Colombia has introduced a series of temporary tax measures to boost government revenue amid the state of emergency declared in December 2025. The reforms target high-income individuals, luxury goods, specific industries, and previously untaxed assets, while also offering temporary relief through amnesties and reduced penalties.
Colombia’s government issued Legislative Decree No. 1474 on 29 December 2025, introducing several temporary tax measures to fund the national budget in response to the state of emergency declared earlier under Decree No. 1390 of 22 December 2025.
The changes focus on increasing revenue from high-income individuals, specific industries, and luxury consumption.
These tax measures, established by Legislative Decree No. 1474, will take effect pending constitutional review.
These tax measures are as follows:
Value added tax (IVA) and consumption taxes
- Liquors and wines: For the year 2026, liquors, wines, and aperitifs are taxed at a 19% VAT rate.
- Internet gambling: Games of chance operated exclusively over the internet, whether domestic or from abroad, are now subject to a 19 % VAT rate. The tax base is calculated as gross game revenue (GGR), which is total bets minus prizes paid.
- Luxury goods: The National Consumption Tax for luxury items, including high-value automobiles, high-cylinder motorcycles, yachts, and aircraft, is increased to 19% for 2026.
- De minimis import threshold: The VAT exemption for low-cost “de minimis” imports via postal services has been significantly reduced, lowering the exempt threshold from USD 200 to USD 50.
Wealth tax changes
The entry threshold for the wealth tax is lowered from 72,000 UVT to 40,000 UVT, expanding the base to more taxpayers. The marginal rates for 2026 are structured as follows:
- 40,000 to 70,000 UVT: 0.5%
- 70,000 to 120,000 UVT: 1.0%
- 120,000 to 240,000 UVT: 2.0%
- 240,000 to 2,000,000 UVT: 3.0%
- Above 2,000,000 UVT: 5.0%
Financial sector surcharge
Financial institutions face a 15 percentage point increase in the income tax surcharge (up from 5pp), bringing their total effective tax rate to 50% for 2026.
Extractive industry taxes
A new temporary tax of 1% is established on the extraction of coal and crude oil, triggered at the time of the first sale or export. Additionally, royalties paid by these companies are no longer deductible from income tax for the 2026 period.
Cigarettes and tobacco taxes
Cigarettes are subject to a specific tax of $11,200 per pack of 20, plus an ad valorem tax of 10% of the retail price. Vapes and electronic cigarettes, including their derivatives and substitutes, are now taxed with a specific rate of USD 2,000 per millilitre and an ad valorem rate of 30% of the retail price.
Normalisation and amnesties
- Tax normalisation: A temporary tax for declaring previously omitted assets or non-existent liabilities is set at 19%.
- Sanction reductions: For taxpayers in arrears as of 31 December 2025, sanctions and interest can be reduced to 15% of the original amount if paid by March or April 2026, depending on the specific obligation. The interest rate for these settlements is fixed at 4.5% annually.
