Colombia Tax Reform: What De la Espriella Has Promised So Far
Colombia · Economy
Key Facts
- —What happened President De la Espriella promised to scrap the wealth tax and avoid rate hikes, but no bill has been filed.
- —How big a jump Tax breaks cost the state COP 136 trillion (US$ 34 billion) in 2023, double 2019’s COP 68 trillion.
- —The real story Promises to scrap taxes mask a plan to close loopholes and widen the base for extra revenue.
- —The catch These are political promises, not legal texts—no bill exists or list of cuts published.
- —Who it touches Wealthy individuals, companies, and middle-class workers in Colombia, plus foreign investors watching the region’s test case.
- —What comes next The structural reform hits Congress in September 2026, ending the wealth tax on 1 January 2027 if approved.
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).
More: Colombia news in English, every day from The Rio Times.
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
Colombia’s 2027 Budget Is Short COP 30 Trillion, and the Money Depends on a Tax Reform
Colombia Tax Reform Targets Corporate Cut, Scraps Bank Fee
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
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief