How will the new tax reform impact your real estate investment?

Sellers

Owners who sell before four years will have to pay taxes as ordinary income, which increases the tax burden. This may discourage quick sales and reduce market liquidity. Additionally, changes in inheritance and donations also affect those who plan to transfer their real estate assets.

Tenants

Although residential properties would remain exempt, tenants of commercial or mixed-use buildings could face higher costs in their fees due to VAT on administration and common services. This could lead to a general increase in rental prices, affecting both those looking for an apartment to rent in Medellín and in other cities in the country.

Key points to anticipate

The tax reform is not only a legal adjustment, but also a change that will affect the day-to-day operations of the Colombian real estate market. Buyers could face higher prices, sellers will have to rethink their investment timelines, and tenants could see new costs reflected in their contracts.

Although there is still no exact date for the reform to be approved or rejected definitively, everything points to the debate and key votes taking place in the coming months of the legislative cycle. Its approval or rejection will depend largely on political negotiations, alliances in Congress, pressure from trade associations, and public opinion.

In this scenario, the most important thing will be anticipation: having good advice, planning decisions with a long-term vision, and understanding that the real estate market will become increasingly regulated and demanding in terms of taxation.

Written by: Valeria Ospina – Marketing Analyst You may be interested in: How did real estate perform in Colombia?