On 22 December 2025, the Colombian government declared a ‘State of Economic Emergency’ to address a critical budget deficit for the 2026 fiscal year following the legislative rejection of its proposed tax reform. This declaration triggered a rapid transformation of the country’s fiscal landscape with the enactment of Decree 1474 on 29 December 2025.  

This decree introduced tax provisions that will immediately affect corporations, financial institutions and high‑net‑worth individuals with operations or ties to Colombia. However, the long-term validity of these measures is uncertain, as they must undergo automatic and mandatory review by the Constitutional Court to determine whether the emergency declaration complies with constitutional requirements for such exceptional authority.  

Colombia’s Wealth Tax Framework for 2026: What’s New?

As of 1 January 2026, Colombia’s wealth tax threshold has been reduced to 40,000 Tax Value Units (UVT)—roughly 2 billion Colombian Pesos (COP), or USD 500,000, depending on exchange rate fluctuations. In addition to a lowered threshold, the wealth tax will follow a progressive marginal rate structure, starting at 0.5 per cent for assets above the new threshold. For those exceeding 2 million UVT (roughly COP 104.7 billion), the rate increases significantly, reaching a maximum of 5 per cent.  

With this expansion, the wealth tax now applies to a broader base of taxpayers (individuals and entities) and requires careful asset valuation reviews and strategic financial planning.  

Other Important Tax Adjustments

Beyond wealth tax provisions, Decree 1474 also introduces other major changes, including an increase to a 19% rate on VAT and consumption tax on certain products, such as alcoholic beverages, as well as cigarettes. This prompts companies to adjust pricing policies and financial forecasts. 

Moreover, financial institutions face an additional 15-point surcharge on income tax calculations, raising their effective rate to 50 per cent. Based on the prior year’s taxable income, this surcharge requires a full advance payment in two equal annual installments, directly affecting cash flow and profitability.  

Reconciliation Measures for Compliance 

Although the decree imposes stricter requirements, it introduces a significant opportunity for tax reconciliation and compliance.  

• Reduction of Penalties and Interest: Penalties and interest on national taxes, arrears related to imports/exports and foreign exchange obligations as of 31 December 2025, will be reduced.  

• Amnesty for Formal Obligations: Penalties for non-compliance with formal obligations as of 30 November 2025 will be reduced to 15 per cent, provided the obligations are fulfilled by 30 April 2026.  

The decree offers a strategic opportunity for taxpayers to address past non-compliance with improved terms, but the deadlines remain stringent.  

Bolder as Your Partner in Global Compliance: How We Can Help

During economic emergencies, global investors and high-net-worth individuals must rely on proactive measures to protect their wealth and minimise risks. Partnering with an independent global service provider like Bolder, we help you navigate sudden regulatory shifts across borders. The immediate enforcement of most provisions underscores the need for proactive review and strategic planning to avoid financial and operational disruptions. Our team provides governance and private wealth expertise necessary to ensure compliance and foster sustainable growth.  

Please reach out to our Bolder representative in Colombia (German Aldana) to learn how we can assist you in ensuring your global portfolio remains strong and compliant in light of these fiscal demands.  

For more information about our services, feel free to contact our Bolder office near you. 

Bolder Group does not provide financial, tax or legal advice and the information contained herein is meant for general information purposes only. We strongly recommend that before acting on any of the information contained herein, readers should consult with their professional advisers. The Bolder Group accepts no liability for any errors or omissions in the information, or the consequences resulting from any action taken by a reader based on the information provided herein.

Bolder Group refers to the global network of independent subsidiaries of Bolder Group Holding BV. Bolder Group Holding BV provides no client services. Such services are provided solely by the independent companies within the Bolder Group which are each legally distinct and separate entities and have no authority (actual, apparent, implied or otherwise) to obligate or bind Bolder Group Holding BV in any manner whatsoever. The operations of the Bolder Group are conducted independently and have no affiliation with third party financial, tax or legal advisory firms or corporations.