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

Quick answer: If you are an individual selling your house, apartment, or plot (which 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's office before signing the public deed.

Selling a property is exciting. Setting the price, packing boxes, and planning the move is the visible part of the process, but the real challenge appears when you sit down at the notary's office and the notary hands you the tax bill. Many sellers reach this point without having budgeted for the tax blow, which ends in frustration or, worse yet, last-minute collapsed deals. If you want to see real options right now, you can view available farms and plots on Colombia Move — publishing is completely free.

According to active listings on Colombia Move (July 2026), the housing section registers more than 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 cost.

The golden rule: 1% at the notary's office

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

This 1% is not an invention of the notary, but rather an advance collection of income tax. The notary acts as a state withholding agent: they collect this money from what the buyer pays you and transfer 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's office for this concept. Without this prior payment, the notary is legally barred from authorizing the signature of the public deed.

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

If you search the internet, you will find old articles or forums talking about 2.5% rates or strange thresholds for individuals. Much of that confusion comes from Decree 572 of 2025, which tried to change the rules of the game.

To make it clear for you today: since May 8, 2026, articles 2 to 8 of Decree 572 are provisionally suspended by court order. The DIAN issued Communication 070 confirming that, while the measure continues, a return must be made to previous rules and rates. Therefore, for the individual selling their fixed asset, 1% remains the dominant rule. Do not get tangled up in UVT calculations that are currently frozen in the courts.

Document checklist before notarization

So that the notary can correctly calculate your withholding tax and notarization expenses, whose registry and notary rates were updated by the SNR for 2026, you must bring an impeccable file:

• Certificate of Tradition and Liberty: Check with the notary what validity period is required for the procedure. Learn how to download it here.
• Property tax clearance (Paz y salvo predial): Proves that you are up to date with the municipality. Includes the cadastral appraisal, a key piece of information for the notary. Review how to consult your property tax.
• Betterment contribution clearance (Paz y salvo de valorización): Confirms if you owe assessments or charges for local public works.
• Administration 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 withholding tax with the final tax

A very costly mistake is thinking that by paying 1% at the notary's office you are already square with the State. Withholding tax is only an advance payment. The actual tax on the profit you made when selling is calculated 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 an individual selling their home or fixed asset, the withholding is 1% of the total sale value. If companies are involved or the property is commercial inventory, the rates and procedures change.

❓ Is the withholding tax paid by the seller or the buyer?

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 corporate buyer.

❓ Is the withholding tax 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 Form 350 be filled out by the seller?

No, as a general rule, individual sellers do not fill out this form. Form 350 is the monthly declaration filed by withholding agents (such as companies) with the DIAN to report what they withheld.

❓ What changed with Decree 572 of 2025 in 2026?

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

❓ Where can I publish a property before starting the deed?

You can list your property directly in the housing section of Colombia Move. Make 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 Certificate of Tradition and Liberty, the property tax clearance, the administration clearance when applicable, and a copy of previous deeds. Confirm with the notary the validity period and the documents required for your operation.