If you’re buying property in Colombia — or already own real estate — you need to understand two key costs: how much you’ll pay in property tax (impuesto predial) and when a valorization contribution may apply.
In 2026, rates are not the same for everyone. They vary depending on the type of property, its use, the socioeconomic stratum, the cadastral appraisal, and the municipality.
If you’re considering buying property in Colombia, this is how the system really works.
What Is Property Tax in 2026?
Property tax (impuesto predial) is a municipal tax paid annually for owning real estate.
It is primarily regulated by Ley 44 de 1990 and is based on the cadastral appraisal (avalúo catastral) determined by Instituto Geográfico Agustín Codazzi (IGAC) or authorized cadastral managers.
📌 Basic formula:
Cadastral appraisal × municipal rate = property tax
The key point: there is no single national rate. Each municipality defines its own rate within the legal ranges established by law.
If you are buying property in Colombia, you must review both the cadastral value and the municipal rate before calculating your real annual cost.
Why Can Property Tax Increase in 2026 Even If the Rate Doesn’t Change?
Here’s the key factor: the cadastral appraisal.
With the cadastral modernization promoted by Ley 1995 de 2019, many municipalities have updated property values.
If the appraisal increases, your tax increases — even if the percentage rate stays the same.
📌 Additionally, the law establishes annual caps on tax increases in certain cases, but these caps may not apply if there has been a recent cadastral update.
If you’re buying property in Colombia in a municipality that recently updated its cadastre, you should anticipate potential tax increases even if the published rate looks stable.
What Is Valorization and When Is It Paid?
Valorization is not an annual tax.
It is a special contribution charged by the municipality when it carries out a public work that increases the value of your property.
Examples:
- New roads
- Bridges
- Parks
- Transportation systems
It is calculated based on:
- The benefit received
- Location
- Appraisal value
- Lot frontage
There is no fixed national rate.
Each municipality defines the calculation method through a municipal agreement.
👉 It can be paid in installments or as a lump sum.
When buying property in Colombia, it is critical to verify whether there are pending or upcoming public infrastructure projects in the area, as they may trigger a valorization charge.
Clear Difference: Property Tax vs. Valorization
Property Tax | Valorization |
Paid every year | Paid for a specific public project |
Mandatory annually | Only applies if there’s a project in your area |
Based on cadastral appraisal | Based on benefit from the public work |
Understanding this difference is essential when buying property in Colombia, because one is predictable and annual, while the other can appear unexpectedly.
What Should You Review If You’re Buying in 2026?
Before buying property in Colombia, review:
✔️ Latest property tax receipt
✔️ Valorization history
✔️ Updated cadastral appraisal
✔️ Current municipal agreements
Many foreign buyers focus only on the purchase price and forget the real annual cost of maintaining the property.
If you’re serious about buying property in Colombia, these checks are not optional — they are part of proper due diligence.
Frequently Asked Questions 2026
Do all municipalities charge the same rates?
No. Each municipality sets its rate within the legal ranges.
When buying property in Colombia, always verify the specific rate for that city.
Can property tax be financed?
Yes. Most municipalities allow installment payments or offer early payment discounts.
Is valorization mandatory?
Yes, if your property is included within the area benefiting from the public project.
This is particularly relevant when buying property in Colombia in growing urban areas.
Conclusion
In 2026, property tax and valorization depend more on the type of property and municipality than on a fixed national rate.
If you own residential property, your rate will likely range between 0.1% and 1.6%.
If you own commercial property or land, it may be higher.
And if there has been a recent cadastral update, be prepared for an increase.
If you are buying property in Colombia, these two elements — property tax and valorization — directly impact your real investment return and long-term cost.
At Nexo Legal, we analyze:
- The real tax burden before buying property in Colombia
- Valorization risks
- The fiscal impact on foreign investment
📩 Write to us before making important decisions.
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Get started with a free case assessment
What will happen after you fill out this form?
After submitting the form, your case undergoes a comprehensive review by our team of specialist to assess its viability. Providing clear and concise information about your objectives accelerates this process.
Subsequently, a specialist will be assigned to your case, reaching out to you within a day to clear up details about your case and outline the next steps to help you achieve your goals.