Inheritance and Estate Tax in Colombia

What tax applies when someone inherits in Colombia?

Colombia does not have a standalone inheritance or estate tax. Instead, the Civil Code routes inheritances, legacies (legados), and gratuitous inter-vivos transfers (donaciones) into the ganancia ocasional (occasional gains) schedule of the national income tax return. The legal basis is the Estatuto Tributario (ET), Articles 299-338, with rates set by Article 314 for residents and Article 316 for non-residents. Law 2277 of 2022, Colombia's most significant tax reform in years, raised the flat ganancia ocasional rate from 10% to 15%, effective from the 2023 tax year onward. That single rate applies regardless of kinship, the size of the estate, or whether the asset is cash, real property, or financial securities. The ganancia ocasional is reported in the heir's or legatee's annual income tax return (declaracion de renta) for the tax year in which the succession is formally settled and assets are adjudicated, not the year of death. Consult a qualified tax professional for guidance specific to your situation.

How are the exempt portions calculated in UVT?

Article 307 of the ET, as modified by Article 30 of Law 2277 of 2022, establishes four concurrent exemption tiers measured in Unidades de Valor Tributario (UVT). The UVT is a CPI-indexed unit set annually by DIAN: for 2026, DIAN Resolution 000238 of 15 December 2025 fixed it at COP 52,374. The four tiers are:

• Family home (vivienda de habitacion): the first 13,000 UVT of the deceased's principal residence is exempt (COP 680,862,000 in 2026). This exemption covers the entire property value if it falls within the threshold and is distributed proportionally among all heirs.
• Other real estate: the first 6,500 UVT of real property that is not the deceased's principal residence is exempt (COP 340,431,000 in 2026), covering rural land, commercial premises, and secondary dwellings.
• Per-heir allocation (porcion conyugal / herencia / legado): each surviving spouse and each legitimate heir or legatee receives an individual exemption of 3,250 UVT (COP 170,215,500 in 2026) on their own allocated share.
• Non-heir recipients and donations: persons who are not legitimate heirs and who receive assets by legacy or by inter-vivos donation are exempt on the lesser of 20% of the value received or 1,625 UVT (COP 85,107,750 in 2026).

Books, clothing, personal-use items, and household furnishings of the deceased are fully exempt under a fifth category with no UVT ceiling. The exemptions are concurrent, meaning a single estate settlement can apply multiple tiers simultaneously when the factual conditions of each differ. DIAN Oficio 908610 of 2021 confirmed the concurrence rule.

What is the proceso de sucesion (succession process)?

Before heirs can take title to estate assets and before any ganancia ocasional liability is computed, the estate must pass through a formal proceso de sucesion under Colombian civil procedure. Two channels exist. The notarial channel (sucesion extrajudicial, governed by Decree 902 of 1988) is available when all adult heirs are in agreement and no minor or incapacitated heirs are involved. The notary prepares a public deed (escritura publica) recording the inventory, valuations, and partition. The process typically concludes in one to three months and is significantly less expensive than litigation. The judicial channel applies when heirs disagree, a will is contested, or minor heirs must be protected by a family court. A Juzgado de Familia or Juzgado Civil del Circuito supervises five stages: opening of the succession, inventory and appraisal, recognition of heirs, payment of debts and taxes, and partition. Judicial successions routinely take one to three years. In both channels, proof of ganancia ocasional payment or established exemption is a precondition for registering the transfer of real property titles with the Oficina de Registro de Instrumentos Publicos. Work through a qualified tax professional and legal counsel familiar with Colombian succession law.

How are non-resident heirs and foreign assets treated?

Colombia taxes ganancia ocasional on a source basis for non-residents. ET Article 316 sets the same 15% flat rate for non-residents receiving Colombian-source inheritances, with no progressive schedule or additional surtax. Because a non-resident beneficiary typically has no Colombian income tax filing obligation, the tax is generally collected by withholding at the moment assets are adjudicated (ET Art. 306). Non-resident heirs who cannot travel to Colombia act through an attorney-in-fact (apoderado judicial) holding a special power of attorney signed before a Colombian consulate abroad or before a foreign notary with apostille. As of 2026, Colombian authorities also accept powers of attorney executed with a certified digital signature from recognized entities in certain countries.

For foreign assets inside a Colombian-resident decedent's estate, Colombian law follows the lex situs principle: each country has jurisdiction over immovable property within its territory. A Colombian-resident decedent's worldwide estate is subject to Colombian income-tax reporting, including ganancia ocasional on foreign assets transferred to heirs, but transferring title to foreign real estate or foreign financial accounts also requires compliance with the laws of the country where the asset is located, which may impose its own inheritance or estate tax. Colombia has no bilateral estate-tax treaty with the United States or with most other countries. Heirs receiving both Colombian and foreign assets should engage qualified tax professionals in each relevant jurisdiction.

Where and when is ganancia ocasional reported?

The ganancia ocasional from an inheritance is reported in the heir's annual income tax return (formulario 210 for natural persons) for the tax year in which the succession is formally settled and assets are adjudicated. The taxable amount per heir equals the market value of assets received (determined under ET Articles 267-285), less any applicable Article 307 exemptions. The 15% tax is then applied to the net taxable gain. The DIAN enforces a five-year statute of limitations for omitted ganancia ocasional from the filing deadline of the year in which the obligation arose. Penalties for late payment follow the ET's general sanction regime. For guidance on your specific situation, consult a qualified tax professional.

For a broader overview of Colombian taxes at the country level, see the Colombia country overview. For cross-border succession scenarios involving a US decedent or US heirs, review the Colombia-US tax treaty analysis available through Colombia country overview.