Residential Groups Win Battle in Colombia: Tax Reform Saves Them from Famous Practice in Parking Lots and Common Zones

Real Estate attorney Esteban García was interviewed by Red+Noticias about the adjustment to Colombia's Value-Added Tax (VAT) regime under the newly proposed tax reform and its implications for the real estate industry. Currently, horizontal properties with residential use are obligated to pay the IVA when they offer parking services in common zones. The new bill modifies Colombia's Tax Statute to eliminate this requirement. Mr. García clarified that other types of horizontal properties will still have to pay the tax.

"Commercial horizontal properties such as office buildings, malls, medical offices and industrial properties that charge for common zones, such as parking lots, will have to include the IVA in this collection," he summarized.

READ: Residential Groups Win Battle in Colombia: Tax Reform Saves Them from Famous Practice in Parking Lots and Common Zones