Petro's Third Tax Reform: dividends, inheritance and wealth
In September the government filed the 2026 Financing Bill. We analyse the three fronts affecting private capital and wealth planning.
Context
On 1 September 2025 the Colombian government filed its third tax reform in Congress, now as a Financing Bill, targeting COP 26.3 trillion in 2026 revenue.
Three main fronts
1. Dividends
Dividend tax on resident individuals would move from 15% (>1,090 UVT) to a progressive scale reaching 41% on top brackets. For non-residents, the proposal raises the rate from 20% to 30%.
2. Inheritance and gifts
A progressive scale on the occasional gains tax for successions, eliminating the flat 15% and reaching up to 30% for large estates.
3. Wealth tax
The base would widen from 40,000 UVT (≈ COP 2,000M) with marginal rate up to 2% for estates above 240,000 UVT.
Strategic reading
- Intragroup mergers and spin-offs in preparation must close before year-end 2025 to avoid the regime tightening.
- Families with personal holding in Colombia must model the combined dividend + wealth effect: in extreme scenarios, the total effective rate exceeds 50%.
- Colombia-UAE and Colombia-Spain structures retain their tax advantage, but the planning window narrows.
Approval risk
The balance of forces in Congress makes it likely that a reduced version is approved (estimated revenue COP 12-15B). Even so, the dividend+wealth pillars are unlikely to be removed from the final text.