Capital gains tax when selling a house or apartment: 15% rate and exemption

Short answer: the 15% occasional gain tax is not calculated on the deed price, but on the taxable profit. Before publishing the price of your house or apartment, there are three questions: is the sale an occasional gain?, how much profit fits within the 5,000 UVT exemption? and what happens to the rest?

Here is the explanation for the individual owner who files taxes in Colombia. It is general guidance based on official sources, not a DIAN settlement or a notary's opinion.

When the sale is an occasional gain

According to article 300 of the Tax Statute, the profit is an occasional gain if the property was your fixed asset for two years or more. It is measured as sale price minus tax cost.

If you held it for less than two years, that profit is net income, not occasional gain, and neither the 15% nor the exemption we'll see below applies. And if you sell properties as a regular business, it is not a fixed asset either.

How the profit is calculated: price minus tax cost

The price is the one on the deed; the tax cost is what causes the most confusion. There is no single rule like "the higher of purchase price, cadastral value and self-assessed value". Depending on the case, the individual may calculate it as follows:

• Article 73 adjustment: the acquisition cost is adjusted for the increase in the value of the real property between the purchase and sale dates set by the rule, and improvements and valorization paid are added.
• Article 72 valuation: the property tax assessment or the value declared in income tax for the year before the sale, if you meet the requirements of that rule.
• In both cases, depreciation you have already deducted for tax purposes is subtracted.

Note: the commission, notary and registration fees for the sale are not automatically subtracted from the gain; the legal basis is price minus tax cost. That cost is work for your accountant, with the purchase deed and supporting documents in hand.

The 15% rate: who it applies to

Since Law 2277 of 2022 the single rate is 15% for resident individuals (art. 314). It is also 15% for non-resident individuals on gains of national source (art. 316) and for national and foreign companies and entities. If you still see 10%, the information is outdated.

If you are a non-resident, this guide does not promise you the housing exemption; see the sales tax guide for foreigners. A company also does not get the exemption, because article 311-1 is written for individuals.

The primary residence exemption (art. 311-1)

The first 5,000 UVT of the profit on the sale of your house or apartment used as a residence are exempt, if all of this is met:

• You are an individual and held the property for two years or more.
• All the money received goes to one or more AFC accounts whose sole holder is you, to buy another house or apartment used as a residence; or it is paid directly toward the mortgage linked to the property sold.
• If you withdraw from the AFC for another purpose, you lose the benefit and the financial institution applies the withholdings not made, under article 398.

The UVT in effect during 2026 is $52,374 (DIAN Resolution 000238, consulted on October 17, 2026). So 5,000 × $52,374 = $261,870,000 of profit exempt in that tax year. It is not a permanent cap in pesos or a price cap: it changes with the UVT. Whatever exceeds that profit is taxed at 15%.

Two clarifications to avoid old data: Law 2277 lowered the exemption from 7,500 to 5,000 UVT and eliminated the valuation cap of 15,000 UVT, as confirmed by Decree 1920 of 2023. And the rule requires all the money and its destination; I cannot promise reinvestment deadlines that the consulted sources do not set.

Illustrative example (round numbers, not a real case)

Suppose a price of $700,000,000 and a tax cost of $300,000,000: the profit is $400,000,000. If you meet all the exemption requirements and sell in 2026, you subtract $261,870,000 and the 15% applies to the excess of $138,130,000. If you do not meet the requirements, the 15% applies to the full $400,000,000.

What is not covered by the exemption

• Lot, shop, office, warehouse or farm that is not your house or apartment used as a residence.
• Sales with less than two years of ownership (that profit is net income).
• Companies.
• Partial deposits in the AFC, or money that passes through an ordinary account before reaching the AFC: do not assume you keep the benefit.
• Withdrawals from the AFC for any expense other than another home.

Beware of the "agent" who promises to erase the tax without an AFC or without filing: it does not change what article 311-1 says.

The notary's 1% is not the tax

An individual who sells a fixed asset pays a 1% withholding on the sale value, before the sale and at the notary if it is real estate (art. 398). It is an advance on the price, not the 15% on the profit. The final tax is settled in the income tax return for the year of the sale; see the income tax return guide and the details of the advance in the withholding guide on property sales.

Don't mix it with other charges either: the betterment contribution is a separate municipal charge (read it here) and the stamp tax is a different topic.

What to check before publishing the price

1. Purchase deed and supporting documents for what was paid.
2. Property tax for the year before the sale.
3. Improvements and valorization paid.
4. Mortgage status, if there is one.
5. AFC account in your name, if you are going to buy another home.

Leave room in your price for the taxable profit and the notary advance. The 15% is not a listing commission, and publishing does not change your tax.

Always finish with two confirmations: your accountant sets up the tax cost, and the notary gives you the withholding settlement.

Frequently asked questions

❓ Is the 15% occasional gain tax calculated on the deed price?

No, it is calculated on the taxable profit. That profit is the price minus the tax cost, and only if the property was a fixed asset for two years or more. If the exemption applies, the first 5,000 UVT of profit is subtracted first (verify on the official source).

❓ How much of the profit can be exempt in 2026?

The first 5,000 UVT, that is $261,870,000 of profit with the 2026 UVT ($52,374), if you meet the holding period, AFC or mortgage and property type requirements. The excess pays 15% and the peso value changes when the UVT changes (verify on the official source).

❓ Does the exemption apply if I sell before two years?

No. With less than two years, the profit is not occasional gain but net income. Article 311-1 as regulated requires two years or more of ownership for the exemption (verify on the official source).

❓ Does it work for a lot, a shop or a farm?

No. The exemption is written for a house or apartment used as a residence. Other properties may generate occasional gain at 15%, but without those 5,000 UVT of exempt profit (verify on the official source).

❓ Is depositing part of it in the AFC enough?

No. The rule requires all the money in an AFC account whose sole holder is the seller, or direct payment to the mortgage on the property sold. If you withdraw for another use, you lose the benefit (verify on the official source).

❓ Does the notary's 1% replace the 15%?

No. That 1% is a withholding on the sale value, paid before the deed. The tax on the profit is determined in the income tax return, where the advance is credited (verify on the official source).

❓ Does the 15,000 UVT valuation cap still exist?

No. Law 2277 of 2022 eliminated it and lowered the exemption from 7,500 to 5,000 UVT; Decree 1920 of 2023 regulated the change. If a page still cites it, it is outdated (verify on the official source).