Electronic Invoicing for Rentals in Colombia: When It Applies and How to Issue It to the DIAN

One of the most frequent questions among real estate owners and investors in Colombia is whether they are required to issue an electronic sales invoice to their tenants every month. The arrival of fiscal digitization by the National Directorate of Taxes and Customs (DIAN) has led many companies and tenants to demand this receipt from their landlords as a condition for payment or to be able to deduct the rent from their income tax declaration.

However, Colombian regulations set very clear limits. Not every owner who receives a rent payment is obligated to issue electronic invoices to the DIAN. For owners of offices, commercial spaces, or housing, the key to avoiding inconvenience with tenants is to distinguish whether they are acting as individuals who are not liable for VAT or under a commercial or corporate structure.

In this guide, we break down the rules of the Tax Statute, the VAT treatment according to the use of the property (housing vs. commercial), how the Supporting Document works, and the role of real estate agencies under a mandate contract.

When is it mandatory to issue an electronic invoice for rent in Colombia?

The formal obligation to issue an electronic sales invoice (FEV) to the DIAN is regulated mainly by articles 615 and 616-1 of the Tax Statute. A fundamental point you must understand is that the obligation to invoice is independent of whether the service charges VAT or not.

To know if you must invoice as an owner, you must evaluate two main factors: your legal nature (individual or legal entity) and your annual gross income levels.

1. Legal entities (Companies, SAS, Societies)

If the property is in the name of a legal entity (for example, a holding SAS or a commercial company), the obligation to issue an electronic sales invoice is 100%, regardless of whether the property is an apartment or an industrial warehouse.

2. Natural persons earning capital income

If you are an individual renting a property you own, you are exempt from the obligation to issue an electronic invoice as long as you simultaneously meet the requirements to operate as a non-VAT liable party (article 437, paragraph 3 of the Tax Statute) and are not a merchant obligated by other general limits. Among these conditions are:

• Having obtained total gross income from the taxed activity of less than 3,500 UVT in the previous taxable year or in the current year.
• Not owning more than one commercial establishment, office, headquarters, location, or business where you carry out your activity.
• Not developing activities under a franchise, concession, or system that implies the exploitation of intangibles.
• Not being a customs user.

If you meet these conditions, the law classifies you as not obligated to invoice (article 1.6.1.4.3 of the Single Regulatory Decree 1625 of 2016). Therefore, no tenant—even if it is a large multinational—can legally force you to contract software or register with the DIAN to provide them with an electronic invoice.

Housing rental vs. Commercial space: the impact of VAT (19%)

A very common mistake is to assume that if a contract involves VAT, it automatically requires an electronic invoice, or that if it is exempt from VAT, no receipt is required. In Colombia, the use the tenant gives to the property determines the accrual of the Sales Tax (VAT):

Type of Property	VAT Treatment	Applicable VAT	Requires Electronic Invoice?
Urban Housing	Excluded (Art. 476 Numeral 15 ET)	0% (VAT is not charged)	Only if the landlord is a legal entity or liable for VAT.
Commercial Space / Office	Taxed (Art. 420 ET)	19% general	If the landlord is not liable for VAT, they charge without VAT. If they are liable, 19% applies and they issue an FEV.
Parking lots / Warehouses	Taxed (Art. 420 ET)	19% general	Same criterion: it depends on the owner's tax responsibility.

For properties used as offices and commercial spaces, the general 19% VAT must only be invoiced and collected by a landlord who is liable for VAT. If you are an individual who is not liable for VAT, your mercantile contract will stipulate the net fee without adding the 19%, since you are not authorized to collect this tax on behalf of the State.

If the owner is not obligated to invoice, how does the tenant legalize the payment?

When the tenant is a company, merchant, or individual tax filer, they need a valid support for the DIAN so that the rent payment is accepted as a cost or deduction in their annual tax settlement. If the owner is not obligated to issue an electronic invoice, how is this resolved?

The legal answer is the Supporting Document for Acquisitions Made from Subjects Not Obligated to Issue Sales Invoices (DIAN Resolution 000167 of 2021 and Resolution 000165 of 2023).

It is crucial to understand the roles in this operation:

1. The tenant generates the Supporting Document: The obligation to transmit this electronic receipt to the DIAN falls on the buyer or tenant (the company or professional who pays), not on the owner. If you want to delve deeper into how this mechanism works for contractors, check our guide on the DIAN supporting document for non-invoicing entities.
2. The owner provides their basic documents: For your tenant to be able to prepare said document before the DIAN, as an owner you only need to provide them with: A copy of your updated RUT (Unique Tax Registry) and the payment request corresponding to the rent period.

With these two inputs, the tenant company issues the Electronic Supporting Document directly from its own accounting system without you having to incur electronic invoicing expenses.

Invoicing through a real estate agency: the Mandate Contract

Many owners hand over the management of their properties to real estate agencies under a mandate contract. In these scenarios, the tenant does not interact directly with the owner for tax matters.

According to article 1.6.1.4.9 of the DUR 1625 of 2016, billing is handled in the following way:

• The real estate agency issues the invoice to the tenant: The real estate agency (the mandatory) issues the electronic sales invoice to the tenant using its own NIT. The receipt specifies the mandate condition and identifies the mandator (owner).
• Breakdown of values: The real estate agency's invoice differentiates the rent payment from the brokerage or administration commission that the agency charges the owner.
• Certification to the owner: At the end of the month or period, the real estate agency issues a certification to the owner endorsed by an accountant or auditor with details of the income collected, the VAT generated (if applicable), and the withholding taxes applied.

This modality provides total peace of mind to the small landlord, as the operational responsibility for electronic issuance falls under the real estate agency's technological structure.

Step-by-step guide to issuing free electronic invoices if you are a mandated landlord

If after evaluating your income or corporate structure it turns out that you are indeed required to invoice electronically (for example, you created an SAS for your properties or exceeded the 3,500 UVT threshold), it is not essential to hire expensive private accounting software.

DIAN makes its free public platform available to all taxpayers. The general steps to enable yourself are:

1. Logging into DIAN: Access the Electronic Invoice section on the official DIAN portal using your digital signature or user password.
2. Free service configuration: Choose the operation mode "DIAN Free Solution" in the enablement section.
3. Request for numbering resolution: Process the authorization for electronic invoicing numbering in the Muisca tab with its respective range and prefix (e.g., FE-1 to FE-500).
4. Prefix association: Associate the authorized numerical range with the free software in the DIAN system.
5. Invoice generation: Enter the tenant's data (NIT or ID number, email for tax receipt), the concept (e.g., "Rental fee for commercial space #2 - June month"), and the value. The platform automatically generates the XML file and the PDF graphic representation validated with a QR code.

Publish and manage your property without intermediate complications

As a property owner in Colombia, keeping your real estate accounts in order and having contracts adjusted to the law is essential to ensure stable returns. Whether you are renting out an office, a warehouse, or a family home, structuring your tax obligations from day one helps you avoid fiscal setbacks. To ensure your agreements meet all legal requirements, it is advisable to consult the guidelines on clauses in rental contracts in Colombia. It is also worth reviewing the utility service guarantees in the rental contract.

If you are looking to rent your commercial or residential properties directly, connecting with qualified tenants or buyers without paying commissions or expensive intermediaries, Colombia Move gives you the ideal platform to publish your offer.

Frequently Asked Questions

❓ If I am a natural person and I rent an apartment, do I have to issue an electronic invoice?

No. If you are a natural person earning capital income, not responsible for VAT, and with gross income under 3,500 UVT, you are not obligated. This is classified by Decree 1625 of 2016, effective in 2026; the tenant legalizes the expense with the Supporting Document, your RUT, and a collection invoice.

❓ What happens if the tenant is a company and demands an electronic invoice?

They cannot force you to invoice. Decree 1625 of 2016, effective in 2026, classifies you as not obligated if you meet the thresholds. The tenant company transmits the Electronic Supporting Document to the DIAN to deduct the fee, without you needing to enable yourself as an invoicer.

❓ Does renting offices and commercial spaces always carry a 19% VAT?

Not always. Commercial rent is taxed with 19% VAT only if the owner is a legal entity or a VAT-responsible person. A non-responsible natural person charges the net fee, according to the Tax Statute effective in 2026.

❓ How does a real estate agency invoice when they manage my property under a mandate contract?

The real estate agency acting as mandatory invoices the tenant with its own NIT. On the receipt, with the DUR 1625 of 2016 mandate effective in 2026, the owner's fee is separated from the management commission, and they then provide you with a monthly certification.

❓ What document must a non-obligated landlord provide to collect rent?

Only two items: a copy of the updated RUT and the collection invoice for the period. The receipt must identify the property and period; the RUT, effective in 2026, must show that you are not responsible for VAT.

❓ Is there any cost to issue an electronic invoice if I am a mandated owner?

Not necessarily. Although there are paid providers, the DIAN offers a free web system effective in 2026 to issue, validate, and send electronic invoices to your tenants.