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SALE OF NEW RESIDENTIAL REAL ESTATE IS SUBJECT TO VAT

The first sale of new residential real estate will be subject to 5% VAT

 

Law 1819 determined that the sale of new residential real estate worth more than 26.800 UVT (COP$ 797.380.400) would be subject to a 5% VAT. The sale of real estate through the assignment of trust rights will also be taxed accordingly.

The sale of residential real estate by means of a pre-sale contract, purchase deed or similar document signed before December 31 of 2017, certified by a public notary, is excluded from this tax.

 This change is included in Article 185 of Law 1819 of 2016.