Doing Business in Colombia
The main purpose of this document is to inform the reader in a summarized way about the most relevant legal and tax matters that relate to foreign investment in Colombia. We hope this summary is useful for those interested in doing business in Colombia.
Colombia General Facts
Colombia has one of the most outstanding macroeconomic performances within the region. The stability and continuity of government policies and independence of its economic bodies guarantees an ideal environment for investing.
Foreign Investment and Exchange Regime
The Colombian Exchange Regime has the main objective of promoting internationalization of the Colombian economy. Foreign investment comprises all investment of foreign capital, whether direct or portfolio, made in Colombian territory.
Foreign Commerce and Customs
Colombian legislation has focused on facilitating customs operations for imports, exports and transit of goods by regulating the application of various forms of foreign trade.
Labor Framework
Labor law in Colombia is regulated by the Political Constitution of 1991, by international treaties and agreements signed by Colombia and by the Labor Code. Labor law is divided into two areas: individual labor law and collective labor law.
Immigration Framework - Visas
Colombia regulates the entry and permanence of foreigners in the country by means of an immigration regime. This chapter presents the regulations that the Ministry of Foreign Affairs has established for citizens from restricted countries.
Tax Framework
The Colombian tax system establishes taxes at a national and sub-national level (departmental and municipal). The main national-level taxes are the income tax and the supplementary capital gains tax, the wealth tax (temporary validity), sales tax - IVA, national excise tax and the tax on financial transactions.
Excise Tax
Excise tax is generated by provision or sale to a final consumer or importation by the final consumer of certain products or services, such as mobile telephony, certain vehicles, dispensing of prepared meals, among others
Corporate Matters
In Colombia, domestic and foreign investment vehicles are supported by Constitutional principles, such as the right to equality, protection of free enterprise and private initiative.
Government Contracting
Public contracting has a superior character derived from the government purposes it pursues. These purposes are an obligation for the respective government entities as well as for individuals contracting with the State, insofar as the latter always act in their capacity as Collaborators of the Administration.
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