frequent questionsManagement of foreign investment in colombia
What type of foreign investment can be made in Colombia?
The Colombian legislation contemplates two types of foreign investment: direct foreign investment and portfolio investment.
What is direct foreign investment?
For example: the acquisition of shares in companies, the creation of new companies, the acquisition of real state, investment in branch offices organized in Colombia.
What is portfolio investment?
It is the type made through foreign capital investment funds in shares and other negotiable instruments in the public securities market.
Are taxes assessed to repatriate profits from Colombia?
The Colombian legislation currently does not assess any tax on the repatriation of profits.
What type of partnership or company can be created?
A Branch Office of the Foreign Company may be opened; an affiliate with over 50% of the capital stock or a new company.
What is the income tax bracket for companies in Colombia?
The tax bracket is 33%.
How is money introduced in Colombia?
The Colombian legislation has provided for it to be channeled through the Colombian Central Bank (Banco de la República)
Does Colombia have treaties to avoid double taxation?
Yes. There are in effect treaties with the United Sates, Panama, Brazil, Argentina, Chile, Spain, Germany, and Italy. The contents vary depending to the country.
What document does a foreigner need to work in Colombia?
The worker requires a Worker’s Visa expedited with the consulate and then obtain a foreigner’s identification card with the Colombian authorities.