Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Colombia tax professional before filing.
Colombia · South America · Short-term rental taxes
Short-Term Rental Taxes in Colombia
STR income earned in Colombia is subject to Colombian national income tax (Impuesto sobre la Renta) and, for most transactions, VAT (IVA), with hosts required to register with the DIAN and file annual returns.
The 30-Second Answer
- Impuesto sobre la Renta (income tax) applies to all rental income earned in Colombia; residents are taxed on worldwide income, non-residents only on Colombian-source income, at progressive rates up to 39%.
- Most short-term rental activity is also subject to IVA (VAT) at 19% if the host is classified as a *responsable del IVA*; hosts below the simplified-regime threshold may be exempt from charging IVA.
- Hosts must register with the DIAN (Colombia's tax authority) and obtain a RUT (tax ID); the annual income-tax return (Declaración de Renta) is due between August and October each year depending on the last two digits of your NIT.
- Platforms like Airbnb collect and remit Colombia's IVA on their service fees but hosts remain responsible for declaring rental income and any applicable IVA on the accommodation itself through the DIAN.
Deductions
Allowable Deductions for Colombian STR Hosts
Under the actual-expenses (régimen ordinario) method, hosts may deduct costs that are necessary, proportional, and causally linked to generating rental income.
Deductions must be supported by valid Colombian fiscal documents (facturas electrónicas or equivalent). Capital improvements are not immediately deductible — they are added to the asset's cost basis and depreciated. Source: DIAN, Estatuto Tributario Arts. 107–128.
Filing Calendar
Key Dates & Filing Calendar
Colombia's tax year runs January 1 – December 31; the annual income-tax return window opens in August of the following year.
Non-resident hosts must also file a Colombian income-tax return for Colombian-source rental income. Consult a Colombian contador público for your specific NIT-based deadline.
DIAN – Calendario Tributario (dian.gov.co); Estatuto Tributario de Colombia, Arts. 555–579.
Tax Regimes
Ordinary Regime vs. Simple Taxation Regime (SIMPLE)
Colombian individual hosts generally file under the Régimen Ordinario; eligible small operators may opt into the Régimen SIMPLE, which consolidates several taxes into one flat rate.
Régimen Ordinario
Standard progressive income tax with full deductions
- Progressive rates from 0% to 39% on net taxable income (renta líquida)
- Deduct all necessary, proportional expenses linked to rental activity
- Depreciation on buildings (20 years) and furniture/equipment (10 years) allowed
- IVA (19%) filed separately if classified as responsable del IVA
- Annual Declaración de Renta required; DIAN audit risk if deductions are unsupported
No upper income ceiling
Régimen SIMPLE
Single flat-rate tax replacing income tax, ICA, and IVA for eligible operators
- Flat rates range from 3.4% to 14.5% of gross income depending on activity and revenue bracket
- Replaces Impuesto de Renta, ICA (industry & commerce tax), and IVA obligations for covered activities
- No deduction for individual expenses — tax is on gross receipts
- Quarterly advance payments (anticipos) required throughout the year
- Must register voluntarily with DIAN; not available to non-residents
Gross income ≤ ~COP 80,000 UVT (~COP 3.8 billion in 2024) per year
Depreciation
Depreciation Rules for Colombian STR Properties
Under the Estatuto Tributario, assets acquired before 2017 follow fixed useful-life tables; assets acquired from 2017 onward follow IFRS useful-life estimates.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Buildings & structures | 20 years | Straight-line most common; applies to pre-2017 assets. Post-2016 assets use IFRS component approach. |
| Furniture & fixtures | 10 years | Covers beds, sofas, kitchen equipment used in the rental unit. |
| Vehicles | 5 years | Only deductible if used directly in the rental business. |
| Computer & electronic equipment | 5 years | Laptops, smart TVs, security cameras used for the STR. |
Depreciation rates may be increased by 25% for each additional 8-hour shift of asset use. A reserve equal to 70% of the excess of tax over book depreciation must be established when tax depreciation exceeds book depreciation. Source: Estatuto Tributario Art. 137–141; PwC Colombia Tax Summaries.
Gains on the sale of a depreciated asset are taxable as ordinary income (renta líquida) to the extent of prior depreciation claimed. This is known as recaptura de depreciación under Colombian tax law.
IVA & Local Taxes
IVA, ICA, and Tourism Levies on Colombian STRs
Beyond national income tax, Colombian STR hosts may face IVA (national VAT), ICA (municipal industry & commerce tax), and in some cities a tourism or lodging contribution.
Colombia does not have a single national tourist tax, but hosts face a layered set of indirect taxes depending on their classification and municipality.
IVA 19% + ICA (city-specific) + Predial (annual)
DIAN – Estatuto Tributario Arts. 420–513 (IVA); Ley 1819 de 2016; MinCIT – Ley 300 de 1996 (turismo); municipal ICA statutes (Bogotá Acuerdo 65/2002, Medellín Acuerdo 67/2017).
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| IVA on Airbnb service fee | Airbnb collects and remits IVA on its own platform service fee to DIAN | You do not remit IVA on Airbnb's fee; you may still owe IVA on the accommodation price if you are a responsable del IVA |
| IVA on accommodation (host-responsible) | Host registers as responsable del IVA with DIAN and files bimonthly/quarterly IVA returns | Charge guests 19% IVA on the nightly rate; claim input IVA credits on qualifying expenses |
| ICA (municipal) | Host self-declares and pays to the relevant municipality (e.g., Bogotá, Medellín, Cartagena) | Separate municipal return required; rate and filing frequency vary by city |
Hosts registered under the Régimen SIMPLE may have their ICA and IVA obligations consolidated into the SIMPLE payment. Verify your classification with a Colombian contador público.
Platforms
How Airbnb, Vrbo & Others Handle Colombian Taxes
Platform behaviour in Colombia differs from the EU's DAC7 framework — hosts remain primarily responsible for declaring income to the DIAN.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Shares data with DIAN under Colombian information-reporting rules; issues annual earnings summary to hosts | Collects & remits IVA on Airbnb's own service fee; does NOT remit IVA on accommodation price on host's behalf | Available in host dashboard; download for your contador |
| Vrbo / Expedia | No automatic DIAN reporting confirmed; host must self-report all income | Does not collect Colombian IVA or ICA on behalf of hosts | Annual earnings statement available in host account |
| Booking.com | No automatic DIAN reporting confirmed; host self-reports | Collects IVA on its own commission; host responsible for IVA on accommodation if applicable | Monthly payment statements available; download for records |
Using Multiple Platforms?
Aggregate all platform income before filing your Declaración de Renta. The DIAN cross-references bank deposits and platform data; under-reporting across platforms is a common audit trigger. Keep separate income logs per platform and reconcile monthly.
Colombia & International Reporting
Colombia is not an EU member and DAC7 does not apply. However, Colombia participates in the OECD Common Reporting Standard (CRS) for financial account information exchange. Non-resident hosts from CRS-participating countries may have their Colombian income reported to their home tax authority.
DIAN – Resolución 000162 de 2021 (información exógena); OECD CRS – Colombia signatory status (oecd.org).
Illustrative P&L: Ordinary vs. SIMPLE
Example for a Medellín STR host earning COP 60,000,000/year in rental income (approx. USD 15,000). Figures are illustrative only.
Record-Keeping
Stay Audit-Ready with the DIAN
Colombian tax law requires hosts to retain supporting documents for at least five years from the filing date of the relevant return.
| Keep | How long | Why |
|---|---|---|
| Facturas electrónicas for all deductible expenses | 5 years | DIAN requires valid electronic invoices (facturas) to substantiate deductions; informal receipts are not accepted |
| Platform earnings statements (Airbnb, Vrbo, Booking.com) | 5 years | Primary evidence of gross rental income; DIAN may cross-reference with bank deposits |
| Bank statements showing rental deposits | 5 years | Corroborates declared income; large unexplained deposits trigger DIAN scrutiny |
| RUT registration and any updates | Indefinitely | Proof of proper registration; required for all tax filings and business transactions |
| IVA returns and payment receipts | 5 years | Demonstrates compliance with VAT obligations; needed if DIAN audits your IVA position |
The DIAN's información exógena programme requires banks and platforms to report payment data annually. Ensure your declared income matches what third parties report — discrepancies are a primary audit trigger in Colombia.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
This page is for educational purposes only and does not constitute tax advice. Colombian tax law changes frequently; always verify current rates and deadlines with the DIAN or a licensed Colombian contador público. All figures are based on sources available as of 2024–2025.
- DIAN – Estatuto Tributario de Colombia — Primary source for income tax rates, IVA rules, deductions, and depreciation. dian.gov.co
- PwC – Colombia Corporate Tax Summaries (2024) — Depreciation tables, deduction rules, and CIT/income tax framework. taxsummaries.pwc.com/colombia
- The Latin Investor – Buying and Renting Out in Colombia (2026) — STR market data, Propiedad Horizontal risks, RUT registration for non-residents. thelatinvestor.com
- USATax.co – Rental Property in Colombia — Practical guidance on deductible expenses and US/Colombia dual-filing obligations. usatax.co
- MinCIT – Ley 300 de 1996 (Ley General de Turismo) — Legal basis for tourism parafiscal contributions and STR registration requirements.
- OECD – Common Reporting Standard (CRS) — Colombia's participation in automatic exchange of financial account information. oecd.org
Questions
Frequently Asked Questions: Colombian STR Taxes
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