Colombia

Social security contributions

Every employee whose work contract is governed by Colombian labour regulations (with the exception of some foreign employees who may become voluntarily affiliated to the pensions system) must be affiliated to the integral social security system, which includes the:

• general pensions system
• health social security system, and
• general system of professional risks.

The basis for contributions is determined by the monthly salary (excluding non-salary items) earned by the employee, which may not be, for ordinary salaried employees, less than the minimum legal monthly salary (COP 1.750.905 in 2026) and may not exceed 25 minimum legal monthly salaries (COP 43.772.625 in 2026).

For employees who earn an integral salary, the basis for pension contributions will be the lower of 25 minimum legal monthly salaries or 70% of such integral salary.

Contribution amounts

In the two regimes (public and private), the contribution amounts are currently 28.5% of the monthly salary.

Out of this percentage, 75% (approximately 20.5% of the monthly salary) must be borne by the employer and 25% (approximately 8% of the monthly salary) must be borne by the employee.

As such, for the mandatory health system, the employee should contribute 4% and the employer 8.5%. Note that starting from 2014, for employees with salaries below ten minimum monthly wages (COP 17.509.050), the mandatory contribution to the health system on behalf of the employer does not apply. As such, the 8.5% contribution applies only to salaries above ten minimum monthly wages.

In regards to the mandatory contribution to the pension system, the employer should contribute 12% over the basis and the employee 4%.

Note that employees who earn more than four minimum legal monthly salaries (COP 7.003.620) must contribute an additional 1%, which will be destined to the pension solidarity fund, created by law to cover the risks of workers with scarce resources. Also, employees who earn more than 16 minimum monthly salaries (COP 28.014.480) must contribute an additional percentage (between 0.2% and 1%), depending on the amount of salary received.

For professional risks (Aportes de Riesgos Profesionales), the employer must pay a contribution ranging from 0.522% to 6.96% of the monthly salary, which is an insurance that covers risks of labour-related illnesses or accidents, permanent disability, death, and incapacity also derived from the employee's activity.

In addition, for employees with salaries higher than ten minimum monthly wages, employers must pay a 9% payroll tax on salary items only, the basis of which is 100% for ordinary salaried employees and 70% for integral salaried employees.

Capital gains taxes

Capital gains are considered extraordinary income received by an individual from the occurrence of an exceptional economic act. The different kinds of capital gains in Colombian tax law are:

• Gains derived from the sale of assets (shares, bonds, etc.) held for at least two years.
• Gains derived from the liquidation of a company that has been in existence for at least two years.
• Gains derived from inheritances, legacies, or donations (such as the portion of the estate received by the spouse or the heir).
• Gains derived from lotteries or gaming.

The general tax rate for capital gains in Colombia is 15%.

In the case of gains derived from lotteries, gaming, or similar activities, the tax rate is 20% (of the gain).

Consumption taxes

Value-added tax (VAT)

The general VAT rates are 19% and 5%. See the Other taxes section in the Corporate tax summary for more information.

Equity tax

• Equity tax is applicable for individuals that meet the threshold as of 1 January of each year.
• Triggering event is the holding of net wealth for tax purposes (assets less allowable liabilities) as of 1 January in excess of TU 72,000 (COP 3.770.928.000 for 2026).

• The tax rates are marginal and progressive as follows:
  
  

  Taxable base (TU)		Marginal tax rate (%)	Equity tax
  Over	Not over
  0	72,000	0	0
  72,000	122,000	0.5	(Taxable base in TU less TU 72,000) x 0.5%
  122,000	239,000	1.0	(Taxable base in TU less TU 122,000) x 1.0% + TU 250
  239,000	And on	1.5	(Taxable base in TU less TU 239,000) x 1.5% + TU 1,420

• 1.5% tax rate will apply only for 2023, 2024, 2025, and 2026.

• Exclusively for the fiscal year 2026, the Colombian Government has stated a reduction in the threshold for being required to file a wealth tax return (40,000 tax units) and an increase in the rates up to 5%. As of January 2026, the measure is under review by the Constitutional Court. The deadline to file the wealth tax return is in May 2026. A decision from the Court is expected before that date to determine whether this measure will be applicable during 2026.

• Exclusivamente para el año fiscal 2026, el Gobierno colombiano ha establecido una reducción del umbral para la declaración del impuesto al patrimonio (40.000 unidades tributarias) y un aumento de las tasas de hasta el 5 %. Desde enero de 2026, la medida se encuentra en revisión ante la Corte Constitucional. La fecha límite para presentar la declaración del impuesto al patrimonio es mayo de 2026. Se espera una decisión de la Corte antes de esa fecha para determinar si esta medida será aplicable durante 2026.

Inheritance tax

There is no inheritance or gift-specific tax, as such, in Colombia. However, for tax purposes, inheritance and gifts are considered extraordinary income, and, as such, the heir/beneficiary will be liable to capital gains tax.

Property taxes

Property tax is a municipal tax and is imposed depending upon the nature and usage of the property, and generally the rates range between 0.4% and 1.2%. See the Other taxes section in the Corporate tax summary for more information.

Financial transactions tax

The financial transactions tax is a permanent tax on financial transactions, the collection of which is the responsibility of regulated financial institutions and the Central Bank (Banco de la República).

The tax rate is 0.4%, and the taxable event is the carrying out of financial transactions that involve the disposal of resources deposited in checking or savings accounts, as well as in deposit accounts with Banco de la República and the issuance of cashier’s checks.

50% of the total tax paid is deductible for corporate income tax (CIT) purposes, regardless of whether or not the transactions have a causal nexus with the income-producing activity of the taxpayer.

The law establishes a series of operations and transactions that are exempted from this tax.