Investment Incentives in Colombia
The World Bank ranked Colombia as the third most business-friendly country in Latin America in its 2013 "Doing Business Report".
- Free Trade Zone Regime: Colombia has a competitive Free Trade Zone regime which grants the following benefits for projects for the production of goods or the provision of services:
- Single 15% income tax rate*.
- No customs taxes (VAT and CUSTOMS DUTIES) on merchandise introduced to the Free Trade Zone from abroad.
- VAT exemption for raw materials, inputs and finished goods sold from the national customs territory to the Free Trade Zones.
- Exports made from Free Trade Zones to foreign countries, may apply the benefits of international trade agreements signed by Colombia.
- Possibility of performing partial processing outside of the Free Trade Zone for up to 9 months.
- Possibility of selling to the national territory the goods or services without restrictions or quotas, paying the applicable customs tariffs over the imported goods.
- Other Incentives: The Colombian government offers investment incentives such as income tax exemptions and deductions in specific priority sectors.
* Projects established within Free Trade Zones applied for after December 31st, 2012 will be subject to a 15% Income Tax Rate + CREE Tax (Income Tax for Equity, which replaces certain wage-based welfare contributions). The tax rate for the CREE Tax is 9% during the years 2013- 2015, and 8% after 2016. Free Trade Zones filed or approved by December 31st, 2012 will remain with an income tax rate of 15% and are not subject to the CREE Tax.
There are two types of Free Trade Zones, both of which enjoy the same benefits:
Proexport has a team of lawyers that support our offices in Colombia and abroad. Contact us.