How to Request the Valorization Tax Clearance Certificate When Selling a Property in Colombia

The day arrives for the signing of the public deed of sale, and just when the buyer and seller are ready before the notary, the process is stalled by a missing document: the certificate of 'paz y salvo' (proof of payment) for the betterment contribution. This hurdle is more common than it seems among those selling an apartment, house, or lot in Colombia, mainly because it is often confused with other mandatory certificates of payment.

According to active listings on Colombia Move, there are 41 apartment ads and 14 house ads in the housing section; several are for sale, and the seller arrives at the notary with this same type of folder.

So that the negotiation does not get stuck at the last minute, here is the local procedure: who issues it, how to locate the official file, and what to do if there is an outstanding balance.

1. What is the betterment contribution and how does it differ from other certificates of payment?

One of the most frequent errors when preparing sales documents is assuming that there is a "single general certificate of payment." In Colombian real estate law, each tax or administrative obligation issues its own certification. Confusing them can make you lose valuable days in the notarial process.

The betterment contribution is a territorial (municipal or district) levy or tax destined to finance road infrastructure or public space works that increase the value of properties in a specific area. It is different from other usual concepts in a sale:

• Different from Property Tax (Impuesto Predial): Property tax is an annual municipal tax on property. Betterment is a charge for a specific public work with a defined area of influence.
• Different from the HOA/Administration 'Paz y Salvo': This is issued by the administrator of the gated community or building subject to Law 675 on Horizontal Property and certifies that you are up to date with the ordinary and extraordinary fees of the co-ownership.
• Different from the Financial 'Paz y Salvo': If you are looking to clear your credit history with credit bureaus due to bank or commercial debts, this is a procedure completely unrelated to the real estate sphere. If you need to resolve negative reports on your personal credit, consult our guide on financial 'paz y salvo' in DataCrédito and Cifin.
• Different from National Taxes: The National Directorate of Taxes and Customs (DIAN) administers national taxes such as withholding tax on the disposal of fixed assets, but it does not issue municipal betterment certificates. That sales withholding tax is explained separately in the guide on withholding tax on the sale of real estate.

2. Who requires this certificate at the time of sale?

In accordance with notarial and registry regulations in Colombia, to formalize the transfer of real estate through a public deed, the notary must verify that the property is free of liens that prevent its disposal or that the buyer expressly assumes the associated debts according to the contractual agreement. The framework is published by the Superintendency of Notaries and Registry; each notary office finalizes the package.

Notary offices usually request the betterment contribution 'paz y salvo' in those municipalities or districts where charges for this concept have been decreed and the property is located in the affected area. However, specific documentary requirements may vary between districts or according to the peculiarities of the area, so it is always essential to review the list with the notary office where you will execute the deed.

3. From which entity should the betterment 'paz y salvo' be requested?

Since betterment is a strictly local contribution, the competent entity depends on the municipality where the property is registered with the Superintendency of Notaries and Registry:

• Bogotá D.C.: The process is carried out formally through the Urban Development Institute (IDU) or through the District's service window and procedure guides (such as the portal gov.co or the Bogotá Guide for Procedures and Services). Generally, the property identification number (CHIP) and the real estate registration number are required.
• Medellín: It corresponds to the municipal administration, through the Treasury Secretariat or the territorial office assigned to the management of betterment, according to the sheet published by the mayor's office at medellin.gov.co.
• Cali: It is managed directly with the Mayor's Office of Santiago de Cali through its treasury and territorial tax departments.
• Other municipalities: If the property is in another jurisdiction, you must consult the procedure file on the single State portal (gov.co) or go to the corresponding sectional treasury secretariat.

4. Step by step to request the certificate online or in person

Although the interface and exact requirements change according to the municipality, the general process to issue the betterment 'paz y salvo' follows this management route:

1. Identify the property data: Have at hand the Property Registration Folio (Folio de Matrícula Inmobiliaria), the exact address registered in the deeds, and the cadastral identifier (such as the CHIP in the case of Bogotá).
2. Consult the file at the territorial entity: Enter the official portal of the mayor's office or the delegated entity (for example, the IDU for properties in Bogotá). Avoid third-party sites or informal agents who promise to process certificates in exchange for unauthorized commissions.
3. Verify the account status: If the property does not show outstanding betterment charges or you have already paid off all assigned installments, the official channel may allow the generation of the certification when that municipality offers a virtual office.
4. Procedure if there are outstanding balances: In case of past-due installments or active assigned charges, the virtual channel will not issue the final 'paz y salvo' until you have made the total payment or signed a formal payment agreement accepted by the territorial entity.
5. Verify the date of issue: Request the certificate close to the signing date at the notary's office and confirm directly with the selected notary how many days of validity they accept for the document.

5. The complete document package for the deed signing

The betterment 'paz y salvo' is just one of the pieces to successfully close the sale of your home. To ensure a smooth signing, prepare a physical and digital folder with the following main supporting documents:

• Sales promise signed by the parties.
• Citizenship ID cards for sellers and buyers (or authenticated legal powers of representation).
• Copy of the previous public deed of the property.
• Certificate of Tradition and Freedom issued recently by the Superintendence of Notary and Registry.
• Tax clearance (Paz y salvo) for the Property Tax for the period currently being collected by your municipality.
• Certificate of tax clearance for the betterment levy (where applicable).
• Administration clearance (Paz y salvo) signed by the administrator (if the property belongs to a horizontal property regime).

Once the notary process is completed and the title is registered at the Office of Public Instruments Registry, you must manage the formal entry of the money from the sale. To understand the banking and fund justification rules in financial entities, we invite you to review our guide on how to deposit money from a car or house sale into your bank account in Colombia.

If you are still looking for a buyer while preparing paperwork, check out similar listings in the housing section and, if the farm or rural property format works for you, the guide on how to publish a farm for sale.

Frequently asked questions

❓ Is the betterment levy clearance issued by the DIAN?

No; it is issued by the municipality or district, not the DIAN. In Bogotá, the channel is the IDU or the District; in Medellín and Cali, the mayor's office. Confirm this on the official record (gov.co or IDU source) consulted when processing.

❓ Is it impossible to sign the deed in any city without the betterment levy clearance?

It is not a unique national rule. It depends on whether that property has the levy and what your notary requires. In Bogotá, Medellín, and Cali, it is usually requested when the tax applies; check your notary's list (SNR source).

❓ Are the betterment levy clearance and the property tax clearance the same thing?

No; they are different documents. The property tax covers the annual tax of the property; the betterment levy covers the contribution for public works. The notary may ask for both, plus the administration one if there is horizontal property.

❓ Can the betterment levy clearance be obtained 100% online?

Only if your municipality's official channel allows it and the property is up to date. If there is a balance, you have to pay or go to the window according to the procedure record. Avoid clickbait tutorials; open the record on the same day (gov.co source).

❓ How much does it cost to request this certificate?

The amount is set by each territorial entity; there is no national figure here. Read it in the official procedure record of your mayor's office or on gov.co (source consulted when filing), not in blogs or with third-party agents.

❓ Is a third-party agent (gestor) safe?

No; it is not the official channel. The issuer is the municipality or the IDU, not an individual via WhatsApp. Go directly to gov.co or the mayor's office portal and verify that the URL is official (source consulted when processing).

❓ Where do I publish the property while I prepare the paperwork?

In a clear housing ad, with photos and price, with no publishing commission on Colombia Move. The municipal process remains separate from the ad; the IDU or the mayor's office cannot be replaced by a classified ad.