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October 9, 2025
The new tax reform being discussed in Colombia brings significant changes that could transform the way real estate is bought, sold, and leased in the country. This project seeks to increase state revenue, make the system more progressive, and reduce tax evasion, but it does so through measures that impact key sectors such as real estate. Among the proposals are adjustments to income taxes on the sale of properties, modifications to the terms for considering a capital gain, and the possible application of VAT to certain services associated with real estate. Here we tell you how the new tax reform will impact your real estate investment.
– Extend the minimum time for the sale of a property to be considered a capital gain from 2 to 4 years. – Eliminate or modify the VAT exemption on certain real estate transactions. – Apply VAT to administration fees and common area services in commercial or mixed-use condominiums. – Reduce the thresholds for exemptions on inheritances and real estate donations. – Changes to the wealth tax, which could affect more property owners.
Buyers Buyers could face an increase in final prices due to the possible inclusion of VAT on transactions and services related to home purchases. In addition, with the new 4-year period for the sale to be considered a capital gain, those who are thinking of purchasing apartments for sale in Medellín or any other city in the country as a short-term investment will face a less favorable outlook.
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
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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?
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