Investment Incentives in Colombia
The World Bank ranked Colombia as most business-friendly country in Latin America in its 2015 "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) are triggered when raw materials are 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 custom duties on the imported goods.
* 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), as well as a surcharge on CREE tax of an additional 5% (starting in 2015), which will be increased up to 9% in 2018, and eliminated afterwards. 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:
Special Economic Zones for Exports (ZEEE)
ZEEE are geographical areas in the cities of Cúcuta, Buenaventura, Valledupar, Ipiales and Tumaco, which have special legal conditions in order to encourage investment and strengthen national export processes through incentives that facilitate the export of goods and services produced in national territory.Special Economic Zones for Exports
The Colombian government offers investment incentives such as income tax exemptions and deductions in specific priority sectors.Other Incentives
PROCOLOMBIA has a team of lawyers that support our offices in Colombia and abroad. Contact us.