In Colombia, gifts are an occasional gain (Art. 302 of the Tax Statute). For a resident recipient the rate is 15% (Art. 314) and Art. 307, item 4, exempts 20% of the value received, up to 1,625 UVT. Gifts above 50 monthly minimum wages require approval before a notary. But giving is not always the most suitable route for your family, and each alternative (selling, bare ownership, family company, trust) has its own cost and its own risk. Ligal compares the routes with lawyers, accountants and ex-DIAN experience.
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Article 302 of the Tax Statute (as amended by Article 102 of Law 1607 of 2012) defines as occasional gain inheritances, legacies, gifts or any gratuitous act between living persons, and the spousal portion. Under Article 303, the base is the value of the assets on December 31 of the year before the gift is perfected; for real estate, Article 277 of the Tax Statute applies, for shares and contributions Article 272 (tax cost) and, if the asset was acquired in the same year, its acquisition value. A lifetime usufruct is valued at 70% of the value of the asset and bare ownership at the difference. Article 307, item 4 (as amended by Article 30 of Law 2277 of 2022), exempts 20% of the value of assets received by gift or gratuitous act between living persons, up to 1,625 UVT; the exemptions in items 1 to 3 are for inheritances and do not apply to lifetime gifts. For resident individuals the occasional gain rate is 15% (Art. 314, as amended by Article 33 of Law 2277 of 2022).
A gift also has a civil formality. Under Article 1 of Decree 1712 of 1989 (which amended Article 1458 of the Civil Code), the notary authorizes by public deed gifts that exceed 50 monthly minimum wages, if donor and recipient are fully capable and request it by mutual agreement; gifts equal to or below that amount do not require approval. The deed must contain proof of the commercial value, of the donor's ownership and that the donor keeps what is needed for a decent subsistence (Art. 3), and for real estate the same deed may contain both the approval and the gift (Art. 4). Selling does not escape tax: the sale of fixed assets held two years or more generates occasional gain on the difference between price and tax cost (Art. 300), and a sale at a price far below commercial value may be questioned by DIAN. Another option is to contribute the assets to a family company or a trust, explained at /holding-familiar-fiducia-colombia, and for the general framework see /planeacion-patrimonial and /patrimonio-familia-inembargable-colombia. In every case, the children's forced share and gifts are taken into account in the succession.
Keys to deciding between giving, selling or using a company
Ligal calculates the tax of each alternative, reviews the deed and the support for the value, and explains the risks clearly, without promising savings.
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We identify the asset (apartment, shares, contributions) and apply the valuation rule of Article 303: value on December 31 of the prior year, Article 277 for real estate and Article 272 (tax cost) for shares and contributions. For the calculation, usufruct and bare ownership are considered if a usufruct is reserved.
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Jeysson Pulido and LIGAL Auditores quantify the occasional gain of the gift (15% with the 20% exemption up to 1,625 UVT), that of the seller in a sale at real value and the implications of contributing to a family company or a trust, to show the cost of each path.
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If the gift exceeds 50 monthly minimum wages, we prepare the notarial approval and the deed with proof of the commercial value, the donor's ownership and the donor keeping what is needed for a decent subsistence. For real estate, the same deed may contain both approval and gift.
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We design the gift with all the children in mind, because the forced share and gifts are taken into account in the succession, and we leave the support ready in case DIAN questions the value or the operation. If that happens, Ligal handles the defense.
A lifetime gift is decided between the tax calculation, the notarial formality and the effect on the family's succession.
Director · Ex-DIAN tax lawyer
Leads the legal strategy: compares the routes, defines the structure that is safest before DIAN and accompanies you if there is a later dispute.
Accountant · Quantification and traceability
Quantifies the occasional gain and the tax cost of each alternative and gathers the value support the operation requires.
Certified public accountants
Prepare accounting support and technical analyses on values, tax cost and the effects of each structure.
Declaring a price or value far below commercial value to pay less can be questioned by DIAN. We work with the real value and with support.
Transferring assets to avoid collection by a creditor or by DIAN can have serious consequences. If that is the goal, we discuss it first and look for another legitimate route.
The cost depends on the asset, its value and the family's situation. We show the numbers of each alternative before you decide.
When a person wants to pass assets to their children during their lifetime, Ligal calculates the tax of each route, prepares the deed and the notarial approval, and designs the operation to withstand a DIAN review. Juan Santiago Rodríguez Prieto, an ex-DIAN tax lawyer, leads the strategy alongside accountant Jeysson Pulido and LIGAL Auditores (certified public accountants). The team, with lawyers, accountants and direct experience inside DIAN, handles real cases of planning, audits, enforced collection and tax litigation.
Please note: no result is guaranteed; each case depends on the assets, their value and the family's situation.
Director
Juan Santiago Rodríguez Prieto
Tax lawyer · Ex-DIAN
Tell us which asset you want to transfer and to whom. We assess the alternatives within 48 business hours. Use the form or open Diagnosis.
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TodayWe review the title certificate or the shares' data, the acquisition cost, the estimated commercial value, the beneficiaries and the family's goals.
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48 business hWe calculate the tax of giving, selling and using a company or trust, and explain the risks of each route.
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ImmediateWe define the route, prepare the deed, the notarial approval and the support, and who files them before the notary.
Frequently asked questions
A gift is an occasional gain (Art. 302 of the Tax Statute). For resident individuals the rate is 15% (Art. 314) and Article 307, item 4, exempts 20% of the value of the assets received, up to 1,625 UVT. The base is determined under Article 303: value on December 31 of the year before the gift is perfected, Article 277 for real estate and Article 272 (tax cost) for shares and contributions. The exact amount depends on the asset and its value; it is wise to calculate it before signing.
Only as an illustration and without other variables: if the value determined under Article 303 were 10,000 UVT, 20% would be 2,000 UVT, but the exemption cannot exceed 1,625 UVT; the taxable portion would be 8,375 UVT and, at 15%, the tax would be about 1,256 UVT. Each case must be calculated with its real figures; this example is not a quote or a promise.
Under Article 1 of Decree 1712 of 1989 (which amended Article 1458 of the Civil Code), the notary authorizes by public deed gifts that exceed 50 monthly minimum wages, if donor and recipient are fully capable and request it by mutual agreement. Gifts equal to or below that amount do not require approval. The deed must contain proof of the commercial value, of the donor's ownership and that the donor keeps what is needed for a decent subsistence (Art. 3), and for real estate the same deed may contain both the approval and the gift (Art. 4).
It depends on the asset, the value and what the family wants. Giving generates occasional gain for the recipient, with a limited exemption. Selling at real value can generate occasional gain for the seller if the fixed asset was held two years or more (Art. 300), and requires the buyer to pay and be able to prove it. A family company or a trust works when there are several assets or control is to be centralized, but they have their own structure and risks (see /holding-familiar-fiducia-colombia). A comparison with numbers is what makes the decision possible.
DIAN can question prices far below commercial value, and a deed with a value that does not correspond can lead to tax and succession disputes. If you want to benefit your children, the safest way is to do it at the real value and with clear support, and to choose the figure (gift, sale, company) according to what you truly intend.
Article 303 values a lifetime usufruct at 70% of the value of the asset and bare ownership at the difference. Reserving the usufruct changes the base of the gift and keeps the use of the asset for the donor, but it also limits control and future decisions. It should be assessed together with the succession and the protection of the home (see /patrimonio-familia-inembargable-colombia).
The children's forced share and gifts are taken into account in the succession. That is why the gift should be designed with all the children in mind and the donor's intention clearly recorded. An unequal gift without planning can open family conflicts later. For the general framework see /planeacion-patrimonial.
Ligal is a firm specialized in tax law and estate planning. Under the direction of Juan Santiago Rodríguez Prieto, an ex-DIAN tax lawyer, together with accountant Jeysson Pulido and LIGAL Auditores (certified public accountants), we combine legal analysis with the calculation and accounting support of each route. Our work is backed by 5.0 / 5 on Google with 36 reviews: https://share.google/VVzMvULrOj8Mj52Au. The team handles real cases of planning, audits, enforced collection and tax litigation. No result is guaranteed.
Free. Tell us the asset, its approximate value and to whom you wish to transfer it. We compare giving, selling and using a company or trust.