Countries › Colombia › Guide › 11. Real estate and land › Selling property in Colombia: capital gains at 15 percent after two years, ordinary income before, cost basis and adjustments, the 1 percent notary withholding, company buyer withholding and the one month return for foreign investors

Selling property in Colombia: capital gains at 15 percent after two years, ordinary income before, cost basis and adjustments, the 1 percent notary withholding, company buyer withholding and the one month return for foreign investors

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

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

A gain on real estate held as a fixed asset for two years or more is a capital gain taxed at 15 percent for residents, non residents and companies alike; held less than two years, it is ordinary income, which for a non resident individual means 35 percent. The gain is price minus tax cost, where individuals may index the cost, and the price cannot be below the cadastral value. Individual sellers pay 1 percent withholding at the notary; when the buyer is a company, its withholding must be paid before the deed. A foreign investor who sells must file a special return within a month.

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

Capital gains tax on property held 2 years or more, non resident individual	15 %Estatuto Tributario art. 300 and 316, as of 2026-10-27 · in force
Capital gains tax rate, companies	15 %Estatuto Tributario art. 313, as of 2026-10-27 · in force
Holding period for capital gain treatment	2 yearsEstatuto Tributario art. 300, as of 2026-10-27 · in force
Withholding on sale of a fixed asset by an individual, paid at the notary	1 %Estatuto Tributario art. 398, as of 2026-10-27 · in force
Withholding by agent buyers on homes up to 10,000 UVT (2.5% above)	1 %Decreto 1625 de 2016 art. 1.2.4.9.1 (Decreto 572 de 2025), as of 2026-10-27 · in force
Withholding by agent buyers on non residential real estate	2.5 %Decreto 1625 de 2016 art. 1.2.4.9.1 (Decreto 572 de 2025), as of 2026-10-27 · in force
Deadline for the change of ownership return after a foreign investor sells	1 monthsDecreto 1625 de 2016 art. 1.6.1.13.2.19, as of 2026-10-27 · in force

The rule

1. A gain on selling assets that were fixed assets of the seller for two years or more is a capital gain (ganancia ocasional), measured as sale price minus tax cost. A gain on fixed assets held under two years is ordinary taxable income. Assets sold in the ordinary course of business, such as a developer's inventory, are not fixed assets.Estatuto Tributario (Decreto 624 de 1989), Art. 300 and par. 2 (Ley 1819 de 2016 art. 124), 1989-03-30 official text · verified 2026-10-27

2. The capital gains rate is 15 percent for resident individuals, for non resident individuals on Colombian source gains, and for Colombian and foreign companies and entities.
Example: Bought for COP 800,000,000, sold after three years for COP 1,000,000,000: tax on the COP 200,000,000 gain is COP 30,000,000. / Tax of about US$9,500 on a gain of about US$63,332.Estatuto Tributario, as amended by Ley 2277 de 2022 art. 32, 33 and 34, Art. 313, 314 and 316, 2022-12-13 official text · verified 2026-10-27 · changed: Ley 2277 de 2022 raised the capital gains rate from 10 to 15 percent from tax year 2023.

3. Non resident individuals pay a single 35 percent rate on taxable Colombian source income, which includes a gain on property held under two years.
Example: The same COP 200,000,000 gain on a property held 18 months is taxed at 35 percent: COP 70,000,000. / About US$22,166, against about US$9,500 after two years.Estatuto Tributario, as amended by Ley 1819 de 2016 art. 10, Art. 247, 2016-12-29 official text · verified 2026-10-27

4. For sellers not required to keep books, the tax cost of real estate is the purchase price plus the cost of construction and improvements and the betterment levies (valorización) paid. Individuals may instead adjust the purchase cost by the percentage increase in real estate values published by the government on the basis of the cadastral authority's certification, between 1 January of the year of purchase and 1 January of the year of sale, and add improvements and betterment levies; tax depreciation deducted must be subtracted.Estatuto Tributario, Art. 67 num. 2 (Ley 1819 de 2016 art. 47) and art. 73 (par. added by Ley 1819 de 2016 art. 52), 2016-12-29 official text · verified 2026-10-27

5. Income from selling real estate is realized on the date of the public deed. The price for tax purposes cannot be below cost, cadastral value or self assessment, and every amount paid counts as price even if agreed outside the deed.Estatuto Tributario, Art. 27 num. 2 (Ley 1819 de 2016 art. 27) and art. 90 (Ley 2010 de 2019 art. 61), 2019-12-27 official text · verified 2026-10-27

6. Individuals selling fixed assets suffer withholding of 1 percent of the sale value, which for real estate must be paid at the notary before the deed is signed. It is an advance on the seller's tax.
Cost to do it: 1 percent of the sale value, credited against the seller's tax.
Example: On a COP 1,000,000,000 sale, COP 10,000,000 is paid at the notary. / About US$3,167.Estatuto Tributario, inc. 2 as amended by Ley 49 de 1990 art. 18, Art. 398, 1990-12-28 official text · verified 2026-10-27

7. When the buyer of real estate is a company or de facto partnership, its income tax withholding must be paid by official receipt before the notary signs the deed or a trust or fund transfers rights or units over real estate. Withholding agents buying real estate withhold 1 percent on the first 10,000 UVT and 2.5 percent on the excess for homes, and 2.5 percent for other real estate; payments under 10 UVT are not subject to this withholding.
Cost to do it: 10,000 UVT is COP 523,740,000 (about US$165,849) in 2026.
Example: A company buying a COP 800,000,000 home from a corporate seller withholds COP 12,143,900; for a COP 800,000,000 office, COP 20,000,000. / About US$3,846 on the home and US$6,333 on the office.Estatuto Tributario art. 401 par. (Ley 2010 de 2019 art. 65); Decreto 1625 de 2016 art. 1.2.4.9.1 as amended by Decreto 572 de 2025 art. 6, Art. 401 par.; art. 1.2.4.9.1 inc. 3 and lit. i), 2025-05-28 official text · verified 2026-10-27 · changed: Decreto 572 de 2025 (28 May 2025, in force the day after publication on 29 May 2025) set the 1 percent up to 10,000 UVT and 2.5 percent bands. A legality challenge before the Consejo de Estado is pending; check its status before closing.

8. A foreign investment holder who sells the investment must file, within the month after the sale, a special income tax return for change of ownership of the foreign investment, with the tax due, through its attorney, agent or representative in Colombia. Property bought by a non resident counts as foreign direct investment, and the change of holder cannot be registered without proof that the tax was paid.
Cost to do it: The tax on the gain, paid with the return within one month.Decreto 1625 de 2016 art. 1.6.1.13.2.19 as amended by Decreto 2487 de 2022; Estatuto Tributario art. 326, Art. 1.6.1.13.2.19; ET art. 326 par., 2022-12-16 official text · verified 2026-10-27

9. Up to 5,000 UVT of the gain on selling a resident individual's home is exempt if all the proceeds go into an AFC account and are used to buy another home or pay mortgages on the home sold.
Cost to do it: 5,000 UVT is COP 261,870,000 (about US$82,924) in 2026.Estatuto Tributario, as amended by Ley 2277 de 2022 art. 31, Art. 311-1, 2022-12-13 official text · verified 2026-10-27

Holding period	Treatment	Rate	Tax COP	Tax USD
2 years or more	Capital gain (art. 300, 316)	15%	30,000,000	9,500
Under 2 years	Ordinary income (art. 247)	35%	70,000,000	22,166
Either	Notary withholding, credited (art. 398)	1% of price	10,000,000	3,167

Non resident individual sells for COP 1,000,000,000 property bought for COP 800,000,000 (no adjustments). TRM COP 3,157.94.

Worked example

A non resident individual registered the purchase of a Bogotá flat for COP 800,000,000 (about US$253,330) as foreign investment and sells it three years later for COP 1,000,000,000 (about US$316,662). At the notary, before signing, the seller pays 1 percent withholding of COP 10,000,000 (about US$3,167) (Estatuto Tributario art. 398). Within a month the seller, through a Colombian attorney, files the change of ownership return and pays 15 percent on the COP 200,000,000 (about US$63,332) gain, COP 30,000,000 (about US$9,500), less the withholding (Decreto 1625 de 2016 art. 1.6.1.13.2.19; ET art. 316). An Argentine seller is taxed the same way in Colombia, since there is no general Colombia Argentina income tax treaty; how Argentina treats the gain is covered on The Argentine Thread.

Step by step

1. Confirm the holding period from the deed dates: two years or more for capital gain treatment (Estatuto Tributario art. 300).
2. Build the tax cost: price, improvements, betterment levies, and for individuals the art. 73 adjustment, less depreciation taken (art. 67 and 73).
3. Check that the sale price is not below cadastral value (art. 90).
4. Pay the 1 percent withholding at the notary, or, if the buyer is a company, make sure its withholding receipt is ready (art. 398 and 401 par.).
5. Foreign investors: file the change of ownership return within one month and keep proof of payment for the FX registration (Decreto 1625 de 2016 art. 1.6.1.13.2.19; ET art. 326).
6. Send the net proceeds abroad through the FX market against the registered investment (see fx/foreign-investment-registration).

Common traps

Selling just before the two year mark: the gain is ordinary income at 35 percent for a non resident individual instead of 15 percent (art. 247 and 300).
Missing the one month return: the change of holder of the foreign investment cannot be registered without proof of payment (Estatuto Tributario art. 326).
Understating the price: every amount paid counts, and missing sworn statements bring the four times rule (art. 90).
Relying on the AFC home exemption as a non resident: art. 311-1 refers to individuals selling their own home and depositing in an AFC account.

Sources

← VAT 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 buildersWealth tax on Colombian property held by non residents and foreign companies: who pays, the 72,000 UVT threshold, rates of 0.5 to 1.5 percent in 2026 and 1 percent maximum from 2027 →