Countries › Colombia › Guide › 11. Real estate and land › Expropriation in Colombia: constitutional guarantee and prior compensation, public utility grounds, the 30 business day negotiation, administrative expropriation, payment terms, the four month court challenge and the transport infrastructure rules

Expropriation in Colombia: constitutional guarantee and prior compensation, public utility grounds, the 30 business day negotiation, administrative expropriation, payment terms, the four month court challenge and the transport infrastructure rules

Last verified: 2026-10-27 · Status: Stable

Property can be expropriated only for public utility or social interest defined by law, by court judgment and with prior compensation, or by administrative decision where a law allows it, subject to court review including of the price. The State first offers to buy at commercial value set by an appraisal; if no agreement is reached within 30 business days, expropriation must begin. Compensation can be paid in instalments only above 200 monthly minimum wages, and the owner has four months to challenge an administrative expropriation. Transport infrastructure projects have their own fast track.

USD figures use the TRM of COP 3,157.94 per US dollar valid on 27 October 2026, certified by the Superintendencia Financiera and published on the national open data portal (datos.gov.co). UVT amounts use the 2026 UVT of COP 52,374 (DIAN Resolución 000238 de 2025) and minimum wage amounts use the 2026 monthly minimum wage of COP 1,750,905 (Decreto 1469 de 2025). Conversions are for orientation only.

Key facts

Compensation standard	Prior compensation; commercial value appraisal textConstitución Política art. 58; Ley 388 de 1997 art. 61, as of 2026-10-27 · in force
Days of negotiation before expropriation must begin	30 business daysLey 388 de 1997 art. 61; Ley 1682 de 2013 art. 25, as of 2026-10-27 · in force
Compensation below this is paid in full in cash	200 monthly minimum wagesLey 388 de 1997 art. 67 par. 1, as of 2026-10-27 · in force
Deadline to challenge an administrative expropriation in court	4 monthsLey 388 de 1997 art. 71, as of 2026-10-27 · in force
Years the entity has to use the property for the stated purpose	3 yearsLey 388 de 1997 art. 70 num. 5, as of 2026-10-27 · in force

The rule

1. Private property is guaranteed. For reasons of public utility or social interest defined by the legislature, there may be expropriation by court judgment and prior compensation, set considering the interests of the community and of the owner. Where the law provides, expropriation may be administrative, subject to later court action, including on the price.Constitución Política de Colombia de 1991, as amended by Acto Legislativo 1 de 1999, Art. 58, 1991-07-04 official text · verified 2026-10-27 · changed: Acto Legislativo 1 de 1999 removed the clause that allowed expropriation without compensation for reasons of equity.

2. Grounds of public utility include social infrastructure, social housing, urban renewal and public space, utilities, roads and mass transit, tourism and sports projects, public offices, heritage protection, reserves for urban expansion and environmental protection, priority urban projects, and relocation of people at physical risk.Ley 9 de 1989 art. 10, as replaced by Ley 388 de 1997 art. 58, Ley 388 de 1997 art. 58, 1997-07-18 official text · verified 2026-10-27

3. In the voluntary sale stage, the purchase price equals the commercial value determined by the national geographic institute (IGAC), the competent cadastre or registered private appraisers, under urban rules at the date of the offer, less any increase in value caused by the announcement of the project unless the owner paid plusvalía or a betterment levy. Payment may be in money, securities, building rights, project participations or exchange. Expropriation must begin if no formal agreement in a promise or deed is reached within 30 business days of the offer.Ley 388 de 1997, Art. 61 and par. 1, 1997-07-18 official text · verified 2026-10-27

4. Administrative expropriation is available, when the authority finds special urgency, for most of those grounds. The compensation equals the commercial appraisal and may be paid in full or 40 to 60 percent up front with the balance in five equal yearly instalments with interest at the current bank rate; it must be paid in full in cash when below 200 monthly minimum wages, and the Constitutional Court required single cash payment for an owner's only family home unless otherwise agreed. Income from a voluntary sale under this chapter is not taxable income or capital gain.
Cost to do it: 200 monthly minimum wages is COP 350,181,000 (about US$110,889) in 2026.
Example: Compensation of COP 500,000,000: the authority may pay 40 to 60 percent (COP 200,000,000 to COP 300,000,000) now and the rest in five yearly instalments with interest. / About US$158,331; up front about US$63,332 to US$94,999.Ley 388 de 1997, Art. 63 and 67 and par. 1 and 2, 1997-07-18 official text · verified 2026-10-27

5. Once the administrative decision is final, ownership passes on registration, which requires proof that the owner withdrew the payment or that it was deposited within ten days; the entity may then take physical possession with police support. If payment is not made available or deposited on time, the expropriation has no effect. The entity must use the property for the stated purpose within three years, or the former owner can recover it through the administrative court.Ley 388 de 1997, Art. 70 num. 1 to 5, 1997-07-18 official text · verified 2026-10-27

6. The owner may bring a special action before the administrative court where the property is located, within four calendar months after the decision becomes final, to annul it and restore the right or to dispute the price, attaching proof of having received the amounts paid. The evidence period is at most two months and appeal goes to the Consejo de Estado.Ley 388 de 1997, Art. 71 num. 1, 2, 4 and 5, 1997-07-18 official text · verified 2026-10-27

7. Transport infrastructure projects are of public utility and social interest. The purchase offer is notified to the registered owner, who has 15 business days to accept or reject it; on acceptance the deed or promise must be signed within 10 business days. Expropriation is mandatory if there is no agreement within 30 business days. Once the offer is recorded in the title, no limitations or liens can be registered. The price is the commercial value set by IGAC, decentralized cadastres or registered appraisers, including where applicable consequential damages and lost profit. Payment for voluntary sales is due within 90 days of the contract, after which default interest runs.Ley 1682 de 2013 (transport infrastructure), art. 25 as amended by Ley 1882 de 2018 art. 10 and art. 37 as amended by Ley 1742 de 2014 art. 6, Art. 19, 25 and par. 2, and 37, 2013-11-22 official text · verified 2026-10-27

Worked example

A city needs part of a foreign owned warehouse lot for a bus corridor. It notifies a purchase offer at the appraised commercial value of COP 500,000,000 (about US$158,331), excluding any rise in value caused by announcing the project (Ley 388 de 1997 art. 61 par. 1). The owner negotiates but no promise is signed within 30 business days, so the city issues an administrative expropriation, paying 50 percent up front and the balance in five yearly instalments with interest (art. 67). The owner files the special action within four months to dispute the price (art. 71), and may invoke any applicable investment treaty (see disputes/investment-arbitration).

Step by step

1. When an offer arrives, diary the 30 business day negotiation period (15 business days to answer for transport projects) (Ley 388 de 1997 art. 61; Ley 1682 de 2013 art. 25).
2. Commission your own appraisal and challenge any value that ignores the urban rules at the offer date or lost income.
3. Check if the property was already paid for plusvalía or betterment levies, which affects the deduction for project announcement value (Ley 388 de 1997 art. 61 par. 1).
4. If administrative expropriation follows, file the court action within four months of the final decision (art. 71).
5. Track whether the entity uses the land within three years (art. 70 num. 5).

Common traps

Letting the 30 business days pass without a signed promise: expropriation becomes mandatory (Ley 388 de 1997 art. 61).
Expecting the appraisal to include value created by the announced project: it is deducted (art. 61 par. 1).
Missing the four month court deadline (art. 71).
Registering a lien or lease after a transport project offer is recorded: the registrar must refuse it (Ley 1682 de 2013 art. 25).

Sources

← Indigenous reserves and Afro Colombian collective land: inalienable, imprescriptible and unattachable land, what can and cannot be bought, and prior consultation for projectsBeaches, coastal zones and public land in Colombia: beaches and tidal land cannot be owned, DIMAR maritime concessions and their requirements, the ban on housing on beaches, and public land that cannot be acquired by prescription →