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Selling an asset in Colombia? Estimating capital gains tax

Published · 2 min read

How to estimate capital gains tax on shares, property or other assets sold in Colombia: gain, costs, rate and net proceeds.

Key facts

PlaceColombia
TaxVAT
Standard rate on file19%
Multiply net price by1.19
Tax share of a gross price15.97%
CurrencyCOP

Working out the gain

The taxable gain is usually the sale price minus the purchase price and allowable costs, such as broker fees, legal fees or improvement costs. If the result is negative, you have a loss, which may be offset against other gains depending on the rules in Colombia.

Worked example

Here is the calculation with sample figures. Change any number in the Colombia Capital Gains Tax Calculator to run your own.

Worked example: Colombia Capital Gains Tax Calculator
Purchase priceCOP10,000.00
Sale priceCOP15,000.00
Costs and feesCOP200.00
Tax rate (%)20%
Taxable gainCOP4,800.00
TaxCOP960.00
Net amountCOP13,840.00

Rates, allowances and holding periods

Many countries tax gains at a different rate from salary, offer an annual tax-free allowance, or reduce the rate for assets held longer. Some exempt a main home. Because these rules differ so widely, the calculator uses an editable rate that you can set from current guidance in Colombia.

Keep the paperwork

Keep purchase contracts, statements and receipts for costs. Without them, proving your cost basis can be difficult years later.

Quick reference at 19%

Common amounts in Colombia, worked both ways: adding tax to a net price, and extracting it from a price that already includes tax.

AmountTax on net amountGross (net + tax)Net if amount includes tax
COP10.00COP1.90COP11.90COP8.40
COP50.00COP9.50COP59.50COP42.02
COP100.00COP19.00COP119.00COP84.03
COP250.00COP47.50COP297.50COP210.08
COP500.00COP95.00COP595.00COP420.17
COP1,000.00COP190.00COP1,190.00COP840.34
COP5,000.00COP950.00COP5,950.00COP4,201.68

How Colombia compares

Standard rates on file for other countries. A difference of a few points matters most on high-value purchases and on cross-border sales.

PlaceRate on fileCompared with 19%
Canada5%lower
Chile19%same
China13%lower
Costa Rica13%lower
Croatia25%higher
Cyprus19%same

Using the calculator step by step

  1. Open the Colombia Capital Gains Tax Calculator.
  2. Type your figures into the numbered lines. Results update as you type.
  3. Check the rate field. It starts at 19%; change it if a reduced rate, local surcharge or exemption applies to you.
  4. Read the result on the receipt panel, and use the formula shown under it if you need to explain the figure to a client or colleague.

Key terms

Deduction
An amount subtracted from taxable income. It saves tax equal to the deduction times your marginal rate.
Gross amount
The amount after tax is added, which is usually what a consumer pays.
Marginal rate
The rate applied to the next unit of income. It decides how much of a raise or a deduction you keep.
Taxable income
Income left after allowances and deductions, on which the tax rates are applied.
Zero rate
A rate of 0% on a taxable supply. Unlike an exemption, the seller can usually still reclaim tax on costs.

Common mistakes to avoid

Run your own numbers. The Colombia Capital Gains Tax Calculator updates as you type and shows the formula it uses.

Frequently asked questions

How is a capital gain calculated?

Sale price minus purchase price minus allowable costs.

What rate applies to capital gains in Colombia?

It depends on the asset, your income and how long you held it. Set the rate in the calculator from current guidance in Colombia.

This article is general information for planning, not tax advice. Rates and rules change; confirm with your tax authority or a qualified adviser.

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