New Law Defines What Will Happen with Collection in Residential Complexes in Colombia: Owners and Tenants Will Benefit
Real Estate attorney Esteban García was quoted in Red+Noticias explaining whether non-residential horizontal properties (commercial or mixed-use) are subject to Colombia's Value-Added Tax (VAT). The Finance Ministry clarified that residential complexes do not incur VAT on administration fees and are exempt when leasing parking and common areas, countering initial confusion around Articles 3 and 4 of the proposed tax reform. Though sector leaders remain cautious about potential cost impacts amid broader regulatory changes, the bill has only just begun its legislative process and still needed to be debated and approved.
"Horizontal properties of a commercial nature, such as office buildings, shopping centers, doctors' offices and those of an industrial nature when they charge for common areas, such as parking lots, would have to include VAT in that charge," Mr. García said.