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Colombia tax guide 2026
Colombia taxes residents on worldwide income through seven bands reaching 39%, with every threshold written in tax value units (UVT — COP 52,374 in 2026). Investors get a separate flat 15% on gains from assets held 2 years, heirs pay that same 15% instead of any inheritance tax, and wealth above roughly COP 3.8 billion attracts an annual 0.5-1.5% net worth tax. A December 2025 emergency decree that would have tightened the wealth tax was struck down in January 2026.
- Rate range
- 0% – 39%
- Key allowance
- First 1,090 UVT (≈ COP 57 million) at 0%; 25% of employment income exempt up to 790 UVT a year
- Tax year
- Calendar year
- Filing deadline
- August to October of the following year, staggered by tax-number digits
Taxes covered
- Income tax39%
Seven bands from 0% to 39%, all set in tax value units; the top rate starts above 31,000 units — about COP 1.6 billion.
- Dividend tax0–39%
Dividends from company-taxed profits join the ordinary scale, softened by a 19% tax credit above 1,090 tax value units; untaxed profits are hit at 35% first.
- Capital gains tax15%
A flat 15% on gains from fixed assets held 2 years or more; quicker sales fall into ordinary income at up to 39%, and lottery wins pay 20%.
- Crypto tax15% / 0–39%
Crypto counts as an intangible asset: gains after a 2-year hold pay the flat 15% capital-gains rate, quicker sales and trading ride the 0-39% scale.
- Social security8% – 11%
Employees pay 4% health and 4% pension, plus a solidarity-fund charge of 1.5-3% once pay passes 4 monthly minimum wages — all capped at 25 minimum wages.
- Inheritance tax15%
There is no separate inheritance or gift tax — heirs and donees pay the flat 15% capital-gains rate on what they receive, after generous fixed allowances.
- Withholding tax20%
The default final withholding on payments abroad is 20% for most categories — fees, royalties, interest, consulting; administrative and management payments carry 33%, and listed low-tax jurisdictions face 35%.
Special regimes
- High tax-free entry
The first 1,090 tax value units — about COP 57 million in 2026 — are taxed at 0%, so many salaries owe little or nothing.
- No inheritance tax as such
Estates and gifts are taxed as capital gains at a flat 15%, with allowances for the family home and each heir's share.
- Flat 15% on patient capital
Sell any fixed asset after 2 years of ownership and the gain leaves the 0-39% scale for a flat 15%.
- Andean Community rule
Income arising in Bolivia, Ecuador or Peru is generally taxed only there — not again in Colombia.
- Simplified regime for small business
The simplified taxation regime (SIMPLE) replaces income and turnover taxes with 1.2-8.3% of gross receipts, for incomes up to 100,000 tax value units.
Recent changes
- 2026-01The Constitutional Court suspended (29 January) and then struck down the December 2025 economic-emergency decrees — the wealth-tax threshold stays at 72,000 tax value units with 0.5-1.5% rates, not the decreed 40,000 units and 5% top rate.
- 2026-01The tax value unit rose to COP 52,374 (from 49,799), lifting every threshold about 5%; crypto exchanges must start reporting user and transaction data for the 2026 tax year.
- 2025-07The pension reform (Law 2381 of 2024) was suspended by the Constitutional Court before its July 2025 start (order of 17 June 2025) — the pre-reform system still governs while the court reviews it; only the fund-transfer window took effect.