Regional Taxes in Colombia
Find out about the different regional taxes paid by residents in Colombia - property tax (predial), local business tax and vehicle tax...
Local taxes need to be paid directly to the local authorities of the department or municipality. In Bogotá, payments can be made at CADEs and Super CADEs. In Medellín online payments are available.
The website for the Colombian government online (Gobierno en Línea) provides detailed information (in Spanish) about tax payments in specific departments and cities; search for Impuestos.
Registry Tax (Impuesto de Registro)
Registry tax applies to official documents such as contracts or business documents that by law need to be registered with the Chamber of Commerce or at the Public Notary offices. Documents that are subject to registry tax are not subject to stamp duty.
The rates depend on the type of document to be registered, and can vary between 0.1% and 1% of the full value of the contract.
Property Tax (Predial)
This tax is charged at a municipal level, and is collected by the municipality where the property is located. The tax is calculated on the recorded value of the property at the time of the tax, adjusted by the consumer price index (IPC). The owner of the property is responsible for the payment of the predial tax and, unlike in other countries, it is not transferred to the tenants.
The amount of the tax ranges between 0.5% and 3.3% of the recorded value, and is paid annually. The amount of this tax can be deducted from income tax.
Vehicle Tax (Impuesto sobre Vehículos Automotores)
A vehicle tax is levied on the ownership of vehicles registered in a municipality. The basis for calculation of this tax is the value of the vehicle, based on the make, model and engine characteristics.For tax purposes this is determined annually by the Ministry of Transport. In Bogotá, the tax rate varies between 1.5% and 3.5% of the value of the vehicle.
- Find out more about the vehicle tax (website in Spanish).
The tax is paid yearly, generated on 1 January every year and declared and paid according to the specific calendar for each region and at the offices designated for this purpose. In Bogotá this tax can be calculated via an online form and in Medellín via the government website for Antioquia (in Spanish); the amount stated on the form is then paid at a bank. For new cars, the tax is generated when the car is registered, and is paid for the remaining months of the year. It is the owner’s responsibility to pay this tax to the municipality.
Local Business Tax (Impuesto de Industria, Comercio, Avisos y Tableros - ICA)
This is a municipal tax on industrial and commercial activities, and signage. The amount of the tax is calculated as a percentage of the net income of the person or company, at a rate of between 0,414% and 1,38% depending on the specific activity. It is levied every two months.
Payments are deductible from income tax.
Tax on Lotteries
Lottery winnings are taxed at a rate of 17%. The lotteries are subject to the regime of each region. For winners of lotteries that operate in areas other than the one the winner lives in, an additional tax applies, determined by each individual department and amounting up to a further 10%.
There are a number of other taxes that apply to the production, distribution and sales of certain products. These taxes, collected at regional level, vary and are applied at different stages of the manufacturing process. These taxes are indirect and are included in the price of sales.
- Tax on beer consumption
- Tax on liquor
- Tax on cigarettes
- Tax on gas or petrol
- Advertising Tax
- Slaughterhouse Tax
- Urban Delimitation Tax (Impuesto de Delineación Urbana): Levied on licensed constructions and building sites within the capital district of Bogotá
- Surplus Value Tax (Plusvalía): Levied on public institutions which benefit from the increase in the prices of land