Colombia

Rental Income Tax, Effective Tax Rates (%) - Colombia Compared to Continent

Footnote

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Argentina	21.00%
Brazil	15.00%
Chile	35.00%
Colombia	28.56%
Costa Rica	30.00%
Ecuador	25.00%
El Salvador	22.36%
Honduras	4.44%
Mexico	25.00%
Paraguay	17.50%
Peru	24.00%
Uruguay	10.27%
Venezuela	22.16%

 

 

Colombia: Rental income taxes (%).

The tax levied on the average annual income on a rental apartment/property in the country.

Assumptions:

• Gross rental income is €/US$1,500/month
• The property is personally directly owned jointly by husband and wife
• Both owners are foreigners and non-residents
• They have no other local income
• There is no mortgage, i.e., no loan is taken for the purchase

In arriving at the pre-tax profit figure, we calculate, and deduct:

• Depreciation / capital allowances – if available. We assume a value for the apartment based on our valuation research, and depreciate on this basis.

We deduct any other costs which a landlord normally pays - management charges, buildings insurance, realtor agency fees, etc. We either choose a standard percentage deduction (if available) or typical ‘actually incurred’ costs. If real estate tax is normally payable by the landlord, we deduct that.

Our rental income tax figures are provided by accountants (see list of contributors). For more details see the Data FAQ.

Source: Global Property Guide Research, Contributing Accounting Firms

 

Colombia is one of the two countries in Latin America with house price statistics, which are to be found at the excellent Departamento Administrativo Nacional de Estadistica (DANE) site. The time-series are quarterly, from 1998. There are no rentals statistics.

Colombia has good general economics statistics, also at the DANE site. The central bank, the Banco de le República Colombiana, has a well-organized statistical section with time-series concentrating on financial sector indicators.