Benefits of foreign investment in Colombia for companies

Colombia is a strategic country for many companies in the world, and with this in mind, a series of benefits of foreign investment in Colombia have been developed for companies to take advantage of.

Colombia is a country with many opportunities for growth, both internally and externally.

Its great location, policies, diversity and great labor force make it the perfect place to invest in different industrial sectors with great growth possibilities.

Against this backdrop, the national government has developed a series of benefits of foreign investment in Colombia for companies, which we will present in this blog.

It has a strategic and privileged location

The first of the benefits of foreign investment in Colombia for companies is about the location of the country, a great attraction if you as a company want to connect with other countries in the Americas.

Colombia has access to two important maritime areas that connect the countries, the Caribbean Sea and the Pacific Ocean.

This is especially attractive for maritime import processes, as it facilitates the transport of goods arriving in the country, and from there they can be sent to other destinations.

Speaking of destinations, Colombia connects with the main cities in the Americas in an average of 6 hours by air, a great benefit if you wish to carry out operations by air.

Large free zones

Free trade zones are a great attraction for companies, since they give them certain privileges in the execution of their work activities within the country.

Free trade zones are areas within the country that have a series of special regulations that have a positive impact on the company’s bidding activity.

Among the benefits of free trade zones in Colombia are.

• Special 20% income tax rate (outside a free trade zone, this tax is 35% in 2022).
• Goods entering these zones are exempt from taxes (VAT).
• In turn, purchases made by companies in free trade zones of raw materials, inputs or finished goods from tax zones in the country are exempt from taxes.
• Companies can sell their products from free trade zones to third countries.
• Goods entering the free zones may remain in them indefinitely.

Multiple tax benefits

Another of the benefits of foreign investment in Colombia for companies, and the one that attracts the most attention, is the possibility of acquiring multiple tax benefits.

Foreign capital is highly valued in Colombia, which is why it has developed a series of tax benefits that allow investors to grow within our country.

Mega investments, in particular, have the following benefits as long as they are made between January 1, 2020 and January 1, 2024:

1. Enjoy a 27% income tax rate.
2. To be exempt from excise tax on dividends and wealth tax.
3. Be able to depreciate its assets over a minimum period of two years, regardless of the useful life of the asset.
4. To be able to sign tax stability contracts, which allows the state to guarantee the investor the validity of the aforementioned benefits.

In conclusion

These benefits of foreign investment in Colombia for companies are really attractive and represent a great opportunity for growth for both the country and the company.

Also remember that, if you register the investments made in our country before the International Exchange Department of the Banco de la República, and these exceed 650 Minimum Legal Wages in Force, it allows you to access the resident visa (R).

So foreign investors, take advantage of these benefits and take Colombia as a destination to grow.