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Oil, gas, mining, power and telecoms in Colombia: who owns the resources, how titles and licences work, royalties, the extractive surtax and renewable energy incentives

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

In Colombia the State owns the subsoil and every non renewable resource, so oil, gas and minerals are developed under State contracts and every barrel or tonne extracted pays a royalty fixed by law: 8 to 25 percent on oil on a production scale, and set percentages on minerals such as 4 percent on gold and 5 or 10 percent on coal. A mining right exists only as a concession contract registered in the Registro Minero Nacional, for up to 30 years; foreign companies have the same rights as Colombians but must set up a branch or subsidiary to sign it, and pay an annual surface fee in daily minimum wages per hectare while exploring. Oil and coal producers pay up to 15 and 10 extra points of income tax when prices run high (zero points for oil in tax year 2025 under the ANH figures); power generation is open to private competition, renewables get a 50 percent investment deduction, VAT exclusion, duty exemption and accelerated depreciation, and telecoms operate under a general authorization instead of a licence.

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. Conversions are for orientation only.

Key facts

Oil royalty, fields up to 5,000 barrels a day	8 %Ley 141 de 1994 art. 16 (Ley 756 de 2002 art. 16), as of 2026-10-26 · in force
Oil royalty, fields above 600,000 barrels a day	25 %Ley 141 de 1994 art. 16 (Ley 756 de 2002 art. 16), as of 2026-10-26 · in force
Gas royalty as a share of the equivalent crude royalty, onshore and offshore up to 1,000 feet	80 %Ley 141 de 1994 art. 16 par. 1, as of 2026-10-26 · in force
Gold and silver royalty on production value at the mine mouth	4 %Ley 141 de 1994 art. 16, as of 2026-10-26 · in force
Coal royalty, mines above 3 million tonnes a year	10 %Ley 141 de 1994 art. 16, as of 2026-10-26 · in force
Coal royalty, mines below 3 million tonnes a year	5 %Ley 141 de 1994 art. 16, as of 2026-10-26 · in force
Nickel royalty	12 %Ley 141 de 1994 art. 16, as of 2026-10-26 · in force
Iron and copper royalty	5 %Ley 141 de 1994 art. 16, as of 2026-10-26 · in force
Maximum term of a mining concession contract, from registration	30 yearsLey 685 de 2001 art. 70, as of 2026-10-26 · in force
Top exploration surface fee, daily minimum wages per hectare per year	2 SMDLV per haLey 685 de 2001 art. 230 (Ley 1753 de 2015 art. 27), as of 2026-10-26 · in force
Maximum extra income tax points for crude oil extraction in high price years	15 percentage pointsEstatuto Tributario art. 240 par. 3 (Ley 2277 de 2022 art. 10), as of 2026-10-26 · in force
Maximum extra income tax points for coal extraction in high price years	10 percentage pointsEstatuto Tributario art. 240 par. 3 (Ley 2277 de 2022 art. 10), as of 2026-10-26 · in force
Extra income tax points for crude oil extraction, tax year 2025 (Brent average US$67.73 below percentile 30 of US$70.56)	0 percentage pointsResolución ANH 0051 de 2026; Estatuto Tributario art. 240 par. 3, as of 2026-01-30 · in force
Taxable income from which the extractive surtax applies	50000 UVTEstatuto Tributario art. 240 par. 3, as of 2026-10-26 · in force
Income tax deduction for non conventional renewable and efficiency investments, share of the investment	50 %Ley 1715 de 2014 art. 11 (Ley 2099 de 2021 art. 8), as of 2026-10-26 · in force
Period to use the renewables deduction	15 yearsLey 1715 de 2014 art. 11, as of 2026-10-26 · in force
Maximum annual accelerated depreciation rate for renewable project assets	33.33 %Ley 1715 de 2014 art. 14 (Ley 2099 de 2021 art. 11), as of 2026-10-26 · in force
Installed capacity above which a power plant needs a national environmental licence	100 MWLey 99 de 1993 art. 52 num. 3, as of 2026-10-26 · in force

The rule

1. The State owns the subsoil and the non renewable natural resources, without prejudice to rights acquired and perfected under earlier laws. Exploiting a non renewable natural resource causes an economic consideration in favour of the State as a royalty, without prejudice to any other right or compensation agreed; a separate law sets up the Sistema General de Regalías that distributes those revenues.Constitución Política de Colombia de 1991 (art. 360 as amended by Acto Legislativo 5 de 2011), Art. 332 and art. 360, 1991-07-20 official text · verified 2026-10-26

2. From the entry into force of the Mining Code, the right to explore and exploit State owned mines can only be created, declared and proved through a mining concession contract duly granted and registered in the Registro Minero Nacional. A first application gives no right against the State to the contract, only a priority right over later applications if it meets the legal requirements. The contract runs for the term the applicant requests, up to a maximum of 30 years counted from registration. Only listed acts are registered, including concession contracts, assignments of mining titles, liens over the right to explore and exploit or over future production, and attachments.
Cost to do it: Registration itself is part of the title process; the recurring cost while exploring is the surface fee in the next rules, plus environmental licensing and the professional costs of the application, which vary by provider.Ley 685 de 2001, Código de Minas, Art. 14, art. 16, art. 70 and art. 332, 2001-08-15 official text · verified 2026-10-26

3. Foreign individuals and companies, as applicants or holders of mining concessions, have the same rights and obligations as Colombians, and the mining and environmental authorities may not demand additional or different requirements beyond those in the Code. A foreign company may file and pursue applications through a representative domiciled in Colombia, but must set up a branch, affiliate or subsidiary domiciled in Colombia to sign the concession contract (the same applies to exploring or exploiting privately owned mines), and must secure its obligations with a guarantee or a bank or insurance company bond. Foreign companies providing works or services to the mining industry for no more than one year do not need a local branch or subsidiary, but must post the same security; if the works last longer, they must set one up.
Cost to do it: Setting up the branch or subsidiary carries the registry and tax costs described in the entities and start here pages.Ley 685 de 2001, Código de Minas, Art. 18, art. 19 and art. 20, 2001-08-15 official text · verified 2026-10-26

4. During exploration the concession holder pays an annual surface fee (canon superficiario) in advance over the whole area of the concession, in legal daily minimum wages (SMDLV) per hectare: for 0 to 150 hectares, 0.5 SMDLV up to year 5, 0.75 from year 5 to year 8 and 1 from year 8 to year 11; for 151 to 5,000 hectares, 0.75, 1.25 and 2; for 5,001 to 10,000 hectares, 1.0, 1.75 and 2. The fee is compatible with royalties and is charged regardless of who owns or occupies the land. During construction and assembly or additional exploration the holder keeps paying the last fee paid in exploration.
Cost to do it: With the 2026 monthly minimum wage of COP 1,750,905 (Decreto 1469 de 2025), one daily minimum wage is COP 58,363.50.
Example: A 1,000 hectare concession in its first five years of exploration falls in the 151 to 5,000 hectare band at 0.75 SMDLV per hectare: 1,000 x 0.75 x COP 58,363.50 = COP 43,772,625 per year, paid in advance. / About US$13,859 per year.Ley 685 de 2001, Código de Minas, as amended by Ley 1753 de 2015 art. 27, Art. 230, 2015-06-09 official text · verified 2026-10-26 · changed: Art. 230 was rewritten by Ley 1753 de 2015 art. 27 (Diario Oficial 49.538, 9 June 2015), which set the current table by area band and exploration period.

5. Royalties on State owned non renewable resources are a percentage of the value of production at the mine mouth or wellhead: coal 10 percent above 3 million tonnes a year and 5 percent below; nickel 12 percent; iron and copper 5 percent; gold and silver 4 percent; alluvial gold under concession contracts 6 percent; platinum 5 percent; salt 12 percent; limestone, gypsum, clay and gravel 1 percent; radioactive minerals 10 percent; metallic minerals 5 percent; non metallic minerals 3 percent; construction materials 1 percent. For oil, on monthly average daily production per field: 8 percent up to 5 thousand barrels a day (KBPD); 8 + (KBPD minus 5) x 0.10 percent between 5 and 125 KBPD; 20 percent between 125 and 400 KBPD; 20 + (KBPD minus 400) x 0.025 percent between 400 and 600 KBPD; and 25 percent above 600 KBPD. Gas converts at 5,700 cubic feet per barrel and pays 80 percent of the crude royalty onshore and offshore up to 1,000 feet of depth, and 60 percent offshore deeper than 1,000 feet. Owners of private subsoil pay no less than 0.4 percent of production value.
Example: An oil field averaging 50 KBPD in a month pays 8 + (50 minus 5) x 0.10 = 12.5 percent; on COP 10,000,000,000 of wellhead production value that is COP 1,250,000,000. A gold mine with COP 1,000,000,000 of production value at the mine mouth pays COP 40,000,000 at 4 percent. / About US$395,766 of oil royalty on about US$3.17 million of production, and about US$12,665 of gold royalty on about US$316,613.Ley 141 de 1994, as amended by Ley 756 de 2002 art. 16; Ley 685 de 2001, Código de Minas, Ley 141 de 1994 art. 16 and par. 1; Ley 685 de 2001 art. 227, 2002-07-23 official text · verified 2026-10-26

6. Companies that extract hard coal or lignite (CIIU 0510 and 0520) or crude oil (CIIU 0610) add extra points to the 35 percent income tax depending on where the year's average price sits against the percentiles of monthly average prices of the previous 120 months: coal (API2 minus BCI7 freight, deflated by US CPI) pays 0 points below percentile 65, 5 points between percentiles 65 and 75 and 10 points above 75; oil (Brent, deflated by US CPI) pays 0 points below percentile 30, 5 points between 30 and 45, 10 points above 45 up to 60 and 15 points above 60. The extra points only apply when taxable income is 50,000 UVT or more, measured jointly across related parties. UPME (coal) and the Agencia Nacional de Hidrocarburos (oil) must publish the prices and percentile tables by the last business day of January each year. For tax year 2025 the ANH set the average Brent price at US$67.73 a barrel and percentiles 30, 45 and 60 at US$70.56, US$77.50 and US$82.05, so the 2025 average fell below percentile 30, the zero point band.
Cost to do it: Up to 15 extra points of income tax for oil and up to 10 for coal, on top of the 35 percent general rate.
Example: The 50,000 UVT threshold equals COP 2,618,700,000 of taxable income at the 2026 UVT of COP 52,374 (DIAN Resolución 238 de 2025). An oil producer with COP 100,000,000,000 of taxable income pays 35 percent (COP 35,000,000,000) in a zero point year such as 2025, and 50 percent (COP 50,000,000,000) in a year above percentile 60. / Threshold about US$829,114; on about US$31.66 million of taxable income, tax of about US$11.08 million in a zero point year against about US$15.83 million in a top band year.Estatuto Tributario, art. 240 as amended by Ley 2277 de 2022 art. 10; Resolución ANH 0051 de 2026, Art. 240 par. 3; Resolución ANH 0051 de 2026 art. 1 and 2, 2022-12-13 official text · verified 2026-10-26

7. Works, industries or activities that under law and regulations may seriously damage renewable natural resources or the environment, or considerably change the landscape, require an environmental licence. Licences for hydrocarbon exploration, exploitation, transport and storage and refineries, large scale mining, power plants above 100,000 kW of installed capacity, lines of the national interconnected transmission system, large seaports and other listed projects are granted at national level, with a single global licence for oil and gas fields. Since 2011 the Autoridad Nacional de Licencias Ambientales (ANLA) grants or refuses the licences, permits and environmental procedures within the competence of the Ministry of Environment and Sustainable Development.Ley 99 de 1993; Decreto 3573 de 2011, Ley 99 de 1993 art. 49 and art. 52 num. 1 to 4 and par. 2; Decreto 3573 de 2011 art. 3 num. 1, 1993-12-22 official text · verified 2026-10-26

8. Public, private or mixed agents may take part in the electricity sector and enjoy freedom to carry out their activities under free competition, subject to the environmental, health, water use and municipal permits that apply. Sale to end users (comercialización) is reserved to agents that also generate or distribute, and to independent agents meeting the rules of the Comisión de Regulación de Energía y Gas (CREG). Companies created after the law to provide electricity within the national interconnected system may carry out only one of the sector's activities, except that commercialization may be combined with either generation or distribution.Ley 143 de 1994, Ley Eléctrica, Art. 7 and par.; art. 74, 1994-07-11 official text · verified 2026-10-26

9. Income taxpayers that invest directly in generation from non conventional energy sources (FNCE, such as solar, wind, small hydro, geothermal or biomass) or in efficient energy management, including smart metering, may deduct 50 percent of the investment from their income over up to 15 years from the tax year after the investment starts operating, capped each year at 50 percent of net income before the deduction. The goods, equipment and services for those projects listed in the PROURE programme are excluded from VAT; machinery, equipment, materials and inputs not produced locally are exempt from import duties if requested from DIAN at least 15 business days before import; and the assets may be depreciated at up to 33.33 percent a year. Every benefit requires UPME to evaluate and certify the project. The 50 percent deduction is not among the benefits subject to the 3 percent of net income cap that Ley 2277 de 2022 placed on certain special deductions.
Example: A COP 100,000,000,000 solar plant certified by UPME gives a COP 50,000,000,000 deduction, usable over up to 15 years and in any year only up to half of net income before the deduction; at the 35 percent rate it is worth up to COP 17,500,000,000 of tax. / About US$31.66 million of investment, US$15.83 million of deduction and up to about US$5.54 million of tax saved.Ley 1715 de 2014, as amended by Ley 2099 de 2021 art. 8 to 11; Estatuto Tributario art. 259-1, Ley 1715 de 2014 art. 11, 12, 13 and 14; Estatuto Tributario art. 259-1, 2021-07-10 official text · verified 2026-10-26 · changed: Art. 11 to 14 of Ley 1715 de 2014 were rewritten by Ley 2099 de 2021 art. 8 to 11 (Diario Oficial 51.731, 10 July 2021); the current texts cover efficient energy management and smart metering and set the 15 year deduction window.

10. The provision of telecommunications networks and services is a public service owned by the State that is authorized generally: no licence is needed to install, expand, operate and exploit networks, but the general authorization does not include the right to use radio spectrum, which is assigned separately. Every provider pays a single periodic consideration to the Fondo Único de Tecnologías de la Información y las Comunicaciones, set by the Ministry as one percentage of gross income from networks and services (excluding terminals) and reviewed every four years. Since Ley 2416 de 2024 telecom network projects and works are declared of public utility and social interest.Ley 1341 de 2009, as amended by Ley 1978 de 2019 art. 7 and 23 and Ley 2416 de 2024 art. 2, Art. 10 and art. 36, 2019-07-25 official text · verified 2026-10-26 · changed: Ley 1978 de 2019 (Diario Oficial 51.025, 25 July 2019) replaced licences with the general authorization and a single periodic consideration; Ley 2416 de 2024 (Diario Oficial 52.843, 9 August 2024) added the public utility declaration for network works.

Production (KBPD)	Royalty	Example
Up to 5	8%	5 KBPD: 8%
Over 5 up to 125	8 + (KBPD minus 5) x 0.10	50 KBPD: 12.5%
Over 125 up to 400	20%	200 KBPD: 20%
Over 400 up to 600	20 + (KBPD minus 400) x 0.025	500 KBPD: 22.5%
Over 600	25%

Oil royalty by monthly average daily production of the field (Ley 141 de 1994 art. 16 as amended by Ley 756 de 2002). KBPD is thousands of barrels per day; gas pays 80 percent of these rates onshore and offshore up to 1,000 feet, 60 percent deeper.

Mineral	Royalty
Coal, above 3 million tonnes a year	10%
Coal, below 3 million tonnes a year	5%
Nickel	12%
Iron and copper	5%
Gold and silver	4%
Alluvial gold under concession contracts	6%
Platinum	5%
Salt	12%
Radioactive minerals	10%
Other metallic minerals	5%
Non metallic minerals	3%
Limestone, gypsum, clay, gravel and construction materials	1%

Main mineral royalties on production value at the mine mouth (Ley 141 de 1994 art. 16)

Hectares	Years 0 to 5	Over 5 up to 8	Over 8 up to 11
0 to 150	0.5	0.75	1
151 to 5,000	0.75	1.25	2
5,001 to 10,000	1.0	1.75	2

Exploration surface fee in daily minimum wages (SMDLV) per hectare per year (Código de Minas art. 230). One SMDLV is COP 58,363.50 in 2026.

Activity	0 points	5 points	10 points	15 points
Crude oil (Brent)	Below percentile 30	Percentile 30 to 45	Above 45 up to 60	Above percentile 60
Coal (API2 minus BCI7)	Below percentile 65	Percentile 65 to 75	Above percentile 75
Oil, tax year 2025 (Res. ANH 0051 de 2026)	Brent US$67.73 against percentile 30 of US$70.56

Extra income tax points for extractive companies with taxable income of 50,000 UVT or more (Estatuto Tributario art. 240 par. 3); price percentiles over the previous 120 months, published each January by ANH and UPME

Worked example

Exploring a 1,000 hectare gold concession: surface fee of COP 43,772,625 a year in years 0 to 5 (about US$13,859), rising to 1.25 SMDLV per hectare, COP 72,954,375 a year (about US$23,098), from year 5 to year 8; once producing, a 4 percent royalty on production value at the mine mouth replaces the exploration fee.
A 50 KBPD oil field pays a 12.5 percent royalty on wellhead value, and its operator pays 35 percent income tax plus 0 to 15 extra points depending on Brent; for tax year 2025 the ANH figures place the year in the zero point band.
A COP 100,000,000,000 solar project certified by UPME (about US$31.66 million) can import non local equipment duty free, buy PROURE listed equipment without VAT, depreciate at up to 33.33 percent a year and deduct COP 50,000,000,000 (about US$15.83 million) over up to 15 years.

Step by step

Map the sector regime first: oil, gas and minerals are State owned and pay statutory royalties, minerals are held only through a concession contract registered in the Registro Minero Nacional, power runs under free competition with CREG market rules, and telecoms work under the general authorization plus a separate spectrum assignment.
For mining, file the proposal through a representative domiciled in Colombia, then set up a branch, affiliate or subsidiary before signing the concession contract, and arrange the bank or insurance bond to secure obligations.
Check early whether the project needs a national environmental licence from ANLA (hydrocarbons, large mining, plants above 100 MW, transmission lines, large ports) and build the licence into the timeline before any works start.
Budget the exploration surface fee each year in advance, then model royalties on production value at the mine mouth or wellhead using the statutory table.
For oil and coal, model income tax at 35 percent plus 0 to 15 or 0 to 10 extra points, and check each January the ANH and UPME resolutions that set the price percentiles for the prior tax year.
For renewables and efficiency projects, obtain the UPME certification before claiming any benefit, and request the import duty exemption from DIAN at least 15 business days before each import.
For power companies, structure the group so each company created to serve the interconnected system carries only one activity of the chain (such as generation or distribution), combining commercialization only with generation or distribution.

Common traps

A mining application is only a priority right: it does not oblige the State to sign the contract, and the right to explore and exploit exists only once the contract is registered in the Registro Minero Nacional.
A foreign company cannot sign a mining concession directly from abroad; it needs a branch, affiliate or subsidiary in Colombia, and service contracts longer than one year trigger the same requirement.
The surface fee is charged on the whole concession area in advance whatever the land ownership or occupation, and it steps up after year 5 and year 8, so oversized areas held idle get expensive.
Royalty rates apply to the gross value of production at the mine mouth or wellhead, not to profit, so they bite even in loss making years.
The extractive surtax is assessed tax year by tax year against a moving 120 month price history; a high price year can lift the oil rate from 35 to 50 percent, and the 50,000 UVT threshold is measured across related parties, so splitting operations among group companies does not avoid it.
Every renewable incentive requires UPME to evaluate and certify the project, and the import duty exemption must be requested from DIAN at least 15 business days before the import; missing either step puts the benefit at risk.
The telecom general authorization does not include spectrum; mobile and wireless projects need a separate spectrum assignment.

Sources

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