{"id":15989,"date":"2025-11-06T18:00:28","date_gmt":"2025-11-06T23:00:28","guid":{"rendered":"https:\/\/nexo.legal\/?p=15989"},"modified":"2025-11-06T18:29:46","modified_gmt":"2025-11-06T23:29:46","slug":"investing-in-colombia-rental-taxes","status":"publish","type":"post","link":"https:\/\/nexo.legal\/es\/investing-in-colombia-rental-taxes\/","title":{"rendered":"Rentas inmobiliarias y DIAN: c\u00f3mo declarar ingresos por arriendo si eres extranjero o inversionista (2025)"},"content":{"rendered":"\t\t
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Being a property owner or investing in Colombia can be an excellent opportunity to generate passive income through rental properties.<\/span><\/p>

However, these earnings \u2014 even if they seem simple \u2014 are subject to clear tax regulations established by the <\/span>DIAN<\/b> (Colombia\u2019s tax authority).<\/span><\/p>

Both foreigners and residents must determine whether their rental income is taxable, whether VAT or withholding tax applies, and how to correctly file their tax return.<\/span><\/p>

This guide explains, step by step, how to manage the taxes related to the rental of residential or commercial properties in Colombia during 2025.<\/span><\/p>

Step 1 \u2014 Define Your Tax Profile: Resident or Non-Resident?<\/b><\/h2>

Before thinking about taxes, the first step is to determine <\/span>what type of taxpayer you are before the DIAN<\/b>, because that changes everything \u2014 the rates, the forms, and even whether you must file a return or not.<\/span><\/p>

Tax resident:<\/b>
<\/b>If you live in Colombia for more than 183 days within a 365-day period, or meet the conditions set out in <\/span>Article 10 of the Tax Code<\/b>, you are considered a tax resident.<\/span><\/p>

Residents must <\/span>file income tax on all income earned, both inside and outside Colombia<\/b>, whenever they exceed the established thresholds or receive Colombian-source income such as rental payments.<\/span><\/p>

\ud83d\udc49 <\/span>Filing dates:<\/b> For the 2024 taxable year, individual returns must be filed <\/span>between August 12 and October 24, 2025<\/b>, according to the last two digits of the taxpayer\u2019s NIT (DIAN).<\/span><\/p>

Non-resident:<\/b>
<\/b>If you do not meet the above conditions, you only pay taxes on <\/span>Colombian-source income<\/b> (for example, rent from property located in Colombia).<\/span><\/p>

Payments made abroad for rentals to non-residents are generally subject to a <\/span>20% withholding tax<\/b> (Art. 408 of the Tax Code).<\/span><\/p>

When this full withholding is applied, you are usually <\/span>not required to file an income tax return<\/b>, unless you exceed other thresholds or have additional local income.<\/span><\/p>

\ud83d\udca1 <\/span>Legal tip:<\/b> If you are a investing in Colombia and earning rental income through a <\/span>Colombian company or permanent establishment (PE)<\/b>, the mechanics change. Without a PE, the 20% withholding for non-residents applies. If you have a PE or a local entity, you are taxed under the general corporate income tax rules. <\/span>(Source: Actual\u00edcese)<\/span><\/i><\/p>

Step 2 \u2014 VAT on Rentals: When Is It Triggered?<\/b><\/h2>

VAT on rentals in Colombia<\/b> depends entirely on the <\/span>type and use of the property<\/b>.<\/span><\/p>

By law (<\/span>Article 476 of the Tax Code<\/b>), <\/span>residential leases are exempt from VAT<\/b>, while <\/span>rentals of commercial properties<\/b> (offices, retail spaces, warehouses, parking lots, workshops, etc.) <\/span>are subject to a 19% VAT rate<\/b>.<\/span><\/p>

In short:<\/span><\/p>