Countries › Colombia › Guide › 11. Real estate and land › Tax on rental income from Colombian property: Colombian source rule, 20 percent withholding and 35 percent rate for non residents, 3.5 percent withholding for residents, and treaty relief

Tax on rental income from Colombian property: Colombian source rule, 20 percent withholding and 35 percent rate for non residents, 3.5 percent withholding for residents, and treaty relief

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

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

Rent from property located in Colombia is Colombian source income whoever the owner is. When a Colombian company or other withholding agent pays rent to a non resident, it withholds 20 percent, and if all the non resident's income suffered withholding no Colombian return is needed; otherwise non resident individuals pay 35 percent on net Colombian income. Payments of rent to residents carry 3.5 percent withholding. Double tax treaties can change the result, and Colombia has no general income tax treaty with Argentina.

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

Withholding on rent paid to non residents	20 %Estatuto Tributario art. 408, as of 2026-10-27 · in force
Income tax rate for non resident individuals on Colombian source income	35 %Estatuto Tributario art. 247, as of 2026-10-27 · in force
Withholding on real estate rent paid to residents	3.5 %Decreto 1625 de 2016 art. 1.2.4.10.6, as of 2026-10-27 · in force
General income tax treaty with Argentina	None (only air and sea transport agreement, Ley 15 de 1970) textDIAN treaty list, as of 2026-10-27 · in force

The rule

1. Income from the exploitation of property within Colombia is Colombian source income, including income from real estate located in Colombia such as rents, and gains from selling real estate located in Colombia.Estatuto Tributario (Decreto 624 de 1989), as amended by Ley 223 de 1995 art. 66, Art. 24 inc. 1 and num. 1 and 2, 1995-12-20 official text · verified 2026-10-27

2. Payments or credits of rent (arrendamientos) to non residents are subject to income tax withholding at 20 percent of the nominal amount. Payments to residents of non cooperative, low or no tax jurisdictions or preferential regimes are withheld at the general corporate rate.
Cost to do it: 20 percent of gross rent, withheld by the paying company or other withholding agent.
Example: A company tenant paying COP 7,000,000 a month withholds COP 1,400,000; over a year, COP 16,800,000 on COP 84,000,000. / About US$443 a month on about US$2,217; about US$5,320 a year.Estatuto Tributario, as amended by Ley 2010 de 2019 art. 98, Art. 408 inc. 1 and par., 2019-12-27 official text · verified 2026-10-27

3. Foreign individuals and entities with no residence or domicile in Colombia do not have to file an income tax return when all their income was subject to the withholding in art. 407 to 411 and that withholding was actually made.Estatuto Tributario, Art. 592 num. 2, 1989-03-30 official text · verified 2026-10-27

4. Non resident individuals pay income tax at a single 35 percent rate on taxable Colombian source income. This applies, for example, where rent is paid by an individual tenant who is not a withholding agent, so no withholding was made and a return must be filed.
Example: A non resident whose net taxable rent is COP 58,800,000 for the year owes COP 20,580,000. / About US$6,517 on about US$18,620 of net taxable rent.Estatuto Tributario, as amended by Ley 1819 de 2016 art. 10, Art. 247, 2016-12-29 official text · verified 2026-10-27

5. Payments for the rental of real estate made by withholding agents to residents are subject to 3.5 percent income tax withholding.
Example: On COP 7,000,000 of monthly rent, COP 245,000 is withheld. / About US$78.Decreto 1625 de 2016 (single tax regulatory decree), Art. 1.2.4.10.6 inc. 2, 2016-10-11 official text · verified 2026-10-27

6. Residential rent is excluded from VAT, while other rentals of real estate are taxed at the general 19 percent rate (see the VAT on real estate page).Estatuto Tributario, as amended by Ley 2010 de 2019 and Ley 1819 de 2016, Art. 476 num. 15 and art. 468, 2019-12-27 official text · verified 2026-10-27

7. Colombia's income tax treaties in force are listed by the DIAN: Spain, Chile, Switzerland, Canada, Mexico, Korea, India, Portugal, the Czech Republic, the United Kingdom, Italy, France and Japan, plus the Andean Community Decision 578. With Argentina, the only agreement listed covers air and sea transport companies (Ley 15 de 1970); there is no general income tax treaty, so rent paid to an Argentine resident bears Colombian domestic rates.DIAN list of international tax agreements, Treaties in force, 2026-10-27 official text · verified 2026-10-27

Landlord	Tenant	Withholding	COP	USD	Return
Non resident	Company (withholding agent)	20%	16,800,000	5,320	Not required if all income had withholding (art. 592 num. 2)
Non resident	Individual not a withholding agent	None	0	0	Required; 35% on net taxable income (art. 247)
Resident	Company (withholding agent)	3.5%	2,940,000	931	Ordinary return rules apply

Colombian tax on COP 84,000,000 of yearly rent (about US$26,600), by landlord and tenant type. TRM COP 3,157.94.

Worked example

A US resident rents a Bogotá office to a Colombian company for COP 7,000,000 (about US$2,217) a month plus VAT. The tenant withholds 20 percent of the rent, COP 1,400,000 (about US$443) each month (Estatuto Tributario art. 408), and if that is the owner's only Colombian income, no return is due (art. 592 num. 2). The owner then claims a foreign tax credit at home under US rules; Colombia has no income tax treaty with the United States in the DIAN list. An Argentine resident in the same position is in the same Colombian position, since there is no general Colombia Argentina income tax treaty; the Argentine side is covered by The Argentine Thread.

Step by step

1. Decide who the tenant is: a company or other withholding agent will withhold 20 percent for a non resident owner (Estatuto Tributario art. 408).
2. Register in the RUT if you will need to file a return or invoice VAT on commercial rent.
3. If any rent was paid without withholding, file a Colombian return and pay 35 percent on net taxable income (art. 247 and 592).
4. Check whether a treaty in the DIAN list applies to your country of residence before relying on domestic rates.
5. For commercial rentals, invoice VAT at 19 percent if you are a VAT responsible party (art. 468).

Common traps

Assuming no Colombian tax because the owner lives abroad: rent from Colombian property is Colombian source income (Estatuto Tributario art. 24 num. 1).
Skipping the return when an individual tenant paid without withholding: the art. 592 num. 2 exemption needs withholding on all income.
Expecting treaty relief for Argentine residents: there is no general income tax treaty with Argentina (DIAN list).

Sources

← Short term rentals in Colombia: tourist housing for stays under 30 days, the Registro Nacional de Turismo, platform duties, condominium authorization and the tourism levyVAT and real estate in Colombia: sales of property excluded, homes rented VAT free, 19 percent on commercial rent, agency intermediated rentals and the 4 percent VAT refund for social housing builders →