Colombia Tax Reform: What De la Espriella Has Promised So Far
Colombia · Economy
Key Facts
- Announcement De la Espriella said on 7 August 2026 that his government will eliminate the wealth tax. This tax is currently regulated by Ley 2277.
- No New Rates Finance Minister Miguel Gomez Martinez has ruled out new taxes to pay for the earthquake. He says money will come from external credit, reallocations, and spending cuts.
- Tax Breaks The government wants to cut tax breaks, which rose from about COP 68 trillion (US$ 17 billion) in 2019 to more than COP 136 trillion (US$ 34 billion) in 2023.
- Wider Base A core idea is to make more Colombians declare income tax, without raising rates. The DIAN might focus on just three categories: income, internal VAT, and external VAT.
- Revenue Goal Economic sources cited in the press talk about a goal of COP 25 to 32 trillion (US$ 6.25 to 8 billion) in extra revenue in 2027. These are projections, not official figures.
- Not Filed No project of law has been presented to Congress. The government says it will send the structural reform in September 2026.
Colombia’s new president says he will scrap the wealth tax and avoid raising rates. The actual bill is still unwritten.
Colombia’s President Abelardo De la Espriella has announced the guiding lines of his tax reform. But no bill has been filed with Congress yet.
What the president has actually promised
President Abelardo De la Espriella made his main promise in his inauguration speech in Cali on 7 August 2026. He said the wealth tax will be eliminated.
He said: “Lo dije como candidato y hoy lo corroboro como presidente en ejercicio: el impuesto al patrimonio será eliminado.”
This tax is currently regulated by Ley 2277. If the promise becomes law, the tax would not be charged on 1 January 2027.
The president has also promised not to raise tax rates for companies. The government says the reform will focus on tax benefits, evasion, and widening the tax base.
So far, these are political shows, not legal texts. No bill has been filed, and the details of how the wealth tax would be removed are still vague.
The finance minister’s stance on the earthquake
Finance Minister Miguel Gomez Martinez has been clear about the earthquake response. He says there will be no new taxes to pay for the emergency.
The money will come from an external credit of up to US$ 450 million with the World Bank. It will also come from budget reallocations and spending cuts.
The minister has also postponed income tax payments for one month for individuals in the affected zones.
He has called the inherited economic situation the most serious crisis in recent times. He says the fiscal deficit left by the previous government is 7.8% of GDP.
Those moves are separate from the structural reform. They are emergency measures, not part of the September tax bill.
The plan to cut tax breaks and widen the base
The technical discussion centers on reducing what is called tax expenditure. This is the money the state gives up through tax breaks.
These benefits grew from about COP 68 trillion (US$ 17 billion) in 2019 to more than COP 136 trillion (US$ 34 billion) in 2023. More than COP 88 trillion (US$ 22 billion) of that is VAT, and more than COP 25 trillion (US$ 6.25 billion) is company income tax.
Experts cited in the press say at least a third of the new revenue goal should come from cutting benefits and reducing evasion.
Another idea is that the DIAN, the tax authority, should move from managing about 15 taxes to just three big categories. Those are income, internal VAT, and external VAT.
This would improve control.
The numbers show the size of the prize. But they are not attached to any official proposal yet.
What is decided and what is not
The only firm decisions so far are the political announcements. The president has decided to push for the end of the wealth tax and to avoid higher rates.
The minister has decided not to create new taxes for the earthquake response.
What is not decided is the specific content of the reform. There is no bill text filed in Congress, and no official detailed list of which benefits will be cut.
There is also no official definition of who will be forced to declare taxes. Those details are still in the design phase.
The government says it will present the structural reform to Congress in September 2026. It has not done so yet.
Why this matters for you in Latin America
If you live in Colombia or have money invested there, this reform could change your tax bill. The wealth tax directly hits wealthy individuals.
Cutting benefits and widening the base could catch more companies and middle-class workers.
For the wider region, Colombia is a test case. It is trying to raise money without raising rates, by trimming loopholes.
If it works, other governments may copy the model. If it fails, they may look elsewhere.
The difference between a promise and a filed law is the difference between planning and reality. Until September, nothing is set in stone.
Watch for the bill text, not just the speeches. That is where the real details will appear.
The revenue figures and where they come from
You may see a figure of COP 197.5 trillion for tax collection to July 2026. That is an estimate from a bank report, not an official government number.
The official figure referenced for January to July is about COP 182 trillion (US$ 45.5 billion). That is up 9.7% and represents 100.2% of the target for that period.
Be careful with the language. Saying the collection is “COP 197.5 trillion above target” is wrong.
The correct description is a bank estimate of the total collected.
The government’s annual revenue target for 2026 is COP 317.5 trillion (about US$ 79.4 billion).
Frequently Asked Questions
Has Colombia’s tax reform bill been presented?
No. There are only announcements of principles. The government says it will send the structural reform to Congress in September 2026.
Will the wealth tax be eliminated?
President De la Espriella says his government will eliminate it. The tax is currently regulated by Ley 2277. If approved, it would not be charged on 1 January 2027.
Will taxes go up because of the earthquake?
No, says Finance Minister Miguel Gomez Martinez. He says the money will come from an external credit, budget reallocations, and spending cuts.
How much does the government expect to raise with the reform?
Economic sources cited in the press talk about a goal of COP 25 to 32 trillion in extra revenue for 2027. These are projections, not official or confirmed figures.
Connected Coverage
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Why Colombia’s Tax Reform Is Probably Dead — and What It Means for Foreign Residents
Sources: ifcreview.com; infobae.com; portafolio.co; eltiempo.com; directoriolegislativo.org
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