Understanding Colombia’s tax system is essential for every citizen. Taxes vary depending on income, assets, and economic activities, and sometimes it can be so complex that you don’t know where to start investigating.

That’s why we’ve created this complete guide in which we will analyze your specific situation step by step to help you meet your tax obligations in 2025.

Point by point: How to know which taxes in Colombia I must file

If you have no experience with paying taxes, follow these steps to determine which fiscal obligations apply to you:

Income Tax Return for Individual (Natural) Persons in Colombia

Step 1: Are you a tax resident?

Before you know whether you must file an income tax return in Colombia, the first thing you must determine is whether or not you are a tax resident. 

The conditions vary for Colombians and foreigners:

📍 Foreigners
You are considered a tax resident in Colombia if:

• You have stayed more than 183 calendar days, continuous or not, within a period of 365 consecutive days.
• If you are abroad due to an official mission of the Colombian state (or accompanying someone who is), and are exempt from taxes in the host country under the Vienna Conventions, you are not required to pay taxes in Colombia on all or some of your income during that taxable year.

📍 Colombians
You are a tax resident if:

• You have spent more than 183 calendar days, continuous or not, in Colombia during a period of 365 consecutive days.
• If you are abroad due to an official mission of the Colombian state (or accompanying someone who is), and are exempt from taxation in the host country per the Vienna Conventions, you do not pay taxes in Colombia on all or some of your income.

⚖️ Other conditions also determine tax residency:
You must consider whether you meet any of the following conditions:

• 50% or more of your global income comes from Colombian sources.
• 50% or more of your global assets are located in Colombia.
• Your spouse (not legally separated) or dependent minor children are tax residents in Colombia.

If after reviewing these conditions you conclude that you are a tax resident in Colombia, the next step is to determine whether you are required to file an income tax return.

Step 2: Check the income tax return threshold (for individuals)

To determine if you must file a 2025 income tax return as an individual, verify if you meet any of these criteria:

• Not being liable for VAT (Sales Tax).
• Having gross assets as of December 31, 2024, that do not exceed 4,500 UVT:
  4,500 UVT × $47,065 = $211,792,500 COP
• Having gross income less than 1,400 UVT:
  1,400 UVT × $47,065 = $65,891,000 COP
• Having credit card purchases that do not exceed 1,400 UVT:
  1,400 UVT × $47,065 = $65,891,000 COP
• Having total purchases and consumption not exceeding 1,400 UVT:
  1,400 UVT × $47,065 = $65,891,000 COP
• Having total accumulated bank deposits, investments, or financial placements not exceeding 1,400 UVT:
  1,400 UVT × $47,065 = $65,891,000 COP

If you exceed any of these amounts, you are required to file an income tax return with DIAN.

2. Determine if you must pay Wealth Tax

This tax applies if, as of January 1, 2025, your net wealth exceeds $3,388,680,000 COP.

If you have already checked these asset-based obligations, now let’s continue with other taxes that may also apply depending on your activities or income level:

3. Must you declare assets abroad?

Although owning assets abroad does not incur tax by itself, if you exceed certain thresholds, you are required to file the Foreign Assets Declaration.

🔎 Threshold for 2025:
If the total value of your assets outside Colombia is equal to or greater than $94,130,000 COP, you must file this informational declaration with DIAN.

4. Do you have to declare and pay VAT?

4. If your annual income subject to VAT exceeds $164,727,500 COP, you will become liable for VAT.
   📌 Important:
   If you reached this threshold from the first month of the year, you must begin declaring from that moment.
   The frequency of declaration (bimonthly or quarterly) depends on your specific situation, so it is recommended to evaluate it with a tax expert.
5. Do you have to declare the Consumption Tax?
   If your annual income subject to Consumption Tax exceeds $164,727,500 COP, you also become a declarant of this tax starting the following year.
   📍 It also applies if:
   You have a commercial establishment (physical or virtual).
   You engage in economic activity subject to this tax within your business.

6: Check if you must pay ICA

If you carry out commercial, industrial, or service activities in a municipality, you must pay the Industry and Commerce Tax (ICA). This tax is calculated on the gross income generated by the economic activity, and its rate varies depending on the jurisdiction and the nature of the business.

To know if you are required to pay it, follow these steps:

• Consult the corresponding municipal mayor’s office: Each municipality sets its own rates and regulations regarding ICA. It is important to verify with the city’s treasury department what the income threshold and applicable rate are for your economic activity.
• Check if your annual income exceeds the threshold established in your city: In some municipalities, there is a minimum income amount that exempts certain taxpayers from paying ICA. If your income is below this limit, you may not be required to declare it.
• Determine the payment frequency: In cities like Bogotá, ICA is declared and paid bimonthly, while in other municipalities, the payment is annual.
• Review the classification of your economic activity: Depending on the activity you perform, the ICA rate can vary between 0.2% and 1% of gross income, with exceptions for certain sectors.
• Evaluate the simplified ICA regime option: In some municipalities, small merchants and independent professionals can opt into a simplified regime with reduced rates or a presumed taxation base.

7: Confirm if you must pay property tax

If you own real estate, it is likely you must pay property tax.
The Unified Property Tax (IPU) is a levy that must be paid by property owners in Colombia. Its amount depends on the cadastral value (the value assigned to a property by the cadastral authority of each municipality in Colombia) of the property and the rates established by the municipality where it is located.

To determine whether you must pay it and how much, follow these steps:

• Check your property’s cadastral value: This value is determined by the Agustín Codazzi Geographic Institute (IGAC) or your municipality’s cadastral authority. You can consult the value via the city hall’s website or on last year’s property tax bill.
• Review the applicable rates: Each municipality sets its own rates, which typically range around 1.6% of the cadastral value. Commercial and luxury properties usually have higher rates.
• Verify the payment deadlines: Generally, property tax is paid annually, with due dates varying by city. In some cities, it can be paid in installments.
• Check if early payment discounts apply: Some municipalities offer discounts between 5% and 15% for paying before the deadline.
• Confirm if there are exemptions or tax benefits: There are benefits for certain types of properties, such as social interest housing (VIS), cultural use properties, or historical heritage buildings.
• Check for late payment penalties: If you do not pay the property tax on time, interest and additional penalties may apply.

8: Determine if you must pay vehicle tax

If you own a vehicle registered in Colombia, you must be aware of the Motor Vehicle Tax, a departmental tax that must be paid annually by owners of vehicles registered in Colombia.
Its amount depends on the type of vehicle, its commercial appraisal, and the rate set by the department where it is registered.

To determine if you must pay it, follow these steps:

• Consult your department’s Treasury Department: Each department establishes different rates depending on the vehicle category (motorcycles, private cars, cargo vehicles, etc.).
• Check the commercial appraisal: This value is defined annually by the Ministry of Transport and is used as the basis for calculating the tax.
• Review the applicable rates: Generally, rates range between 1.5% and 3.5% of the commercial appraisal, depending on the type of vehicle.
• Know the payment deadlines: Departments set payment due dates and may offer early payment discounts.
• Avoid penalties and seizures: If the tax is not paid on time, late interest is generated, and the vehicle may be subject to seizure or driving restrictions.

8: Check if there are temporary taxes that apply to you

The Government has implemented some temporary taxes for 2025, such as:

1. Stamp Tax of 1% for Transactions Over $300 Million COP
   This tax applies to all financial and commercial transactions exceeding $300 million COP. It is charged when the transaction is formalized through public or private documents certifying the operation.

Who is affected by this tax?

• Companies and individuals who make high-value sales, mergers, acquisitions, or transfers of large real estate assets.
• Financial transactions of large amounts, such as loans or investments.

For example, if you are a business owner selling a property for $500 million COP, you must pay 1% of the total amount, that is, $5 million COP in stamp tax.

How to comply with your taxes in Colombia in 2025

• Stay Informed: Regularly check updates from the National Tax and Customs Directorate (DIAN) and municipal tax offices.
• Organize Your Financial Records: Keep detailed records of income, expenses, assets, and financial transactions to make tax filing easier.
• Use Official Forms: Access the latest forms and guides on the official DIAN website.
• Meet Filing Deadlines: Submit your returns on time to avoid penalties and take advantage of early payment discounts.
• Seek Professional Advice: In complex tax situations, it is advisable to consult a certified public accountant or tax advisor.

Staying informed and organized will help you manage your 2025 tax responsibilities efficiently and avoid fines.
If you have doubts about your tax situation or need help managing and optimizing your tax payments, at Nexo Legal we’re here to advise you.
Contact us to receive professional guidance and ensure you meet all requirements safely and effectively.