Yearly Costs of Owning Property in Colombia

What it is

Property owners in Colombia usually pay yearly municipal property tax. Owners in a condominium building also pay a building administration fee. The owners' assembly sets that fee. Other duties depend on the property and its use. These may include a betterment levy (valorización) and Colombian rental income tax. The 4x1000 tax on bank withdrawals and the tourism registry (RNT) may also apply.

Rates and amounts differ by city, building and year.

Who it applies to

If you rent the property out

Rent from Colombian property is generally Colombian-source income. Colombia can tax it whether or not you live there. See Colombian tax on rental income.
Short stays may require the tourism registry (Registro Nacional de Turismo, RNT). Renewal is yearly. See short-term rentals.
For long-term leases, see the landlord rules.

Reporting in your home country

Your home country may tax the rent or require reports on the property or on Colombian accounts. For US owners, see US taxes, FBAR and Form 8938. Wherever you live, ask a tax professional there.

Costs

Property tax (predial)

Property tax is a municipal tax. Each municipality sets its rates, billing calendar, early-payment discounts and payment channels. National law sets limits. Foreign owners pay it, like Colombian owners. In general, the amount comes from applying the municipality's rate to the property's cadastral appraisal (avalúo catastral). See how property tax works for a foreign owner.

Building administration fee (cuota de administración)

There is no national rate. The owners' assembly approves the budget. Each owner's share is their ownership coefficient applied to that budget (Ley 675 de 2001, arts. 29 and 38). You owe it even if you do not live in the unit. The assembly may also approve special assessments (extraordinary fees). See the building administration fee guide. For the building accounts behind the fees, see bank reconciliation for condominiums. For overdue fees, see late interest on building administration fees.

Betterment levy

The betterment levy applies to real property that benefits from a public work. It is a real lien on the property (Decreto 1604 de 1966). It is not charged every year: it applies when a public work is assigned to your property. See betterment levy and value capture.

Bank costs: the 4x1000 tax

The tax on financial transactions (gravamen a los movimientos financieros, GMF, or "4x1000") applies to financial transactions that dispose of money in checking or savings accounts (art. 871). The rate is four per thousand (art. 872) (Estatuto Tributario). Article 879 exempts withdrawals up to 350 UVT (DIAN's annual tax value unit) a month. This covers one savings account, electronic deposit or prepaid card. See bank accounts for foreigners.

Official sources

Next step

Educational information, not legal or tax advice. Ask a Colombian lawyer or accountant about your case.

This guide is educational information, not legal or tax advice. For your case, ask a Colombian real estate lawyer (abogado inmobiliario) and certified public accountant (contador público). Ask a tax professional and lawyer in your home country about the effects there. Finding trusted services shows how to check that a Colombian lawyer is registered.

Take the free quiz to find your next guide.

Colombia Owner Kit · US$79 · instant download

The risk: The new owner can be jointly liable for building fees the seller left unpaid (Ley 675 de 2001, art. 29).
One step now: Before you buy, ask for the latest property-tax bill, the building budget and the last two assembly minutes, and add each due date to your calendar.
In the kit: The kit’s ongoing-costs guide explains how your share of the administration fee is set and lists what to ask for before you buy: the budget, the last two assembly minutes, approved special assessments and a statement showing the unit is up to date. See what’s included

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Frequently asked questions

How much is property tax in Colombia?

There is no single national figure. Each municipality sets its rates. The amount generally comes from applying the rate to the property's cadastral appraisal. Check the bill or portal of the municipality where the property is.

Do I pay building fees if I do not live in the apartment?

Yes. Ley 675 de 2001, art. 29, requires contributions even if you do not live in the unit. This also applies if you do not use a given common service.

Do I pay Colombian tax on rent if I live abroad?

Often, yes. Rent from Colombian property is generally Colombian-source income. Colombia can tax it whether or not you live there. Ask a Colombian certified public accountant.

Not sure which topics to raise? Take the quiz. The Colombia Owner Kit (US$79, instant download) turns this guide into a checklist, a calendar entry and a question list: see what’s included. Or start with the free sample: Chapter 4, the due-diligence checklist.