PM ALERTA NORMATIVA

Funds are added to the General National Budget for fiscal year 2026 to finance measures aimed at addressing the economic, social, and ecological emergency declared due to the severe public calamity resulting from the earthquake of August 10, 2026. The budget supplement amounts to $624,656,000,000, a sum derived from the disbursement made pursuant to an external loan agreement with the International Bank for Reconstruction and Development, which was activated due to the occurrence of the catastrophe.

Establishes an exceptional and transitional incentive regime to promote new private investments aimed at mitigating the effects of the emergency caused by the earthquake of August 10, 2026, within the State of Economic, Social, and Ecological Emergency. It covers the geographical scope, eligible sectors, eligibility requirements, a preferential income tax rate for 2026 and 2027, tax credits for job creation, exclusions, oversight rules, and the loss of benefits due to noncompliance.

The decree covers sectors such as tourism, agribusiness, manufacturing, services, and construction; it sets a base preferential income tax rate of 20% for 2026 and 2027; provides for additional reductions for the creation of direct jobs; excludes certain projects, such as those involving non-renewable natural resources; and stipulates that benefits such as the preferential rate, accelerated depreciation of 50% per year, and VAT exemption will cease on December 31, 2027, for essential imports for which there is no equivalent domestic production, subject to control rules, traceability, non-accumulation, and loss of benefits for non-compliance.

This decree addresses transitional measures for investment projects that can be financed with resources from the General Royalties System during the State of Economic, Social, and Ecological Emergency. It aims to facilitate the urgent management of projects without compromising the public, open, and competitive nature of the calls for proposals, and includes strategic priorities related to science, technology, and innovation; sustainable reconstruction; infrastructure; essential services; and environmental and productive recovery.

It establishes special rules regarding the General Royalties System’s (SGR) project cycle and allows affected local governments to allocate, through December 31, 2026, at least 30% of certain available balances from Direct Allocations, Regional Investment, and Local Investment to projects related to the emergency.

It temporarily expands the use of the 5% advance on Direct Allocations for producing municipalities; suspends the ordinary prioritization process provided for in Article 35 of Law 2056 of 2020; and transfers that function to the respective Regional OCAD for the covered projects.

It also authorizes adjustments to the 2025–2026 Biennial Call for Proposals Plan to incorporate calls for proposals in science, technology, and innovation aimed at addressing the emergency.

The decree applies only to the municipalities and districts included within the territorial scope of the emergency, including those subsequently incorporated by legislative decree. In each case, the direct impact caused by the earthquake must be substantiated through official records or complementary mechanisms. During the twelve months following its entry into force, Invima may suspend, at the request of the interested party and by means of a reasoned decision, the deadlines for ongoing health regulatory procedures when the applicant is located in an affected municipality and demonstrates that the earthquake prevents them from meeting the requirements. An individual suspension may last up to four months. This does not apply to enforcement actions, renewal of good practice certifications, health alerts, or cases in which public health safety may be compromised. For twelve months, local governments may use available balances from the master accounts of the subsidized health system and surpluses or uncommitted balances from assigned revenues to repair, rehabilitate, rebuild, supply, and equip the public health network directly affected by the earthquake. Certain standard requirements are temporarily waived, such as the prior inclusion of investments in the Master Investment Plan and the absence of debts for services rendered. The funds must be managed separately, with traceability, and may not be used for general expenses or obligations unrelated to the restoration of affected services. For a period of six months, the Ministry of Health and local governments may transfer funds directly to State-Owned Social Enterprises and to administrators of affected public health infrastructure. The funds may be used to finance labor obligations, salaries, social security, and contractual commitments related to healthcare personnel. To access these funds, it must be certified that the earthquake caused a loss of operational capacity or a reduction in revenue that jeopardizes the continuity of service. For a period of six months, the Ministry of Health may modify or rescind, in whole or in part, resource allocations that have not yet been disbursed and that were made prior to August 19, 2026. The reallocation must be used exclusively to mitigate the emergency and restore healthcare capacity in the affected areas. It does not require the beneficiary’s prior consent, but decisions must be justified and remain subject to notification, appeals, and judicial review. ADRES may administer and disburse funds earmarked for addressing the health emergency. It may also use, for a period of twelve months, funds it ordinarily administers for the following mechanisms:

• portfolio purchases;
• interest rate subsidies;
• soft credit lines for providers affected by the earthquake or who provided care to the affected population.

These funds must be managed separately and may not be subject to automatic offsets.

The statute of limitations for claims filed with ADRES by providers whose infrastructure was affected by the earthquake is suspended for twelve months.

This measure applies only to statutes of limitations that were running on August 10, 2026, or that begin during the suspension period. It does not revive statutes of limitations that have already expired or rights that were barred before that date. During the period specified in the decree, no late-payment interest will accrue on late payments of contributions to the Comprehensive Social Security System and parafiscal contributions owed by independent contributors and affected employers identified by the Ministry of Health.

This measure does not eliminate the obligation to pay the principal, maintain enrollment, report changes, or comply with the system’s other obligations. Nor does it allow for claims for the refund of interest already paid.
For twelve months, affected members identified in the Single Registry of Affected Persons and validated in the BDUA are exempt from paying copayments and co-insurance fees for all health services and technologies they require, regardless of where they receive care.

Health insurance providers (EPS) and other entities responsible for payment may not deny, delay, restrict, or split up care due to nonpayment of these amounts, nor may they charge for services provided during the term of this measure at a later date.

It adopts exceptional measures for recovery, financing, insurance, and access to resources in the financial, cooperative, solidarity, and securities market sectors during the emergency. It includes the expedited opening and closing of healthcare facilities, housing loans with special terms, debt issuances by SAS entities, rules on insurance indemnities, a special procedure for presumed death, the transfer of certain financial products without succession, cooperative authorization, and special financing lines.

It allows service locations to open or close without prior notice for a period of six months; authorizes housing loans without a down payment or prior mortgage for a period of twelve months, provided there is acceptable collateral; it authorizes SAS debt issuances in the secondary market for a maximum term of five years for a period of thirty-six months; it establishes rules for applying earthquake insurance indemnities toward obligations or reconstruction; it creates a special judicial procedure for presumption of death without waiting the standard two years; it allows for the transfer of certain financial products without probate, capped at COP $91,832,170; authorizes certain cooperatives to provide services to non-members until December 31, 2027; and provides for transfers to BANCÓLDEX, FINDETER, and FNG, citing a potential claim of $934,000 million at FINDETER and an expected consolidated loss of 19.04% for the FNG guarantee program.

Establishes extraordinary and temporary measures to protect the employment and income of workers affected by the earthquake of August 10, 2026.

Among the key provisions, the decree provides for a government payroll subsidy financed with resources from the Milagro Fund, aimed at micro and small businesses with eligible affected workers; it requires that the employer have been in existence prior to August 10, 2026, that workers be registered in the Single Registry of Affected Persons (RUD), and that they earn between one and two minimum wages; sets the amount at 40% of the applicable monthly legal minimum wage for 2026 per eligible worker, assigns the Ministry of Labor the responsibility for administering the benefit and the UGPP the responsibility for validation and oversight, provides for reimbursement in cases of fraud or double payment, and establishes a maximum duration of six monthly support cycles.

Adopts tax, customs, and foreign exchange measures within the framework of the emergency, applicable to affected municipalities and to individuals or legal entities with proven direct impact. It includes relief on obligations outstanding as of August 10, 2026, a temporary reduction of the interest rate to 4.5% per annum, payment plans of up to 24 months without collateral (and up to 36 months with personal guarantees), a temporary reduction of penalties and late payment interest through November 19, 2026, rules for correcting or filing missing returns, and administrative dispute resolution in tax, customs, and foreign exchange matters.

These measures may only be applied in municipalities within the territorial scope of the emergency and with respect to individuals or legal entities whose direct impact from the earthquake is substantiated by official records or other verifiable means. In addition, each contract must be directly related to the emergency response. The fact giving rise to the manifest urgency to directly procure goods, works, and services necessary to address, mitigate, and overcome the effects of the earthquake and its aftershocks is deemed proven.

Entities subject to special regimes or exempt from Law 80 of 1993 may also enter into direct contracts.

The entity need not issue a separate document declaring the manifest urgency, but must justify the purpose, necessity, and direct relationship to the emergency in the preliminary studies or in the contract itself. Contracts directly related to the emergency may be amended without applying the standard 50% limit provided for in Law 80 of 1993. The limit on amendments and extensions applicable to public-private partnership contracts is also waived.

The entity must justify the amendment technically, legally, and financially. In public-private partnership contracts, neither the economic balance nor the remuneration structure may be altered. Colombia Compra Eficiente may design demand aggregation instruments through direct contracting and create emergency catalogs with existing or new suppliers.

New suppliers must meet the eligibility requirements. These instruments remain open throughout the disaster situation, and purchase orders finalized before its conclusion remain in effect. During the disaster situation, public entities may procure goods related to the emergency through the large-scale demand aggregation instrument, up to the maximum amount corresponding to the respective entity’s lowest threshold. The decree does not authorize procurement that is unrelated to or detached from the emergency. The measures must be directly related to the earthquake, apply to the affected territories, and be implemented with proper justification, publicity, and traceability, and subject to fiscal, disciplinary, and criminal controls. The decree takes effect upon publication. However, the main measures remain in effect for the duration of the disaster declared by Decree 1171 of 2026 and any extensions thereof.

The authorization covers construction, improvement, adaptation, expansion, rehabilitation, and equipping projects, as well as studies, designs, supervision, and other contracts necessary for their implementation.

• Municipalities may amend the General Land Use Plan (POT) without prior consultation, within 45 calendar days.
• The increased buildable area resulting from emergency POT adjustments does not generate capital gains.
• Capital gains that have already been settled or those that are generated may be paid in kind with VIS/VIP housing.
• Reconstruction projects with increased buildable area do not require partial plans if public utilities are immediately available.

2.Subsidies and Financing

• Subsidies may cover up to 100% of the cost of housing solutions for affected households with family incomes below 4 SMLMV.
• Compensation Funds must allocate between 7.5% and 10% of their monthly FOVIS (Social Housing Fund) resources to affected households, regardless of membership status.
• Fonvivienda may establish autonomous funds using public and private resources to implement emergency projects.
• The FNG may subsidize guarantee fees for mortgage loans, microloans, and housing leases through 2028.

3.Permits, Repurposing, and Prefabricated Housing

• Existing buildings converted into housing are eligible for subsidies and financing as new housing for two years.
• Prefabricated housing does not require a building permit for two years, provided it complies with seismic standards.

Previously: Affected businesses had to navigate the standard insolvency, credit, and commercial obligations framework without any consideration for the emergency situation. There was no special mechanism to alleviate financial burdens, reschedule obligations, or quickly access emergency financing.
Now: The decree temporarily establishes or authorizes special mechanisms that may include: relief on debt service obligations to financial institutions and entities in the real sector; priority access to rediscount credit lines through Bancóldex and development agencies; more flexible requirements for accessing business support instruments; the establishment of simplified mechanisms for restructuring or agreements between debtors and creditors; and support for the operational continuity of production units in affected areas

The FFIE, which is ordinarily allocated to infrastructure for early childhood, preschool, elementary, and secondary education, is temporarily authorized to facilitate, finance, structure, and execute infrastructure projects for public institutions of higher education. Projects must simultaneously meet the following conditions:

This expansion may not affect the FFIE’s regular resources, projects, or obligations for early childhood, preschool, elementary, and secondary education. Resources allocated to higher education must be identified and recorded separately to ensure their traceability and control. This measure does not permanently alter the purpose of the FFIE. Its application is limited to municipalities affected by the emergency and remains in effect until a declaration is made that normalcy has been restored with respect to the disaster resulting from the earthquake.

Interventions that are not directly related to the damage caused by the earthquake may not be funded. The Ministry of National Education must establish, together with the competent entities, the technical, financial, and monitoring mechanisms to verify the damage, prioritize projects, and oversee the use of resources.

1. Urban residential leases. Law 820 of 2003 generally governs lease agreements, with no exceptions for natural disasters. The decree introduces temporary protections for affected tenants: a temporary suspension of the landlord’s right to terminate the lease for nonpayment when the damage to the property or the tenant’s situation results directly from the earthquake; the possibility of agreeing to an extension or modification of financial terms without this constituting a novation; and rules for properties declared uninhabitable or at risk by the competent authority, including termination of the contract without penalty for the tenant.
2. Condominium ownership. Law 675 of 2001 requires quorums and ordinary majorities for assembly decisions, including construction projects, changes to co-efficients, and extraordinary expenses. The decree temporarily relaxes the following restrictions: convening and holding virtual meetings without restriction; adopting urgent decisions regarding reconstruction, repair, or demolition with reduced quorums; approving extraordinary emergency fees by a simple majority; and allowing the property manager to take immediate structural protection measures without prior authorization from the assembly when there is imminent danger, with subsequent reporting.
3. It allows affected tenants to request a proportional or full refund of their security deposit when the property becomes uninhabitable, without having to wait for the contractual term to expire.
4. For an additional six (6) months, in the municipalities affected by the earthquake of August 10, 2026, the enforcement of orders and proceedings for the surrender, eviction, or restitution of residential and commercial properties occupied by tenants under leases in effect at the time of the earthquake is suspended.
5. Two rent adjustments within the same 12-month period are prohibited.

The text outlines an exceptional and temporary framework to address the effects of an emergency in the transportation sector. Its main measures are: Contracting and infrastructure: Allows for the authorization of additional works under concessions and public-private partnerships (PPPs) when they are directly related to the emergency, provided there is technical justification, oversight, and separate financing.

Use of Private Assets: Authorizes the temporary use of private machinery, equipment, and infrastructure, with financial compensation calculated based on market rates and paid within thirty days of the submission of supporting documentation.

Regional Airports: Allows Aerocivil to exceptionally intervene at affected regional airports, without transferring ownership or permanent authority.

Procedures: Streamlines licenses, permits, and authorizations, while maintaining environmental obligations, the protection of special areas, and prior consultation where required.

Permits and deadlines: Provides for automatic extensions of certain administrative permits and the temporary suspension of certain penalty, administrative, and collection deadlines.

Mass transit: Allows for the co-financing of up to 70% of the operating deficit directly caused by the earthquake and the rehabilitation of affected infrastructure, without covering prior deficits or structural problems.

Transportation companies: Temporarily relaxes requirements regarding operating permits, transport capacity, routes, schedules, dispatching, reporting, and business collaboration agreements.
Logistics and traffic: This measure allows for the prioritization of strategic goods at ports and the temporary relocation of the headquarters of affected traffic agencies.
Road safety: This measure authorizes signage, traffic channeling, speed control, and other preventive measures on affected roads, detours, and alternate routes.

The cleanup, removal, and disposal of debris, construction and demolition waste, and waste from electrical and electronic equipment generated by the earthquake are hereby declared to be in the public interest and for the common good. The government and local jurisdictions may temporarily authorize debris disposal sites without a prior license, permit, concession, or environmental authorization when regular sites are insufficient.This authorization is subject to technical guidelines, notification to the environmental authority, priority monitoring, and subsequent submission of a management, closure, and restoration plan. Moors, wetlands, protected areas, or other strategic ecosystems incompatible with the activity may not be used. For new projects involving the repair, reinforcement, replacement, or reconstruction of infrastructure affected by the earthquake, special decision deadlines are established: 30 business days for environmental licenses; 15 business days for water concessions, occupation of watercourses, discharges, and atmospheric emissions.

Environmental authorities must establish technical bodies for priority evaluation. The Ministry of the Environment may temporarily designate the ANLA or another authority when the regional or municipal authority lacks sufficient operational capacity.

The expiration of these deadlines does not constitute tacit administrative approval. Furthermore, environmental impact assessments, public participation, and prior consultation remain mandatory when required. Holders of valid environmental licenses, permits, or concessions may immediately begin repair, reconstruction, and restoration work on affected infrastructure, after notifying the environmental authority. They must subsequently request an amendment to the environmental permit within three months of the start of the work. The authority retains the power to impose additional measures, suspend activities, and initiate sanction proceedings. Provisional interventions on existing transportation infrastructure within forest reserves are permitted when necessary to prevent or address a serious and imminent risk resulting from the earthquake. The work must, in principle, be limited to the footprint of the existing infrastructure. Interventions outside that footprint require provisional environmental authorization, technical justification, confirmation that no less harmful alternative exists, and simultaneous processing of the area’s exclusion from protected status. The provisional authorization may last up to 60 days, extendable only once, and does not constitute approval of the exclusion nor does it create vested rights. It does not apply to natural parks, páramos, or areas subject to special prohibitions. Outstanding obligations regarding compensation for the biotic component and the mandatory 1% investment may be directed toward: protected areas;conservation strategies; water control and management projects; restoration of streams and riverbeds affected by the earthquake.

The environmental authority that imposed the obligation must verify its implementation and coordinate it with the competent environmental authority at the investment site. Funds from the National Environmental System may be distributed among its members to finance exclusively the repair and reconstruction of territories affected by the earthquake. In addition, environmental authorities may voluntarily use funds from the environmental portion of the property tax as a counterpart contribution to secure multilateral and cooperation funds for sustainable urban reconstruction. The Ministry of the Environment, the regional autonomous corporations, and other environmental authorities must conduct the Post-Disaster Environmental Damage Assessment and Needs Analysis (EDANA-C). This assessment aims to identify damage to strategic ecosystems and areas of environmental importance, and to prioritize restoration measures and nature-based solutions. Environmental and risk management agencies must coordinate the assessment of environmental safety and feasibility in areas designated for reconstruction, resettlement, relocation, or declaration as “cleared zones.” This assessment must be coordinated with the identification and registration of individuals and communities displaced by the disaster.

Under the standard program rules, beneficiaries of conditional cash transfers must demonstrate compliance with periodic obligations—such as school attendance, health checkups, and participation in training programs—to retain their benefits. Failure to comply results in the suspension or withdrawal of support. This verification process is temporarily suspended, ensuring the continuity of payments to affected households, regardless of whether or not they can fulfill their co-responsibilities in the context of the disaster. It does not eliminate the program or the benefits; it merely freezes the monitoring mechanism for as long as the emergency warrants it.

The standard “Works for Taxes” mechanism allows large income tax payers to finance projects in Areas Most Affected by Armed Conflict (ZOMAC) or Territorially Focused Development Programs (PDET). However, its implementation involves validation, registration, trust, and approval processes that can take months. The Decree creates a parallel emergency pathway with three structural changes: (i) it expands the pool of eligible taxpayers beyond the standard categories; (ii) it simplifies and accelerates the procedures for approval, structuring, and execution; and (iii) it extends the mechanism to projects directly linked to reconstruction in the designated territories, without requiring that they coincide with traditional ZOMAC or PDET zones. Projects “financed through this special mechanism may include investments directly related to the response, recovery, rehabilitation, reconstruction, replacement, reinforcement, or improvement of infrastructure and assets directly affected, in the following sectors and areas: Social housing and priority housing; Public education and public educational infrastructure; Public health and public health infrastructure; Drinking water and basic sanitation; Energy and public utilities associated with recovery; Road infrastructure, bridges, airports, transportation, and connectivity; Information and communications technologies and other infrastructure necessary to restore essential services; Rural public assets and productive infrastructure; Sports infrastructure; Disaster risk management. The Decree opens a concrete window of opportunity for companies with income tax obligations to convert a tax burden into territorial investment with direct impact, corporate visibility, and fulfillment of environmental, social, and governance commitments—all under an emergency regime that is more streamlined than the ordinary one. However, properly structuring the mechanism requires simultaneous mastery of tax law, public contract law, procurement and trust regulations, and the specific provisions of the emergency regime. An error in structuring could result in the tax benefit being disallowed, contractual liability, or regulatory noncompliance. Our team can assist you with feasibility assessments, project structuring, negotiations with public entities, and the management of associated tax and contractual risks.