Countries › Colombia › Guide › 11. Real estate and land › 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 builders

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 builders

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

Selling real estate in Colombia does not attract VAT, and renting a home is excluded. Renting offices, shops, warehouses and other non residential property is a taxed service at the general 19 percent rate, treated as provided where the property is located. When an agency intermediates a taxed rental, VAT follows the status of the owner who hired it. Builders of social and priority housing can recover VAT paid on building materials up to 4 percent of the deed value of each new home.

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

VAT on sales of real estate	Excluded textEstatuto Tributario art. 424 num. 12, as of 2026-10-27 · in force
VAT on residential rent	Excluded textEstatuto Tributario art. 476 num. 15, as of 2026-10-27 · in force
VAT on rent of non residential real estate	19 %Estatuto Tributario art. 468, as of 2026-10-27 · in force
General VAT rate	19 %Estatuto Tributario art. 468, as of 2026-10-27 · in force
VAT refund for social and priority housing builders, share of deed value	4 %Estatuto Tributario art. 850 par. 2, as of 2026-10-27 · in force

The rule

1. VAT applies to sales of movable and immovable tangible goods except those expressly excluded, and to services provided in Colombia except those expressly excluded.Estatuto Tributario, as amended by Ley 1819 de 2016 art. 173, Art. 420 lit. a) and c), 2016-12-29 official text · verified 2026-10-27

2. The sale of real estate is among the goods that do not attract VAT.
Cost to do it: No VAT on the price; transfer costs are the notary fee, registration tax, registry fees and, from 20,000 UVT, stamp tax (see buying and owning property).Estatuto Tributario, as amended by Ley 2010 de 2019 art. 1, Art. 424 num. 12, 2019-12-27 official text · verified 2026-10-27

3. The rental of real estate for housing is excluded from VAT, as is the rental of spaces for national craft exhibitions.Estatuto Tributario, as amended by Ley 2010 de 2019 art. 11, Art. 476 num. 15, 2019-12-27 official text · verified 2026-10-27

4. The general VAT rate is 19 percent, which applies to taxed services such as rental of non residential real estate. Services related to real estate are deemed provided where the property is located.
Cost to do it: 19 percent on the rent, charged by a VAT responsible landlord.
Example: Office rent of COP 10,000,000 a month carries VAT of COP 1,900,000, for a total of COP 11,900,000. / About US$3,167 plus US$602 of VAT.Estatuto Tributario, as amended by Ley 1819 de 2016 art. 184, Art. 468 and art. 420 par. 2 num. 1, 2016-12-29 official text · verified 2026-10-27

5. When a taxed rental of real estate is intermediated by a real estate agency, VAT on the rent arises according to the VAT status of the person who hired the agency and is collected by the intermediary at payment.Decreto 1625 de 2016, Art. 1.3.1.1.5, 2016-10-11 official text · verified 2026-10-27

6. Builders of social and priority housing are entitled to a refund or offset of VAT paid on building materials, at 4 percent of the value in the sale deed of each new home whose value does not exceed the social housing ceiling.
Example: For a new social housing unit sold for COP 150,000,000, the builder can recover up to COP 6,000,000 of VAT paid on materials. / Up to about US$1,900 on a unit of about US$47,499.Estatuto Tributario, as amended by Ley 1607 de 2012 art. 66, Art. 850 par. 2, 2012-12-26 official text · verified 2026-10-27

Transaction	VAT	Rule
Sale of land or buildings	Not taxed	Art. 424 num. 12
Rent of a home	Excluded	Art. 476 num. 15
Rent of offices, shops, warehouses	19%	Art. 420 and 468
Building materials for social housing	Refund up to 4% of deed value	Art. 850 par. 2

VAT treatment of common real estate transactions (Estatuto Tributario)

Worked example

A foreign fund buys a logistics warehouse for COP 20,000,000,000 and leases it to a retailer for COP 80,000,000 (about US$25,333) a month. The purchase carries no VAT (Estatuto Tributario art. 424 num. 12), but as a VAT responsible landlord the fund charges 19 percent on the rent, COP 15,200,000 (about US$4,813) a month (art. 468), and credits VAT paid on its costs under the general rules. If the same fund leased apartments instead, the rent would be VAT excluded (art. 476 num. 15).

Step by step

1. Classify each lease as residential (excluded) or non residential (taxed at 19 percent).
2. Register in the RUT as VAT responsible before invoicing taxed rent.
3. If an agency collects the rent, agree how it will charge VAT according to your status (Decreto 1625 de 2016 art. 1.3.1.1.5).
4. Social housing builders: keep material invoices and deed values to claim the 4 percent refund (art. 850 par. 2).

Common traps

Charging VAT on a home lease, or failing to charge it on a commercial lease (Estatuto Tributario art. 476 num. 15 and 468).
Assuming a mixed use lease is all residential: VAT follows the use of the space.
Treating short stays like a home lease: tourist housing is a tourism service, not a Ley 820 lease (see short term rentals).

Sources

← 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 reliefSelling 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 →