Colombia Updates Corporate Tax Rules for Climate Recovery
A new temporary net-worth tax for corporations in Colombia may increase the financial burden for expats who manage local business entities or property investments.
Colombia Updates Corporate Tax Rules for Climate Recovery
Colombia has implemented a one-time temporary net-worth tax for legal entities to fund recovery efforts following climate emergencies in the Córdoba, Antioquia, and La Guajira regions. The levy targets corporations and de facto partnerships holding a net equity of at least 200,000 UVT as of March 1, 2026. This threshold translates to approximately US$2.9 million or COP 10.474 billion.
Who is affected
While the tax does not apply to individual tourists, it significantly impacts expats and digital nomads who hold assets through Colombian legal entities. If you have established a local corporation to manage property, investments, or a business, you may be subject to this charge.
The general tax rate is 0.5% of net equity. However, the rate increases to 1.6% for entities in the financial, insurance, and oil or coal extraction sectors. Certain organizations, including health sector companies and public utilities in disaster zones, are exempt from the requirement.
What to do
Affected entities must calculate their tax base using their balance sheet from March 1, 2026. This calculation involves subtracting liabilities and specific exclusions, such as shares in national companies and certain environmental assets, from total assets.
The process involves two main steps:
- File a tax return through the DIAN portal.
- Pay the first 50% installment by April 1, 2026.
- Pay the remaining 50% installment by May 4, 2026.
To prevent tax avoidance, the government has established rules that treat asset spin-offs as combined totals when checking against the 200,000 UVT threshold. Stay informed on these nomad news updates to ensure your local investments remain compliant.
Read our full Colombia guide for the complete picture.