Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Colombia tax professional before filing.
Medellín · Colombia · Short-term rental taxes
Short-Term Rental Taxes in Medellín, Colombia
STR income earned in Medellín is subject to Colombian national income tax (Impuesto sobre la Renta) and, where applicable, the national tourism lodging tax (IVA on accommodation services), with hosts required to register with DIAN and file annual returns.
The 30-Second Answer
- Impuesto sobre la Renta (Income Tax): All rental income from your Medellín STR is taxable under Colombia's national income tax system administered by DIAN; residents and non-residents are taxed differently, with resident rates ranging from 0% to 39% on a progressive scale.
- RUT Registration: You must obtain a RUT (Registro Único Tributario) — Colombia's tax ID — from DIAN before operating; this applies to both Colombian residents and foreign non-residents earning Colombian-source income.
- IVA on Accommodation: Short-term rental services may be subject to IVA (Impuesto al Valor Agregado) at 19% if the host qualifies as a 'responsible' IVA taxpayer (generally when annual gross income exceeds the UVT threshold for the simplified regime exclusion); many small hosts qualify for the simplified regime and are IVA-exempt.
- Deductible Expenses: Hosts on the ordinary (régimen ordinario) income-tax regime can deduct allowable costs — mortgage interest, property management fees, repairs, utilities, depreciation — against gross rental income to reduce taxable profit.
Deductions
What Medellín STR Hosts Can Deduct
Under Colombia's ordinary income-tax regime, you can offset allowable costs against gross STR revenue; keep receipts for every item below.
Deductions must be causally linked to the rental activity, proportional, and supported by valid Colombian fiscal documents (facturas electrónicas). Capital improvements are generally not immediately deductible — they are added to the asset's cost base and depreciated. Source: DIAN, Estatuto Tributario Arts. 107–128.
Filing Calendar
Key Dates & Filing Calendar
Colombian tax deadlines are set annually by DIAN decree; the dates below reflect the standard 2024 tax-year calendar — always verify the current-year decree on the DIAN website.
DIAN publishes a new deadline decree each year — deadlines shift based on your NIT's last two digits. Bookmark dian.gov.co and check each January.
DIAN — dian.gov.co; Decreto de plazos anual (e.g. Decreto 2229 de 2023 for tax year 2023 returns)
Tax Regimes
Ordinary Regime vs. Simple Taxation Regime (SIMPLE)
Colombia offers individual STR hosts two main income-tax frameworks; choosing the right one depends on your total income, activity type, and whether you want to consolidate taxes into one payment.
Régimen Ordinario (Ordinary Regime)
Standard progressive income tax with full deductions
- Progressive rates from 0% to 39% on net taxable income (renta líquida gravable) for natural persons
- Full deduction of allowable costs: depreciation, interest, management fees, repairs, utilities
- Must file annual Declaración de Renta (income-tax return) with DIAN
- IVA obligations handled separately if you are a 'responsable' of IVA
- Rental income classified as 'rentas de capital' for individuals not operating as a business
No upper ceiling — applies to all income levels
Régimen SIMPLE de Tributación
Flat consolidated tax replacing income tax + ICA + IVA in one payment
- Single consolidated rate replaces income tax, ICA, and IVA obligations for eligible activities
- Rates for rental/real-estate services range approximately 3.4% to 14.5% of gross income depending on income bracket
- No deduction of individual expenses — tax is on gross revenue, not net profit
- Quarterly advance payments (anticipos) required; annual return filed with DIAN
- Must opt in voluntarily; not all activity types qualify — verify STR classification with a contador
~80,000 UVT gross annual income (≈ COP $3,808,000,000 for 2024)
Depreciation
Depreciation Rules for Medellín STR Properties
Colombia's Estatuto Tributario sets standard useful lives for fiscal depreciation; assets acquired after 31 December 2016 follow IFRS-aligned rules under DIAN guidance.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Residential building structure | 20 years (straight-line) | Land is not depreciable; only the building value is written off. Pre-2017 assets use statutory 20-yr life; post-2016 assets use IFRS useful-life estimate. |
| Furniture & appliances | 10 years (machinery/equipment category) | Beds, sofas, kitchen appliances, air-conditioning units. Post-2016 IFRS rules may allow component-level depreciation. |
| Computer equipment & smart-home devices | 5 years | Laptops, smart TVs, routers used in the rental. Verify IFRS useful-life assessment for post-2016 acquisitions. |
| Vehicles (if used for rental operations) | 5 years | Only the business-use proportion is deductible; personal-use portion is excluded. |
For assets acquired after 31 December 2016, IFRS (NIIF) rules apply and each component may have its own useful life. Consult a Colombian contador público for the correct IFRS-fiscal reconciliation. Source: Estatuto Tributario Arts. 128–141; PwC Colombia Tax Summaries.
When a depreciated STR property is sold, any depreciation previously deducted is recaptured and included in taxable income (ganancia ocasional or renta ordinaria depending on holding period). Colombia taxes gains on assets held more than 2 years as ganancia ocasional at a flat 15% rate.
Impuesto de Industria y Comercio (ICA)
Medellín Local Business Tax: ICA
Medellín levies the Impuesto de Industria y Comercio (ICA) on gross income from commercial, industrial, and service activities conducted in the city — STR hosting is generally treated as a service activity subject to ICA.
ICA is a municipal tax administered by the Secretaría de Hacienda de Medellín. Rates are expressed in 'milésimas' (thousandths) of gross revenue. STR activity typically falls under 'servicios de alojamiento' or general services, attracting rates in the range of 4.14 to 9.66 per thousand (0.414% to 0.966%) of gross income. The exact rate depends on the CIIU activity code assigned to your operation.
Combined effective tax burden varies widely by income level and regime; ICA alone typically adds 0.4%–1% of gross revenue on top of income tax.
Secretaría de Hacienda de Medellín — hacienda.medellin.gov.co; Acuerdo Municipal de Medellín (ICA tariff schedule); DIAN — dian.gov.co
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| ICA (Industry & Commerce Tax) | Host registers and pays directly to Secretaría de Hacienda de Medellín; platforms do not collect ICA on your behalf | Record gross STR revenue; calculate ICA on total gross income and remit annually (or per municipal schedule); ICA paid is deductible against national income tax |
| IVA on accommodation (19%) | If you are a 'responsable' of IVA, you collect from guests and remit to DIAN bi-monthly or quarterly; Airbnb may collect and remit IVA on its service fee separately | If IVA-responsible, add 19% IVA to your nightly rate, issue electronic invoices (facturas electrónicas), and file IVA returns with DIAN; if in simplified regime, you are exempt but cannot charge IVA |
| National Income Tax (Renta) | Host files and pays directly to DIAN via annual Declaración de Renta | Net rental profit (after deductions) is included in your annual income-tax return; withholding tax (retención en la fuente) may apply if a platform or agent pays you |
Medellín does not currently levy a separate city-level tourist tax (tasa turística) equivalent to a European 'taxe de séjour' on STR guests. ICA is the primary municipal tax on STR business activity. Always verify current ICA tariff tables with the Secretaría de Hacienda de Medellín, as rates are updated by municipal Acuerdo.
Platforms
How Airbnb & Other Platforms Handle Colombian Taxes
Platform tax-collection behaviour in Colombia differs from Europe or the US — hosts retain most compliance responsibility.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Airbnb does not automatically report individual host income to DIAN for Colombian hosts; hosts are self-responsible for declaring income | Airbnb collects and remits IVA on its own service fees in Colombia; it does not collect ICA or income tax on behalf of hosts | Hosts can download annual earnings summaries from the Airbnb host dashboard; no DIAN-format certificate is issued automatically |
| Vrbo / Expedia | No automatic DIAN reporting for Colombian hosts | Does not collect ICA or host income tax; may collect IVA on its own platform fees | Annual earnings reports available in host account; host must self-report to DIAN |
| Booking.com | No automatic DIAN reporting for Colombian hosts | Does not collect ICA or host income tax on behalf of hosts | Monthly and annual revenue reports in extranet; host responsible for all Colombian tax filings |
Hosting on Multiple Platforms
If you list on Airbnb, Vrbo, and Booking.com simultaneously, you must aggregate all gross rental income from all platforms when calculating your Colombian income tax, ICA, and IVA obligations. There is no platform-level consolidation — you are responsible for tracking and combining all revenue streams. A Colombian contador público can help reconcile multi-platform income for your Declaración de Renta.
Colombia & International Reporting (No DAC7)
Colombia is not an EU member state and DAC7 (the EU platform-reporting directive) does not apply here. However, Colombia has signed tax-information-exchange agreements (TIEA/CRS) with various countries. If you are a foreign national earning Colombian STR income, your home country's tax authority may receive information about your Colombian income through CRS automatic exchange. Consult a cross-border tax specialist if you are a non-resident host.
Airbnb Help — airbnb.com/help; DIAN — dian.gov.co (IVA obligations for digital platforms, Resolución 000051 de 2018 and subsequent)
Illustrative P&L: Ordinary Regime vs. SIMPLE
Example based on a Medellín STR earning COP $60,000,000 gross annually (~$75/night, ~55% occupancy). Figures are illustrative only — not tax advice.
Record-Keeping
Stay Audit-Ready: What to Keep and How Long
DIAN can audit returns for up to 5 years (or longer in cases of fraud); keep these records organised and accessible.
| Keep | How long | Why |
|---|---|---|
| Facturas electrónicas (e-invoices) for all expenses — repairs, management, utilities, cleaning | 5 years minimum | Required to substantiate deductions in the Ordinary Regime; DIAN can disallow uncertified expenses |
| Platform payout statements (Airbnb, Vrbo, Booking.com) showing gross income per period | 5 years minimum | Proof of gross revenue for income-tax and ICA calculations; needed if DIAN cross-checks platform data |
| RUT registration certificate and any updates | Indefinitely (keep current version) | Required for all tax filings and to issue/receive facturas; must reflect current activity codes |
| Property purchase deed (escritura pública) and cost basis records | Indefinitely + 5 years after sale | Needed to calculate depreciation base and eventual capital-gains tax (ganancia ocasional) on sale |
| Annual Declaraciones de Renta and ICA returns (filed copies) | 5 years from filing date | DIAN statute of limitations for audit is generally 3–5 years from the filing deadline |
Colombia requires electronic invoicing (facturación electrónica) for most business transactions. Ensure your suppliers issue valid DIAN-registered e-invoices — paper receipts alone may not be accepted as deductible support.
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, legal, or financial advice. Colombian tax law changes frequently — always verify current rates, thresholds, and deadlines with DIAN (dian.gov.co) or a licensed Colombian contador público before filing.
- DIAN — Dirección de Impuestos y Aduanas Nacionales — Official Colombian tax authority. Source for income-tax rates, IVA rules, RUT registration, filing deadlines, and Estatuto Tributario. dian.gov.co
- Estatuto Tributario de Colombia — Primary legislation governing income tax (Arts. 1–364), IVA (Arts. 420–513), depreciation (Arts. 128–141), and deductions (Arts. 107–128). secretariasenado.gov.co
- Secretaría de Hacienda de Medellín — Municipal authority for ICA (Impuesto de Industria y Comercio) tariff schedules and filing requirements. hacienda.medellin.gov.co
- PwC Colombia — Worldwide Tax Summaries (Corporate Deductions & Depreciation) — Summary of Colombian depreciation rules, deductible expenses, and corporate/individual tax framework. taxsummaries.pwc.com/colombia — 2024
- Medellín Advisors — STR Regulation Environment in Medellín — Overview of Medellín STR regulatory context, Propiedad Horizontal rules, and market context. medellinadvisors.com — 2026
- TheLatinvestor — Buying and Renting Out in Medellín (2026) — Market data on Medellín STR yields, occupancy rates, and regulatory environment. thelatinvestor.com — 2026
- Régimen SIMPLE de Tributación — DIAN — Official DIAN guidance on the SIMPLE consolidated tax regime, eligible activities, rates, and thresholds. dian.gov.co
Questions
Frequently Asked Questions: Medellín STR Taxes
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