Property Tax Holder Update in Colombia

What does it consist of?

The property tax holder update procedure consists of modifying the information of the owner or holder of the property tax of a property, in the corresponding public and cadastral records. This procedure is necessary when there is a change in the ownership of the property due to sale, donation, inheritance, among other reasons.

In order to update the property tax owner, a series of documents must be presented to prove the identity of the new owner and the ownership of the property, such as deeds, records and property tax payment receipts, among others.

Once the necessary documentation has been submitted, the entity in charge of the process will verify the information and perform the corresponding update in the public and cadastral records, which will allow the new owner of the property to make the corresponding property tax payments and receive the corresponding official notifications and correspondence.

How is the property tax holder update procedure performed?

The procedure for updating the property tax holder in Medellín can be done in the following manner:

1. Gather the necessary documentation: to carry out the procedure, the public deed of the property, a receipt of the previous property tax, the new owner’s citizenship card and a document that proves the ownership of the property must be presented.
2. Go to the Secretary of Finance: once you have the necessary documents, go to the Secretary of Finance of the Mayor’s Office of Medellín, located at Calle 42 No. 52-165, Plaza Mayor Building.
3. Carry out the procedure: once at the Treasury Department, request the property tax holder update procedure and submit the required documents. The officer in charge will verify the information and, if everything is in order, will update the system.
4. Pay the taxes: when performing the update procedure, it is possible that an outstanding tax balance may be generated. If this is the case, you must pay the debt before the upgrade can be completed.
5. Receive the update: once the outstanding taxes have been paid, the new owner will receive an updated property tax receipt with his/her name on it.

It is important to keep in mind that the time it takes to complete the process may vary depending on the number of people involved in the same process. Therefore, it is advisable to arrive early to avoid long lines.

What happens if the property tax holder’s information is not updated?

If you do not update the property tax holder’s information, it is possible that some problems and undesirable situations may arise. Some of them are mentioned below:

• Impediments to carry out procedures: if the property tax holder’s information is not updated, the owner will not be able to carry out procedures related to the property, such as the sale of the property, the application for mortgage loans, among others.
• Generation of debts: if the property tax holder’s information is not updated, the tax debts may accumulate and generate delinquent interest and fines that increase the total amount owed.
• Not receiving important notifications: the owner of the property tax is the one who receives important notifications related to the property, such as changes in the cadastral appraisal, summons to formalities and other important communications. If the owner’s information is not up to date, the owner may not receive these notices and the opportunity to take necessary action may be lost.
• Loss of rights: In some cases, if the property tax holder’s information is not updated for an extended period of time, the owner may lose some rights, such as the right to apply for tax exemptions or benefits.

In conclusion, it is very important to keep the property tax holder’s information up to date to avoid inconveniences and future problems.

Why is the property tax holder update not done automatically?

The automatic updating of the property tax holder is not possible because the information in the public, cadastral and tax registries is not integrated with each other. Each government entity maintains its own database and there is no system that allows the integration of all of them.

In addition, the update of the property tax holder requires the presentation of certain documents proving the ownership of the property and the identity of the new owner. These documents must be submitted to the corresponding tax office in order for the update to take place.

Another factor that influences the lack of automatic updating is that in some cases changes of ownership do not occur due to the sale of a property, but due to inheritance or donations, and in these cases, updating requires a more complex and detailed process that cannot be performed automatically.

In summary, although the automatic updating of the property tax holder would be a convenient measure, it is currently not possible due to the lack of integration between databases and the need for the presentation of documents proving the ownership and identity of the new holder.

Processing time

The duration of the property tax holder update process may vary depending on the government entity in charge of the process, the complexity of the case and the number of applications being handled at that time.

In the specific case of Medellín, the estimated time to complete the property tax holder update process is 15 to 20 business days.

However, it is important to keep in mind that this time may vary depending on certain factors, such as the presentation of the necessary documentation, verification of the information, completion of pending payments, among others.

Therefore, it is advisable to start the updating process in advance to avoid possible delays and setbacks. In addition, it is recommended to verify with the entity in charge of the process the estimated delivery time of the update in each specific case.

Does it cost?

The cost of the property tax holder update in Medellín depends on each particular case and the situation of the property. In general, there is usually no additional cost for the property tax holder update process, as long as the property tax is current and there are no outstanding debts to be paid.

However, it is important to keep in mind that if there are outstanding property tax debts, they must be paid before the holder can be updated, which could generate an additional cost in the form of interest and/or fines.

On the other hand, in the event of any irregularity in the documentation submitted for the holder’s update, additional costs may be incurred for the correction of such documentation.

In summary, in general terms, the property tax holder update in Medellín does not have an additional cost if the conditions mentioned above are met.

However, if there are any outstanding debts or irregularities in the documentation, additional costs may be incurred. It is recommended to verify with the entity in charge of the process the specific costs in each case.

If you need to perform this procedure, contact us!