Question 1

What are the incentives offered by the National Government to foreign investment?

Accepted Answer

Fiscal or tax incentives are special tax treatments available to certain types of companies, investors and/or taxpayers. Their main objective is to promote the arrival of investment projects in the country, as well as to provide facilities for national investment projects.

Tariff incentives are measures to support imports. Among them are the free trade zone regime and the Vallejo Plan, among others. These systems offer incentives such as tariff and VAT reductions or exemptions for the import of raw materials, equipment and machinery to be used in projects for the production of goods or services mainly destined for foreign markets in the case of the Vallejo Plan, while products or services from free trade zones may be entirely destined for the domestic market.

These tax incentives promote investments in science, technology, and innovation (STI), in creative and technological industries (orange economy), as well as in other sectors of the economy - agribusiness, automotive and metalworking, hospitality and tourism, logistics, real estate, energy, and chemicals and life sciences.

For more details on the legal and tax incentives offered by the country, please visit the Invest in Colombia page - at the following link: https://investincolombia.com.co/es/como-invertir/incentivos-para-invertir-en-colombia/incentivos-tributarios

For more details on the incentives offered by the country for the installation and operation of Free Trade Zones, please visit the Invest in Colombia page - at the following link: https://investincolombia.com.co/es/regimen-de-zonas-francas-en-colombia

Question 2

Are there any investment restrictions?

Accepted Answer

In Colombia, foreign investment is not subject to general restrictions. However, certain exceptions must be taken into consideration:

A. The processing, disposal, and management of toxic, hazardous, or radioactive waste not produced in the country.
B. Activities related to national defense and security.
C. Concessionaire companies providing open television services, in which foreign investment may not exceed 40% of the company’s total share capital.

Question 3

What are the types of free trade zones?

Accepted Answer

Within the free trade zone regime, certain modalities are established, namely: Permanent Free Trade Zones (ZFP) and Special Permanent Free Trade Zones (ZFPE) (Art. 3 Decree 2147 of 2016).

In the PFA or Multi-company Zone, several companies are established to carry out industrial, commercial, or service activities. In the SPFA or Single-company Zone, a single qualified industrial user is established, which may be in the areas of goods, services, health services, agro-industrial projects, the dairy sector, among others.

And the Transitional Free Trade Zones, which are defined areas of the national territory where national or international fairs, exhibitions, congresses, and seminars of importance to the economy and/or international trade are held.

Question 4

Do I need to maintain a minimum investment amount?

Accepted Answer

It is not necessary to maintain a minimum investment amount in the country.

Question 5

Where in Colombia can I invest?

Accepted Answer

You can invest in any of the 32 departments of Colombia, each offering different investment opportunities.

Question 6

What can I invest in if I am a foreigner?

Accepted Answer

The investment sectors included in the VUI are:

A. Agribusiness: Aquaculture; cocoa, chocolate and confectionery; fruits and vegetables; meat; dairy; and biofuels.
B. Manufacturing: Automotive industry; plastic packaging; aerospace; metalworking; cosmetics and personal care products; agrochemicals; and the fashion industry.
C. Services: Biotechnology; data centers; software and IT services; electricity; oil and gas goods and services; hospitality and tourism; investment funds; and Business Process Outsourcing (BPO).

Please consult the VUI to review the regulations applicable to the subsector in which you wish to invest, as well as the required procedures:
https://vui.gov.co/es/tramites-y-procedimientos-administrativos

Question 7

Is there preferential treatment for foreign investment in Colombia under the Free Trade Agreements negotiated by Colombia?

Accepted Answer

No. Foreign investment in Colombia receives the same treatment as domestic investment. No special treatment or the imposition of discriminatory or more favorable conditions to foreign investors is allowed.

Question 8

Why is Colombia an attractive destination for foreign investment?

Accepted Answer

To date, Colombia has 17 trade agreements, including free trade agreements and partial scope agreements: CAN (1973, 1994), Panama and Chile (1993), Caricom and Mexico (1995), Cuba (2001), Mercosur (2005), Northern Triangle (2009), EFTA and Canada (2011), USA and Venezuela (2012), European Union (2013) and Korea, Costa Rica, Pacific Alliance (2016) and Israel (2020) (Graph 2). Trade agreements give investors access to a market of more than 1.5 billion consumers.

Due to its privileged geographical location and the network of treaties, Colombia has the advantage of facilitating maritime and air logistics for access to markets in the Americas, Asia, and Europe, making the country a destination that favors foreign and domestic investment.

Question 9

What is the directory of attorneys?

Accepted Answer

You can find this information in the Procolombia services directory. Visit: https://investincolombia.com.co/es/articulos-y-herramientas/herramientas/directorio-servicios-de-inversion

Question 10

How do I formalize my investment in Colombia?

Accepted Answer

To formalize an investment in Colombia, you must:

A. Register the investment with the Bank of the Republic.
B. Follow the formalization steps found in the VUI, visit: https://vui.gov.co/es/portafolio-de-tramites/creacion-de-empresa

Question 11

How do I transfer profits back to my country?

Accepted Answer

If the investment is registered with the Central Bank, or if it benefits from a Free Trade Agreement or international investment agreement, you can transfer your profits.

Question 12

Why is Colombia an attractive destination for foreign investment?

Accepted Answer

Colombia has positioned itself as one of the most attractive destinations for foreign investment in Latin America, thanks to a combination of macroeconomic stability, strategic location, and a business-friendly environment. The country offers strong fundamentals that provide security and real opportunities for international investors:

1. Economic stability and a reliable institutional framework
2. Strategic location and access to global markets
3. Skilled and competitive human talent
4. Modernizing infrastructure and expanding logistics platforms
5. Sectoral diversity and access to natural resources

Question 13

What are the benefits of investing?

Accepted Answer

These are some of the benefits: A. Remitting the net profits from your investment. B. Remitting abroad in freely convertible currency the sums received from the sale of the investment within the country, or from the liquidation of the company or the reduction of its capital. C. As an investor, you enjoy equal treatment; therefore, foreign capital investment in Colombia will be treated in all respects the same as investment by resident nationals.

Question 14

Which entities participate in the investment projects?

Accepted Answer

Each project involves various public or private entities. Please consult the downloadable project sheet for the project of your interest.
For more information, visit: https://vui.gov.co/es/proyectos-de-inversion

Question 15

What is the investment regulatory framework?

Accepted Answer

Please consult the updated regulations through the Central Bank of Colombia (Banco de la República), especially Decree 119 of 2017.
For more information, visit:
https://www.banrep.gov.co/es/normatividad-banco

Question 16

If I invest, am I required to live in Colombia?

Accepted Answer

You are not required to reside in the country in order to make a foreign capital investment in Colombia; however, please keep in mind the following:

1. Designate a legal representative in Colombia.
2. Register your initial investment.
3. Keep the information and documents that support the conditions of the registered investment.
4. Comply with tax, accounting, labor, commercial, and other applicable regulations.

Question 17

Which entities can support me?

Accepted Answer

Depending on the procedure you wish to carry out, Colombia has various entities that support the process of business formalization and the start of operations. You can find the involved entities in alphabetical order through the Ventanilla Única de Inversión (VUI): https://vui.gov.co/es/entidades-participantes

Question 18

What services does the VUI offer?

Accepted Answer

The VUI informs foreign investors about the requirements, procedures and processes necessary to make investments in different economic sectors and subsectors of Colombia.

Question 19

Who is it aimed at?

Accepted Answer

It is aimed at national and foreign investors, companies in the process of expansion, chambers of commerce, business associations and entities that seek to develop projects with economic, social and environmental impact in Colombia.

Question 20

What are the customer service channels?

Accepted Answer

Address: Cl 28 # 13A - 15, Bogotá, Colombia Switchboard telephone: (+57) 601 606 7676 Toll-free number: 01-8000 944 570 Email: info@mincit.gov.co, contactovui@mincit.gov.co, notificacionesjudiciales@mincit.gov.co Customer service hours: Monday to Friday from 7:00 to 18:00 (COT).

Question 21

Why invest in Colombia?

Accepted Answer

Colombia stands out as the gateway to Latin America: a country with stable economic growth, a strategic location, and a robust network of trade agreements. Its human talent, natural wealth, and commitment to sustainability make it an ideal destination for long-term, high-impact investments.

Question 22

What trade agreements does Colombia have?

Accepted Answer

Currently, Colombia has the following trade agreements in force: https://procolombia.co/colombiatrade/exportador/articulos/acuerdos-comerciales-colombia-exportadores

Question 23

How to create a branch of a company?

Accepted Answer

Formalize before a regional notary the documents of the parent company where the decision to create the branch is made, as well as the bylaws and resolutions that describe: A. Economic activity. B. Amount of capital. C. Company address. D. Appointment of Legal Representative. E. Appointment of Statutory Auditor.

Question 24

What are the procedures for buying real estate?

Accepted Answer

The procedures for purchasing real estate:

A. Conduct a title search.
B. Sign a purchase agreement.
C. Register the new public deed. For more information, visit: https://vui.gov.co/es/portafolio-de-tramites/compra-de-inmuebles/

Question 25

What are the Immigration Procedures?

Accepted Answer

Learn about the immigration procedures required to work in Colombia through the following link: https://vui.gov.co/es/portafolio-de-tramites/migracion

Question 26

What work permits are needed for foreigners?

Accepted Answer

Work permits for foreigners:
If you are going to hire foreign workers in Colombia, you must go to the following entities: A. Ministry of Foreign Affairs to apply for a visa. B. Migration Colombia to process your foreigner's identification card and register in the Foreigner Registration Information System (SIRE). For more information, visit: https://vui.gov.co/es/portafolio-de-tramites/migracion

Question 27

Do I need a work permit?

Accepted Answer

No permit is required to make investments; however, if you need to enter and leave the country, you must present your formal documentation such as passport and visa (the latter only if applicable).

Question 28

Which organization can help me with work permits?

Accepted Answer

The official entity in charge of visa and work permit processing is the Colombian Ministry of Foreign Affairs.
For more information, visit: https://www.cancilleria.gov.co/tramites_servicios/visa

Question 29

What are the procedures for hiring staff?

Accepted Answer

To hire staff, you must register your company and your employees with the following entities:
A. Health Provider Entity (EPS). B. Pension and Severance Fund Administrator (AFP). C. Occupational Risk Administrator (ARL). D. Family Compensation Fund (CCF).
For more information, visit: https://vui.gov.co/es/portafolio-de-tramites/contratacion-de-personal

Question 30

What is needed to start a business in Colombia?

Accepted Answer

The process of creating a company in Colombia:

1. Define the economic sector of interest.
2. Prepare the Articles of Incorporation or Company Creation Document.
3. Register the company with the Chamber of Commerce.
4. Complete the procedures with the DIAN (National Tax and Customs Directorate).
5. Open a bank account.
6. Deposit funds with the Central Bank of Colombia.
7. Establish a Free Trade Zone (if applicable).

For more information, visit: https://vui.gov.co/es/portafolio-de-tramites/creacion-de-empresa/

Question 31

What are the main benefits of the Free Trade Zones regime?

Accepted Answer

- Single income tax rate of 20% for industrial users of goods, industrial users of services and operators. Exceptions are made for commercial users who are taxed at the general rate (35%) for the year 2022.

- Customs duties (VAT and tariffs) are not levied or paid for goods that are introduced from abroad to the free trade zones, nor for raw materials, inputs and finished goods that are sold from the national customs territory to industrial users of the Free Trade Zone.

- Exports made from Free Trade Zone to third countries benefit from the International Trade Agreements negotiated by Colombia.

- It allows the industrial users of goods and/or services to keep in their facilities the raw materials, inputs, parts, products in process or finished products of the production process, transformation or assembly of goods proper of the economic activity or activities for which they have been qualified or authorized or recognized.

For more information on the requirements to access the different forms of Free Trade Zones, please visit http://zonasfrancas.mincit.gov.co/

Question 32

What is the Free Trade Zone regime?

Accepted Answer

Free Trade Zones are "Geographically delimited areas within the national territory, where industrial activities of goods and services or commercial activities are developed, under special tax, customs and foreign trade regulations"

Goods entering these zones are considered outside the national customs territory for import and export tax purposes.

Question 33

Is there an obligation to register a foreign investment?

Accepted Answer

Yes, it is mandatory to register foreign investment. All investments made by a foreigner in Colombia, including foreign currency that enters the country by individuals who are not Colombian residents, and that are destined as capital contributions for a company, or a branch of a foreign company must be registered before the Bank of the Republic under the figure of foreign investment.

Investors or their attorneys-in-fact must submit to the Bank of the Republic, directly or through the entities determined by it, a registration statement of:

i) the initial or additional investments
ii) changes in the holders, in the destination or in the company receiving the investment
iii) the cancellation of the investments.

In the case of foreign currency, the registration is by channeling the money through an intermediary in the exchange market or through a clearing account. In addition, the Foreign Exchange Declaration for International Investments - Form 4 available at the website of the Bank of the Republic. https://www.banrep.gov.co/sites/default/files/paginas/instr420031201.pdf

For the case of corporate reorganizations abroad, Form 11A must be completed, available at the website of the Bank of the Republic. https://www.banrep.gov.co/es/contenidos/reglamentaci-n/f-formulario-no-11a-declaracion-registro-inversiones-internacionales

According to Decree 119 of 2017, the verification function in charge of the Bank of the Republic was eliminated, and it was established that the information declared in the registry is provided under oath; additionally, the possibility was given to submit the registration, corrections, updates, changes and cancellations at any time, by the legal representative of the company receiving foreign investments in Colombia.

Question 34

How do I appoint a representative for legal proceedings?

Accepted Answer

To appoint a representative, you must:

A. Present identification documents for the person granting the power of attorney and the representative.
B. Present the document describing the powers acquired by the representative.
C. Have the document apostilled at the nearest Colombian consulate. For a document issued by a country that is party to the Hague Convention to be valid in Colombian territory, it must be apostilled by the competent authority in the country of origin.
D. Have the document officially translated into Spanish (if required).

Question 35

What are free trade zones?

Accepted Answer

Article 1 of Law 1004 of 2005 defines Free Trade Zones as follows: "A Free Trade Zone is a geographical area within the national territory where industrial activities involving goods and services, or commercial activities, are carried out under special tax, customs, and foreign trade regulations. Goods entering these zones are considered outside the national customs territory for the purposes of import and export taxes."

Question 36

What is needed to build infrastructure in Colombia?

Accepted Answer

Infrastructure construction licenses in Colombia require compliance with the procedures and regulations established in each region of the country. Find out more about each sector at the VUI.

For more information, visit: https://vui.gov.co/es/portafolio-de-tramites/construccion-de-infraestructura

Question 37

What is an Environmental License?

Accepted Answer

It is the authorization granted by the competent environmental authority that allows the execution of projects, works, or activities that may cause impacts on the environment. This license guarantees that the project complies with the technical, environmental, and social requirements established by current regulations. For more information, visit: https://www.anla.gov.co/licencias-ambientales

Question 38

What is a Building Permit?

Accepted Answer

It is the administrative act by which the competent municipal or district authority authorizes the development of construction, expansion, adaptation, or demolition works on a building. Obtaining this permit is a prerequisite for starting any construction work.
For more information, visit: https://www.minvivienda.gov.co

Question 39

What permits and licenses are required to operate in Colombia?

Accepted Answer

Permits and licenses required to operate in Colombia:

Environmental licenses in Colombia can be processed through the Comprehensive Online Environmental Procedures Window (VITAL) or before the Regional Autonomous Corporations, as applicable. Consult the subsector where you will be investing to verify whether you need an environmental license or other permits or licenses.

For more information, visit: https://vui.gov.co/es/portafolio-de-tramites/permisos-pre-operacionales

Question 40

What is SIED?

Accepted Answer

This is the Foreign Direct Investment Facilitation Service (SIED), a specialized service designed to manage and resolve requests from foreign investors seeking to establish, operate, or expand their investments in the country. For more information, visit: https://vui.gov.co/es/servicio-de-facilitacion-a-la-inversion-extranjera-directa-sied

Question 41

What is the purpose of SIED?

Accepted Answer

The purpose of SIED is to systematically improve the investment climate in Colombia. To achieve this, it offers a series of levels and tools aimed at alternative dispute resolution for investment conflicts, as well as the management of consultations and difficulties in key areas such as tax, financial, and intellectual property issues, among other aspects crucial to doing business in Colombia. In addition, it prevents any disputes that may arise between investors and the Colombian State.

Question 42

What does SIED do?

Accepted Answer

The SIED is responsible for receiving and managing challenges that arise in the installation of investors' operations. Among the main difficulties identified are delays in response times for procedures carried out with government entities. In these cases, the SIED acts as an intermediary, ensuring that the relevant entities comply with the established deadlines and prioritizing responses.

Question 43

What is the email address for reporting VUI incidents?

Accepted Answer

The email address for reporting VUI incidents is ContactoVUI@mincit.gov.co.

Question 44

Who are the strategic allies of the VUI?

Accepted Answer

The strategic partners of the Single Window for Investment (VUI) are the Inter-American Development Bank (IDB), ProColombia, and Confecamaras. For more information, visit: https://vui.gov.co/, https://www.iadb.org/es, https://procolombia.co/, and https://confecamaras.org.co/

Question 45

What procedures can I carry out at the Transactional VUI?

Accepted Answer

Soon, the Single Window for Investment will offer the option to carry out transactional procedures. Currently, you can make informational inquiries, including procedures, processes, and deadlines necessary to begin your investment process in Colombia.

Question 46

How to report a failure in the Transactional VUI?

Accepted Answer

Report the error to: contactovui@mincit.gov.co

Question 47

Is registration with the Transactional VUI necessary?

Accepted Answer

Yes, you need to register with a username and password. Click on 'Don't have an account? Sign up,' where the username is your email address and the password is initially assigned by the platform. Once you log in, you must change it.

Question 48

What should I do if I do not receive the registration confirmation email from the website?

Accepted Answer

* Be careful when entering your email address.
* Make sure the email address you entered is the same one you use.
* Check the spam folder in your email account.
* Finally, try logging into the website using the information you registered with.
* If you have tried all of the above options, please send an email to contactovui@mincit.gov.co.

Question 49

What should I do if I forget my password to log in to the Transactional VUI?

Accepted Answer

The Transactional VUI has the option to recover or reset the password by clicking on Forgot your Password?

Question 50

How long does the process take?

Accepted Answer

On the website, https://vui.gov.co/es/tramites-y-procedimientos-administrativos, you can find information on administrative procedures and processes that are part of the investment cycle. When you select a procedure, general information, the responsible institutions, and the legal deadline for completion are displayed.

Question 51

In which subsectors of the country can one invest?

Accepted Answer

The investment subsectors included in the Single Window for Investment (VUI) are: A. Agro-industry: Aquaculture, cocoa, chocolate and confectionery, meat, fruit and vegetables, dairy, and biofuels. B. Manufacturing: Aerospace, agrochemicals, automotive industry, plastic packaging, metalworking, cosmetics and personal care products, and fashion industry. C. Services: Biotechnology, data centers, software and IT services, electricity, oil and gas goods and services, hospitality and tourism, private equity funds, and Business Process Outsourcing (BPO).

Question 52

Which projects in the country are worth investing in?

Accepted Answer

Investment projects in Colombia are found in the following subsectors: Energy, Transportation, Innovation and New Businesses, Public Services, Tourism and Natural Resources.

Question 53

What energy projects exist?

Accepted Answer

The existing Energy projects are:

A. Energy Transition: Energy Territories, Sustainable Pacific River Transport, National Network of Electric Power Charging Stations, and Electromobility in 2- and 3-wheeled vehicles.
B. Conventional Energy: Will any projects be included? For details on each project, visit: https://vui.gov.co/es/proyectos-de-inversion/energia

Question 54

Where are the Energy projects located?

Accepted Answer

Some projects cover the entire country. For more information, see each energy project at https://vui.gov.co/es/proyectos-de-inversion/energia

Question 55

What transportation projects exist?

Accepted Answer

Existing transport projects include:

A. Aerospace Transport: Aircraft Maintenance - Valle del Cauca; El Dorado Airport - Maximum Development (EDMAX); Rafael Núñez Airport and the New Cartagena Airport - Bayunca.
B. Railway Transport: Bogotá - Central Railway Corridor; Pacific Railway; Commuter Train - Valle del Cauca; and Cúpica - Urabá.
C. River and Maritime Transport: Navigability of the Meta River.
D. Road Infrastructure.
E. Motor Vehicles: Will any project be included?

To learn more about each project, visit: https://vui.gov.co/es/proyectos-de-inversion/movilidad-y-transporte

Question 56

Where are the Transport projects located?

Accepted Answer

The transport projects are located across several departments of the country, including: Valle del Cauca, Bogotá D.C., Bolívar, Amazonas, Meta, Casanare, Vichada, Guaviare, Caquetá, Guainía, Arauca, Putumayo, Vaupés, Cundinamarca, Santander, Tolima, Quindío, Caldas, Chocó, and Antioquia.

For more information, please consult each transport investment project at:
https://vui.gov.co/es/proyectos-de-inversion/movilidad-y-transporte

Question 57

What Public Services projects exist?

Accepted Answer

The existing Public Services projects include:

A. Water and Sanitation: Will any project be included?
B. Waste Management: Sustainable Management of Construction and Demolition By-products - Pacific Region; Urban Solid Waste Treatment and Recovery Plant - Pacific Region; and Chemical Plastic Recycling Plant - Pacific Region.

To learn more about each project, visit:
https://vui.gov.co/es/proyectos-de-inversion/servicios-publicos

Question 58

Where are the public services projects located?

Accepted Answer

The public services projects will be carried out in Valle del Cauca. Please refer to the project pages for more details:
https://vui.gov.co/es/proyectos-de-inversion/servicios-publicos/gestion-de-residuos

Question 59

What Tourism projects exist?

Accepted Answer

The existing Tourism projects include:

A. Ecotourism
B. Tourism Infrastructure
C. Cultural Tourism

Will any project be included?

To learn more about each project, visit: https://vui.gov.co/es/proyectos-de-inversion/

Question 60

What Innovation and New Business projects exist?

Accepted Answer

The existing Innovation and New Business projects include:

A. IT and Software
B. Creative and Digital Industries
C. FinTech
D. BOP

Will any project be included?

To learn more about each project, visit:
https://vui.gov.co/es/proyectos-de-inversion/desarrollo-de-negocios

Question 61

What Natural Resources projects exist?

Accepted Answer

The existing Natural Resources projects include:

A. Mining and Quarrying
B. Agriculture, Livestock, and Fishing

To learn more about each project, visit:
https://vui.gov.co/es/proyectos-de-inversion/recursos-naturales

Question 62

Where can I obtain more details about the projects?

Accepted Answer

Please consult the downloadable project sheet for each project of interest. To learn more about each project, visit: https://vui.gov.co/es/proyectos-de-inversion

Question 63

Where will the investment projects be carried out?

Accepted Answer

Please consult the downloadable project sheet for each project of interest. To learn more about each project, visit:
https://vui.gov.co/es/proyectos-de-inversion

Question 64

What is the investment budget for the projects?

Accepted Answer

The allocated budgets vary for each project. For more details, please refer to the project of your interest at:
https://vui.gov.co/es/proyectos-de-inversion

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