Colombian stocks have had a standout 2026, and several pay dividend yields of 4% to 8%. But what you keep depends on Colombia’s tax rules, which differ sharply for residents and non-residents and treat dividends and capital gains very differently. This guide explains, under the rules in force in 2026, how dividends and share sales are taxed for Colombian tax residents (including expats who have become residents), what non-resident and foreign investors face, real peso examples with the 2026 dividends of the market’s favorite companies, and a calculator.
Residents: dividends are added to ordinary income and taxed on the progressive 0%–39% scale, with a 19% credit on the portion above 1,090 UVT (COP 57.1 million). Withholding is 0% up to that amount and 15% above it. Gains from selling shares listed on the Colombian Stock Exchange are not taxable if you sell less than 3% of a company in a year, which covers virtually every individual. Non-residents: dividends face a flat special rate under art. 245 rather than the progressive scale. You become a tax resident after 183 days in Colombia within any 365-day period.
First question: are you a Colombian tax resident?
Colombia taxes residents on worldwide income and non-residents only on Colombian-source income. You are generally a tax resident if you spend more than 183 days in Colombia, continuous or not, within any 365-day period, among other tests. Many expats, digital nomads and returning Colombians cross this line without realizing it, which changes how their Colombian dividends, and their foreign portfolios, are taxed.
How dividends are taxed for residents
Since the 2022 reform (Law 2277), dividends received by resident individuals are added to the general schedule of the income tax return alongside salary and fees, and taxed on the progressive art. 241 table:
| Bracket (UVT) | 2026 COP equivalent | Marginal rate |
|---|---|---|
| 0 – 1,090 | 0 – 57.1 million | 0% |
| 1,090 – 1,700 | 57.1 – 89.0 million | 19% |
| 1,700 – 4,100 | 89.0 – 214.7 million | 28% |
| 4,100 – 8,670 | 214.7 – 454.1 million | 33% |
| 8,670 – 18,970 | 454.1 – 993.5 million | 35% |
| 18,970 – 31,000 | 993.5 – 1,623.6 million | 37% |
| Above 31,000 | Above 1,623.6 million | 39% |
A 19% tax credit (art. 254-1) applies to dividends above 1,090 UVT. Dividends paid from profits already taxed at the company level (“non-taxed dividends”) are the norm for large listed companies; dividends from untaxed profits first bear the 35% corporate rate. Withholding (art. 242) is 0% up to 1,090 UVT per year and 15% on the excess; it is a prepayment credited on your return.
2026 dividends of Colombia’s favorite stocks
| Company | BVC ticker | Price Oct. 27 | 2026 dividend/share | Yield | Shares for COP 10M | Annual dividend |
|---|---|---|---|---|---|---|
| Promigas | PROMIGAS | COP 6,090 | COP 525 | 8.6% | 1,642 | COP 862,050 |
| Grupo Energía Bogotá (GEB) | GEB | COP 3,000 | COP 251 | 8.4% | 3,333 | COP 835,916 |
| Cementos Argos | CEMARGOS | COP 10,840 | COP 580 | 5.4% | 922 | COP 534,760 |
| Grupo Cibest | CIBEST | COP 88,400 | COP 4,512 | 5.1% | 113 | COP 509,856 |
| Celsia | CELSIA | COP 4,640 | COP 208 | 4.5% | 2,155 | COP 448,240 |
| Ecopetrol | ECOPETROL | COP 2,725 | COP 121 | 4.4% | 3,669 | COP 443,949 |
| Grupo Aval (pref.) | PFAVAL | COP 760 | COP 32 | 4.2% | 13,157 | COP 418,393 |
| ISA | ISA | COP 28,080 | COP 1,090 | 3.9% | 356 | COP 388,040 |
| Grupo Argos | GRUPOARGOS | COP 20,300 | COP 750 | 3.7% | 492 | COP 369,000 |
| Grupo Sura | GRUPOSURA | COP 72,560 | COP 2,000 | 2.8% | 137 | COP 274,000 |
COP 10 million (about $3,180) in any of these stocks yields COP 274,000 to 862,000 a year, far below the withholding threshold.
Four examples in pesos (residents)
| Case | Other taxable income | Dividends | Withholding | Net extra tax on dividends | Effective rate |
|---|---|---|---|---|---|
| A. Small investor (COP 20M in Ecopetrol) | COP 40,000,000 | COP 888,000 | 0 | 0 | 0% |
| B. Well-paid employee | COP 150,000,000 | COP 10,000,000 | 0 | ≈ COP 2,800,000 | ≈ 28% |
| C. Lives on dividends | 0 | COP 70,000,000 | COP 1,936,851 | ≈ 0 (refundable) | ≈ 0% |
| D. Large investor | COP 300,000,000 | COP 100,000,000 | COP 6,436,851 | ≈ COP 24,846,655 | ≈ 24.8% |
Simplified Bolsa al Día calculations using the 2026 UVT and non-taxed dividends, ignoring deductions and exemptions.
Calculator
🧮 Dividend tax estimator (Colombian residents, 2026)
Simplified estimate for non-taxed dividends (the usual case for listed companies), using the art. 241 table and 2026 UVT ($52,374). Ignores deductions and exemptions. Not tax advice.
Taxes when you sell: the Colombian exchange advantage
Under Tax Code art. 36-1, gains from selling shares listed on the Colombian Stock Exchange are neither taxable income nor capital gains, provided you sell no more than 3% of the company’s outstanding shares in the same tax year (10% before the 2022 reform). For an individual, that threshold is effectively unreachable: 3% of Ecopetrol exceeds 1.2 billion shares. A resident who bought Ecopetrol near COP 1,890 in January and sells at 2,725 pays no income tax on the 44% gain.
| Situation | Treatment of the gain |
|---|---|
| BVC-listed shares, under 3% of the company sold in the year | Not taxable (art. 36-1) |
| Unlisted shares or over 3%, held 2+ years | Capital gains (ganancia ocasional): 15% |
| Unlisted shares or over 3%, held under 2 years | Ordinary income: up to 39% |
| Losses on shares | Generally not deductible |
Foreign stocks and ETFs bought through an international broker do not get this exemption: for Colombian residents, those gains are taxable. That makes the local market unusually tax-efficient for residents.
Non-residents, foreign investors and ADR holders
- Dividends: non-resident individuals and foreign companies are taxed on Colombian dividends at a special flat rate under art. 245, generally withheld at source, rather than the progressive scale.
- Foreign portfolio investors: typically invest through a local custodian under the foreign-portfolio-investment regime; the custodian handles withholding. Gains on BVC-listed shares may benefit from art. 36-1; confirm with your custodian.
- ADRs (EC, CIB): dividends on NYSE-listed ADRs of Colombian companies are subject to Colombian withholding before reaching you; U.S. investors may be able to claim a foreign tax credit at home. There is no U.S.–Colombia income tax treaty.
- Proposed changes: a 2025 financing bill proposed raising the non-resident dividend rate from 20% to 30%; check the current status before investing.
Reporting and filing (residents)
- Assets: shares are reported at tax cost (purchase price plus costs), not market value.
- Who must file: for tax year 2026 (filed in 2027), residents with gross assets above 4,500 UVT (COP 235.7 million) or income above 1,400 UVT (COP 73.3 million), among other thresholds.
- Wealth tax: applies above 72,000 UVT (about COP 3.77 billion). An emergency decree lowering the threshold to 40,000 UVT was struck down by the Constitutional Court in April 2026, according to Rankia (2026).
- Paperwork: get your broker’s year-end holding certificate and each company’s dividend certificate showing taxed/non-taxed portions and withholding.
Critical take
Colombia’s system is lopsided: capital gains on local shares are effectively tax-free for residents, while dividends can be taxed at up to 39%. That nudges investors toward price appreciation in a market whose appeal has long rested on generous payouts. High-earning salaried residents feel it most; dividend-only investors with moderate income may pay almost nothing. For foreigners, the bigger risk is regulatory volatility: emergency decrees, court rulings and reform bills have changed the rules repeatedly since 2022.
Bolsa al Día is not a tax adviser. This guide is informational and simplified; rules change and every case differs. Consult a Colombian public accountant (contador público) or tax lawyer before filing or investing.
Frequently asked questions
How are dividends taxed in Colombia in 2026?
For residents, non-taxed dividends are added to ordinary income and taxed on the 0%–39% scale, with a 19% credit above 1,090 UVT. Withholding is 0% up to COP 57,087,660 and 15% above.
Do I pay tax when I sell Colombian shares at a profit?
Not if the shares are listed on the Colombian Stock Exchange and you sell less than 3% of the company in a year (art. 36-1). Unlisted shares are taxed as capital gains (15%) or ordinary income.
When do I become a Colombian tax resident?
Generally after more than 183 days in Colombia within any 365-day period, among other tests.
How are non-residents taxed on Colombian dividends?
At a special flat rate under art. 245 of the Tax Code, usually withheld at source, instead of the progressive scale.
Are foreign stock gains exempt for Colombian residents?
No. The art. 36-1 exemption applies only to shares listed in Colombia.
How much does COP 10 million in Colombian dividend stocks pay?
Between about COP 274,000 (Grupo Sura) and COP 862,000 (Promigas) a year based on 2026 dividends and Oct. 27 prices.
Related: Colombian dividend calendar 2026 · Best Colombian stocks of 2026 · Stock market glossary · Leer en español
🧾 Living in Colombia? Check whether you must file a 2027 return in our Colombia tax guide for expats.
Sources: Colombian Tax Code (arts. 36-1, 49, 241, 242, 245, 254-1), Law 2277 of 2022, DIAN, Rankia (2026), PwC Colombia. Dividends per 2026 shareholder meetings; prices from TradingView, Oct. 27, 2026. Updated Oct. 28, 2026.
Leave a Reply