Colombia Capital Gains Tax Guide 2026

Overview — CGT Within IIT

Unlike countries with distinct short-term and long-term capital gains rates, Colombia integrates all capital gains into ordinary income for tax purposes. This means gains from the sale of assets are added to the taxpayer's employment, business, and other income, and the total is subject to the progressive IIT rates (0–39%). There is no distinction between short-term and long-term gains — all gains are treated equally regardless of holding period. The DIAN requires all capital gains transactions to be reported, even if no tax is due.

Taxation of Capital Gains

Capital gains are calculated as the sale price minus the acquisition cost (adjusted for inflation). The resulting gain is aggregated with the taxpayer's other ordinary income:

• Gains from shares, bonds, mutual funds, real estate, and other assets are all aggregated
• The gain is added to the taxpayer's total annual income
• The combined income is then taxed at IIT progressive rates: 0%, 19%, 28%, 33%, 35%, 37%, or 39%
• If the gain pushes the taxpayer into a higher bracket, only the portion above the bracket threshold is taxed at the higher rate
• Cost basis is adjusted for inflation using the IPC (Índice de Precios al Consumidor)
• Only real (inflation-adjusted) gains are effectively taxed

Gains on Shares and Securities

Capital gains from the sale of shares, equity interests, and other securities follow the general rule — they are aggregated with ordinary income:

• Shares listed on the Colombian Stock Exchange (BVC) or foreign exchanges: gains are taxable at IIT progressive rates
• Private company shares: same treatment — gain aggregated with ordinary income
• Bonds and fixed-income securities: gains are taxable as ordinary income
• Withholding tax at 10% may apply on certain share transactions as a prepayment against the final IIT liability
• No special 10% flat rate for listed shares (unlike Mexico or some other jurisdictions)

Gains on Real Estate

As detailed in the Property Tax guide, real estate gains are also aggregated with ordinary income:

• Capital gains on property are included in IIT at progressive 10–39% rates
• Inflation adjustment applies to the cost basis
• Primary residence exemption: fully exempt after 2 years of ownership (up to a lifetime limit)
• Improvements can be added to the cost basis
• Non-resident sellers: 10% withholding on gross sale price (final in some cases)

Lottery, Gambling, and Prizes — 10% Flat Rate

Winnings from lotteries, gambling, betting, and certain contests are subject to a flat 10% withholding tax, which is final (not aggregated with other income). This applies to:

• National and departmental lotteries
• Casino and gambling winnings
• Betting and sports gambling
• Raffles and contests
• The 10% is withheld at source by the payer
• Winnings below a threshold (approximately 1,000 UVT) are typically exempt

Loss Offsetting

Capital losses may be offset against capital gains in the same tax year:

• Losses from the sale of assets can offset gains from the sale of other assets
• Net capital losses (after offsetting gains) may be carried forward for up to 10 years
• Losses can only offset capital gains, not ordinary income (salary, business income)
• Wash sale rules: losses on shares repurchased within 30 days may be disallowed
• Careful record-keeping is essential for loss carry-forward claims

FAQs

Is there a lower rate for long-term gains?

No. Colombia does not distinguish between short-term and long-term capital gains. All gains are aggregated with ordinary income and taxed at progressive IIT rates, regardless of the holding period.

How is the inflation adjustment calculated?

The IPC factor is published monthly by the DANE. The formula is: adjusted cost = original cost × (IPC at sale date / IPC at acquisition date). The gain = sale price − adjusted cost. A tax advisor can compute this.

Are foreign capital gains taxable in Colombia?

Yes, Colombian residents are subject to IIT on worldwide capital gains. Foreign tax credits may be available for taxes paid abroad on the same gain.

Do I need to report small gains?

All capital gains must be reported to the DIAN, even if no tax is due. Failure to report can result in penalties. The DIAN receives transaction data from financial institutions, the stock exchange, and notaries.

Disclaimer

This guide provides general information about Colombian capital gains tax for the 2026 tax year. Tax laws and rates may change. The information is based on published DIAN data and may not reflect individual circumstances. Always consult with a qualified Colombian tax advisor (contador) or the DIAN directly for advice specific to your situation. InvestmentKit does not provide tax advice.