Tax Reform: Why Could Inheriting or Buying a Home Become More Expensive?

Tax attorney Gustavo Pardo Ardila was cited in a Portafolio article about the effects of Colombia's tax reform on the real estate market, particularly the increased cost of inheriting or purchasing a home. The bill proposes reducing the occasional gains exemption on inherited housing to the cap for Social Interest Housing (VIS), which would increase the taxable base for many taxpayers. It also includes a surtax on the financial sector and changes to value-added tax (VAT) for certain properties and mixed-use condominiums, with potential impacts on interest rates and administrative costs. Mr. Pardo warned that the proposed VAT changes and other real estate-related costs would raise barriers to home ownership.

"Nowadays, it is already a challenge to buy a home, but when you add a VAT change, that challenge becomes even greater," he said.

READ: Tax Reform: Why Could Inheriting or Buying a Home Become More Expensive?