POT Colombia 2025 – Building Legally Under Land Use Rules

Are you thinking about starting a construction project in Colombia?

Building can be a great opportunity, but it also carries important legal risks if you don’t take the proper precautions.

In this article, we’ll explain how to protect yourself legally when building — from deciding whether it’s better to do it personally or through a company, to understanding what permits and licenses you need (POT Colombia, urban planning licenses, technical standards) to avoid sanctions.

Our goal is to help you develop your project safely and in accordance with the law, minimizing personal liabilities and meeting all requirements. Let’s get started!

Construction in Colombia: Is It Better to Build as an Individual or Through a Company?

One of the first key legal decisions when planning a construction project is to define whether you’ll act as an individual (in your own name) or through a legal entity (by creating a construction company).

Each structure has different implications in terms of liability, risk, and paperwork.

Individual (in your own name):  In this case, you directly assume the project and all its contracts.

The main disadvantage is that you are personally liable with all your assets for any debts, obligations, or damages that arise from the project.

If something goes wrong — for example, breaches with suppliers, on-site accidents, or claims for defects — your personal assets could be seized to respond, since there’s no separation between your assets and the project’s.

In other words, the risk is unlimited, as the law obliges the individual owner to pay with their personal property if the construction leaves unpaid debts.

Legal entity (construction company): This means creating a legally constituted company (for example, a S.A.S. – Simplified 

Joint Stock Company).
This structure allows you to separate the company’s assets from your personal ones.

The company assumes all obligations of the project with its own assets, and you only risk the amount of your capital contribution.

This means that, in case of bankruptcy or debt, the company is responsible with its own assets, not your personal ones.

This limited liability is a huge advantage to protect your wealth.

In addition, a company can offer more credibility and formality with banks, suppliers, and clients. 

Keep in mind that S.A.S. companies in Colombia are easy to create and can have even a single shareholder, which is why they’re the preferred vehicle for real estate and construction projects.

💡 That said, limited liability is not absolute: if the company is used to commit fraud or you act with intent or gross negligence, authorities can “pierce the corporate veil” and hold you personally liable for the damages.

Therefore, even when operating through a company, always act in good faith and in compliance with the law.

What’s best for you?
For small or personal projects (for example, building your family home), many people choose to do it as individuals, since the risk may be manageable and creating a company adds some administrative steps.

However, for larger or commercial projects, it’s advisable to create a construction company (such as a S.A.S.), since it offers that legal protection of limited liability and helps you organize the business more efficiently.

You can also seek partners or investors — in that case, a legal entity is essential to clearly establish ownership shares.

Some builders create a company per project (and in some cases, even form joint ventures or temporary unions between several companies for specific developments) in order to share risks and later dissolve that company once the project is finished.

In short, evaluate the project’s size, financial and legal risks, and choose the structure that best protects your interests. If you’re unsure, consult a commercial attorney to help you create the most suitable company before laying the first brick.

What Permits Do You Need to Build in Colombia? POT, Licenses, and Regulations

Obtaining licenses and complying with urban planning rules is essential to legally protect your construction project in Colombia.

Building here involves navigating a strict legal framework with POT, construction and urban planning licenses, environmental permits, and technical standards.

Land Use Plan (POT)

Before starting any work, verify the land use allowed on your property according to your city’s POT Colombia (Plan de Ordenamiento Territorial).

The POT is the urban plan that defines what can be built in each area (residential, commercial, maximum height, protected zones, etc.).

You must ensure that your project complies with the POT Colombia and any partial plans in force, since licenses are issued based on those local regulations.

For example, if your city’s POT only allows two-story homes on your lot, you cannot legally build a five-story building.

You can consult the permitted uses at the urban curatorship office or the municipal planning department before designing your project.

Construction License

This is the main permit that allows you to build legally.

The license is issued by the competent authority (urban curatorships in large cities, or municipal planning offices in smaller towns) and certifies that your project complies with all urban and technical regulations.

There are different types of construction licenses depending on what you plan to do:
 new construction (building on a vacant lot or after demolishing an existing structure),
expansion (adding new area), modification or adaptation (changes in layout without expanding), reconstruction (rebuilding something collapsed or damaged), and demolition (tearing down existing structures).

The right license — or combination of them — depends on your specific project.

Importantly, the process must be completed before starting construction, by submitting a complete technical file to the curatorship.

Documents include architectural and structural plans signed by authorized professionals, soil studies, structural calculations, the national application form, property ownership certificate, up-to-date property tax receipts, land use approval under the POT, ID copies of the owner and designer, among others.

The curatorship reviews that everything complies (designs, seismic rules, setbacks, etc.), and once approved, calculates an official fee to issue the license.

The license is valid for three years, renewable once for an additional twelve months if requested before expiration.

Urban Development License

If your project involves large-scale land development — for example, subdividing a large plot, creating a residential complex, or opening new roads — you may also need an urban development license.

This license authorizes all works related to land preparation: roads, subdivision, public services, etc.

In simple terms, the construction license applies to buildings, while the urbanism license applies to transforming or preparing the land in accordance with the POT.

It’s processed before the same curatorship and has its own technical requirements.

Environmental Permits

Some projects require special environmental permits before construction to ensure environmental protection.

This applies if your project may cause significant impacts — for example, water use (you’ll need a water concession), wastewater discharge, air emissions (dust, gases), tree removal, or interventions in rivers or streams.

Each case depends on the project’s location and characteristics. Consult your Regional Environmental Authority (CAR) or local environmental office to check if your project requires an Environmental Impact Assessment or specific permits.

Building without these permits, when required, may lead to environmental sanctions in addition to urban planning fines.

Occupancy Permit / Final Certificate

Once construction is finished, you must obtain the occupancy certificate or completion report (also called a habitability certificate).

This document, issued by the curatorship or planning office, confirms that your building complies with the approved license and is safe for use.

It’s essential for subsequent procedures such as sales, registration in horizontal property, or permanent utility connections.

Basically, it’s the legal “passport” of your completed construction.

Complying with all these permits is essential. Starting construction without a license or exceeding the approved plans is considered a serious urban planning violation.

Authorities (urban control inspectors) may impose heavy fines — up to 200 minimum monthly wages per illegally built square meter, often amounting to tens of millions of pesos.

You could also face immediate suspension of work or even demolition of unauthorized structures.

In extreme cases, if you ignore enforcement orders, you could even lose the property to the State.

In short: always obtain your licenses before laying the first wall.

This not only prevents sanctions but also ensures that your project is well-planned, safe, and legally sound.

Technical Standards and Additional Obligations for Builders

Obtaining the license is necessary, but you must also comply with technical and legal standards during construction.

In Colombia, the Seismic Resistance Code (NSR-10) is mandatory. It requires all structures to be designed and built under strict safety standards to withstand earthquakes.

You must therefore work with qualified professionals: a licensed architect, a structural engineer, and a technical director responsible for ensuring that execution follows the approved plans.

You must also comply with occupational safety and health regulations — providing protective equipment, ensuring workers’ risk insurance, and maintaining safe work conditions to reduce accidents and legal liability.

If you plan to sell the built units (new housing), remember the post-sale liability that applies to builders.

By law, anyone who builds and sells a property must guarantee its quality — especially its structural stability for 10 years, known as the decennial liability under the Civil Code.

After the “Space Building” tragedy, these obligations were strengthened through Law 1796 of 2016 (Safe Housing Law), which requires builders to cover buyers for 10 years against ruin or collapse due to construction defects, soil issues, or structural failures.

As of July 2025, this requirement applies throughout Colombia — all new housing must be backed by a decennial insurance policy covering structural stability for a decade.

As a builder, you must budget for and obtain this policy before delivering units, since without it, you won’t be able to register new housing deeds in many cities.

This insurance also protects you: if a catastrophic structural failure occurs, the policy covers damages, preventing you from having to pay with your own assets.

It’s also highly recommended to set up a fiduciary trust to manage pre-sale funds, which builds buyer confidence and complies with payment protection regulations.

Conclusion: Build on Legal Foundations!

Building in Colombia is a great opportunity — as long as you do it with the right legal support.

Choosing the right structure (individual or company), obtaining licenses on time, and complying with POT Colombia and construction standards are not minor tasks: they are the foundation to avoid sanctions, protect your assets, and ensure your project progresses smoothly.

At Nexo Legal, we support you from the very first plan.

Whether you’re building your family home or an entire building, we help you:

• Evaluate whether it’s better to build as an individual or through a company.
  
  
• Create the safest legal structure for your case.
  
  
• Handle all licensing and permit procedures before curatorships and authorities.
  
  
• Shield yourself against contractual, technical, and regulatory risks.
  
  

Our specialized legal and technical team is ready to help you build with peace of mind, security, and full compliance.

📞 Book a consultation with Nexo Legal and let’s lay the foundations of your project together.