Colombia – once a notorious country due to drug cartels, guerrilla, paramilitaries, etc. has emerged over the recent years as one of Latin America’s rising stars and became a very attractive environment for international investors. This country offers exceptional opportunities due to its ample resources, varied industries, and robust government initiatives.
I invite you to keep reading and learn about some of the many reasons that make Colombia an excellent investment destination.
- Strategic geographic position
Bordering Brazil, Ecuador, Peru, Panama and Venezuela, Colombia is located in the center of the Latin American continent and is therefore ideally positioned to serve as a regional business hub. It is the only South American country with a coastline in both, the Pacific and Atlantic Oceans as well as the Caribbean Sea which provides the country with great opportunities for foreign trade and easy access to global markets. Furthermore, being situated in the very center of Latin America (“LatAm”), Colombia offers direct flight connections to other important destinations in the region (e.g. Mexico City, Miami, São Paulo, etc.).
- Economic stability
Colombia has experienced considerable growth in recent decades. According to Camilo Pérez, director of economic investigations at the Banco de Bogotá bank, the economic growth of Colombia is favorable, the economy has kept up its solid performance. (November 2022)
- FTAs and membership in international organizations
Colombia can boast of a large number of Free Trade Agreements (“FTAs”) with much of the world. To be precise, the country has currently reached 17 agreements, which are related to different countries and groups of countries / states, including the United States, the European Union, Mercosur, Pacific Alliance, to name just a few.
Furthermore, Colombia is a member of the Organization for Economic Co-operation and Development (OECD), Mercosur, the Pacific Alliance as well as other international organizations.
The result of all of the above for Colombia is lower tariffs, simplified import and export proceeding, a rise in the ease of doing business as well as an increase in investment propensity, to name just a few consequences.
- Protection of investors
Doing Business 2015, published by the World Bank, ranked Colombia as the 10th worldwide and the 1st in LatAm concerning the protection of investors – and for a reason. Colombia grants equal treatment to foreign investment and local investment (there are a few exceptions), it has established a fair and transparent legal framework for foreign direct investments, it permits foreign direct investments in the majority of sectors and as a rule, there is no limitation in the property or control of foreign direct investments in Colombia (there are a few exceptions), etc.
- Compelling incentives
In order to position itself as an attractive destination for investments in the region, Colombian government introduced a series of legal and tax benefits for investors in Colombia, such as income tax reductions, incentives for mega investments, tax exemptions, etc.
The aim of the Colombian government is to “reward” foreign individuals and companies that invest in Colombia.
- Commitment to development
The Colombian state is highly committed to achieving continuous growth and competitiveness.
…and these are only a few reasons why investing in Colombia is intriguing and worthwhile.
