. An arbitration is international when the parties were domiciled in different states when they signed the agreement, when a substantial part of the obligations or the place most closely connected with the dispute is outside the state of the parties' domicile, or when the dispute affects international trade. For seats in Colombia the international section applies Model Law style rules: the agreement may be in any written form including electronic messages; courts must refer the parties to arbitration if asked no later than the answer to the claim; courts may grant interim measures without that waiving arbitration; the tribunal applies the law chosen by the parties and decides ex aequo et bono only if authorised; and a state or state owned company cannot rely on its own law to deny its capacity or the arbitrability of the dispute. Courts may intervene only where this section allows it.Ley 1563 de 2012, Sección Tercera (arbitraje internacional), art. 62, 67, 69, 70, 71 and 101, 2012-07-12 official text · verified 2026-10-26
4. Annulment is the only remedy against an international award seated in Colombia, on exhaustive grounds (incapacity or invalid agreement, lack of notice or inability to present one's case, award beyond the agreement, irregular tribunal or procedure, and, on the court's own motion, non arbitrability or breach of Colombian international public policy). It must be filed within one month of notice and is decided by the Civil Cassation Chamber of the Supreme Court (the Third Section of the Consejo de Estado if a Colombian public entity is a party), within two months after a one month response period. When no party is domiciled or resident in Colombia, the parties may exclude annulment entirely or limit it to some grounds by express written agreement.Ley 1563 de 2012, art. 68, 107, 108 and 109, 2012-07-12 official text · verified 2026-10-26
5. An award made in any country is enforceable in Colombia. International awards seated in Colombia are treated as national and enforced directly, unless annulment was waived, in which case they need recognition. Foreign seated awards need prior recognition, which may be refused only on exhaustive grounds mirroring the New York Convention; the Code of Civil Procedure rules on foreign judgments do not apply. Recognition is sought from the Civil Cassation Chamber of the Supreme Court (the Third Section of the Consejo de Estado if a Colombian public entity is a party), with the award or a copy and, if the court asks, a Spanish translation; the other party has ten days to respond, the court decides within the following 20 days in a single instance with no appeal, and enforcement then goes to the competent judge.Ley 1563 de 2012, art. 68, 111, 112, 113, 114, 115 and 116, 2012-07-12 official text · verified 2026-10-26
6. Colombia is a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Congress approved it by Ley 37 de 1979 and approved it again by Ley 39 de 1990. UNCITRAL records Colombia's accession on 25 September 1979, in force from 24 December 1979, with no declarations or reservations listed, so Colombia applies it to awards from any country and not only commercial ones.Ley 39 de 1990 (approval of the New York Convention, Diario Oficial 39.587 of 23 November 1990); earlier Ley 37 de 1979, sole approval article; Convention art. I to V, 1990-11-20 official text · verified 2026-10-26
7. Colombia is a contracting state of the ICSID Convention: it signed on 18 May 1993, deposited ratification on 15 July 1997 and the Convention entered into force for Colombia on 14 August 1997. Congress approved it by Ley 267 de 1996, upheld by the Constitutional Court in Sentencia C-442 de 1996. ICSID has jurisdiction over legal disputes arising directly out of an investment between a contracting state and a national of another contracting state that both have consented to in writing, and consent cannot be withdrawn unilaterally. Each contracting state must recognise an ICSID award as binding and enforce its pecuniary obligations as if it were a final judgment of its own courts.Ley 267 de 1996 (approval of the ICSID Convention, Diario Oficial 42.704 of 30 January 1996), Convention art. 25 and 54, 1996-01-29 official text · verified 2026-10-26
8. Foreign judgments have the effect that treaties with the country of origin give them or, absent a treaty, the effect that country gives Colombian judgments (reciprocity). To take effect they need exequatur from the Civil Cassation Chamber of the Supreme Court and must: not concern rights in rem over property in Colombia when the case began; not contravene Colombian public policy; be final under the law of origin and filed as a duly legalised copy; not concern a matter of exclusive Colombian jurisdiction; not conflict with a pending case or final judgment in Colombia; and, if contested, have given the defendant due notice. Documents not in Spanish need an official translation. The other party and the relevant procurador get five days to respond, then evidence and judgment follow at a hearing; enforcement goes to the ordinary competent judge.Ley 1564 de 2012 (Código General del Proceso), art. 30 num. 4 and 5, 605, 606 and 607, 2012-07-12 official text · verified 2026-10-26
9. Civil and commercial court cases are classed by value: minor (mínima cuantía) up to 40 monthly minimum wages, lower (menor) above 40 and up to 150, and higher (mayor) above 150, using the minimum wage in force when the claim is filed. A first or single instance judgment must be issued within one year of serving the order admitting the claim (or the enforcement order) on the defendant, and an appeal within six months of the file reaching the court; when the term expires the judge loses competence and must pass the case to the next judge, who has six months (conditionally upheld by the Constitutional Court). Clear, express and currently due obligations in documents from the debtor, judgments and other titles listed by law can be enforced directly in executive proceedings, in which attachment and seizure of the debtor's assets can be requested from filing, up to double the debt, interest and estimated costs.
Cost to do it: 2026 thresholds: 40 minimum wages = COP 70,036,200 (about US$22,174); 150 minimum wages = COP 262,635,750 (about US$83,154).Ley 1564 de 2012 (Código General del Proceso), art. 25, 121, 422 and 599, 2012-07-12 official text · verified 2026-10-26
10. In matters that can be settled, out of court conciliation at law is as a general rule a prerequisite for going to court where the law requires it; in civil matters it must be attempted before declaratory claims (with exceptions such as partition, expropriation, payment order cases and lease restitution). Labour matters are exempt, and a claimant seeking interim measures may go straight to the judge. Filing the conciliation request suspends limitation and expiry periods once, until the record or certificate is issued or three months pass, whichever is first; if no hearing is held within three months, the claimant may sue with the request alone. A judge will declare a claim inadmissible if prior conciliation was required and not shown. A conciliation agreement record is enforceable and has res judicata effect.Ley 2220 de 2022 (Estatuto de Conciliación), in force from 30 December 2022; Ley 1564 de 2012, Ley 2220 art. 7, 56, 64, 67, 68 and 70; Ley 1564 art. 90 num. 7, 2022-06-30 official text · verified 2026-10-26
11. Maximum fees are set by decree in UVB. Conciliation centres of non profit entities and notaries may charge from 32.37 UVB for claims under 862.94 UVB up to 3.5 percent above 5,609.20 UVB, capped at 3,236.07 UVB, paid by the requesting party on filing, with at least 70 percent refunded if the other party does not attend. In arbitration, each arbitrator's fees are capped by claim value from 35.95 UVB for claims under 1,078.71 UVB, then 3.25, 2.25, 2, 1.75 and 1.5 percent of the claim in falling bands (1.5 percent above 190,281.71 UVB); a sole arbitrator may receive up to 50 percent more, the tribunal secretary half of one arbitrator, and the centre's expenses 50 percent of one arbitrator. The overall per arbitrator ceiling is the one in Ley 1563 art. 26 (1,000 monthly minimum wages), and for claims of indeterminate value the ceiling is 53,934.71 UVB. On filing, the claimant pays the centre 107.86 UVB (lower value) or 215.76 UVB (higher or indeterminate value), credited to administrative costs. Parties may agree fees before appointing the arbitrators.
Cost to do it: Initial filing payment for a higher value arbitration: 215.76 UVB = COP 2,612,854 (about US$827). Maximum conciliation fee: 3,236.07 UVB = COP 39,188,808 (about US$12,408). Per arbitrator ceiling for an indeterminate value claim: 53,934.71 UVB = COP 653,149,338 (about US$206,796).
Example: COP 2,000,000,000 claim (165,153 UVB, in the 1.75 percent band): up to COP 35,000,000 per arbitrator, COP 105,000,000 for three, COP 17,500,000 for the secretary and COP 17,500,000 for the centre, a maximum of COP 140,000,000 before party costs. / About US$633,226 claim: up to about US$11,081 per arbitrator and about US$44,326 in total maximum tribunal and centre fees.Decreto 1069 de 2015, as amended by Decreto 42 de 2026 (21 January 2026, Diario Oficial 53.375 of 22 January 2026); Ley 1563 de 2012 art. 26, Decreto 1069 art. 2.2.4.2.6.1.1, 2.2.4.2.6.2.1, 2.2.4.2.6.2.2 and 2.2.4.2.6.2.3, 2026-01-21 official text · verified 2026-10-26 · changed: Decreto 42 de 2026, in force on publication on 22 January 2026, rewrote the conciliation and arbitration fee schedule of Decreto 1069 de 2015, converting caps formerly set in minimum wages into UVB under Ley 2294 de 2023 art. 313.
12. Claims against the state go to the administrative courts (Consejo de Estado, administrative tribunals and administrative judges). Strict filing deadlines apply on pain of expiry: four months from notice or publication to seek annulment of an administrative act with restoration of rights, two years for direct liability claims from the day after the harmful act or omission (or from when it became known, if later and if that could not have been known earlier), and two years for state contract claims from the facts or law giving rise to them.Ley 1437 de 2011 (CPACA), in force from 2 July 2012; Ley 270 de 1996 (Estatutaria de la Administración de Justicia) as amended, Ley 1437 art. 164 num. 2 lit. d, i and j; Ley 270 art. 11, 2011-01-18 official text · verified 2026-10-26
13. The judiciary has an ordinary jurisdiction (Supreme Court, district superior courts and civil, labour, criminal, family, small claims and other judges), an administrative jurisdiction (Consejo de Estado, administrative tribunals and judges), the Constitutional Court, justices of the peace and, since 2026, an agrarian and rural jurisdiction. Some administrative authorities also act as judges: the Superintendencia de Sociedades decides, among other corporate matters, shareholder agreement enforcement and disputes between shareholders, or between shareholders and the company or its directors, and the Superintendencia de Industria y Comercio decides certain consumer, unfair competition and industrial property cases.Ley 270 de 1996 as amended by Ley 2430 de 2024 and Ley 2570 de 2026; Ley 1564 de 2012, Ley 270 art. 11; Ley 1564 art. 24 num. 1 and 5, 2026-03-27 official text · verified 2026-10-26 · changed: Ley 2570 de 27 March 2026 (Diario Oficial 53.444 of 30 March 2026) added an agrarian and rural jurisdiction to art. 11 of Ley 270 de 1996, in force on publication.
DisputeForumKey deadline or termChallenge
Commercial contract, no arbitration clauseCivil judge by value; prior conciliation in most declaratory casesJudgment within 1 year of service; appeal within 6 monthsAppeal; cassation to the Supreme Court where available
Domestic arbitrationTribunal at an arbitration centre (default) or ad hocAward within 6 months of first procedural hearing, extendable 6 monthsAnnulment within 30 days, district superior court
International arbitration seated in ColombiaTribunal under Ley 1563 international sectionAs agreed by the parties or rulesAnnulment within 1 month, Supreme Court; waivable if no party is Colombian domiciled or resident
Foreign seated awardRecognition by the Supreme Court (Consejo de Estado if a Colombian public entity is a party)10 day response; decision within 20 daysNone: single instance
Foreign court judgmentExequatur by the Supreme Court5 day response, then hearingRequires treaty or reciprocity
Investment treaty claim against ColombiaICSID or other forum under the applicable treatyPer treatyICSID annulment only, within the ICSID system
Challenge to an administrative actAdministrative courts4 months from notice or publicationAppeal within the administrative jurisdiction
Shareholder disputeSuperintendencia de Sociedades acting as judge, civil courts or arbitration if agreedPer procedurePer procedure

Where each kind of dispute goes and the key deadline (Ley 1563 de 2012, Ley 1564 de 2012, Ley 1437 de 2011)

ItemRule2026 COPUSD
Filing payment to centre, lower value arbitration107.86 UVB1,306,185414
Filing payment to centre, higher or indeterminate value arbitration215.76 UVB2,612,854827
Arbitrator fee, claim under 1,078.71 UVB35.95 UVB435,355138
Arbitrator fee, claim above 190,281.71 UVB (COP 2,304,311,508)1.5% of the claim
Arbitrator fee ceiling, indeterminate value53,934.71 UVB653,149,338206,796
Conciliation fee, claim under 862.94 UVB32.37 UVB392,001124
Conciliation fee ceiling3,236.07 UVB39,188,80812,408

Maximum arbitration and conciliation fees in 2026 (Decreto 1069 de 2015 as amended by Decreto 42 de 2026; UVB COP 12,110; USD at TRM COP 3,158.43)

Worked example

  • A US equipment supplier with a COP 2,000,000,000 (about US$633,226) unpaid invoice claim against a Colombian buyer under a contract with a Bogotá seated arbitration clause and three arbitrators: the claim is 165,153 UVB, in the 1.75 percent band, so each arbitrator may be paid up to COP 35,000,000 (about US$11,081), the secretary COP 17,500,000 and the centre COP 17,500,000, a ceiling of COP 140,000,000 (about US$44,326) before lawyers and costs. The claimant pays the centre COP 2,612,854 (about US$827) on filing, and each side deposits its half of the fees within ten days of the fee order.
  • The same claim without an arbitration clause goes to a civil judge as a higher value case (above 150 minimum wages, COP 262,635,750). The supplier first files for conciliation, at a fee of at most COP 39,188,808 (about US$12,408) at a non profit centre or notary, which pauses limitation for up to three months; if the buyer signed an invoice or acknowledgement that meets the executive title test, the supplier can instead sue in executive proceedings and ask to attach assets from filing.
  • A party wins a London seated award against a Colombian company. It applies to the Civil Cassation Chamber of the Supreme Court with the award (and a Spanish translation if requested); the company has ten days to respond on the limited New York Convention style grounds; the court decides within 20 days with no appeal; then the award is enforced by the competent judge against the company's assets in Colombia.

Step by step

  1. At contract stage, choose the forum deliberately: name the seat, the institution and its rules, the number of arbitrators, the language and the governing law; with a Colombian counterparty, check whether either party is domiciled in Colombia, because only parties with no Colombian domicile or residence may waive annulment of an international award.
  2. If a public entity or state contract is involved, expect the award to be decided at law, institutional rules, and annulment and recognition before the Consejo de Estado rather than the Supreme Court.
  3. When a dispute arises, diarise limitation and expiry periods first (four months for annulment of administrative acts, two years for state contract and direct liability claims) and decide whether to seek interim measures, which a court may grant even with an arbitration clause and without prior conciliation.
  4. For court claims, file for conciliation where required and keep the record or certificate; the hearing must be held within three months, after which the claim can be filed with the request alone.
  5. In arbitration, budget for the filing payment, the fee deposits within ten days of the fee order, and a six month procedure from the first procedural hearing (plus up to six months of extensions) for domestic cases.
  6. To enforce abroad or in Colombia, collect the original or certified award or a legalised final judgment, arrange official Spanish translations, and identify the debtor's Colombian assets before filing for recognition or exequatur.

Common traps

  • Pathological clauses: an arbitration clause that names no institution and does not say ad hoc defaults to institutional arbitration; one that does not say whether the award is at law or in equity defaults to law, and an equity award where law was required is a ground for annulment.
  • Missing the domestic deadline: a domestic award issued after the six month term (plus agreed extensions) can be annulled, so tribunals and parties must track the clock read out at each hearing.
  • Fee default: if a party does not deposit its share, the other must pay within five days or the process can stall; the paying party can later collect through executive proceedings with the tribunal president's certificate.
  • Foreign judgments are not New York Convention awards: they need exequatur, legislative or treaty reciprocity and a legalised copy, and the Supreme Court will refuse those over rights in rem in property located in Colombia or matters of exclusive Colombian jurisdiction.
  • Waiving annulment of an international award seated in Colombia means the award then needs recognition before it can be enforced, and the waiver is only valid if no party is domiciled or resident in Colombia.
  • Fee caps are now in UVB, updated every January by the Ministry of Finance, so peso figures from older fee tables based on minimum wages are out of date.
  • Court timelines in the code are legal limits; when a judge misses the one year term the case moves to the next judge, which adds time rather than producing a default win.
  • Argentina interaction: both countries are New York Convention and ICSID parties, but Argentina applies the Convention with reciprocity and commercial reservations while Colombia lists none, so check enforcement in the other country separately; for Argentina's side, see The Argentine Thread guide.

Sources

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