Short answer: when you sell a Colombian property there may be capital gains tax (ganancia ocasional) if there is a gain, withholding at source (retención en la fuente) in certain cases, notary and registry closing costs, and the property tax (predial) has to be up to date. The exact rates depend on the tax year, the tax cost of the property (costo fiscal) and whether the seller is a natural person who is a Colombian tax resident. This guide orients you — it does not replace a Colombian accountant.
If you live in the United States, Canada or Europe and still own a house, an apartment, a lot or a farm (finca) in Colombia, the tax side is usually the part nobody explains clearly. The vocabulary is Spanish, the paperwork is handled at a Colombian notary, and the numbers depend on details of your own file. Below is what sellers generally run into, with the Spanish terms in parentheses, because those are the words you will see on the documents.
In simple terms: if you sell for more than the tax cost of the property (costo fiscal), which is generally the adjusted acquisition cost plus documented improvements, a capital gain (ganancia ocasional) can arise. It is the gain that matters, not the sale price on its own.
Two things follow from that. First, documentation is money: purchase deeds, invoices for construction and improvements, and anything that proves what you actually put into the property can affect the cost side of the calculation. Second, there are specific cases, caps and exemptions (topes y exenciones) in Colombian law that an accountant has to review against your own tax return — how long you have owned the property, what kind of property it is, and what you do with the proceeds can all matter. We do not publish rates here on purpose: they depend on the tax year and on your situation, and a number copied from a website is exactly the wrong thing to plan around.
Property received through an inheritance has its own rules on how the tax cost is established, and the succession (sucesión) usually has to be closed before the sale can be signed anyway. If that is your case, see our guide on inherited property in Colombia and ask your accountant specifically how the cost basis is treated.
In real-estate sales a withholding is sometimes applied at closing, according to the regulations in force and the profile of the seller. In practice the notary and the parties involved normally indicate the calculation at the closing, and the amount is retained from the proceeds rather than paid separately later.
This is one of the most common surprises for owners abroad, because the wire you receive can be smaller than the price you agreed. Ask before signing: request in writing what will be withheld, on what basis, and what supporting document you will receive, so your accountant can use it when the return is filed.
Separate from taxes on the gain, a sale generally involves:
The property tax clearance is not a tax on the sale — it is proof that the municipal property tax on the property is up to date. On rural land it is very often the item that delays a closing, because the property tax tends to accumulate over several years.
Whether the seller is a Colombian tax resident or not can change how the sale is treated, which forms apply and what has to be withheld. There is no single answer that fits every owner abroad, and this is the point where general guidance stops being useful.
Our honest recommendation: before you sign a promise of sale (promesa de compraventa), talk to a Colombian accountant or tax adviser (contador or asesor tributario) about your specific case, and ideally to someone who also understands the tax system of the country where you live — the sale may also have to be reported there. Bring the purchase deed, the certificate of tradition and freedom (certificado de tradición y libertad), and any proof of improvements. An hour of proper advice before signing is worth more than any article, including this one.
One cost that is often confused with tax: brokerage commission. In Colombia a brokerage commission of roughly 3–6% is a commercial cost, not a tax. With a direct buyer, that brokerage commission to the seller is 0%.
That is how Raíz Directa works. We are not an agency and we do not list your property: we buy directly, with 0% seller commission and an offer within 48 hours. Where it makes sense, we can also handle situations that stall a normal sale — pending property tax, an open succession, or paperwork that has to be done in Colombia while you are abroad.
Note: this guide is general and informative. It is not tax advice for your case, and rates, caps and exemptions change. Confirm everything with a Colombian accountant or tax adviser and with the notary handling the closing.
Capital gains tax (ganancia ocasional) generally applies when there is a gain, that is, when you sell for more than the tax cost of the property. If there is no gain, the situation is different, but other items can still apply at closing, such as withholding and notary and registry costs. Have an accountant review the calculation with your documents.
In real-estate sales a withholding at source (retención en la fuente) is sometimes applied according to the regulations in force and the profile of the seller. The notary and the parties involved usually indicate the calculation at closing. Ask in advance what will be withheld and what supporting document you will receive.
It is strongly advisable. Whether the seller is a Colombian tax resident affects how the sale is treated, and the country where you live may also require the sale to be reported. A Colombian accountant or tax adviser should review your specific case before you sign a promise of sale.
No. A brokerage commission of roughly 3–6% is a commercial cost, not a tax. With a direct buyer that brokerage commission to the seller is 0%, which is how we buy property in Colombia: no intermediaries and an offer within 48 hours.
No brokerage commission. Offer in 48 hours, WhatsApp reply in under 24 hours.
Selling property in Colombia?
Offer in 48h
