Capital gains tax in Colombia

Colombia's capital-gains tax falls under a separate schedule called ganancia ocasional (occasional gain), administered by the DIAN (Direccion de Impuestos y Aduanas Nacionales). The regime is governed by Articles 299-317 of the Estatuto Tributario (Tax Code). Understanding whether a gain qualifies as a ganancia ocasional or as ordinary cedula general income is the threshold question in every Colombian capital-gains analysis -- the answer depends primarily on how long the asset was held.

What is the ganancia ocasional rate and when does it apply?

A gain qualifies as ganancia ocasional when the sold asset was held for two or more years (Articles 300-301 ET). The flat tax rate is 15% on the net gain for most assets, including real property, private-company shares, and business assets. This rate applies equally to resident and non-resident sellers on Colombian-source income. The 15% rate was increased from the prior 10% by Law 2277 of 2022 (Ley 2277), effective January 1, 2023. Gains from lotteries, prizes, and gaming are taxed at a higher flat rate of 20% under Article 317 ET, regardless of holding period. Inheritances, donations, and gratuitous transfers are also ganancia ocasional at 15%, subject to separate exemption thresholds discussed below.

The taxable gain equals the sale price minus the costo fiscal (fiscal cost): the original purchase price, plus inflation-indexing adjustments allowed under the Tax Code, plus documented capital improvements. Sellers of real property in Colombia may adjust the fiscal cost upward for inflation using the official adjustment factors published annually by DIAN, which can materially reduce the taxable gain on long-held property.

What happens to gains on assets held under two years?

When an asset is sold before completing two years of ownership, the gain does not qualify as ganancia ocasional. Instead it flows into the cedula general (general income schedule) and is taxed as ordinary income at progressive rates under Article 241 ET. For fiscal year 2026, the cedula general brackets run from 0% on the first 1,090 UVT of net income to 39% on income exceeding 31,000 UVT. Because one UVT equals COP 52,374 in 2026 (DIAN Resolucion 000238 of December 15, 2025), the 39% bracket applies on net income above approximately COP 1,623 million (roughly USD 385,000). A short holding period can therefore more than double the effective tax burden on the same economic gain, making the two-year threshold a critical planning milestone for asset sellers.

What exemptions apply to the sale of a primary residence?

Article 311-1 ET provides an exemption of up to 5,000 UVT of net gain on the sale of a house or apartment that qualifies as the seller's primary residence, equivalent to approximately COP 261.9 million at the 2026 UVT value. To qualify, the seller must be a natural person subject to income tax and must deposit all proceeds from the sale into a certified AFC (Ahorro para el Fomento de la Construccion) savings account. The funds must then be used to purchase another qualifying primary residence or to pay down or fully discharge a mortgage directly linked to the sold property. If the seller receives cash rather than channeling proceeds through an AFC account, the exemption is lost. The two-year holding period still applies: only gains on property held two or more years qualify as ganancia ocasional in the first place.

For inheritances and donations received from 2023 onward (under Law 2277 thresholds), the following ganancia ocasional exemptions apply: houses received as inheritance up to 13,000 UVT; other real property inherited up to 6,500 UVT; other inherited assets up to 3,250 UVT; gratuitous gifts up to 1,625 UVT. These thresholds replaced the prior, more generous limits that applied before Law 2277.

How are listed shares on the BVC treated?

Gains from selling shares listed on the Bolsa de Valores de Colombia (BVC) are classified as income that is neither ordinary income nor ganancia ocasional (ingreso no constitutivo de renta ni ganancia ocasional) under Article 36-1 ET, provided a single condition is met: the total volume sold by the same beneficial owner must not exceed 3% of the company's outstanding shares during the same tax year. If sales by that seller exceed the 3% threshold, the excess gain loses the exempt status and becomes a taxable ganancia ocasional (assuming the shares were held two or more years) or ordinary cedula general income (if held under two years). Shares in Colombian companies that are not listed on the BVC do not qualify for this exemption.

How are non-residents taxed on Colombian-source capital gains?

Non-resident individuals and foreign entities are subject to the same 15% ganancia ocasional rate on Colombian-source gains as residents (Articles 314 and 316 ET). Colombia taxes non-residents only on income sourced within its territory. For real-property sales, the notary is required to withhold retension en la fuente (withholding at source) under Article 398 ET: 1% of the transaction value on the portion up to 10,000 UVT, and 2.5% on amounts above that threshold. This withholding is a credit against the final ganancia ocasional liability shown on the annual return. Non-residents must obtain a RUT (Registro Unico Tributario) registration number before completing a notarial property transfer. Colombia has no bilateral income tax treaty with the United States, meaning US sellers of Colombian property cannot rely on treaty relief to reduce the 15% rate.

The table below summarises the current rates and key thresholds for the main asset categories covered by the ganancia ocasional regime (UVT values at COP 52,374, fiscal year 2026):

For context on how Colombia's rules compare to broader Latin American frameworks and for a full profile of the Colombian tax system, see the Colombia country overview.

The rules summarised here reflect the Estatuto Tributario as amended by Law 2277 of 2022 and DIAN administrative guidance current as of mid-2026. Thresholds denominated in UVT adjust each calendar year by the consumer price index variation certified by DANE; the 2026 UVT is COP 52,374. Tax situations involving multiple Colombian-source assets, non-resident status, or significant inherited wealth carry meaningful complexity. Consult a qualified tax professional before relying on any of the above for filing or transaction decisions.