Withholding tax on the sale of real estate in Colombia: a guide for sellers

Quick answer: If you are a natural person selling your house, apartment, or lot (that qualifies as a fixed asset) in Colombia, the withholding tax is 1% of the total sale value. This payment is made directly at the notary office before signing the public deed.

Selling a property is exciting. Setting the price, packing boxes, and planning the move are the visible parts of the process, but the real challenge appears when you sit down at the notary office and the notary hands you the tax bill. Many sellers reach this point without having budgeted for the tax impact, which ends in frustration or, even worse, deals falling through at the last minute. If you want to see real options right now, you can view farms and lots available on Colombia Move — posting is completely free.

According to active listings on Colombia Move (July 2026), the housing section has over 20,100 views and nearly 100 active properties looking for an owner. Demand exceeds supply and the market moves fast, but before listing your house and receiving offers, you need to be very clear about your tax costs.

The golden rule: 1% at the notary

For the typical case in Colombia—you, as a natural person, selling your apartment to another natural person—the DIAN applies Article 398 of the Tax Statute. The law requires a 1% withholding tax on the alienation value (the sale price stated in the deed).

This 1% is not an invention of the notary, but an advance collection of income tax. The notary acts as a withholding agent for the State: they collect that money from what the buyer pays you and remit it to the DIAN. If you sell your house for COP 300,000,000, you will have to leave COP 3,000,000 at the notary for this purpose. Without that advance payment, the notary is legally barred from authorizing the signing of the public deed.

Regulatory status as of July 2026: the suspension of Decree 572

If you search online, you will find old articles or forums that talk about 2.5% rates or strange thresholds for natural persons. A large part of that confusion comes from Decree 572 of 2025, which attempted to change the rules of the game.

So that you are clear today: since May 8, 2026, articles 2 through 8 of Decree 572 are provisionally suspended by court order. The DIAN issued Communiqué 070 confirming that, as long as the measure continues, one must return to the previous norms and rates. That is why, for the natural person selling their fixed asset, 1% remains the dominant rule. Do not get entangled in UVT calculations that are currently frozen in the courts.

Checklist of documents before signing the deed

So that the notary can correctly calculate the withholding tax and deed expenses, whose registration and notary fees were updated by the SNR for 2026, you must carry an impeccable file:

• Tradition and Freedom Certificate (Certificado de Tradición y Libertad): Check with the notary what validity it requires for the procedure. Learn how to download it here.
• Property tax clearance (Paz y salvo predial): Demonstrate that you are up to date with the municipality. Include the cadastral appraisal, a key piece of data for the notary. Check how to consult your property tax.
• Betterment tax clearance (Paz y salvo de valorización): Confirm if you owe any assessments or charges for local public works.
• Administration fee clearance (Paz y salvo de administración): Check if it applies when you sell in a gated community or building (horizontal property).
• Updated RUT: Check if the notary requires it to verify your information. Update your RUT if necessary.

Do not confuse the withholding with the final tax

A very expensive mistake is to think that by paying 1% at the notary you are already clear with the State. The withholding is only an advance. The actual tax on the profit you made when selling is settled the following year in your income tax return.

Frequently asked questions

❓ How much is the withholding tax when selling a property in Colombia?

For the typical case of a natural person selling their home or fixed asset, the withholding tax is 1% of the total sale value. If companies are involved or the property is commercial inventory, the rates and procedures change.

❓ Does the seller or the buyer pay the withholding tax?

The money comes out of the seller's pocket, as it is an advance tax on their income. However, depending on who is buying, the physical process of withholding and paying the DIAN is done by the notary or the legal entity buyer.

❓ Is the withholding paid before or after signing the deed?

It must be paid before the alienation and signing of the public deed. The notary will not authorize the transfer of the property without first verifying that this tax has been paid.

❓ Should the seller fill out Form 350?

No, as a general rule the natural person seller does not fill out this form. The Form 350 is the monthly declaration that withholding agents (such as companies) submit to the DIAN to report what they withheld.

❓ What changed with Decree 572 of 2025 in 2026?

Since May 8, 2026, articles 2 through 8 of this decree are provisionally suspended by court order. For now, the DIAN requires applying the bases and rates prior to that rule while the underlying measure is resolved.

❓ Where can I post a property before starting the deed process?

You can list your property directly in the Colombia Move housing section. Be sure to include real photos, a clear price, and negotiation conditions to attract serious buyers and filter out the curious.

❓ What documents should I have ready before selling?

It is advisable to prepare the Tradition and Freedom Certificate, the property tax clearance, the administration fee clearance when applicable, and a copy of previous deeds. Confirm with the notary the validity and documents required for your operation.