How capital gains tax works in Colombia
Colombia calls many capital gains ganancias ocasionales. The standard 15% rate generally applies to the net gain from selling a fixed asset that was held for at least two years, as well as qualifying inheritances, gifts and other occasional gains.
A gain on a fixed asset held for less than two years is generally ordinary taxable income instead of an occasional gain. Assets sold in the ordinary course of business can also fall outside the fixed-asset rule.
The calculation uses the sale price, fiscal cost, permitted adjustments, losses and statutory exemptions. Shares, securities, cryptoassets and real estate can require separate source, business-asset and withholding analysis.
Tax rates at a glance
- Individuals and resident estates
- 15%General rate
- Companies and entities
- 15%
- Non-resident individuals
- 15%
- Lottery, raffle and similar prizes
- 20%
- Fixed-asset holding period
- 2 years
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Property investorsLong-term investorsShareholdersCrypto holdersEstate planners
Watch out for
- The two-year test is not a universal capital-gains exemption. It changes the category of the gain; a qualifying long-held gain is generally taxed at 15%, not automatically tax-free.
- Crypto has no single standalone rate that answers every case. Frequent trading, business activity, residence, asset classification and the holding period can change the analysis.
- Foreign-source gains can be taxable to a Colombian resident, while a non-resident's gain depends on Colombian-source rules and the asset involved.
- Real-estate transactions can also involve withholding, registration costs, local property taxes and VAT questions separate from the income-tax gain.
Frequently asked questions
What is the capital gains tax rate in Colombia?
The general rate for qualifying occasional gains is 15%. Lottery, raffle, betting and similar prizes use a separate 20% rate.
Is selling an asset after two years tax-free in Colombia?
No. Holding a fixed asset for at least two years can move the gain into the occasional-gain regime, which is generally taxed at 15% after the applicable cost and exemptions.
How are short-term property gains taxed?
The gain on a fixed asset held for less than two years is generally ordinary income, so a resident individual may face the progressive table and a company may face its corporate rate.