Colombia proposes 5% tax on declared cryptocurrencies

A legislative proposal in Colombia suggests a 5% tax for those who declare cryptocurrencies and unreported digital assets. This initiative, part of Bill 477 of 2026, has generated controversy, as some sectors are calling for a reduction of the rate to 0% to encourage regularization. Article 71 establishes that the tax would be calculated based on the market value of the assets as of January 1, 2027, with a deadline until June 30 of that year to take advantage of this mechanism. The controversy lies in the fact that the 5% would be applied to the total omitted holdings, not just on the gains. For example, declaring cryptocurrencies worth COP 50 million would imply a payment of COP 2.5 million, and for COP 100 million, COP 5 million. This would even affect those who have not sold their cryptocurrencies. Camilo Suárez, president of Asoblockchain Colombia, advocates for a 0% rate to facilitate the inclusion of these assets in the tax system, arguing that an initial payment could discourage voluntary declaration. Asoblockchain has also requested a technical meeting with the DIAN to define the tax treatment of cryptocurrency exchanges and DeFi operations. Between July 2025 and June 2026, Colombia recorded operations with crypto assets worth 29.1 billion dollars, ranking fifth in Latin America with a year-on-year growth of 13.8%.

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