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Incentives


Attractive Incentives

As part of reforms to make business conditions more attractive, Colombia and Bogota offer attractive incentives for investment, including:


Free Trade Zones (FTZs)

Companies that locate in FTZs have the following benefits:

● Preferential income tax of 15% (as opposed to the 33% general rate)
● No custom duty for materials and equipment imported into the FTZ
● VAT exemption for inputs purchased from the Colombian market
● Possibility of selling to the Colombian market


Single Company FTZs

Subject to specific investment and employment targets, investors can set up FTZs on their premises, anywhere in the country.


Legal Stability Contracts

These legally binding contracts lock in conditions for investments of over US$1.9 million. They have a duration of up to 20 years and require payment of a premium of 1% of the investment made in the particular year.


Income Tax Deductions

The Colombian tax code has several additional deductions from corporate income tax, including:
● 30% of amounts invested in fixed productive assets
● 125% of the investment in scientific, technological, or innovative projects done in Colombia, subject to a 20% limit
● Direct and voluntary investments made to control and improve the environment, subject to a 20% limit


Local Tax Exemptions

Goods and services produced in Bogota for export are exempt from the local Industry and Commerce Tax (1.14% of gross revenues). Surrounding municipalities offer this tax exemption solely on the basis of job creation and/or investment.


For detailed information on these incentives, download Incentives.



Updated (mm/dd/yyyy): 05.20.2010