What taxes do you have to pay if you own a property?

Tax rate: Each municipality has the authority to set its own rates, which may vary depending on geographic location, property type, and other local considerations. Generally, this ranges from 0.1% to 3.3% of the assessed value.

Socioeconomic class: The stratum of the apartment for sale in Medellín or other properties and areas of the country influences the tax. Rates are usually lower for properties in lower strata, while properties in higher strata may have higher rates.

Tax calculation: Property tax is obtained by multiplying the cadastral appraisal by the corresponding tax rate.

For example, if a property has a cadastral appraisal of $200 million and the rate is 1%, the property tax would be $2 million per year.

Discounts: Many municipalities offer discounts if the tax is paid on time. It is important to keep up with this obligation, otherwise fines and interest may be incurred.

Does income tax and capital gains tax also apply?

Income tax is also a tax that must be taken into account when owning a house for sale in Medellín or other property anywhere in the country, especially if income is generated from the property. Therefore, it is important to consider the following:

Income Tax: If the owner rents out their property, they must declare the income obtained from it and, therefore, pay the corresponding income tax.

Capital Gains: If the property is sold and a profit is made (the difference between the sale price and the purchase price), capital gains tax must also be declared and paid.

The income tax return is an annual obligation in which income, costs, and deductions are reported to determine the amount payable.

Finally, it is important for property owners to be informed about their tax obligations, including income tax returns and property tax, to avoid penalties and legal problems that could affect their assets. Keeping payments up to date is a way to protect your investment and ensure that the property is managed responsibly.

Written by: Valeria Ospina – Marketing Analyst You may be interested in: High-yield areas in Medellín