The price on the listing is only part of the cost of owning property in Colombia. Before you buy, it helps to know what you'll pay at closing, every year and every month, and what happens with taxes when you rent the property out or sell it. Here is the 2026 picture for a foreign buyer in Medellín.
We're a real estate agency, not tax advisers. This guide summarises the general rules in force in October 2026. Your situation — tax residence, tax treaties with your country, how you hold the property — can change the result. Confirm with a Colombian public accountant (contador público) before you decide.
1. Closing costs when you buy
| Concept | Typical amount | Who usually pays |
|---|---|---|
| Notary fees (derechos notariales) | About 0.3% of the price, plus per-page charges and VAT | Split 50/50 by custom |
| Registration tax (impuesto de registro, Antioquia) | 1% of the deed value, never less than the cadastral value | Split 50/50 unless agreed otherwise |
| Registration fees (derechos de registro) | About 0.9% to 1.4%, on a sliding scale by value | Normally the buyer |
| Withholding on the sale (retención en la fuente) | 1% of the price | The seller (credited against their tax) |
As a rule of thumb, budget around 2% of the price for the buyer's share of closing costs, plus your lawyer's fees for the title study. The registration tax must be paid and the deed registered within two months of signing.
2. Every year: property tax (predial)
Medellín charges property tax on the cadastral value (avalúo catastral) of the property, multiplied by a rate per thousand. Under the city's current rules the rates range from 5 to 16 per thousand depending on the use and value of the property. The tax accrues on 1 January and is paid in four quarterly instalments. In 2026 the city offered a 5% discount for paying the whole year in one go, as long as previous years were paid up. Your exact amount appears on the invoice the Alcaldía issues for your property — ask the seller for the latest one before you buy.
3. Every month: the building fee (administración)
If the property is in a building or gated community, you'll pay a monthly fee for security, maintenance and shared amenities. It is mandatory for every owner under the horizontal property law (Ley 675 of 2001) and is set by the owners' assembly. In Medellín it ranges from about COP 250,000 to over COP 1,000,000 a month depending on the building. Check the current fee and whether there are pending special levies (cuotas extraordinarias) before you sign.
4. If you rent the property out: income tax
How rental income is taxed depends on your tax residence, not your visa:
- You become a Colombian tax resident if you spend more than 183 days in Colombia, continuous or not, within any 365-day period. Residents are taxed on their worldwide income at progressive rates.
- Non-residents are taxed only on their Colombian-source income — including rent from Colombian property — at a flat rate of 35% on taxable income (Estatuto Tributario, art. 247).
- When rent is paid to a non-resident landlord, whoever pays it generally has to withhold 20% of the gross payment (art. 408).
Your home country may also tax that income, and a tax treaty may change the picture. This is where a Colombian accountant earns their fee. If you plan to rent short-term, read our guide to short-term rental rules in Medellín: it adds other obligations.
5. When you sell: capital gains
The profit on selling a property you've owned for two years or more is taxed as an occasional gain (ganancia ocasional) at 15%, for both residents and non-residents, since the 2022 tax reform (Ley 2277). If you sell earlier, the gain is generally treated as ordinary income instead. On top of that, the notary withholds 1% of the sale price from an individual seller, which counts as a credit against the final tax.
6. Register your money as foreign investment
This step costs nothing and matters a lot. When you bring the purchase money into Colombia through a bank or authorised exchange intermediary, the exchange declaration registers it as foreign investment with Banco de la República. That registration is what protects your right to send the investment and its profits back abroad when you sell — and it's required if you want the investor visa. Money brought in informally doesn't get that protection.
7. The 4x1000 bank tax
Colombia charges 0.4% on bank withdrawals and transfers (the gravamen a los movimientos financieros, known as the 4x1000). Withdrawals from savings accounts are exempt up to 350 UVT a month — about COP 18.3 million in 2026 — counting all of a person's savings accounts together.
8. Wealth tax: only for large estates
The wealth tax (impuesto al patrimonio) also applies to non-residents for their assets in Colombia, but only when net worth on 1 January reaches 72,000 UVT — roughly COP 3,770 million in 2026. Rates run from 0.5% to 1.5%. Most owners of a single apartment are far below the threshold.
A simple budget to keep in mind
- At purchase: about 2% of the price for your share of closing costs, plus legal fees.
- Every month: the building fee, plus utilities if the property is empty.
- Every year: property tax, and income tax if you rent.
- When you sell: 15% on the gain if you held the property two years or more.
Want to see real numbers for a specific property? Message us on WhatsApp: we'll share the latest property tax invoice and building fee for any listing in our portfolio. Start with our guide to buying property in Medellín as a foreigner.